by Aemulator AdminThe Supported Housing Sector in Significant Financial Crisis
The supported housing sector in England is facing a significant financial crisis, according to warnings from over 150 organizations, including Age UK and Refuge. These groups have alerted Prime Minister Keir Starmer that funding cuts and rising operational costs are jeopardizing the stability of supported housing services. Currently, nearly one in five supported housing units—serving approximately 70,000 residents—are at risk of closure. Additionally, a third of providers have indicated the possibility of shutting down operations entirely.
The National Housing Federation reports a loss of 3,000 supported housing units over the past three years, contributing to a nationwide shortfall of 325,000 units. This deficit is exacerbating delays in hospital discharges and increasing pressure on mental health facilities, care services, and the prison system. In response, the government has pledged £2 billion for social and affordable housing in the 2026–27 fiscal year and plans to outline further actions in an upcoming housing strategy. However, advocates are urging immediate government intervention in the forthcoming spending review to prevent further losses and address the human and financial costs of inaction .
In a related development, Prime Minister Keir Starmer has announced plans to provide guaranteed housing for military veterans, young care leavers, and victims of domestic abuse. These groups will be exempt from local connection tests, which are typically used by councils to determine eligibility for social housing. While this initiative has been welcomed by charities, organizations like Shelter emphasize that the fundamental issue remains the insufficient supply of social housing. Shelter advocates for the construction of 90,000 social rent homes annually over the next decade to effectively address homelessness and clear social housing waiting lists .
Furthermore, a coalition of 20 councils, including Camden, has warned that their housing finances are at a crisis point. They cite rising emergency accommodation costs and restrictions on ring-fenced housing budgets as significant challenges. The councils are calling for reforms to the Right to Buy scheme, additional grant funding, and increased government support to borrow more affordably for building social housing .
In summary, while the government’s recent pledges aim to address specific aspects of the housing crisis, experts and local authorities stress the need for immediate and comprehensive action to prevent further deterioration of supported housing services and to meet the broader demand for affordable housing.
