SUMMARY
The Office of the Deputy Prime Minister issued a financial package on the 10 June 2002. This Update highlights the main elements of the package for providers of supported housing.
CHARGING GUIDANCE
  • A definition of short stay and long stay (mostly sheltered housing). The atter services will be subject to charging;
  • The Commissioning Body will agree a charging policy (which may be not to charge). Supporting People Grant will be paid net of assumed charging income;
  • Service users who receive any housing benefit will be given a passport to receive free Supporting People services;
  • A common meanstest will be used for service users in receipt of support and domiciliary care services;
    There are two models of charging proposed:
  • Model 1 is where there is a landlord tenant relationship in place and support charges are (or will be) a condition of tenancy. Where tenants cannot afford to pay the full support charge, they will apply to the Administering Authority (AA) for a financial assessment to see if they are eligible for subsidy (there will be an appeals process). If eligible, a subsidy will be payable to the landlord as a Block Subsidy Contract.
  • In Model 2, there is no such tenancy relationship. The AA pays the provider gross (a Block Gross contract) and subsequently charges are collected by either the AA or the provider (as part of an additional arrangement for a fee). The AA will remain responsible for enforcement. Either the AA or the support provider must establish a direct relationship with the client whereby the client agrees to pay for support services. (Various financial, reconciliation, fraud and regulation issues are also included).

    A consultation paper on the future of transitional protection for local authority and LSVT tenants will be issued shortly along with further guidance on leaseholders.

    Interim Contract
    The final version is expected at the end of June. The Federation has obtained legal advice and will be producing an explanatory briefing note for members. Procurement advice suggests that services will generally not have to be retendered in entering interim contracts.

    Flap 2
    The model management and service level agreements will be ready by the end of June 2002.

    VAT
    The Federation is producing a summary of the proposals and their implications in conjunction with SITRA and the LGA. Support services will be treated as welfare services and will be exempt from VAT when delivered by a charity, public body or state regulated private institution. Where there is more than one supply, and the main supply is VAT exempt, then the ancillary services will also be exempt. The Federation is seeking clarification of the VAT position of companies limited by guarantee with charitable status.

    Pipeline schemes
    The Federation has argued for there to be adequate funding for the development of new services to avoid planning blight. Bids for SHMG funding and any additional funding from Supporting People for new support services where capital has been approved can be made this financial year. Revenue only bids for floating support can also be made but will require 50% matched funding.

    Voids & Inflation
    The Federation continues to negotiate on the level of voids and inflationary adjustments that will be taken into account in calculating the funding to be transferred to Supporting People.

    • Source

    Housing Today

    Postscript

    A detailed briefing on the financial package for Supporting People providers is available at www.housing.org.uk/uploads/documents/14/mssh2002up01.pdf