The Ministry of Housing, Communities and Local Government, alongside the Department for Work and Pensions, has published the Supported Housing Review 2023. Conducted by Sheffield Hallam University, the study offers an updated view of the supported housing sector across England, Scotland, and Wales. The research includes input from housing providers, benefit teams, and commissioners to address key issues in the sector and guide future policy.

Sector Overview

Scotland is home to around 57,500 supported housing units, representing 9% of the UK total. Most of these (74%) are for older adults, with smaller proportions for short-term transitional support (15%) and long-term working-age individuals (10%). Supported housing accounts for 9% of Housing Benefit claims across the UK, with 4% of these in Scotland.

Challenges Affecting Supply and Demand

The sector faces significant challenges:

  • Funding Cuts: Over the past five years, 43% of providers reported losing funding or having units decommissioned. Many also scaled back or restructured their support services.
  • Demand Pressures: 86% of local authorities expect demand to rise within five years. Meeting this demand will require 12,500 additional units in Scotland by 2040. Estimates suggest a total need of up to 115,200 units, with most (around 80%) for older adults.
  • Workforce Issues: Providers highlighted difficulties in maintaining staff levels, which affects service quality.

Funding and Financial Viability

  • Local Budgets: Tight local authority budgets mean some providers can no longer tender for contracts, raising concerns about future service sustainability.
  • Housing Benefit: The system supports £4.09 billion annually across the UK for supported housing, with £258 million allocated in Scotland. Stakeholders have called for clearer regulations and more training for staff handling complex Housing Benefit claims.
  • Cost Profiles: Reductions in funding for commissioned services are increasing reliance on Housing Benefit, creating sustainability challenges for providers.

Procurement and Commissioning

Procurement practices vary, with concerns about inconsistent processes and problematic contracts, such as those based on individual hours. The research also highlights the need for better collaboration between commissioners, providers, and Housing Benefit teams.

Recommendations

The report emphasises the importance of robust data frameworks to improve planning and resource allocation. It suggests clearer definitions of eligible services for Housing Benefit to reduce ambiguity and inconsistencies. The findings aim to inform sustainable, value-for-money policy development for the supported housing sector.

This research underlines the critical need for investment and collaboration to address rising demand, funding challenges, and the growing complexity of client needs.