Cross-sector organisations and charities call for urgent action
Today, over a hundred and fifty cross-sector organisations, public bodies and charities have written to the Prime Minister and Chancellor of the Exchequer calling for urgent action to save the country’s supported housing sector, which provides homes to half a million people across England with a range of complex support needs, allowing them to live independently in their own home.
The letter warns that the sector is in financial crisis, with schemes closing across the country, due to a perfect storm of funding cuts and rising cost pressures in recent years. Many providers are now at breaking point, with the recent increase in National Insurance Contributions wiping out already tight operating margins. Without urgent action from the government to increase funding, providers responsible for a fifth (18%) of all supported homes, have said they may have to stop providing services altogether. This would mean the loss of 70,000 supported homes across the country.[i]
A NHF survey last year found that 1 in 3 (32%) supported housing providers in England had closed schemes in the previous 12 months, due to financial pressures.[ii] These schemes were home to residents including young people leaving care, older people and veterans, people with learning disabilities, survivors of domestic abuse and people who have been homeless, among others. Without access to supported housing, these residents could be forced to live in dangerous and unsuitable conditions, putting their safety and health at risk, as well as being at risk of homelessness.
The number of supported homes across the country is now falling against rising demand. We have less supported homes now than we did in 2007 – nearly two decades ago. There has been a net loss of 3,000 supported homes in the last three years,[iii] adding to total shortfall of up to 325,000 supported homes, based on unmet need.[iv] This shortage is already having severe consequences for the NHS, resulting in 109,029 days of delayed discharge from mental health hospitals last year.[v] Supported housing saves the public purse £3.5bn each year by relieving pressure across multiple public services.[vi] Without supported housing, an additional 71,000 people would be homeless or at risk of homelessness, we would need 14,000 more inpatient psychiatric places, 2,500 additional places in residential care and 2,000 more prison places.[vii]
Supported housing contracts are commissioned by councils, based on local need. Housing associations bid for these contracts and provide homes with tailored support services. In 2009 the ring-fence on council funding for housing-related support was removed. As a result, when council budgets were slashed from 2010 onwards, this vital funding was diverted to other areas of council spending, leading to lower value contracts year-on-year, with some councils having little choice but to decommission supported housing services altogether.[viii] The National Audit Office estimate that between 2010 and 2020, funding for supported housing was cut by 75%, equating to over £1bn.[ix]
Alongside cuts to council budgets, providers have faced increased cost pressures from rocketing inflation alongside energy price increases, and the cost of meeting new government regulation, environmental targets and building safety repairs. This has squeezed operating margins at the same time as contracts from councils are shrinking, making it impossible to cover staffing and support costs and leaving no option but to close schemes. Nearly 2 in 5 (38%) supported accommodation services for single homeless people have closed since 2010[x] and figures from Women’s Aid suggests that 4,000 women referred to refuge services have been turned away because of a lack of capacity.[xi]
Led by the National Housing Federation (NHF), the joint-letter is due to be delivered to Downing Street today, with signatories including the LGA, Age UK, Refuge, the Royal College of Psychiatrists, Homeless Link, the Royal British Legion, the National Care Forum, and the Nationwide Foundation, among others.
To secure the future of this vital housing provision and ensure people with support needs can continue to live independently in safe and affordable homes, the NHF is calling on the government to clearly identify funding for housing-related support allocated to local authorities in England. This will require at least £1.6bn annually and should form part of the government’s long-term housing strategy.
Kate Henderson, Chief Executive of the National Housing Federation, says:
"Without urgent action from the government there is a real risk that we lose tens of thousands of homes that were founded on the intrinsic mission to give people with support needs a solid foundation, so they can thrive and live independently.
“Supported housing provides a crucial lifeline for those who need it, giving people the safety, freedom and opportunity to build their lives. Providing this safety net and security not only benefits those who need support, it takes pressure off public services and saves the government money.”
“Today over a hundred and fifty organisation join us in urging the government to take action to save our supported homes, services that are also key to enabling the government to deliver on its missions, relieving pressure on the NHS and multiple public services. The upcoming Spending Review is a crucial opportunity to commit the investment needed to secure the future of supported housing.”
Cllr David Fothergill, Chair of the LGA’s Community and Wellbeing Board, said:
“Supported housing is vital to preventing homelessness and ensuring people who need care can live as independently as possible in their communities.
“By providing the right environment and support, individuals can live fulfilling lives, avoid unnecessary stays in hospital, and are less likely to end up in unsuitable emergency placements.
“This approach not only improves people’s quality of life but also helps reduce pressure on other public services, delivering real savings in the long run.
“To make it work, councils need a sustainable, long-term funding arrangement that allows them to invest in schemes meeting local needs and delivering benefits across the board.”
[i] NHF survey of supported members (April 2024).
[ii] NHF survey of supported members (April 2024).
[iii] Regulator of Social Housing, Private Registered Provider Social Housing Stock and Rents in England 2023 to 2024, Additional Table 1.1.
[iv] MHCLG / DWP, Supported Housing Review 2023.
[v] NHS England (2024) Mental Health Services Monthly Statistics, April 2023 to March 2024
[vi] NHF Analysis (forthcoming)
[vii] NHF research 2023.
[viii] https://www.localgov.co.uk/Ring-fencing-removed-from-supporting-people/31127
https://www.theguardian.com/uk-news/2024/jan/29/how-a-decade-of-austerity-has-squeezed-council-budgets-in-england
[ix] https://www.housing.org.uk/resources/how-much-supported-housing-will-we-need-by-2040
[x] https://homeless.org.uk/knowledge-hub/2022-annual-review-of-support-for-single-homeless-people-in-england/
[xi] Women's Aid Domestic Abuse Report 2024
