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The government is currently making changes to the way social rented sector tenants have their Housing Benefit assessed.

One change is unusual in that it applies to new tenants who sign up now but only from 2018-

  • Housing Benefit reduced for claimants in the social Sector For new tenancies signed after 1 April 2016, Housing Benefit entitlement will change from 1 April 2018 onwards.  Cap the amount of rent that Housing Benefit will cover in the social sector to the relevant Local Housing Allowance, which is the rate paid to private renters on Housing Benefit. This will include the Shared Accommodation Rate for single claimants under 35 who do not have dependent children. saving £225 million by 2020/2021.

With regard to Supported Housing the government originally postponed this change - Damien Green has now made a statement in the Houses of Parliament-

  • policy now starting in 2019/2020- 'We have heard the concerns regarding the application of the Local Housing Allowance (LHA) rates to social rents from 2018. So I can announce today that we will be deferring the application of this policy for supported housing until 2019/20. At this point we will bring in a new funding model which will ensure that the sector continues to be funded at current levels, taking into account the effect of Government policy on social sector rents. I can also confirm that the deferral until 2019/20 will extend to fully mutuals/co-operatives, almshouses and community land trusts while we consider whether any additional arrangements will be necessary for this group in the longer term.'
  • Housing Benefit and Unviersal Credit will be at the LHA rate but the shared accomodation rate won't apply- 'It is our intention that from 2019/20 core rent and service charges will be funded through Housing Benefit or Universal Credit up to the level of the applicable LHA rate. This will apply to all those living in supported accommodation from this date. I can also confirm that the Shared Accommodation Rate will not apply to people living in the supported housing sector, in recognition of the particular challenges this would have placed upon them.
  • Costs above the LHA rate- 'For costs above the level of the LHA rate, Government will devolve in England an amount of funding for disbursement locally. In Wales and Scotland, an equivalent amount will be provided and it will be for those administrations to decide how best to allocate the funding. In England, we will devolve funding to local authorities to provide additional ‘top up’ funding to providers where necessary, reflecting the higher average costs of offering supported accommodation, compared to general needs. This will give local authorities an enhanced role in commissioning supported housing in their area. This will also allow local authorities to ensure a more coherent approach to commissioning for needs across housing, health and social care, using local knowledge to drive transparency, quality and value for money from providers in their area.'

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