Think tank

Deeds of variation are not issued by the landlord but are agreed between the tenant and the landlord. This means the variation can take immediate effect from the date of signing the deed of variation. Where notice is required, this will be dictated by what your tenancy agreement says. If it specifies 28 days, for instance, you will have to give 28 days notice before the variation takes effect.
NICK SWEET, NHF national coordinator for Supporting People

Subsidy implications for tenants
My housing association currently receives social housing management grant in a chargeable scheme. How will this be passed onto us under the subsidy contract and what implications does it have for our tenants?

The Housing Corporation should have identified and transferred to the administering authority any sums of SHMG payable in relation to a specific project. This money should then be identified in the interim contract and should be paid to the registered social landlord or support provider (this will be dependent on who enters into the interim contract with the administering authority) under the terms of the interim contract. The model contract provides for the RSL or support provider to send an invoice to the administering authority on, or as soon as possible after, the commencement date to cover the first year.

In response to that invoice, the payments should be made as set out in schedule 2 of the interim contract. Whether the payment is monthly, quarterly or annually will depend on how individual administering authorities have completed the second schedule.

The contract envisages that the payments will be made in advance.
Rosemary Hart, Partner and housing specialist at legal firm Trowers & Hamlins

From April, the SHMG element of the legacy funding will be passed on to you in your monthly payment from the administrative authority. This payment will be made up of two elements: variable (the subsidy payable to the users) and fixed (legacy grants). This will be set out on the service subsidy summary you receive with each payment. The ODPM's Supporting People Charging Workbook will be helpful here.

In future, the commissioning body locally will decide on whether to charge tenants for what has historically been paid for by SHMG. There is no guidance on when and how this decision should be made.
NICK SWEET, NHF national coordinator for Supporting People

Changes in transitional housing benefit
What happens to changes in tenants' levels of transitional housing benefit between the golden cut and the beginning of Supporting People?

The final reconciliation captures transitional housing benefit levels at 31 March.
Office of the deputy prime minister, Supporting People team

Accounting for supporting people payments
I am a finance director in a support provider. I am totally confused about how to account for receipts of Supporting People payments for both our existing tenants and any new tenants after1 April.

The Housing Corporation and National Housing Federation have just issued Accounting for Supporting People which is available free at www.housing.org.uk/uploads/documents/14/cssh2003br07.pdf – it offers guidance on how Supporting People income should be shown in your accounts.

It is recommended that Supporting People receipts from block gross contracts should be treated as "Supporting People contract income" within the income and expenditure account. Support services fall within the definition of social housing and, in the majority of cases, such services will be provided to tenants of the RSL.

However, some RSLs provide support-only services to people who may not be their tenants. It is therefore recommended that supporting people contract income be reported as social housing income.

Providers of block gross chargeable services are in the same position as providers of block gross services with regard to invoicing for and receipt of Supporting People funding. Therefore, Supporting People receipts from block gross chargeable contracts should also be treated as "Supporting People contract income" within the income and expenditure account.

Providers subject to these block subsidy contracts will, of course, need to collect charges from those service users for whom they are not receiving a subsidy. They can do this through the tenancy agreement or through a separate support agreement. The method chosen will determine the accounting treatment for the income received, whether from the administering authority or the tenant.
NICK SWEET, NHF national coordinator for Supporting People

Supporting People pays for support costs. Supporting People income should be credited against your costs as a support provider, which are not housing management or rental expenses.
Office of the deputy prime minister, Supporting People team

Support charges and fair rent assessments
Will the support charge be treated as a charge outside of the fair rent assessment for secure tenants?

Yes. Several circulars issued by the Department of Social Security (in particular, circular HB/CTB A47/99) make clear that in all cases where rents need to be referred to the rent officer, the rent referred should be net of all support charges.

In fact, under amended rent officer orders, rent officers will assume that rents payable would have been payable, had support services not been provided. This is because the purpose of Supporting People is to differentiate between charges which relate to the property and charges which relate to the person.
Rosemary Hart, Partner and housing specialist at legal firm Trowers & Hamlins

Fairer charging: what should i tell my tenants?
With all the uncertainties around fairer charging, what should I tell my tenants?

First of all check with your administrative authority what their fairer charging policy is going to be. Rules may vary; for instance, about whether there is a maximum charge or whether a limit is put on the amount of earned income that is disregarded.

You need to tell tenants that: