HOUSING SUPPORT SERVICES
EXPLANATORY AND FINANCIAL MEMORANDUM
- This Explanatory and Financial Memorandum has been prepared by the Department for Social Development (the Department) in order to assist the reader of the Bill and to help inform the debate. It does not form part of the Bill and has not been cleared by the Assembly.
- The Memorandum needs to be read in conjunction with the Bill. It does not give, and is not meant to be, a comprehensive description of the Bill. So where a clause or part of a clause does not seem to require any explanation or comment, none is given.
- The Department for Social Development proposes to introduce a new method for funding the costs associated with providing housing support services for vulnerable persons in supported accommodation. This will combine a number of existing funding sources for such services into a single fund, which will be administered by the Northern Ireland Housing Executive (NIHE). It will streamline the existing funding arrangements which are, in many respects complex and fragmented and will introduce an increased emphasis on quality.
- The proposals were subject to widespread consultation in the document 'Towards Supporting People' which was issued in May 2001. All respondents broadly welcomed the proposals. Respondents were given the opportunity to comment on the proposals from an equality perspective but did not identify any equality implications.
- One of the major considerations in determining the change in policy was a change to the rules relating to the payment of housing benefit for housing support costs following a court ruling that such costs were not an eligible charge under housing benefit. As Housing Benefit was a major source of income for providers of support services, this created a situation whereby providers, faced with a shortfall in income, might be forced to close schemes down or at least reduce the vital support services to their vulnerable residents. The Department was, therefore faced with 2 options, do nothing or do something. If it was decided to do nothing then many housing schemes for vulnerable persons would have to cease providing the support; or charge their tenants for the service. The alternative was to introduce a replacement method for funding support charges.
- Supported housing is a very effective and valuable service for a large number of people in Northern Ireland. It helps them to live independently in the community and often complements community care provision. At present, the costs of this support are paid for through a number of different funding systems and this has, in many situations, created a situation where the type of care provided is determined by the funding source rather than the needs of the individual.
- Therefore in view of this and a proposed change to the housing benefit system under which housing support costs would no longer qualify as an eligible charge for housing benefit, the Government decided to carry out a review of all funding sources. This recommended that the support element of Housing Benefit together with a number of other sources of funding should be combined into a single budget - Supporting People, which would be administered by Local Authorities.
- Northern Ireland has similar difficulties and therefore it was decided to take advantage of the findings and recommendations of the GB review and combine all funding sources for housing support services into a single fund which will be administered by the NIHE. The fund will comprise of the amount of housing benefit which is presently meeting housing support costs plus a number of other funds such as the Department's Special Needs Management Allowance, NIHE's 'Care and Repair' funding and its homelessness funding which also finance housing support costs together with a small amount of funding from the Probation Service. The new arrangements will bring about increased accountability and introduce a quality dimension which, in some cases, did not previously exist.
- The proposals will combine a number of existing funding streams, which are already under the control of DSD and NIHE, into a single fund. These amount to approximately £5.7m. In addition, it will involve the transfer to the housing budget of the amount of Housing Benefit currently attributed to housing support costs. The calculation of this amount is a complex exercise and will require existing providers of supported housing schemes to differentiate between the amount of rent and the amount of support costs associated with each existing scheme.
- In accordance with its duty under Section 75 of the Northern Ireland Act 1998, the Department has conducted a screening exercise on these legislative proposals and has concluded that they will not have any impact on equality of opportunity. Those in receipt of housing support will notice no difference, as it is the funding method, which is changing.
- The Department has given careful consideration to the Bill's proposals in the light of its obligations under human rights legislation and considers them to be compatible with the European Convention on Human Rights.
- It is proposed that one of the conditions of grant will be that the NIHE can monitor the level of service provided to vulnerable persons to ensure that it is a quality service which meets the needs of those it is intended to serve. This proposal will be the subject of a regulatory impact assessment in due course.
- The Secretary of State has consented under section 10(3)(b) of the Northern Ireland Act 1998 to the Assembly considering this Bill.
- At Introduction the Minister for Social Development had made the following statement under section 9 of the Northern Ireland Act 1998:
"In my view the Housing Support Services Bill would be within the legislative competence of the Northern Ireland Assembly."
INTRODUCTION
BACKGROUND AND POLICY OBJECTIVES
CONSULTATION
OPTIONS CONSIDERED
OVERVIEW
COMMENTARY ON CLAUSES
Clause l: Provision of housing support services
Clause 1 of the Bill extends the functions of the NIHE to include securing of the provision of housing support services and gives it power to do such things as it considers appropriate for that purpose.
Clause 2: Grants for housing support services
Clause 2 of the Bill gives the NIHE the power to pay grant to those eligible persons who are providing housing support services. The Department may prescribe the description of persons who are to be considered eligible for support and the power to impose terms and conditions on which grants may be paid.
Clause 3: Disclosure of information
This clause allows the Department and persons holding information on its behalf and relating to income support or income-based jobseekers allowance to pass such information to the NIHE for purposes relating to its powers to pay grant for housing support services.
Clause 4: Unauthorised disclosure of information
This clause makes it an offence to disclose, without lawful authority, any information about income support or income-based job seekers allowance which has been provided in relation to the payment of grant for housing support services.
Clause 5: Housing benefits
This clause amends Section 129 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) to exclude payments in respect of housing support services from the charges that are eligible for financial support through housing benefit.