‘Act now to save supported housing’ - sector leaders warn Starmer and Reeves

More supported housing schemes will close across the country unless the government acts in the spending review to tackle a funding crisis, a letter to the prime minister and chancellor signed by 170 organisations has warned.

The letter, co-ordinated by the National Housing Federation and signed by leaders of housing associations, charities and local authorities, says one in three providers had to close supported housing schemes last year due to funding pressures.

It cites NHF research showing six in 10 providers will have to close supported housing schemes in the future and a third may be forced to stop providing supported housing altogether. This would mean the loss of 70,000 supported homes across the country.

Supported housing provides homes 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.

The letter calls for increased long-term funding for housing-related support of at least £1.6bn per year for local authorities, a commitment to deliver more supported homes by 2040 with specific funding in the next Affordable Homes Programme and measures to ensure supported homes form part of the government’s 1.5m homes target.

The letter said: “The future of supported housing is at risk because of the dire financial situation facing the sector.

“Following years of funding cuts under the previous government, local authorities have been forced to decommission vital services. Rising costs alongside reduced funding have rendered many services unviable, forcing many to close, while demand for supported housing continues to rise. The decision to increase employers’ National Insurance contributions has placed even further pressure on providers’ budgets.”

Supported housing contracts are commissioned by councils, based on local need. Housing associations bid for the contracts and provide homes with tailored support services. Until 2009 a ring-fence on council funding for housing-related support was removed. The National Audit Office estimate that between 2010 and 2020, funding for supported housing was cut by 75%, equating to over £1bn.

>>See also: MHCLG and DWP set out proposed supported housing standards

>>See also: Regulator issues warning over risks of lease-based provision of specialised supported housing

The NHF said there has been a loss of 3,000 supported homes in the last three years, adding to total shortfall of up to 325,000 supported homes, based on unmet need.

The letter to Keir Starmer and Rachel Reeves was signed by Gavin Smart, chief executive of the Chartered Institute of Housing, along with dozens of housing associations and other organisations including the Local Government Association, Age UK, Refuge, the Royal College of Psychiatrists, Homeless Link, the Royal British Legion, the National Care Forum, and the Nationwide Foundation (see letter and full list of signatories attached).

A Ministry for Housing, Communities and Local Government spokesperson said: “We recognise the vital role played by supported housing in helping vulnerable people to live independently and well, and the contribution it makes to tackling rough sleeping and timely hospital discharge.

“That’s why we’re taking urgent action to fix the broken system we inherited through our Plan for Change, investing £2bn in 2026-27 to deliver the biggest boost in social and affordable housebuilding in a generation and we will set out further details in our long-term housing strategy later this year.”