Supported exempt accommodation and Housing Benefit

The Housing Benefit system plays an important role in making supported housing affordable for claimants with limited income. 

Housing Benefit cannot contribute to the cost of actual support. However, where accommodation can be identified as supported exempt accommodation (SEA) under Housing Benefit legislation, Housing Benefit can help with the additional costs associated with the provision of supported housing. 

Further information on Housing Benefit can be found on our website.

What charges can be considered as part of the Housing Benefit assessment?

The following charges can be considered as part of the Housing Benefit assessment.

Core rent

The core rent will normally reflect the common charges that apply to sourcing and providing a property – i.e. the cost of owning or leasing a property. 

There would not usually be an expectation to see any marked difference between the core rent (bricks and mortar charge) charges for supported accommodation and those for general needs housing. 

A “reasonable” core rent will be eligible for Housing Benefit.

Service charges

These are the costs of running the property, for example:

• council tax costs (if they are in a House in Multiple Occupation) 
• maintenance 
• insurance 
• fuel costs (for communal areas)

“Reasonable” service charges will be eligible for Housing Benefit.

Intensive housing management costs

These charges should show costs that arise as a result of managing the scheme for residents with support needs. These can include:

• tasks that any landlord would have to perform, but in supported accommodation these tasks are more frequent or more complicated, for example:
  • re-letting void units 
  • arranging repairs
  • helping tenants to keep their rent up to date
• tasks that fall within the general meaning of “housing management” (separate to care, support or supervision), but which are not normally required in general needs accommodation, for example small maintenance tasks that are normally done by tenants in general needs accommodation

There is an understanding that running supported accommodation schemes can incur greater housing management expenses than general needs accommodation. This may be because of a higher rate of resident turnover or more wear and tear on the property. The type and degree of expenses will vary depending on the client group. 

“Reasonable” housing management costs will be eligible for Housing Benefit.

How does the Housing Benefit service decide whether the rent and/or charges can be covered by Housing Benefit?

To determine the level of Housing Benefit that can be paid, the following is considered:

• are the charges eligible for Housing Benefit? To be eligible they must relate to the provision of adequate accommodation and must be paid as a condition of occupation.
• are the service charges/intensive housing management charges reasonable? The following will be considered:
  • does the accommodation meet the housing needs of the client group? What is considered reasonable for one client group may be considered excessive for another
  • is the rent and/or service charges excessive compared to comparable services?