Housing benefit changes could have devastating impact on elderly, disabled and homeless - John Healey MP
New analysis showing the devastating impact housing benefit changes in George Osborne’s Autumn Statement could have on the elderly, disabled and homeless has been released by Labour’s Shadow Cabinet Minister for Housing and Planning, John Healey MP.
The analysis, conducted by the Placeshapers group of housing associations for Mr Healey, is the first proper assessment of the housing benefit changes on ‘supported accommodation’ - specialist housing for those who need special care or support.
This includes frail elderly people, those with disabilities and people who are homeless. Due to the higher costs associated with providing accommodation for these groups, rents can be significantly higher than other types of housing, and so incur a higher housing benefit cost.
The housing benefit changes announced by the Chancellor propose a new low cap on housing benefit costs across all types of social housing, equivalent to the local housing allowance rate for private rented tenants, without any concession for supported accommodation. It will affect all new tenancies signed after April 2016, and come into force from April 2018.
The housing benefit changes were announced in the Autumn Statement at the end of November, but an absence of national statistics has meant the effect on the most vulnerable was hidden - until now.
The analysis reveals:
- a loss of at least £400m across the country for specialist supported accommodation, which could affect over 440,000 vulnerable people.
- an average loss across the accommodation providers surveyed of £56 per property per week , or £2,920 per year.
- the Government’s proposed solution of higher 'discretionary housing payments’ to cover the shortfall will not be adequate to keep many supported accommodation schemes open due to the significant and ongoing shortfall.
- a wide range of services will be affected including: specialist accommodation for women in Middlesbrough who have been in care, or experienced health problems and accommodation for young people with learning difficulties in Norfolk.
Commenting, John Healey said:
"Osborne’s cuts to housing benefit support for thousands of elderly, disabled and homeless people will be a catastrophe for those who can least afford it. There is no way these people or the organisations who support them can make up the yawning shortfall these cuts will open up. If nothing is done, vital supported housing across the country will close, and the people who rely on them will be forced out.
“George Osborne must put a stop to these plans, publish a full impact assessment and consult fully with supported accommodation providers to safeguard this essential housing.”
Charlotte Norman, PlaceShapers Board Member and Chief Executive of St Vincent’s Housing Association in Manchester, said:
“These changes in housing benefit entitlement look like having a more detrimental impact than any other recent housing and welfare announcement. Supported housing provision fits clearly with our vision and purpose and makes a huge difference in communities up and down the country.
“Over 440,000 vulnerable people live in schemes provided by housing associations and their homes are now at risk. The current response that Discretionary Housing Payments will cover the gaps is clearly nonsense and unworkable.
"We cannot believe that Government understands the consequences of these changes and the vast extra costs that would fall to the public purse as a result of scheme closures. Nothing short of exemption for all such housing will be adequate and we very much hope that common sense will prevail.”
