Local Housing Allowance – Parliamentary Written Answer

Baroness Thomas of Winchester To ask Her Majesty’s Government what measures they will take to protect and enhance the amount of local housing allowance paid by local authorities in England in order to meet the accommodation and support needs of persons with learning disabilities.

Lord Freud: A Written Ministerial Statement was published on 1 March 2016 to announce that the effect of the Local Housing Allowance cap for those living in social sector supported housing, including those with learning disabilities, would be deferred by a year, pending the outcome of a review. We have done this because we understand the importance of ensuring that both those living in supported housing and those who provide this type of accommodation receive appropriate protections. This is why we are awaiting the outcome of a “Supported Accommodation” research project and subsequent policy review, to ensure support is focused on the most vulnerable and appropriate groups are safeguarded.

Spending Review – Further Clarity On Plans To Limit Rents In The Social Rented Sector To LHA Rates

There are three key things which have been confirmed by Government officials and which will help in understanding what is set out in the Spending Review Blue Book.

·         Although the new rules will apply to affected individuals who sign their tenancy from April 2016 onwards, they will be entitled to full Housing Benefit until April 2018.

·         Supported housing is covered by the new rules

·         The Government are committed to exempting supported housing from the new rules by increasing Discretionary Housing Payment (DHP) to local authorities.

As Universal Credit rolls-out Lord Freud has expressed a desire to find a “localised” solution to the funding of supported housing so this announcement needs to be seen in that context. Ministers are still working out the best approach to the funding of rents in supported housing in the context of Housing Benefit being phased-out. Read more on the Homeless Link website.

Social Rented Housing – Parliamentary Written Answer

Alex Cunningham:To ask the Secretary of State for Communities and Local Government, whether he plans for the one per cent reduction in social housing rents announced in the Summer Budget 2015 to apply to (a) supported accommodation claimed as specified accommodation under the Housing Benefit and Universal Credit (Supported Accommodation) (Amendment) Regulations 2014 and (b) other hostel accommodation for the single homeless.

Mr Marcus Jones:In order to reduce the Housing Benefit bill, the Government has taken the decision to bring rent increases within the social sector back into line with the private rented sector. But we acknowledge that there may be some circumstances where the rent reduction policy should not apply. In particular, the types of accommodation that are current excepted under the Rent Standard such as specialised supported accommodation are likely to remain excepted. We are considering whether the existing definition is appropriate in light of the revised policy and will be setting out the details in legislation.

Household Benefit Cap and Universal Credit Housing Costs

The DWP has put proposals to the independent Social Security Advisory Committee and the local authority associations that would exclude benefit paid to cover housing costs in most supported housing from being:

·         Taken into account for the household benefit cap

·         Met via the Universal Credit rent element (which means calendar monthly payment in arrears, typically direct to the tenant’s bank account).

The DWP’s proposals would create four categories of accommodation that would be excluded:

·         Accommodation that meets the current “exempt accommodation” definition in Housing Benefit

·         A new, wider category of supported accommodation where the care, support or supervision does not have to be provided by the claimant’s landlord (the same groups of housing providers as for “exempt accommodation”).

·         Women’s refuges, including refuges of the same groups as for “exempt accommodation”, but also where the landlord is a local housing authority

·         Housing authority hostels where the tenant receives care support or supervision.

Read more on the NHF website.

Delays to Lord Freud’s Pledge

Civil servants are encountering serious complications fulfilling Lord Freud’s pledge to protect vulnerable and disabled people from the ‘unintended consequences’ of welfare reform. Some residents living in supported accommodation are exempt from benefit changes, including the bedroom tax and the benefit cap. But this doesn’t apply to accommodation where the landlord is not the provider of care. The welfare reform minister wrote to housing bodies in April reassuring them he would protect these non-exempt tenants and landlords from ‘unintended consequences’ of the benefit changes ‘through a change to the definition or other means’ and would make proposals ‘at the earliest opportunity’. However, sources said that at a meeting between sector representatives and civil servants, it was confirmed that progress has been much ‘slower than expected’. Read more on Inside Housing.

Housing – Parliamentary Written Answer

Steve McCabe: To ask the Secretary of State for Work and Pensions which groups he proposes will be exempt from changes being applied to the underoccupancy penalty; and if he will make a statement.

Steve Webb: The under-occupancy reduction only applies to working age social sector tenants. However, people living in non-mainstream properties (for example mobile homes) and temporary or supported exempt accommodation will not be subject to a restriction.  Rather than exempting specific groups of claimant we are adding a further £30 million a year from 2013-14 to the discretionary housing payment fund that is administered by local authorities. This is aimed primarily at two groups, people in significantly adapted accommodation and foster carers.

Universal Credit Service Charges – Guidance for Landlords

Ahead of the introduction of Universal Credit in 2013, DWP is publishing the landlord guidance for Universal Credit service charges. This guidance is intended for social sector landlords of Universal Credit claimants, but is not intended to cover Supported Exempt Accommodation, which will be administered outside of Universal Credit.  This guidance reflects the policy intent of paragraphs 7 and 8 of Schedule 1 to the Universal Credit Regulations 2013, which were laid before parliament on 10th December 2012 and which remain subject to parliamentary approval.   The guidance now sets out those charges that are to be eligible under Universal Credit. We would welcome substantive comments that could improve the clarity of the guidance so that it can more easily be followed by landlords and related parties.  Find out how you can comment on the DWP website, or on the Consultations page of this blog.