Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 16
16
Accepted in Part
Paragraph: 86
Providers of exempt accommodation are supposed to be not-for-profit, and there are many responsible providers,...
Recommendation
Providers of exempt accommodation are supposed to be not-for-profit, and there are many responsible providers, some of whom gave evidence to us. However, we also heard that the current system offers a licence to print money to those who wish to exploit it. We do not agree with the former Minister that using Freedom of Information requests to determine potential rent levels is a viable business model. Instead it gives the impression of a cartel pushing up rent levels and pocketing the excess at the expense of vulnerable residents and the taxpayer. The bar for local authorities to challenge rent levels is too high and appeals have rarely found in the council’s favour. Eligibility for funding for exempt accommodation must be based on an open-book, transparent breakdown of the accommodation and the support costs incurred to the provider. The Government should consider how to give councils greater control over rents for exempt accommodation to ensure value for money.
Government Response Summary
The government agrees costs should be more transparent and will improve transparency through the Supported Housing (Regulatory Oversight) Bill; DWP intends to change Housing Benefit regulations to define ‘care, support and supervision’ to help local authorities drive up standards and ensure value for money.
Paragraph Reference:
86
Government Response
Accepted in Part
HM Government
Accepted in Part
43. The Government agrees that costs in supported housing should be more transparent, and we will look for ways to improve transparency through the measures set out in the Supported Housing (Regulatory Oversight) Bill. 44. The Bill contains a package of measures aimed at delivering value for money as well as ensuring good quality supported housing for residents. As explained in the previous response, capping rents for this type of housing is not yet practical, but as part of the Government announcement on 17 March 2022, the Department for Work Pensions (DWP) announced an intention to make changes to Housing Benefit regulations to define ‘care, support and supervision’, which alongside measures in the Bill, will help local authorities drive up standards and ensure value for money. 45. The Department for Work and Pensions (DWP) have updated and consolidated the Housing Benefit guidance to provide support to local authorities to identify landlords who do not meet the specified accommodation definition.