DSH0008

 

Written evidence submitted by SIGOMA

  1. We are writing on behalf of SIGOMA a group of 47 councils who typically service more deprived residents across the country.

 

  1. This is well documented by past editions of the index of multiple deprivation where our members fell almost entirely into the bottom (worst) half of the deprivation ranking and were over-represented in the most deprived decile of councils.

 

  1. In housing terms this means that our councils are at the forefront of problems related to the supply of social housing including providing supported housing to vulnerable residents. In 2021 our councils accounted for 30.3 % of total social housing by tenure whilst they accounted for 23.8% of all other tenure types[1].

 

  1. We are in support of the analysis provided by the national audit office and in particular the comments they make on the system of funding (para 14 page 11 of that report) which in the summary states that “Some local authorities are experiencing increasing shortfall in their funding because of how the housing benefit system works.”

 

  1. The report quotes councils in England as experiencing a subsidy loss of £108 million compared to £53.8 million in 2017-18.

 

  1. The picture is even worse if one considers the funding gap on all housing benefit payments. We calculate the total loss in 2021-22 as £187.2 million or an average £612 thousand per council. For SIGOMA councils the total loss was £43.9 million or £935 thousand per council.

 

  1. This arises mainly in the following areas (inclusive of supported housing)[2]

Housing Benefit Subsidy Data Table (extract)

England

21-22

£m

SIGOMA

21-22

£m

England

22-23 Est. £m

BOARD AND LODGING AND NON SELF-CONTAINED LICENSED ACCOMMODATION

 

Expenditure above subsidy cap on one bed accommodation

49.8

15.5

67.3

SHORT-TERM LEASED AND SELF-CONTAINED LICENSED ACCOMMODATION

 

Expenditure above the subsidy cap

83.3

12.1

106.7

EXPENDITURE UNDER THE RENT OFFICER ARRANGEMENTS

 

Expenditure on that part of weekly eligible rent above the     __rent officer’s determination  - Payments

135.1

40.7

136.6

Subsidy  at 60%

81.1

24.4

81.6

Expenditure excess over subsidy

54.0

16.3

55.0

Total

187.2

43.9

229.0

 

  1. Bearing in mind these figures each represent just one years’ pressure. It equates to about 8% of the 21-22 increase in core spending power or just under 10% of the projected increase in Council Tax for that year and of course the distribution of the pressure is not even but is concentrated in more populous areas.

 

  1. Expressed as a £ per total dwellings of the council the average pressure in 2021-22 is £7.40 per dwelling whilst at individual council level it varies from close to zero to 37.50, outside London where of course it is higher. The worse affected  SIGOMA authority is Manchester at £31.90.

 

  1. Authorities cannot encompass a situation where they carry a statutory responsibility which is not adequately funded. Government must be explicit in providing a measure of the Housing provision funding gap and take place to remedy this or remove the statutory duty from councils which would be in no-ones interest

June 2023

[1] Census 2021

[2] From DWP Housing_benefit_subsidy_initial_preaudit_data_2122 and Housing_benefit_subsidy_esimates_data_2223