The Supported Housing Act - an opportunity for a more strategic approach

After submitting our response to the Supported Housing (Regulatory Oversight) Act's first consultation, NHF Policy Leader Suzannah Young reflects on what we need from the government to safeguard the future of supported housing.

A safe, decent and affordable home is fundamental for all of us to live a full and healthy life. Supported housing exists so everyone in our communities can live their best life. It delivers independence and wellbeing for many people with different care and support needs.  

As well as supporting residents, supported housing in England also saves the state £3.5bn every year. Supported homes are a vital part of a sustainable housing, health and social care system that relieves pressure on our public services and improves outcomes for residents. 

And yet, supported housing is facing a funding crisis. Revenue funding for support has been drastically cut. The National Audit Office estimates that between 2010 and 2020, funding for supported housing was cut by 75%. This affects the survival of schemes and their availability for the people that need them the most now, and in the future. These are issues which we have been raising awareness of through the #SaveOurSupportedHousing campaign.  

At the same time, the supply of supported housing is not keeping up with increasing demand. We have an ageing population: research shows that by 2035, the number of people over the age of 60 in England will reach 29% of the entire population. In this context, the role of supported housing has never been more critical, and we must safeguard its future. 

The potential impact of new regulation

Our members understand and support the intention behind the new oversight regime. All supported housing residents deserve a good quality home and services, and we know our members are committed to this goal. But given how challenging the operating environment is for supported housing providers, we need a clear and ambitious long-term strategic approach.

 We’re concerned that without changes, the proposals will likely have unintended consequences. If providers have no course of action but to reduce their supported housing services, it will be residents who lose the most.

The consultation and proposed regulations come at a time when the sector is already struggling to maintain the current supply of supported housing, let alone build more to meet growing need. A recent NHF survey told us that: 

• 1 in 3 (32%) of supported housing providers had to close schemes in the 12 months prior to the survey, because of funding constraints.
• Providers responsible for almost a fifth (18%) of homes say they may be forced to cease providing supported housing altogether in future – potentially putting 70,000 supported housing places at risk. 

It is crucial that the measures introduced through the Supported Housing Act are proportionate, focus on poor-quality provision, and do not duplicate existing regulation our members already comply with. When the Bill was introduced, ministers told us that the aim was not to hinder high-quality supported housing providers. It is vital ministers listen to the sector now to make certain that the final proposals are tightly focused on tackling poor quality providers.

We have engaged extensively with the government to urge them to make proportionate changes that would help the regulation better deliver high standards, whilst protecting the supply of supported housing. By working together with the sector, the government can create a more balanced and effective regulatory framework that protects good supported housing.  A reduction in supported homes will only hinder the government’s ability to deliver on its missions, like building an NHS fit for the future and developing a national care service. 

Ultimately, and most importantly, it is vulnerable residents who will lose out if reforms cause good quality, affordable supported housing to close. Without supported homes, there is often no option for residents but homelessness, moving to an institution or to an unscrupulous or expensive provider. These scenarios contradict the very purpose of the Act.

What are we asking the government to do?

As well as changes to the proposals, supported housing providers need funding to be able to implement and evidence standards effectively. If we don’t have enough funding, supported homes could become unviable, and providers will have no choice but to exit the sector. 

To give confidence to the supported housing sector, the government should:

1. Urgently review supported housing funding and have a clear cross-government approach to protect and grow this vital part of the housing system – through the forthcoming long-term housing strategy, cross-government homelessness strategy and NHS 10-year plan. 
2. Allocate at least £1.6bn per year to English local authorities to commission supported housing, matching the Supporting People programme funding cut in 2010. 
3. Set a target to meet supported housing need as set out in the 2023 Supported Housing Review in full and ensure new supported homes form part of the 1.5m homes target. 
4. This full package of measures would provide the sector with desperately needed financial capacity and send a clear signal to the supported housing sector of this government’s intentions for supported housing, therefore instilling confidence, shoring up existing provision and laying the foundations for additional supply.

There is still time for the government to listen to the sector and make sure unintended consequences do not happen.

At the NHF, we will continue to work to influence the implementation of the Supported Housing Act, on behalf of our members and the residents they support. We must work together to safeguard the future of vital supported homes.