I have recently been contacted by residents in ILford regarding the plans to cap Housing Benefit for people living in supported housing.
I appreciate the vital role that supported housing plays in providing secure, supported accommodation to thousands of vulnerable people - including those affected by mental health problems. I share your concerns about the impact of the Government's proposals on future funding for the supported housing sector.
In 2015 it was announced that a cap would be introduced on the amount of rent that Housing Benefit will cover in the social sector. It will mean Housing Benefit cannot be higher than the Local Housing Allowance (LHA) rate for private rent tenants. I am aware Rethink has highlighted that around 1 in 5 people affected by severe mental illness live in supported housing and has raised concerns that the Government's plans put this provision at risk. I share these concerns.
The measure was due to apply to tenancies signed after 1 April 2016, and come into force from 1 April 2018 onwards for everyone else. However, in March 2016, following pressure from the Opposition it was announced that there would be a one-year exemption for tenants of supported housing. In July 2016, there was an Opposition Day debate in the House of Commons which called on the Government to fully exempt supported housing from its cuts to Housing Benefit and to consult with supported housing providers to identify ways in which all vulnerable people who need supported housing can access it.
In September 2016, the Government confirmed it would be deferring application of LHA rates to social rents for supported housing further - until 2019/2020. At this point it would introduce a new funding model, which will ensure the sector continues to be funded at current levels. The Government has committed to providing ring-fenced 'top-up funds' through local authorities to ensure vulnerable people continue to be supported. In November 2016, a consultation was launched to develop the details for this new funding model. The consultation closes on 13 February and I will follow the outcome of this closely.
I am concerned that the Government has delayed detailing its cuts to supported housing, which will leave tens of thousands of the most vulnerable people without the certainty they need to live their lives. I also believe that the continuous delays in outlining a complete package of support for the supported housing sector are unacceptable.
It is vital that supported housing is fully exempt from the cuts and I will continue to press for this to be the case.