Housing Benefit and Local Housing Allowance Statement

On Thursday 15 September, the Government announced that the proposed cap on Local Housing Allowance for people in supported accommodation is to be deferred until 2019/20, at which point a new funding model, maintaining current levels will be introduced. This policy change has come about as a result of significant pressure from across the supported housing sector including the National Mental Health and Housing Forum co-chaired by MHPF.

Kathy Roberts, Chief Executive of MHPF, commented:

“MHPF welcomes this announcement to maintain current levels of funding for core rent and service charges. However, the specialised nature of the support means that additional funding is required to maintain support services for those people in receipt of LHA. With the decline of Supporting People funding, significant unmet need is being created with increasing pressure for local authorities to fulfil with limited budgets. The uncertainty created by these changing plans has limited providers’ ability to make long-term plans due to concerns around sustainability of the sector. MHPF is calling on government departments to engage with the VCS and other specialist providers, and work with us to build a sustainable housing sector to support vulnerable people.”

The full statement as made by Damian Green MP, The Secretary of State for Work and Pensions, can be viewed here.