Investment in supported accommodation would mean vital savings to public purse - councils

The Local Government Association (LGA) has found that providing supported housing for older people and people with a learning disability or mental health needs could mean significant savings for the public purse.

Supported housing is accommodation where residents receive support, supervision or care. The LGA said that appropriate supported accommodation could have significant savings across the public sector, with supported accommodation shown to reduce the likelihood that residents will go into hospital or residential care and also reduces re-admission.

In a series of case studies, published by the LGA today ahead of the Autumn Budget, councils highlight the huge social value of supported housing to communities and individuals. Not only do these services save money, they allow people to access the support they need to live a fulfilling life.

For example, a scheme in Bradford showed a saving of up to £47,000 per person to the NHS. Another scheme in Medway has helped 151 people with complex needs access employment or training over just 9 months.

However, due to years of cuts and the loss of ring-fenced funding, supported housing exists on a knife edge with the current funding regime encouraging unregulated supported housing which has significant quality concerns.

Ring-fenced funding ended in 2011, leading to a reduction in spending on supported housing and a decline in standards due to an increase in non-commissioned providers.

The LGA’s Budget submission calls on the Government to spark an investment in the preventative services which are essential to allows people who draw on care and support to live the lives they want to lead, with more dignity and independence and to avoid spending more later when people’s needs escalate.

While the Supported Housing (Regulatory Oversight) Act 2023 will go some way to helping, the LGA is calling for government to use the Autumn Budget review how they fund supported housing and consider a specific housing support fund so that long term investments can be made by councils and savings can be made across the public sector.

Previous analysis has suggested that investing £1.6 billion in supported housing would have savings of over £3.4 billion.

Supported housing is only one part of preventative care and support that will keep healthy and independent. Adapting people’s homes, investing in community support and reducing isolation and loneliness are just a few more of the things we can do to allow people to live an equal life.

A recent LGA survey found that almost a third of councils aren’t confident they will meet their duties under the Care Act next year, meaning that a significant uplift in funding is needed in order for councils to meet their statutory duties. Investing in preventative care would reduce costs in the long term, for both councils and other public services.

Cllr David Fothergill, Chairman of the LGA’s Community Wellbeing Board said:

“Supported housing plays an enormous role in ensuring people who draw in care can lead the life they want to live. Suitable homes mean people can live more independently and participate meaningfully in their communities.

“As well as this, high quality supported housing means astounding savings across other public services. Councils need a sustainable, long-term funding regime for these projects, to allow councils to invest in solutions that deliver a net-good across local services and meet local need.

“But supported housing is just one element of prevention. A new focus on preventative care and support is crucial in order to provide better services and significant savings across services.”

Case studies

Kirklees: Helping those leaving prison and under treatment for substance abuse get tenancy ready

Bradford: Helping reduce hospital delayed discharges

Medway: Addressing increasingly complex needs

North Somerset: Respite service promoting independence for people with learning disabilities

West Midlands: Helping turn around young lives