Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Rejected
New Act and current measures will not sufficiently address supported housing subsidy loss
Conclusion
Successful bids from local authorities for the Supported Housing Improvement Programme have included work to reduce subsidy loss in local areas. DWP told us that local authorities can reduce subsidy loss by scrutinising Housing Benefit claims more by overseeing providers and asking for breakdowns of bills that come through on service charges.51 However, whilst this may reduce some subsidy loss in some areas, this may not go far enough to bridge the gap in funding that local authorities are experiencing.52 When we challenged DWP on this, it told us that subsidy loss is set out in Housing Benefit regulations, although DWP has committed to explore solutions to subsidy loss through the implementation of the new measures in the Act.53 The Act aims to improve quality standards in supported housing and give local authorities more power to control supported housing in their local areas. However, the Act will not reform Housing Benefit regulations or deal with problems caused by subsidy loss.54 51 Q 56 52 Q 57 53 Qq 58, 59 54 C&AG’s Report, para 3.6 Supported housing 15
Government Response Summary
The government disagrees with any implied recommendation to directly address subsidy loss. While DWP will consider feedback from LAs and monitor the issue, it has no plans to explicitly address subsidy loss in the upcoming Act or consultation.
Government Response
Rejected
HM Government
Rejected
6.1 The government disagrees with the Committee’s recommendation. 6.2 DWP agrees that it should consider feedback from LAs on subsidy loss. As subsidy is not part of the scope of the Act there is no plan to ask an explicit question as part of the consultation, but DWP fully expect that some stakeholders will raise this issue in their responses, and it has previously received representations from LAs on this issue. 6.3 This is a complex area with a range of contributing factors many of which are not within DWP's control. DWP anticipate the Act may address some of the contributing factors and this will be monitored closely as part of the department’s continual review. The Housing Benefit subsidy rules and how these are administered are reflected in the Income-related Benefits (Subsidy to Authorities) Order 1998.