Some local authorities may be pre-empting the supported accommodation regulations with how they pay out housing benefit. Policy Manager Alexandra Worrell describes what we have found and asks for your help.
When we speak to members across the country about the forthcoming regulation of supported accommodation, many express that they are already experiencing difficulties due to local authorities changing their practices around the payment of housing benefit.
We are aware of an increasing number of organisations facing issues such as:
- the local authority areas they operate in mandating that services must be meeting a certain ‘threshold’ of support (despite this not currently being a requirement),
- providers being told to fill out new forms that request an unrealistic level of detail about individual claimants or
- local authorities pursuing new evidence for claims paid out many years ago.
This shift in practice is affecting commissioned and non-commissioned services alike and we believe it is happening to high quality services, not just ‘rogue providers’, because of local authorities anticipating the upcoming regulations, made worse by potential cost-cutting incentives.
Recent indications from the Government are that the new regulations won’t be finalised and fully in effect until early 2027. It’s therefore vital that the Government acknowledges that this issue is impacting services right now, and provides clarity and leadership to prevent chaos in the interim period.
In the context of the sector’s current financial position, withholding, or significant delays in the payment of housing benefit can threaten a service’s viability and put bedspaces at risk when they are needed more than ever. The terrible recent example of NAASH, a Homeless Link member, being driven into voluntary liquidation as a result of West Northamptonshire Council’s actions highlights the real life impact of these decisions. More than 200 vulnerable residents in supported accommodation previously provided by NAASH are now at risk of eviction, homelessness and their support needs going unmet.
Since submitting our response to the supported accommodation regulations consultation, Homeless Link has continued raising this issue on behalf of members. Where possible, we have provided advice and campaigning resources to individual members who have approached us. We’ve been engaging with MHCLG and DWP officials, sharing evidence of where we know this is happening to members and the impact on provision.
We are planning further public activity and seeking to meet with the relevant Ministers ahead of the Government’s formal response to the consultation being published. To strengthen our arguments and the quality of evidence we can provide, we are looking for members to share any further examples of where they are having issues with local authority housing benefit departments. If this applies to you, please complete this short survey. There is the option to remain anonymous.
We believe that the Government needs to issue an urgent directive to all local authorities, calling for a more consistent and proportionate approach and highlighting the risk to supported accommodation supply. We also continue to urge the Government to rethink its proposals around Housing Benefit in the supported accommodation regulations consultation for the reasons outlined here.
