The Local Government Association (LGA) has called for supported housing to be exempt from the housing benefit cap to prevent the most vulnerable people from losing their homes.
With the government due to make a decision in July, the LGA has warned that those living in supported housing would be unlikely to have enough money to cover the higher rental costs. If it is included, councils could feel further strain needing to find suitable accommodation - with many vulnerable tenants being forced to remain in hospital.
Cllr Izzi Seccombe said: “Councils have real concerns over the risk to vulnerable residents if the government goes ahead with its original proposals to apply the Local Housing Allowance cap to supported accommodation.
"We fear that due to the current uncertainty in the market, many supported housing schemes are not being built, and existing places may be forced to close, leaving new tenants with nowhere to live. This will heap huge pressures onto councils who are already struggling to cope with and fund demand for housing and social care.”
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