A large-scale investigation has revealed that the government could be handing out up to £480m in housing benefit to tenants of supported housing who are not eligible for it
New figures exposing the complex housing benefit muddle show that up to 300,000 claimants could be receiving housing benefit to which they are not entitled.

But researchers also learned that thousands of tenants have been eligible for a total of £245m worth of housing benefit, which they did not receive.

Benefits experts fear the news could undermine the principles of the government's Supporting People policy, its long-term reform of housing benefit for supported accommodation.

Academics from Loughborough University's social policy unit were commissioned by the Department of Social Security for the three year survey.

It aimed to establish how much housing benefit is being paid to supported housing tenants, in order to estimate the amount of cash need under Supporting People.

But it was discovered that housing benefit staff vary "markedly" in their knowledge of supported accommodation, and researchers said the flimsy evidence provided by them lead to "unreliable" statistics.

Only between five and 10 per cent of claims seen were judged to be soundly based. A further 12 to 14 per cent were accurate to within £3 a week.

The report says councils may need more time to get to grips with benefit claims for supported housing, and warns that Supporting People "is likely to place considerable demands on local authorities' staff resources."

The research will alarm government officials, who intend to rely on information volunteered by landlords on support services they provide, as well as the discretion of housing benefit officers, when Supporting People begins in earnest in April 2003.

Chartered Institute of Housing benefits policy officer Sam Lister said: "This shows the difficulties of trying to drive a hard and fast line between housing and support.

"It brings into question whether that's possible - and that is the whole assumption behind Supporting People."

National Housing Federation policy officer Kathleen Boyle said establishing the size of the supported housing sector is crucial if the forthcoming regime's "specific grant" is to be calculated accurately. "The research proves how difficult the test ahead is."

Source

Housing Today