Changes to funding for supported housing

The Government is consulting on plans to change the way that supported housing is funded.

Currently, supported housing costs are paid for through a person’s Housing Benefit, which is normally paid directly to their landlord through the benefit system.

The new plans propose that from April 2019, the rent element of the benefits that a person receives while living in supported housing will be capped at the Local Housing Allowance (LHA) rate, and funding for the additional costs of providing supported housing, known as the ‘top up’, will then be devolved to local councils who will commission supported housing ‘top up’ costs based on local need.

The council has been working hard with partners and providers to understand what these changes will mean for people in Newcastle, and for the way that we commission supported housing services. This work has been pulled into a council response which you can read here. (pdf, 323kb)

We will continue to work closely with Government, providers, and local people over the coming months to understand the impact of these changes on Newcastle, and we will provide further information once the Government publishes its green paper on the new funding model in the Autumn.