ODPM ponders action to reverse decline in new supported housing

Councils and housing associations have been clamouring for help on this issue for the past 12 months as investment in new schemes has plummeted to its lowest-ever level due to uncertainty over future funding.

Speaking on Tuesday at the launch of the three-year, £5bn Supporting People programme for the next three years, an ODPM spokeswoman said: “There is another parcel of work under way on what mechanisms we need for new capital development.

“What we have announced today gives enough certainty for local authorities and housing associations and others [to plan new services]. We haven’t made a decision to hold back money [for new development] but we also have not made a decision to allocate the budget yet.”

Nigel Rogers, director of supported housing umbrella body Sitra, said: “The ODPM is discussing the possibility of retaining a semi-separate pot for new development, possibly linked to development priorities identified by the regional housing boards.”

However, some organisations feared that the £280m to be cut from the Supporting People budget over the next three years would mean some services would close and fewer schemes would be built.

Peter Walters, chief executive of English Churches Housing Group, which specialises in supported housing, said local authorities would have to be willing to let associations reduce staff numbers or hours in line with cuts or services would close.

We haven’t made a decision to hold back money [for new development] but we haven’t allocated the budget yet

ODPM spokeswoman

He added that associations would be unlikely to open new services until the funding cuts had been decided. “Until there is stability our priority is to maintain existing services.”

The government has also said that councils can carry forward savings made over and above the 2.5% that was requested in 2004/5.

David Thompson, housing consultant, said: “At the moment the authorities can keep the savings but ODPM reserves the right to change that.

“I think authorities would have driven harder for savings if there were a guarantee they could keep it.” The money could be used to fund future development, he added.