Written evidence submitted by the West Midlands Combined Authority Homelessness Taskforce Members Advisory Group and the Mayor of the West Midlands [EXA 009]

Background

The West Midlands Combined Authority Homelessness Taskforce Members Advisory Group comprises Cabinet Members with responsibility for homelessness within each of the seven (Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall, and Wolverhampton) constituent local authorities of the West Midlands Combined Authority (WMCA).

The Members Advisory Group was initiated in 2019 with the purpose to understand and support the priorities of the WMCA Homelessness Taskforce, providing oversight and unblocking of local, regional, and national challenges.

As a group we identified the difficulties related to non-commissioned exempt supported accommodation as a key priority of action and have over the past 3 years worked closely with our Homelessness Taskforce to build a clearer picture of exempt accommodation provision and the changes that are needed to improve the exempt accommodation sector.

We are encouraged by the Committee’s decision to prioritise and launch an Inquiry to fully consider the challenges related to non-commissioned exempt supported accommodation.

Through our cross-regional work we believe we have relevant knowledge, experience, and expertise to contribute to the Inquiry.

In preparing our response, we have carefully considered the Inquiry’s Terms of Reference.

Evidence

The exponential rise in exempt accommodation provision is causing considerable concern in the West Midlands and evidence is growing that the model is becoming increasingly common in many areas of the country as investors and providers see the opportunity and the need.

The 5 national supported housing pilot areas have taken a lead in addressing the issue and much learning is coming from their work. However, the genie is now out of the bottle and guidance is no longer adequate to address this proliferating issue. 

Unmet need, low LHA levels particularly for single people, inadequate social housing supply and no explicit funding for housing related support since the ring fence was removed from the Supporting People programme in 2009, are combining to encourage the growth of this inadequate and expensive sector. Current regulations rely heavily on outdated housing benefit regulations and make it extremely difficult for councils to manage the supply and the quality.

We are seeing a perfect storm with some of the most vulnerable residents accommodated in some of the poorest housing, without adequate support, trapped in unemployment and ironically all paid for by central government.  Nationally, FOI information published by Crisis in October 2021 shows that 153,701 households in Great Britain were housed in exempt accommodation as of May 2021. This represents a 62% increase from 2016 to 2021[1].

A report recently published by Prospect Supported Housing, on their decision to close exempt accommodation provision, estimated “that at least £816m has been spent on exempt accommodation in the last financial year alone. This is based on the responses received and a conservative estimate for those who were unable to provide exact figures”. They went on to note: “Spend on exempt accommodation (and presumably demand) has continued to rise. Based on responses from 52 authorities, the spend on exempt accommodation has risen by over £110m between 2018-19 and 2020-21”[2].

We strongly believe that the combination of root cause issues and inadequate regulations can only be addressed effectively with government intervention.  Tackling the nature of this exploitative provision is at the very heart of the government’s levelling up commitment.

Recommendations

Our proposals to address the issue by government include:

• A review of the current funding model for locally delivered supported housing – incorporating funding of support for vulnerable tenants and resources for Local Authorities to enable any new duties and responsibilities concerning regulation, planning and commissioning to be carried out effectively.

• Consideration of a government national accreditation requirement for providers, supported with additional regulation to enforce this and a national database of providers’ performance against these standards.
• Oversight of the provision and development of supported housing to be within the remit of Local Housing Authorities, based on a duty to assess the local need for supported housing and development of a supported housing strategy, which meets local need and includes those who cannot remain in their local areas, for example refuge provision.
• For local authorities to have greater tools, authority, and ability to control provision and growth based on their needs assessment. These would mark a substantial step change in Councils' ability to stop or restrict growth, based on market saturation or oversupply.

The key requirements are:

○        Alignment of existing planning and HMO licencing powers to capture supported housing provision – currently exempt from licencing, Article 4 etc. to assist in managing supply.

○        Strengthened definitions within current regulations relating to the level of provision of care, support, and supervision.

○        Consideration of the scale of provision and ratios of support workers to vulnerable residents they are supporting, and the source of funding for support to be transparent.

• Strengthen the role of the Regulator for Social Housing role and ability to effectively monitor compliance against consumer standards for RPs in this sector. Including and especially, where providers operate a leased based model for the provision and supply of accommodation and support.
• Strengthen the role of non-RP regulators including within the Charity sector to ensure proper oversight of quality is in place.
• Protocols put in place for statutory referring agencies into Exempt Accommodation to create greater consistency and accountability for out of area placements.
• Greater enforcement powers to tackle providers who do not effectively manage Anti- Social Behaviour, including additional Community Safety powers. 

There is an opportunity for government to ensure that the current funding for this unacceptable housing provision is used in a constructive and transformational way, enabling some of the most vulnerable to secure good quality, progressive accommodation, and support, enabling them to transition to greater independence and employment.

We are confident that the implementation of the proposed recommendations above would rebalance the approach to providing  housing for vulnerable and potentially vulnerable citizens.

January 2022