Funding for supported housing

The government has issued a policy statement on supported housing, following its consultation on funding originally published in November 2016.

The statement confirms that the local housing allowance cap will not now be applied to supported housing or to the wider social rented sector. Previously it was planned for the cap to be introduced in 2019.

The statement sets out the planned funding approach for three categories of housing, which will apply from April 2020:

  • For sheltered housing and extra care supported housing, a ‘sheltered rent’ will be introduced to recognise the higher cost compared to general needs. This will be a type of regulated social rent.
  • Short-term supported housing will be funded through a new ringfenced grant paid to local authorities.
  • Long-term supported housing will continue to be funded through the welfare system, as currently, with 100% of housing costs funded as local housing allowance rates will not be applied.

Two new consultations on housing costs have been issued alongside the policy statement. The consultations close on 23 January 2018.


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