Supported Housing Investigation Launched

The government has launched an investigation into the level of service charges levied by supported housing providers, after becoming concerned that some were inflating costs. The news emerged in a consultation document that also set out radical proposals for the future funding of housing benefit for people in supported housing. The document, published by the Department for Work and Pensions, revealed it had launched an investigation into service charges. It will run the probe with the Communities and Local Government department. The move follows research into the costs of supported housing published last year by the DWP, which revealed median service charges had increased in 2009/10 compared with the previous year. The new investigation has prompted fears among supported housing providers that the DWP may insist on service charge reductions that could end the viability of some schemes. Read more on Inside Housing.