Guidance

A3/2023: Supported housing and temporary accommodation Single Housing Benefit Extract management information for caseload review

Updated 4 January 2024

Who should read

All Housing Benefit (HB) staff

Action

For information

Subject

Supported housing and temporary accommodation Single Housing Benefit Extract (SHBE) management information for caseload review.

Guidance manual

The information in this circular does not affect the content of the HB Guidance Manual.

Queries

You can get extra copies of this circular/copies of previous circulars

For queries about the technical content of this circular, contact: housing.policyenquiries@dwp.gov.uk

If you need to ask about the distribution of this circular, contact: lawelfare.correspondence@dwp.gov.uk

Crown Copyright 2023

Recipients may freely reproduce this circular.

Introduction

1. This circular covers the actions local authorities (LAs) need to undertake to improve the quality of supported housing and temporary accommodation management information (MI). It also provides an update to circular HB A3/2022 on the changes that were introduced for Housing Benefit (HB) new claims in relation to ineligible service charges (see paragraphs 35 to 43).

2. LAs are expected to action the following (as detailed further in paragraphs 10 and 11):

• carry out a desk-based review of their whole HB caseload by 31 March 2024 to determine if claimants are living in supported housing (specified accommodation), temporary accommodation or neither, recording as such on their systems.

• inconsistencies in supported housing or temporary accommodation markers should be actioned via the exception reports for all new HB cases introduced as part of the April 2022 Information Technology (IT) changes.

• keep all information up-to-date for all in receipt of HB to maintain the accuracy

Background

3. Following a consultation on funding options for supported housing in August 2018, the government announced that it would continue to fund supported housing through the Welfare System. Alongside this, the government also announced it would work with stakeholders to develop a new oversight regime to ensure quality and value for money across the supported housing sector.

4. A recent Parliamentary Select Committee report highlighted this issue, flagging ‘the dearth of data’ on exempt accommodation and recommending that data improvements should be made within 12 months.

5. Therefore, it is therefore crucial that LAs continue to utilise the new IT changes, as communicated in circular HB A3/2022, subject to the update on ineligible service charges provided at paragraphs 13 to 15. Improving the data quality is vital in ensuring better outcomes for citizens and to support future investment decisions in the sector.

6. As part of the Department for Work and Pensions (DWP’s) work with the Department for Levelling Up, Housing and Communities to improve quality and value for money on supported housing, it is essential we understand more about the HB expenditure to inform policy development. Therefore, it is important that cases are accurately recorded on your IT systems.

Desk-based review of whole HB caseload

7. To improve the quality of supported housing and temporary accommodation MI, new IT changes were implemented between April 2022 and June 2022.

8. However, whilst these changes and the associated improved MI are starting to flow through for new HB claims, it does not resolve the situation for the majority of the stock of older HB claims. It is estimated it would take in excess of 5 years for the new claims to have built up sufficiently to provide a robust estimate of the supported housing caseload.

9. We have therefore considered various options to give a more accurate picture of the supported housing caseload and secured funding to pay LAs to undertake a desk-based review of their whole HB caseload, to accurately record the data.

Actions required by LAs

10. LAs should undertake the following key actions:

• between now and 31 March 2024, LAs must carry out a desk-based review of their whole HB caseload to determine if claimants are living in supported housing, temporary accommodation or neither and, record as such on their systems. Where the case is supported housing, LAs should specify the type of the accommodation. Further information on the types of supported housing can be found in paragraph 16.

• inconsistencies in supported or temporary accommodation markers should be actioned via the exception reports introduced as part of the April to June 2022 IT changes implemented.

• keep this information up-to-date for all currently in receipt of HB and for new HB cases going forward, to maintain the accuracy for all HB cases.

Lessons learned

11. When conducting this exercise, it is worth noting the following lessons learned from the recording of data on new cases over the last eleven months:

a. cases must be marked as supported housing, temporary accommodation or neither. All cases must be reviewed.

b. cases cannot be both supported housing and temporary accommodation. They should be recorded as either one or the other. If individual cases have characteristics of both, only one should be chosen. LAs must select the marker that is the most suitable, except in cases where the ‘exempt’ criteria is met which should take precedence. It is understood there may be claims where the accommodation could meet both supported and temporary. However, it is important to note the policy rules between the 2 accommodation types are different. LAs must use their discretion to select the appropriate marker and ensure this is aligned using the same classification used to claim subsidy.

c. for supported housing cases, a type must be chosen and the marker should not be left blank. The definitions have not changed and are reiterated at Annex B of circular HB A3/2022. Further guidance on supported housing to help LA decision making can also be found in the Housing Benefit guidance for supported housing claims

Update on circular HB A3/2022 for recording ineligible service charges for new claims

12. As set out above, it is critical that we have good quality core data on supported housing. Therefore, given the feedback we have received from some LAs on the issues associated with the recording of ineligible service charges for new claims, we are suspending the mandatory requirement to gather that information. This means that this information is not required as part of the caseload review exercise.

13. However, where that information is readily available to LAs, those LAs are encouraged to continue recording the amount of ineligible service charges in relation to the care, support and supervision for new supported housing claims.

14. Similarly, LAs are encouraged to record the amount of eligible service charges included in the rent when this is information readily available for new supported housing claims. However, where the information is not available, the completion of this field remains optional. Furthermore, LAs will not be required to gather this data for the caseload review exercise.

Process for LAs recording ‘types’ of supported housing

15. LAs are required to specify whether the claimant is assessed as living in one of the categories of specified accommodation. The inclusion of this indicator is essential to allow both the critical identification and core analysis of specified accommodation cases to support policy development.

16. When recording supported housing cases and selecting the appropriate markers, LAs must specify whether the claim is transitional/short-term supported accommodation, long-term supported accommodation, sheltered accommodation/sheltered accommodation with extra care accommodation using the following meanings and descriptions listed below:

• transitional/short-term housing for those in crisis, such as, domestic abuse, care leavers, those recovering from drug/alcohol dependence, those at risk of homelessness and prison leavers, etc

• long-term supported housing for people with long-term physical disabilities, learning difficulties or a mental health condition

• sheltered accommodation for over 55s with care and/or support needs (including sheltered accommodation with extra care)

17. Although sheltered and extra care housing is not specifically defined in HB regulations, it is a well-established entity within the supported housing sector. Therefore, sheltered or extra care supported accommodation claims should only be recorded if they meet the definition for supported exempt/specified accommodation as set out in HB regulations.

Funding and payment

18. New Burdens funding of up to £5 million has been secured to cover the cost of LAs undertaking a full desk-based review of their HB stock cases to ensure, where appropriate, the correct supported housing or temporary accommodation marker is recorded.

19. An HB Subsidy circular detailing individual allocations will be provided in the coming weeks and each LA will receive their allocations by the end of April 2023.

Deadline for completing the desk-based review

20. LAs are expected to complete this desk-based review of their whole HB caseload by 31 March 2024.

21. During the period between now and then, DWP will be using SHBE MI to determine how the exercise is progressing for each LA. If we become concerned that sufficient progress is not being made by any individual LA, we will make contact to offer support, and if necessary, escalate our concerns.

22. Except in extreme exceptional circumstances, we expect all LAs to have recorded the relevant information for all HB cases by the deadline set.

All-LA online meeting

23. There will be an all-LA online meeting via Microsoft Teams on 8 March 2023 from 2pm to 3pm, to provide an opportunity for LAs to ask questions regarding the content of this circular. The dial-in details have been sent directly to LAs.