Temporary and Supported Accommodation in Scotland –

what does the future look like?

Homeless Action Scotland Conference12th November 2015

Val Holtom, South Lanarkshire Council

Duty to provide temporary accommodation No formal temporary accommodation

standards but requirement that temporary accommodation be suitable & good quality

Temporary accommodation in England & Wales is provided differently and impact of Westminster legislation disproportionate in Scotland

Temporary Accommodation Sub-Group established 2013 to consider impact in Scotland

Temporary Accommodation in Scottish context

Different landlords – Local Authority, RSL, private sector, voluntary organisation, charity

Different management agencies Different support providers Temporary Accommodation Sub-Group

proposes 3 main types: emergency, general temporary, supported.

Types of temporary accommodation

Largely funded by rental income Rents between £100 & £500 pw. TASG sets out key costs as: rental costs, void

costs, additional repairs element, furniture costs, direct staffing costs & overheads.

Costs may be supported by General Fund Worth noting concern over many years that

high rent charges in temporary accommodation can make it hard for people to work

How have we funded temporary accommodation??

Subsidy cap where temporary accommodation leased from private sector or RSL

Under occupancy charge Benefit cap

Recent changes

Subsidy cap greater affect in England and Wales, though some impact in Scotland

Under occupancy charge – given the proportionately higher rents in temporary accommodation, impossible for tenants in temporary accommodation to pay: eg single person in 2 bedroom flat needs to make up £28 pw on a rent of £200

Impact of changes

Benefit cap – households with significant combined benefit income affected by cap – families with several children in properties with high rents (eg temporary accommodation) are most affected

Landlord responses: – accept higher arrears? Take action for non payment? (what about temporary accommodation duty?) Mitigate with DHP?

Impact of changes

Housing element paid direct to claimant 4 weeks in arrears To one member of the household Those under 35 now entitled to shared

accommodation (single room) rate only

Challenges of UC – claimant related

Rent for temporary accommodation capped at LHA rate

No furniture element Management element of £45 per property

per week paid directly to landlord

Challenges of UC – TA related

Current 1 bedroom LA owned temporary furnished flat – rent £195 pw

Under UC, will only be able to charge LHA rate: £116.52 (Lothian) + £45 management charge (£161.52)

If under 35 year old stays there, will only be able to charge shared accommodation LHA rate: £68.27 (Lothian) + £45 (113.27)

Technically also a £45 management fee but as yet, no mechanism to pay and no-one has received it

In practice

Supported exempt accommodation (not new): residents exempt from benefit cap, underoccupancy & UC. 3 new protected categories: all exempt from benefit cap & UC (payment to landlord) but not underoccupancy charges - Managed properties - Hostels - Refuges

ExemptionsSPECIFIED EXEMPT

Managed properties: Landlord must be RSL, voluntary organisation or charity – significant amount of support provided by anyone

Refuges: RSL, charity, VO or LA – provided for people fleeing domestic abuse, no requirement for support

Hostels: RSL, charity, VO or LA – significant amount of support, provided by anyone – not self contained accommodation

Accommodation owned & managed by the local authority which is self contained – most temporary furnished flat provision and some of our good quality supported accommodation

Accommodation owned by the local authority & leased to an RSL or voluntary sector provider which is self contained but doesn’t involve a significant degree of support

What isn’t exempt?

Don’t furnish temporary accommodation (reducing cost)

Make temporary accommodation shared (avoid under occupancy and impact of shared accommodation rate for single people)

Non exempt supported accommodation services managed by LA put out to tender

Lease all temporary furnished flats to a 3rd party and attach significant levels of support

Locking off rooms in temporary accommodation if it’s underoccupied or use spare rooms to store possessions to save on storage costs

Some options for mitigation....

How will local authorities adjust their rent structures for temporary accommodation? How will they deal with arrears & not being able to recover costs?

TAWG assesses TA funding shortfall in Scotland under UC as £25m Will households subject to sanctions receive housing costs?

Payment direct to tenant, 4 weeks in arrears – homeless households often move on in shorter time periods

Other Issues

What might be the impact of Holyrood proposals for Scottish Social Security system?

We still want/have to provide temporary accommodation to a good standard

Pending decrease in benefit cap level (£20k outside London )

Likely removal of HB from under 25s ..... Will capping TA rents at LHA level remove

barriers to employment? Constantly changing information......

Other Issues

Do you know what the likely impact of UC on temporary accommodation is/will be in your area?

Do you know what options are being considered or in place to manage the impact?

What are your main concerns? What ideas do you have that might help to

mitigate the impact?

Discussion Points