Sector leaders warn of cuts to supported housing services unless proposed licensing scheme is amended

Social housing sector bosses have warned supported housing providers will be forced to cut services unless the government rethinks its proposed licensing scheme.

In a letter to ministers today, the chief executives of organisations including the National Housing Federation (NHF) and Chartered Institute of Housing (CIH), along with care providers and homeless charities, warned of ‘negative unintended consequences’ if the new regulatory regime is not rethought.

The letter to homelessness minister Rushanara Ali and to social security minister Stephen Timms, said: “The proposals in the Supported Housing Act consultation carry significant risk of negative unintended consequences for future provision, with good providers who are not the intended subject of this regulation having no course of action but to reduce their supported housing services as a result.”

The government is proposing to introduce new national supported housing standards in England along with a licensing scheme. This is intended to “drive out rogue providers”.

But there is growing concern in the sector that a “blanket ”approach” risks making worse the current supported housing crisis, under which one in three providers closed schemes in the past year.

The letter said the regulations, brought using powers in the Supported Housing (Regulatory Oversight) Act, come at time when the sector is already struggling to maintain supported housing delivery.

It said: “It is crucial that the measures introduced through the Supported Housing Act are proportionate, focus on poor-quality provision, reflect the reality of supported housing provision, and do not duplicate existing regulation.”

It said the changes also need to be accompanied by funding to ensure the extra costs of meeting the new regulations doesn’t “erode the financial capacity” of the sector.

It said: “Without amendments to the current version of the regulations there is a significant risk good providers may be forced out of the sector, as they will not be able to meet the implementation, administration or staff costs, and will face wasteful duplication of reporting on areas where they are already regulated.”

The letter also warned that devolving licensing and planning decisions to local authorities could lead to crucial services being opposed locally.

It said a further reduction in supported housing would put further strain on the NHS, care sector and homelessness services.