Recommendation 26

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