Yasmin Qureshi – 2016 Parliamentary Question to the Department for Communities and Local Government

The below Parliamentary question was asked by Yasmin Qureshi on 2016-09-15.

To ask the Secretary of State for Communities and Local Government, with reference to written statement WS154 of 15 September 2016, what assessment he has made of the potential effect of the 1 per cent reduction for supported housing on providers of that housing.

Gavin Barwell

The Government is committed to protecting the most vulnerable through our welfare reforms. That is why we have exempted supported housing from the Local Housing Allowance cap until 2019/20, from which point we will bring in a new funding model which will ensure that the sector continues to be funded at current levels, taking into account the effect of Government policy on social sector rents. We will apply the rent reduction to supported housing, with the exception of domestic violence refuges, with rents in these properties decreasing by 1% a year for 3 years, up to and including 2019/20.

Our social rent reduction policy was based on the need to put welfare spending on a sustainable footing whilst protecting the most vulnerable. It is right that supported housing providers make the efficiency savings we are asking of the whole social housing sector, and that’s why the 1% rent reduction will apply to the majority of them. In exceptional circumstances, supported housing providers (as for general needs social sector providers affected by the policy) who feel that compliance with the social rent reduction policy would result in serious financial difficulty or jeopardise their financial viability, can apply for an exemption from the requirement.