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Funding options

There are a number of funding sources that can be used to fund housing and related support for substance misusers as set out below. This page is divided in two sections; revenue and capital funding.

Revenue funding

Funding from central government for drug treatment services is channelled via the National Treatment Agency to local Drug Action Teams (DATs). This funding is combined at the local level with funding from social services and primary care trusts to create Pooled Treatment Budgets that are allocated to services via joint commissioning groups that typically include stakeholders from across social services, health, housing, Supporting People, Drug Intervention Programme (DIP) and crime reduction agencies. The aim is to achieve a multi-agency response to problematic substance misuse, a pooling of available resources and better co-ordination of services

Pooled treatment budget

The primary focus of a Pooled Treatment Budget is to provide drug treatment. However, in exceptional circumstances, and when treatment plan expectations and national targets are being met, it can be used to complement additional resources that are provided by the partnership to enhance housing support for drug users. Such spend should be reported in both the partnership Treatment Plan and local Homelessness strategies and agreed with the National Treatment Agency Regional Manager.

Drug Interventions Programme budget

DIP main grant cannot be used to directly fund housing or housing related support, but can be part of a package of support that includes this. So for instance it can be used to:

  • Contribute a drugs element to supported housing, for example an existing floating support scheme
  • Contribute to or establish a rent deposit scheme for DIP clients
  • Jointly fund posts which provide housing advice and access to provision for DIP clients
  • Contribute funding for a Substance Misuse Worker in line with the local Homelessness Strategy

Supporting People

Supporting People budgets are able to fund housing related support that helps an individual to avoid institutional care or homelessness. This funding is largely used to fund housing focused support around benefits, debt management, adherence to tenancy conditions and daily living skills. However it can also include support with a wider purpose such as continued engagement with treatment services, establishment or maintenance of social networks, and access to education and training services. Most problematic drug users will need this type of support due to the impact that this often has on their behaviour, ability to pay bills etc. Supporting People budgets are limited however and are used to deliver services for up to 20 different client groups, according to priorities determined by a local (county or unitary level) commissioning body which includes representatives from health, social services, housing and probation. Drug misusers are therefore competing for Supporting People funding with other groups such as older people, young people leaving care and homeless families.

Homeless prevention grant

Homelessness Prevention Grant is allocated to housing authorities by the department of Communities and Local Government using a formula based on demographics, levels of homelessness etc. It is not ring-fenced and authorities can determine how to spend it on activities they think will best tackle and prevent homelessness in their area. There is an expectation that it will contribute to better outcomes as follows:

  • Reducing rough sleeping
  • Ensuring that families with Children are not in Bed and Breakfast unless on an emergency basis and for no longer than six weeks
  • Achieving the 50% reduction of temporary accommodation.

Local Area Agreements

These pages provide information about Local Area Agreements; what they are, how they work, and how they affect homelessness oranisations. The information below details the current situation. To understand how LAAs function will change in April 2008, when there will be a major transition to a new framework, see section on the future of LAAs. http://www.homeless.org.uk/policyandinfo/policyandinfo/issues/laacurrent

Housing benefit and discretionary housing benefit

Drug users who are not working or on a low wage usually pay for their housing through housing benefit. Housing benefit can only be paid up to levels determined by the rent officer for homes rented in the private sector. However, all new benefit claims for homes provided through registered social landlords, or to fulfil an authority’s homelessness duties, are outside of rent officer control. General information on housing benefit can be found at http://www.dwp.gov.uk/lifeevent/benefits/housing_benefits.asp

Every housing authority receives an annual amount from the Department of Work and Pensions to enable it to make Discretionary Housing Payments to top up housing benefit for vulnerable tenants living in the private rented sector, where their rent is above the rent officer’s determination. If an authority does not spend all of its allocation the excess must be returned and the amount is reduced the following year. More information about DHP can be found at http://www.dwp/gov.uk/housingbenefit/manuals/dhpguide.pdf.

Capital funding

New housing developments can be funded via the Housing Corporation which holds a bi-annual bidding round during which housing associations compete for funding. Allocations of funding are made in accordance with regional and sub-regional housing priorities. The support of the local housing authority will normally be required for any new developments funded by the Housing Corporation.

Where a cross authority service is being proposed it will be important to gain support for this from the Regional Housing Board. It can be helpful to find out the timetable for development or revision of the Regional Housing Strategy and ensure that a reference to the need for the service is included in that document.

Keys to a successful capital funding bid

  • Have a robust needs case for the new investment that takes account of the impact on other housing and services for drug users and other overlapping client groups.
  • Talk to a housing association experienced in and committed to developing supported housing – the Housing Corporation will be happy to tell you who they are.
  • The housing association will play a lead role in the compilation of a good bid. Treat them as your partner and ensure that their concerns as developer/manager are taken into account.
  • Show that you have explored other options, such as providing move-on to existing short term housing instead of the development of new units, or sale and reprovision as an alternative to remodelling.
  • Compare the grant requirement to benchmark levels and justify any additional costs.
  • Explore contributions from health and social care authorities towards development costs (such as free or discounted land) that could help to secure the allocation for you.
  • Discuss your proposals with the planners and relevant housing authority at the earliest possible stage to get their support.
  • Discuss your proposals with the Housing Corporation well in advance of making a bid – and tell them what difference it will make to people’s lives/delivery of key strategic targets etc.
  • Make sure you have a site identified and outline planning permission (or a strong indication that it will be forthcoming) before you submit the bid.
  • Have a credible plan for how you will manage the risks of revenue funding loss without a need for further capital subsidy (What other needs could it be used for? Could it be converted to general needs housing at very little cost?)

NTA capital funding

In 2006/7 the NTA made capital funding available to support the development of tier four treatment services, and in some cases this was used to fund supported housing leading into or out of those services. However there are no plans to repeat this allocation of funding in 2007/8.

Futurebuilders

Loans are available from Futurebuilders for voluntary organisations to enable them to compete successfully for contracts from the public sector that they would otherwise be unable to win. The loans are offered at attractive rates to organisations which might otherwise be unable to raise loan finance, and repayment terms are flexible. Loans can be secured to cover both capital and revenue costs, and grant may also be available (up to 50% of the total amount applied for) to meet development costs that it would otherwise be impossible to recoup through normal contracting fees. Grant may be payable for initial developmental work, staff training, infrastructure costs etc. More details can be found at http://www.futurebuilders-england.org.uk.

Created by chris.ames
Last modified 2007-05-23 04:26 PM

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