Funding Supported Accommodation: Financial and Administrative Implications of Reforming Housing Benefit

Government proposals to reform the funding of support services in Britain require local authorities to take stock of support schemes in their areas before a new single support budget will replace existing arrangements in April 2003. In the course of the transition, local authorities will also need to scrutinize supported accommodation charges in order to remove charges for services that are unlawfully paid for by Housing Benefit. This paper highlights likely problems in the identification of support schemes and in the estimation of the costs of services. The proposed tightening of the calculation of Housing Benefit will reduce entitlements to the majority of claimants in supported accommodation, many of whom are amongst the poorest people in the country. Efforts must be made to ensure that claimants facing a reduction in their payments are not faced by steady, or even rising, housing costs. In particular, tenants in schemes, which receive no funding under the new single budget, must be protected. The paper discusses the proposals' contribution to bringing housing and community care policies closer together.