Supported Housing Exempt from LHA cap, but uncertainty remains

15/09/2016

CHC respond to DWP's announcement today (Sept 15) on the revised model for funding of supported housing.

The UK Government has responded to calls from Community Housing Cymru (CHC) and Welsh housing associations to exempt supported housing from the local housing allowance (LHA) cap until 2019. Once enacted, it will apply to all supported housing tenancies and any shortfall will be made up via a devolved top up fund to cover the cost of additional support.  CHC also welcomed that the shared accommodation rate will not apply to people living in supported housing.

Questions still remain however about whether the new proposed model gives the certainty that is needed to protect supported housing in the long term.  

Stuart Ropke, Chief Executive of CHC said: “On the face of it, this is good news. It isn’t a funding cut, it is just a different funding mechanism to deliver the support needed for vulnerable people.  However, we now need assurances that the top-up devolved funding will be sufficient, provide flexibility in the long-term and that protections are in place to ensure that the money reaches the right people in Wales.”

“57% of people living in supported housing in Wales will be impacted by this policy and we worked closely with our members to communicate our concerns. Without the exemption, the cap would have jeopardised many tenancies and halted the development of future supported housing schemes in Wales.”

 “Long term funding certainty will ensure existing schemes can remain open and new schemes can progress. We will work closely with Welsh Government on the details of the devolved scheme to get the best outcome for those who require supported housing across Wales.”

The DWP have announced that there will be a consultation process around the additional funding delivery model.  The full statement can be viewed here: