Last Updated on September 19, 2016

A new supported housing funding model has been announced by the Government. Supported housing, which supports some of the most vulnerable people from across the country, will continue to be exempt from the Local Housing Allowance cap until 2019.

From then the new supported housing funding model will protect the sector from the cap with a top-up of additional ring-fenced funding. The amount of top-up funding will be set on the basis of current projections of future need.

In a statement to Parliament, Work and Pensions Secretary, Damian Green reiterated the Government’s support for this crucial sector and determination to secure its long-term future. The new ring-fenced pot of money will give local authorities greater flexibility to commission services in line with local needs. The Government will be consulting with the supported housing sector over the details of the funding model in the coming months.

Work and Pensions Secretary, Damian Green said, 'We know the valuable role that these organisations play in communities across Britain. Women’s refuges or housing for young people with learning disabilities are important parts of the support system for vulnerable people.

'As we build a Britain that works for everyone, not just the privileged few, our new funding model will help those people who need it the most.'

The new model will mean Housing Benefit and the housing element of Universal Credit will focus on paying for core housing costs, while still ensuring the sector is protected from the Local Housing Allowance cap.

Communities Secretary, Sajid Javid said, 'As a government that works for everyone we have been working hard to ensure that the most vulnerable in society get the right level of support.

'That is why we have extended this exemption and will implement a new funding model, which will underpin the provision of safe, stable and supportive places to live for those in need.'

The Government says that the supported housing funding, for local authorities in England, will allow them to have a more co-ordinated approach to commissioning, funding and overseeing the support in this area, driving up quality and efficiency in the supported accommodation sector and ensuring the right support is in place where it is needed. Housing is a devolved matter and the appropriate funding will be allocated to the devolved administrations.

The Government has also announced that benefit claimants in supported accommodation will be exempt from the lower shared accommodation rate, in recognition of the vulnerable nature of many of their residents.

Chief Executive of United Response, Tim Cooper has raised concerns about the uncertainty the changes will create. He said, 'Having somewhere to call home – that offers a safe and welcoming place to live, is something that most of us take for granted. Today’s proposals from the Government on the future funding of supported housing threaten that right for some of the most vulnerable people in our society.

'Plans to cap housing benefit and universal credit at Local Housing Allowance levels for supported housing, and devolve funding to local authorities for controlled top-ups for any additional costs are deeply worrying.

'These proposals create even greater uncertainly about the future of supported housing which is vital for people with learning disabilities and mental health needs to live in the community.'