National round-up

Last week, the government

announced the latest figures for the national Supporting People pot. This is the total amount of money available to administering authorities over the next three years.

The figures are:

• 2005/06: £1.72bn
• 2006/07: £1.7bn
• 2007/08: £1.7bn

Currently the national figure stands at just under £1.805bn. When inflation is taken into account (set for the purposes of the calculation at 2.7%, the level of this year's NJC settlement), these figures represent a 7.4% real-term reduction in the national budget for 2005/06, which is approximately £134m. Further smaller reductions will also be made in the following years.

There is no indication as yet as to how this figure will be distributed between administering authorities (AAs). The government has indicated that it wants to be more sophisticated in the way in which it allocates the national pot. We do not expect actual allocations to AAs to be made explicit until around November. This delay is to allow the work being undertaken on the Supporting People Distribution Formula to be completed. It is intended that this formula will impact on the way in which the SP figure is distributed from April 2005, although the formula’s actual mechanism has yet to be decided.

There were fears that a proportion of the settlement would be “top sliced”, with a proportion held back to fund future SP developments. However, the government has now confirmed that this will not happen, at least for this year. It has also confirmed that the reduction in funding will not be uniformly applied over all 150 AAs, and that there will be some targeted reductions.

The ODPM has recently issued guidance setting out its position regarding the application of across-the-board cuts to achieve savings. Here, it opposed the use of blanket cuts and suggested that AAs need to identify those services that they consider have the most potential for savings. It suggested that this should take into account both value for money considerations, as well as strategic relevance and quality.

The ODPM says that any decisions about reductions should be taken on a case-by-case basis, in consultation with providers. However, it is our view that all providers should be prudent in their budgeting and business planning, and should assume the unavailability of inflationary increases.

Members are advised to check the wording of the contracts they hold with the AAs. Meanwhile, the federation is pressing the government to answer remaining questions, particularly regarding the application of the distribution formula.

For any queries on Supporting People, contact your local adviser or Nick Sweet, the federation's national SP co-ordinator, on 020 7067 1103 or at nicks@housing.org.uk

Annual Conference highlights

In a change to the original programme, we are delighted to announce that this year's Annual Conference will be addressed by a senior cabinet minister on the evening of Wednesday 22 September (replacing Richard McCarthy of ODPM). This keynote address will be one of the highlights of the event. We urge all members not to miss it.

Other key speakers include Jon Rouse (Housing Corporation), Dave Prentice (Unison), Paul Boateng MP (Chief Secretary to the Treasury) and Kate Barker (Monetary Policy Committee, Bank Of England).

The conference will focus this year on the iN business commitments to neighbourhoods, customers and excellence. The programme will provide delegates with a wealth of views and experience from both within and outside the sector.

The federation will also be hosting the inaugural iNbiz Awards ceremony on Thursday 23 September, compered by the comedienne and writer Rhona Cameron. This prestigious new scheme has been created to showcase and celebrate the achievements of housing associations.