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Sheltered housing developments ‘shelved due to benefit cuts’

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Glenys
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Revised letter to landlords (3rd March) - thanks to Sanwyp.

Note it does now mention sheltered housing.

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Dan_Manville
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Never mind the LHA maxima; the reduced benefit cap is starting to catch a few of mine out. I can see people moving back into the Community, relapsing so they qualify for PIP again but not being able to get back into Supported.

HB Anorak
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It’s not all bad news Dan - your clients should be OK.

The benefit cap doesn’t affect most people in most types of supported housing.  Only ways you can be caught by the cap in supported housing are:

- if you already have more than the cap limit in benefits other than HB (this would be the case if you have five children and no income other than benefits)
- if you qualify for HB on two homes
- the accommodation somehow does not satisfy the definition of “specified accommodation”: but if it’s pukka supported it should do.

The first two of those situations could affect some women staying temporarily in a refuge.  For a single person living in a specialist mental health supported hostel it is pretty well impossible to be capped.

Also if a claimant is on PIP they will be exempt from the cap in all circumstances.

Paul_Treloar_AgeUK
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mycatismo - 17 March 2016 03:47 PM

Revised letter to landlords (3rd March) - thanks to Sanwyp.

Note it does now mention sheltered housing.

like reading a note from American Psycho.

except it’s from the Tory lead in the Lords.

Daphne
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House of Commons Library briefing paper on Paying for supported housing  explains the impact of the Government’s policy of requiring rent reductions, and also the application of Local Housing Allowance caps, on the supported housing sector.

Rehousing Advice.
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A Housing Association (Severn Housing) has responded by barring all under 35s, (irrespective of their income) following the imposition of the shared accommodation rate on social housing.

It wont be the last…..


https://speye.wordpress.com/

ClairemHodgson
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that was an interesting take on it (making such properties shared and thus increasing landlords income)

and he’s right it does seem to tie council’s hands up, if that is the only provider in the area….

in the meantime, is that housing association going to kick out all the tenants who happen not yet to be 36, whatever their circs?

Rehousing Advice.
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Yes shared singles, would be a way forward. The problem is that makes clear financial sense for a LA because these bodies can see the wider costs of homelessness. After all they and Health pick up the social costs of Homelessness.

However, I don’t know that Shared Singles will be agenda for the average HA. They are difficult to manage and you end up with a lot of untidy tenancies to clear up, as Err singles become couples etc fall out etc, move to find work and so on.

Paul_Treloar_AgeUK
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Just remembered that there’s been no report, despite original timeline. Ho hum…..

Rehousing Advice.
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Homeless Link has the latest.


http://www.homeless.org.uk/connect/blogs/2016/apr/12/whats-future-for-supported-housing


There is an update 13/4/16 at the bottom. The position is unchanged.


Brandon Lewis MP, the Minister of State for Housing and Planning, summarised the Government position:


“While looking after the most vulnerable in society, we must also ensure that funding for supported housing is efficient, workable, transparent and sustainable, in order to provide a secure, quality service that delivers for those who need it and makes the best use of the money available. As the right hon. Member for Newcastle upon Tyne East (Mr Brown) outlined, my Department and the Department for Work and Pensions—this issue crosses Departments—have jointly commissioned an evidence review of the supported housing sector. That review will help us to shape the future based on the latest evidence of the current scope and scale of the supported housing sector. It has included extensive consultation with local authorities, supported housing commissioners and all types of supported housing providers, be it charities, housing associations or providers from the commercial sector. The review will report shortly, and we will continue to work with and listen to the sector as part of developing a long-term, sustainable funding regime.”
- See more at: http://www.homeless.org.uk/connect/blogs/2016/apr/12/whats-future-for-supported-housing#sthash.bywJ3M0N.dpuf

[ Edited: 11 May 2016 at 08:29 am by Rehousing Advice. ]
Rehousing Advice.
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http://www.homeless.org.uk/connect/blogs/2016/may/25/government-receptive-to-strong-case-from-sector-may-update-on-lha-caps?utm_source=Memberlink+list&utm_campaign=38283eb062-Memberlink_26_May_2016&utm_medium=email&utm_term=0_b3432a0d0e-38283eb062-87947649


This is the latest from Homeless Link.


“At the last count, it has shown that services stand to lose between 20-80% of their annual rental income, at an average loss of 63% per service.

Throughout these discussions we have stressed to Government that this risk cannot be overstated.  LHA rates simply won’t stack up because of the higher costs associated with supported accommodation - costs which are still outweighed by the benefits supported housing brings to our communities and the tax payer.

Simply put, most providers have said they would have to shut their doors as they would not be able to operate safely.”

Paul_Treloar_AgeUK
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Thanks for the update Martin, I was thinking about this last night and wondering what was (or wasn’t) happening. So we’re expecting an initial report now in the “summer”. That could still be some time away then….

Rehousing Advice.
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Yes, there is a lot of uncertainty out there.

And it is not just new projects being shelved, support services are often contracted, and as contracts end, there is now real danger, some projects (smaller, innovative, more local, unable to manage the financial risks)  will now also start pulling out….....

Paul_Treloar_AgeUK
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Spotted this from the Local Government Association.

Supported housing needs to be exempt from the housing benefit cap in order to protect the elderly, ex-homeless, people fleeing domestic violence, ex-offenders, and people with learning disabilities or mental health problems, councils urge today.

The LGA is also warning many supported housing schemes could be forced to close as a result of the lost revenue, if the cap was introduced, leading to a shortage of available homes.

Councils fear many new supported housing developments needed to cope with the increase in demand may never get built if the cap was applied.

More than 9,000 supported housing units previously expected to be built may not go ahead – which equates to 96 per cent of all developments within the sector, according to the National Housing Federation.

An estimated 156,000 units of existing supported and sheltered housing are also at risk of closure – 41 per cent of all existing schemes.

Vulnerable and disadvantaged could be left with nowhere to live under benefit cap, warn councils

Rehousing Advice.
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Thanks Paul, the briefing attached to the press release is very detailed and good.

Here is a point I handn’t picked up.


“It is important to note that although the Shared Accommodation Rate is intended to apply to single Housing Benefit claimants under the age of 35, it will also affect older claimants if they are living in shared accommodation. Under the technical definition of shared accommodation, the vast majority of tenants living in hostels or refuges (or any supported housing where the tenant does not enjoy exclusive use of two or more rooms) will be subject
to the Shared Accommodation Rate, irrespective of their age.”

Joint Briefing to MPs and Peers re Social Housing and LHA by Housing and Support Alliance

http://www.housingandsupport.org.uk/jointbriefingtompsandpeersresocialhousingandlha