Rent cut risks hitting Britain’s most vulnerable groups

Housing Wed, Mar 23, 2016 10:40 AM

Rent cut risks hitting Britain’s most vulnerable groups

War veterans, people with learning disabilities and victims of domestic violence are just three of the highly vulnerable groups that stand to be drastically affected as a result of new rules in a bill currently being considered by Parliament.

Under the Welfare Reform and Work Bill, rents for housing association tenants would be cut by 1% each year for the next four years.  This measure was brought in by government to bring down the housing benefits bill, but risks severe unintended consequences in the form of a reduction of care for thousands of people who rely on housing associations for support.

These services – collectively known as ‘Specified Accommodation’ – are highly specialised to cater towards those with highly complex needs, such as homeless veterans, victims of domestic violence and individuals with severe mental health issues.  This includes programmes to support former soldiers into stable housing and employment as well as learning disability units which provide 24-hour care and support to their residents.  

Due to the diverse and complex nature of these schemes, housing associations are often the only organisations able to make the investments in time and money that are necessary to sustain them.  However, the rent cut may force some of these vital services to be cut back or close completely.

The National Housing Federation is calling upon the Government to exempt Specified Accommodation housing schemes from the 1% rent cut and ensure that these vitally needed schemes are allowed to continue.  

According to a report commissioned by the Homes and Communities Agency, these services collectively contribute to savings for government of £640 million per year by reducing pressure upon other services such as the NHS, social care and the criminal justice system.  This includes:

  • People with learning disabilities: £6,764 per person per year;
  • People with mental health problems: £4,671 per person per year;
  • Single homeless people with support needs: £1,655.

David Orr, Chief Executive of the National Housing Federation said: “The Prime Minister has been clear in the past that the government he leads would always provide help to those who need it.  However, by extending the 1% cut to social rents to those housing schemes supporting the most vulnerable in our country, that same government risks jeopardising that aim.

“I do not believe the Government wants to see support for domestic violence victims, homeless veterans, people with learning disabilities or many others face the loss of desperately needed support and shelter.  Therefore I would urge the government to adjust its plans, meaning those who need help most continue to receive it.”

Neil Blanchard, Chief Executive of Southdown Housing Association said: "Reduction in rents would have a direct impact on our ability to develop and increase the supply of housing. This works against the Government’s plan to reduce the number of people with learning disabilities living in NHS-run Assessment and Treatment Units.  

"In addition to increasing choice and independence, community-based housing and care options, in our experience, are £52k per annum cheaper than more institutionalised services.

"Approximately 1.5 million people in the UK have a learning disability. We must not turn our backs on those that need a safe place that they can call home and support to live their life."

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