Regulated provider requirement and care/support/supervision standard
Exempt accommodation: HA 1996 — HB above LHA cap for housing provided by regulated bodies to persons receiving care/support/supervision as condition of tenure. Regulated providers: (1) Registered Providers of Social Housing (RSH-registered — housing associations; community land trusts; almshouses; specialist supported housing providers); (2) housing associations that are registered charities (Charity Commission); (3) voluntary organisations (including CICs with non-profit distribution and public benefit); (4) county/district councils. Standard private landlord (individual or limited company): NOT a regulated provider; cannot provide exempt accommodation directly. Private landlord access routes: (a) management lease to regulated provider — provider sublets to and supports residents; landlord is property owner; regulated provider is exempt accommodation provider; (b) partner with regulated provider who nominates residents and provides support; (c) set up own CIC or charity qualifying as voluntary organisation provider.
- Regulated provider: private landlord must partner with or become a registered or qualifying provider — labelling a letting 'supported housing' without regulated provider status does not qualify the accommodation as exempt
- CIC (Community Interest Company): can qualify as voluntary organisation if it demonstrates non-profit distribution and public benefit; must deliver genuine support to genuinely qualifying residents
- Due diligence: when leasing to a regulated provider — verify RSH or Charity Commission registration; check track record of genuine support delivery; review management lease commercially
- Care/support/supervision: provided or arranged by accommodation provider; linked to tenure (withdrawal from support can result in loss of accommodation); more than minimal — typically minimum 1-2 hours meaningful structured support per week with written support plan
HB claim process, UC interaction, Supported Housing Act 2023 and practical steps
HB claim process: (1) resident applies for HB to local authority; (2) LA assesses eligible rent (actual rent not LHA-capped; can refer to Rent Officer or commission Registered Valuers report on reasonableness where rent appears above market); (3) if LA satisfied: regulated provider status; more than minimal care/support/supervision; and rent not unreasonably high — HB paid at eligible rate; (4) direct payment to provider typical for vulnerable residents (income certainty for landlord/provider); (5) LA can recover overpaid HB where criteria not genuinely met. UC/HB: exempt accommodation residents remain on HB (transitional protection maintained since UC rollout — preserves access to exempt accommodation HB regime above LHA). Supported Housing (Regulatory Oversight) Act 2023: local authority compliance notices and financial penalties for providers failing to meet national standards; RSH developing national licensing standards; LA enhanced investigation and HB recovery powers.
- UC transitional protection: exempt accommodation residents claim HB (not UC housing cost element) for their accommodation — this has been maintained since UC rollout; local authorities process these HB claims as normal
- Overpayment risk: LA can recover HB if it later determines exempt accommodation criteria not genuinely met (nominal support; provider not genuinely regulated); maintain records of all support delivered (key worker logs; support plans; resident notes)
- Supported Housing Act 2023: legitimate providers delivering genuine support to qualifying residents not adversely affected; documentation of support delivery more important than ever; 'rogue' providers collecting above-LHA HB without genuine support face compliance notices and penalties
- Practical steps: do not operate exempt accommodation scheme without genuine regulated provider status; conduct due diligence on any management lease partner; ensure property meets applicable housing standards for resident group; maintain detailed evidence of support delivery