Supported Housing Task and Finish Group Summary Report

5. How it is currently funded

5.1 Funding for supported housing is a complex package spanning housing and support costs, alongside capital costs where relevant to build, purchase or develop housing. The main sources of funding for supported housing are:

• DWP Housing Benefit and service charges which pay for the cost of providing, managing and maintaining housing and include enhanced housing benefit.
• Housing support services, largely funded by the local authority (96% in our survey), to provide on-site support for residents.
• Health and Social Care Partnership (HSCP) funding in some cases where additional care is required, and specific eligibility requirements are met.
• Capital funding for supported housing provided by RSLs has been available from the Scottish Government through the Affordable Housing Supply Programme. However, this is only available where a Scottish tenancy is being used, which most supported housing does not. RSLs report challenges with the system of recycling capital grant attached to a property which is no longer fit for purpose.

5.2 This complexity of funding arrangements is poorly understood and detrimental to everyone involved:

• For residents of supported housing: complex DWP funding rules create high rents, an acute ‘benefit trap’ and a major barrier to employment or learning.
• For housing and support providers: short term contracts and budget pressures create a precarious funding situation and represent a high level of risk.
• For national and local government: unintended consequences of complex funding and a tightening of rules expected following a recent DWP investigation.