The government will seek “greater oversight” of the quality of supported housing as it shifts funding responsibility to local authorities.
According to Inside Housing:
“A long-awaited consultation into reforming the funding of supported housing was published, ahead of a controversial cap on housing benefit at Local Housing Allowance levels.
In response to concerns that this cap could make supported housing schemes unviable, the government revealed in September that a “top-up fund” would be given to councils to make up for lost income.
Today’s consultation said this would give councils an “enhanced role” in commissioning supported housing in their area and allow them to “take a more coherent approach”.
It said supported housing funding “is not [currently] well designed to ensure effective oversight of quality or control of spending to ensure value for money”.
It added: “We want quality and a focus on individual outcomes to play a greater role in how we fund the sector.”
The government is consulting over whether there should be a national statement of expectations or a national commissioning framework “within which local areas tailor their funding”.
The consultation will run until 13 February next year and a Green Paper with the detailed arrangements for the local top-up model will then be published in the spring. It said its preference was for county councils and the Greater London Authority to administer the funds.
The final package will be announced in autumn next year ahead of the new model kicking in from April 2019. The government proposes putting shadow arrangements in place from April 2018 on the detail and allocation of funding.
The amount of top-up funding will be set “on the basis of current projections of future need”, the consultation said.
It said the funding should cover a “general definition” of supported housing, rather than having separate ringfenced posts for different client groups.
However, some stakeholders have raised concerns that certain vulnerable groups could be overlooked. The government is therefore looking at introducing statutory duties for councils to protect housing provision for specific vulnerable groups.
It said the government recognises short-term accommodation such as hostels and refuges have “particular challenges”. The government said it will work with the sector to develop further options to ensure providers of shorter-term accommodation “continue to receive appropriate funding for their important work”.
The government has set up four “task and finish” groups with membership from stakeholders and partners from across the sector and from across government departments. These groups will each be responsible for one area:
- Fair access to funding
- Local roles and responsibilities including ensuring value for money, quality and oversight
- Ensuring new supply of supported housing
- Short-term accommodation “