Thursday, 16 February 2017

LHA Cap: £64m Funding Gap Risks Breaking Service

The Local Housing Allowance (LHA) cap for supported housing risks “breaking” sheltered housing, three specialist housing providers have warned. Anchor, Hanover and Housing & Care 21 warn the proposals could result in up to a £64m annual shortfall. The three organisations provide services for almost 100,000 residents and estimate they will face a £64m shortfall if the cap is brought in and the one-bed LHA rate is applied to all the sheltered housing they own combined. There is an estimated £58m shortfall if the two-bed rate is applied to those living in two-bedroom properties. The government has proposed to fund the extra costs of supported housing through a ringfenced top-up fund administered by councils. Read more on Inside Housing.

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