Essex council freezes funding for RSLs' supported housing

A group of housing associations are fighting an attempt by Essex council to freeze funding for their supported housing services while upping it for some council-run schemes.

Essex told service providers at the start of March that it would increase funding for schemes run by some of its district councils, post-transfer associations and very small providers, but would freeze the money for county council services, a few other districts and other supported housing organisations.

A group of associations including New Essex, Colne, Moat, Estuary and Swan have written to the council to voice their anger at the decision.

The move comes as the £45m cut in funding for supported housing begins to bite across the country. Councils have started to reveal how they will make the 2.5% savings in their Supporting People budgets demanded by the government last month.

Some have found relatively painless ways, but others have taken swingeing approaches that have enraged supported housing providers. Some plan to slash 2.5% from all schemes, regardless of their ability to bear the cut.

Yvonne Arrowsmith, service director at New Essex Housing Association, called Essex council's decision "unfair and unjust".

She said her organisation was effectively losing £95,000 because costs would still rise in line with inflation but the association would not receive a grant increase. She added: "We are going to have to look at reducing services."

The council said it made the decision because some district councils had not had a chance to bid for funding increases in the run-up to the launch of Supporting People last April, whereas associations had been able to.

It is understood the council felt there was no time to consult on the decision because the government made its announcement only at the end of February and councils have to give providers 28 days' notice of changes.

n Kent council is planning a change to its Supporting People funding that could mean people are turned away from sheltered housing.

It will give providers the option to receive a lump sum rather than a payment per resident.

It hopes to save time on administration but associations fear the sum will not be enough to cover new residents. Kent said housing providers could opt out of the plan.