Conservative ministers poised for rethink over housing benefits cap for elderly and vulnerable

Ministers are poised for a rethink over controversial changes to benefits that could hit thousands of elderly and vulnerable people living in supported housing.

Under plans due to be brought in from 2019, people living in supported accommodation would have their housing benefit capped in line with people renting in the private sector, prompting warnings it could leave vulnerable people facing significant hardship.

Charities have previously warned that the move would deter housing associations from building these homes over uncertainty over future funding, which would spark a shortage of housing for vulnerable people, who rely on the support to stay out of hospital or residential care.

More than 700,000 people live in this form of housing, which include homes for people with learning and physical disabilities along with women and children fleeing domestic violence.

Following a Commons inquiry earlier this year, Communities Secretary Sajid Javid reportedly told MPs on the Communities and Local Government (CLG) committee that he had listened to their calls to look again at the plans.

Committee chairman Clive Betts told The Independent the Government appeared to be broadly sympathetic to the findings of the committee’s recent probe, which urged ministers to scrap plans to base the rent allowance for supported housing tenants on the same rents used in the private rented sector.

He said: “The indications the Secretary of State gave us were that the Government was going to change the proposals that were in line with what the recommendations of our report had been.”

One of the main concerns was the discovery that a string of housing associations were slashing investment – and even cutting existing services – because of the looming changes.

Earlier this year, the National Housing Federation forecast a 300,000-home shortfall by 2030, of which 240,000 are sheltered properties needed by pensioners.

It comes ahead of an opposition day debate in the Commons over supported housing, where Labour will urge ministers to drop the planned change.

Shadow Housing Secretary John Healey said: “These plans remain a sword of Damocles hanging over homeless hostels, women’s refuges and sheltered housing for the frail elderly.

“The chaos caused by the Conservative plans has already halted 85% of new supported housing.

“Ministers must use this week’s Labour-led Commons debate to drop their flawed plans for good and guarantee long-term funding building on the recent cross-party select committee report.”

The Department for Communities and Local Government declined to comment.