Housing association calls on MPs for support over proposed government funding changes.
The managing director of a housing association has written to MPs calling for help over proposals to hand funding for supported housing to councils.
Wayne Gethings, of the Wrekin Housing Trust has criticised the proposals and says he believes changes to the future funding for supported housing could have an adverse impact on some of society’s most vulnerable people, including the elderly, people with learning disabilities, and those with complex health needs.
He also fears the move could lead to a shortage of specialist accommodation.
There are currently seven supported housing schemes in Shropshire, offering about 409 apartments, flats and bungalows. The schemes help vulnerable people to live independently, with residents given extra help while living in the developments
Under its proposals, the government wants to change the way funding is allocated for supported housing to fit with its welfare reform programme. However, the Wrekin Housing Trust says this would not be enough to cover the cost of some supported housing. It also says it may put their plans to invest in £80 million of new schemes in jeopardy.
The government wants the extra money that pays for supported housing to go to local councils and for them to make the decision about whether they give the supported housing providers, like The Wrekin Housing Trust, extra money or not. The local council will also decide how much extra money they will give the providers.
Mr Gethings is also calling on the government to ensure that the funding element via the housing benefits systems is paid at a higher rate for supported housing instead of the suggested Local Housing Allowance (LHA) rate, which has been calculated regionally and is applicable to all rented accommodation.
It is well recognised that supported housing is more costly to run, because of its extra facilities and the requirements of its tenants.
But Mr Gethings says it is also well recognised that supported housing reduces pressures on the public purse, housing and helping people that could otherwise be a cost on the NHS or in social care.
He said: “There is absolutely no reason why the funding for supported housing should sit with local authorities. It will simply create an additional layer of administration and bureaucracy. Local authorities are already facing a strain on their resources. Do they have the capacity to manage this new funding model effectively?
“The funding should be with housing providers because otherwise, we along with other providers, are unable to make long term plans to invest in new developments or re-model existing schemes without guaranteed funding provisions. This uncertainty will stall, or even worse, prevent future provision of accommodation for an ageing society. The Wrekin Housing Trust currently has approximately £80m worth of developments in the pipeline. Though some of these may need reviewing, due to the uncertainty of the funding.
“If the new funding arrangements are not implemented correctly there is a very real danger that housing associations will simply choose safe investments, such as traditional two and three bedroom properties for rent. If that were to be the case, then the additional burden of supporting those most in need would fall on the NHS and local authorities.
“Out of 12,000 tenancies over 45 per cent of Wrekin Housing Trust tenants are over the age of 65 and a further 25 per cent are aged between 50 and 64. Therefore, it is vital that we provide appropriate accommodation and services that are suitable for the needs of older people which ultimately have a positive impact on the public purse."
Mr Gethings has now written to the five Shropshire MPs to ask them to meet with him to discuss the potential problems the changes may cause.
The government will publish its Green Paper about the Future Funding for Supported Housing in the spring.
