Long term uncertainty remains after supported housing announcement
CIH chief executive Terrie Alafat CBE says the government's long-awaited announcement on supported housing will give reassurance to some but a lack of long-term certainty will be damaging.
CIH chief executive Terrie Alafat CBE said:
"The government’s long-awaited announcement on supported housing offers welcome reassurance for some but leaves significant concern and uncertainty for others.
"Exempting young people under 35 in supported housing from the shared accommodation rate is extremely welcome news for the significant number of vulnerable young people who were at serious risk of losing the housing support they need. But for many other vulnerable people, and the organisations which provide vital accommodation for them, the uncertainty remains.
"In the same way delaying implementation of the new system until 2019 provides welcome time to develop arrangements, but at the same time increases the period of uncertainty.
"Moving from the current entitlement based funding model to a cash limited pot agreed on a periodic basis inevitably means a shorter-term funding environment making it harder for supported housing providers to commit to long-term investment. This uncertainty could be a serious barrier to providing the housing with support that people so desperately need.
"It is good that the government has recognised the importance of supported housing by announcing a ring-fenced funding pot for local authorities, although it does create the risk of patch work of different local authority funding models for individuals and providers to navigate. And we need clarity on what projections the funding will be based on to be sure it will meet the demand.
"It is also clear the funding pot will need to be substantial to fund the service charges in supported housing.
"The announcement that the rent reduction will apply to supported housing providers adds another element of challenge to an already difficult situation."