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Funding for Supported Housing - consultation

Last updated: 13 Feb 2017

Consulting body:
Department for Communities and Local Government
Period of consultation:
Runs from 21 November 2016 to 13 February 2017
CML action:
Response submitted

This consultation seeks views on the design of the Government’s new housing costs funding model for supported housing, as well as views on how funding for emergency and short term placements should work.

It covers the following areas:

1. Devolved top-up funding to local authorities in England; and

2. Funding for emergency and short term supported housing placements across Great Britain.

CML response

We believe that the proposed funding model, in particular the local ring-fence, will bring greater uncertainty and additional risk into funding decisions for supported housing providers.

This could result in a higher cost of funds and a knock-on impact on providers’ service and development capacity.

The ring-fence, and how it operates in practice over time, will effectively mean shifting sands in how supported housing providers are funded.

While, at the outset, the ring-fence might be firmly in place, funders are anxious that, as local authority budgets become further stretched, the ring-fence could be breached.

There is a real concern among supported housing funders that local councils in some areas might be so financially pressured that the top-up fund for supported housing could be used to sustain other essential services.

The proposed changes are likely to impact on the development of new supply. Lenders are generally concerned about exposure to supported housing and care within a housing association and its generally poor or negative returns which impact negatively on an association’s core business.

Read the full CML response below.