Introduction

  1. In this, the first part of our series analysing the recent Report of the Levelling Up, Housing and Communities Committee, we look at the background to the Report and some of the parties involved in the provision of exempt accommodation for whom this Report is of most significance.

What do we mean by exempt accommodation?

  1. Exempt accommodation is a category of supported housing which is ‘exempt’ (hence the word) from the locally set caps on housing benefit (“HB”). This type of housing is exempt from the usual HB regulations that limit local housing allowance levels. Put simply, a claimant who can show that they live in exempt accommodation will be paid a far higher level of HB. The reason for this is that housing individuals in exempt accommodation is more expensive than housing the average ordinary needs individual. The housing costs to run exempt accommodation are greater due to the support needs of the individuals who live in this type of supported housing. In principle therefore, you may agree that this makes good sense as society should be caring for those who are unable to fully care for themselves.

  2. The types of individuals who live in exempt accommodation include refugees, care leavers, people with disabilities, the homeless, those who have suffered with alcohol or drug addictions, ex-offenders and those fleeing domestic violence. Unfortunately, as we will consider in this series, there is insufficient data kept regarding exempt accommodation but, in 2021, Crisis suggested that there were at least 156,868 households living in exempt accommodation. It is clear therefore, especially if this is only a conservative estimate, that there is great need in society for this type of housing.

Who provides exempt accommodation?

  1. The Report neatly sums this up as follows:

    Exempt accommodation in England can be provided by a non- metropolitan county council, unitary council, housing association, registered charity or voluntary organisation. To qualify for exempt status, providers must show that they have not-for-profit status and that they are providing care, support, or supervision. Providers can be commissioned by a council, or in some cases by the NHS or another statutory body, and there are also non- commissioned providers. Some providers are registered with the Regulator of Social Housing, though this is not mandatory except for local authorities. Some providers own their properties, while others lease them from landlords or companies.

  2. The housing costs for this type of housing are covered by the uncapped level of HB, although the care, support or supervision costs must be funded by other means, such as the scheme provider raising funds through charitable or commissioned funding or through any surplus they make, or by charging the resident a service charge.

What is the role of local government in exempt accommodation?

  1. Essentially local government must guard the HB funds set aside for this type of housing and they will do this by processing and, where necessary, challenging HB claims submitted by residents living in exempt accommodation. Sounds simple enough you might say but, alas, their role has become increasingly complex to the point that most local authorities must now adopt a forensic approach to these types of claims to ensure that funds are allocated to those who deserve it. Despite toughening their approach, many local authorities do not succeed in monitoring exempt accommodation in their area leaving unscrupulous landlords a golden opportunity to take advantage of the exempt HB system.

Is this process working well?

  1. In short, where a scheme has been set up properly and is operated as it should be and in line with the HB regulations, residents are provided with suitable accommodation for their support needs which they may otherwise find no-where else. However, where there is money, and potentially a lot of it, there will always be those who seek to exploit a system to wrongly profit from it and, recently, these ‘rogue’ providers have been exposed and found wanting.

  2. Over the last few years therefore, concern over the quality of provision, including poor quality accommodation and a lack of meaningful support, and the real power of the local government to regulate exempt accommodation effectively, has come to light and it is against this backdrop that the Report was commissioned.

MR Associates - February 2023