The LHA rates are set by individual local authorities working out a median figure of the lower 30% of market rents within their boundaries meaning that the LHA rate varies between local authorities. The amount of LHA paid is also inclusive of service charges.
The impact to tenants would mean that many would be unable to cover their rent payments or pay for the services they receive from providers (especially supported housing).
Providers, in turn, would have difficulty recovering the rents and service charges as a result of the tenant’s affordability issues. As a result, Providers have held back on new schemes that these issues might affect, and have prepared for changes to the services they provide with a view that they will only provide those services that are truly essential and affordable.
Following extensive lobbying and campaigns, the Government announced on 25 October 2017 that they will no longer apply the LHA cap for supported accommodation and the wider social housing sector as a whole. Given the highlighted issues, it has a huge impact.
It is important to note though that the overall benefit cap (currently £23,000 for those inside Greater London or £20,000 for those outside Greater London) remains.
The Government has followed up the announcement by introducing two consultations; one on housing costs for sheltered and extra-care accommodation, and one on housing costs for short-term supported accommodation.
The proposals put out to consultation are to split supported housing into three broad groups (long-term support; short-term and transitional support; and sheltered housing and extra-care support). The consultation also proposes different funding streams for each category of supported housing would use (through the current welfare system; local authority funding; or through a new ‘sheltered rent’ payment that would be introduced as part of the welfare system).
Having removed the LHA cap though, the consultation includes discussion on a new “Sheltered Rent”. So the LHA announcement on its own is unlikely to kick-start the (very many) stalled extra-care housing developments.
Vital short-term accommodation is needed as efforts increase to tackle homelessness. Ring-fenced grants received by the local authority will provide funding for short-term accommodation. This payment will cover all the housing costs (including rent and eligible service charges).
The new funding regimes for supported housing are due to be effective from April 2020.
Both consultations will close on 23 January 2018; you can see the full consultation paper here.
If you have any queries regarding the above, then please contact Zishaan Saleem.
We are delighted to announce that our private wealth law department has continued to maintain its Band 2 position in the latest edition of Chambers and Partners High Net Worth.
Charities, like other organisations, may be subject to or choose to voluntarily comply with the reporting requirements under the Modern Slavery Act 2015.
The draft regulations making it mandatory for anyone entering a registered care home in England to have been double vaccinated unless they are clinically exempt were made on 22 July 2021.
In the Transforming Public Procurement Green Paper, the Government signalled its desire to increase its control over procurements by all contracting authorities.
The monthly round-up from the Anthony Collins Solicitors charities team.
Legal updates as the UK enters into stage 4 of the roadmap and legal restrictions on face coverings and social distancing are lifted.
The first disability we are going to discuss is diabetes. We begin by discussing the different types of diabetes; their similarities and differences and how we live with the disability within our day.
Tim Coolican and Freya Cassia explore the legal and practical options available to providers if a disappointing result is received following an inspection.
Following the launch of the CQC’s new strategy for how it regulates health and social care, many providers will be keen to know more about how the changes might affect them in the future.
EPC’s are not required to be served with a Section 21 notice for assured shorthold tenancies if the tenancy predates October 2015.
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