Reply To: Housing Proactive

Peter Barker

See my declaration of interest above, but I cannot see how it is having an effect on the public purse? The charge is the same everywhere for all customers, so it’s not as if the HA is charging the HB claimants more in order to subsidise the self-funders. If the self-funders paid the charge, it wouldn’t be reduced across the board: the HA is using its reserves to subsidise it for self-funders. The subsidy is not causing more public funds to be paid than would otherwise be the case (quite the opposite actually because the charge would probably bring one or two into a small amount of HB entitlement where they are currently just over the income limit).

The only alternative approach that would mitigate the effect on the public purse would be if Alertacall gave it away free, which they obviously can’t do

My understanding is that this is a temporary phasing measure: as existing self-funders move on, any new self-funding tenants will have this as a charge from the outset. It’s just the existing cohort who are being protected. Without wishing to be macabre, turnover in sheltered housing is higher than general needs so it won’t be too long before the subsidised cohort has worked its way through the system.