The Audit Commission's leading inspector for Supporting People said costs in some cases were "unreasonable and excessive".
Speaking at the Chartered Institute of Housing conference on Thursday, the commission's Supporting People inspection coordinator Domini Gunn said: "We have come across examples where providers loaded 20% of the director's salary and 20% of the assistant director's salary on a scheme for 14 people with learning difficulties. That's not acceptable."
Although it is not illegal to place the cost on a small number of schemes, providers are supposed to spread senior management expenses across different schemes rather than load them onto a few projects.
Placing high levels of cost onto a small number of projects will push up the price of the schemes. And providers could end up making extra money if they add high managerial costs onto large numbers of projects.
The cost of Supporting People has become a hot topic since it ballooned from £1.4bn in February 2003 to £1.8bn in October. A number of reviews have been commissioned to find out why amounts rose so dramatically and the Audit Commission is inspecting 19 local authorities with high costs.
Gunn added inspectors had found a small number of housing providers were refusing to house "unpopular" groups such as offenders.
At the same conference session, Wendy Jarvis, the ODPM's head of Supporting People, said the latest reviews showed that some non-housing related services, previously supported by social services, were being funded by Supporting People.
Meanwhile Gloucestershire council hit back at an audit report that branded its Supporting People programme poor with uncertain prospects for improvement.
The council said it had made sure all providers got paid. Delays had been caused by housing benefit disputes with district councils.
Staffordshire and Leicester councils were praised by the Audit Commission in inspection reports also released this week.
Source
Housing Today
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