28 March 2003
New programmes for helping people who live in sheltered housing could be threatened by contractual rows between councils and landlords.
The National Housing Federation, which represents housing associations, claims some landlords are having 'a gun placed to their heads' by councils ahead of next week's launch of Supporting People.
Under the scheme, which comes into force on April 1, rents paid by elderly and other vulnerable people are being separated from charges for support services.
But housing associations – which remain responsible for providing support services to tenants – say they are becoming bogged down in rows with councils over payments to cover the cost.
Some contracts are short-term and create instability and uncertainty for providers, while others are non-negotiable and fail to take account of economic reality, the NHF said.
Although the government advised councils to pay all providers in advance, many are refusing to do so. 'Local authorities are sweeping aside providers' concerns and imposing draconian contracts and agreements,' NHF chief executive Jim Coulter said on March 25.
The federation, which earlier welcomed the £1.4bn set aside next year for Supporting People, is calling for a further £29m in gap funding over the next three years.
In a letter to housing minister Jeff Rooker, Coulter said: 'A number of factors are undermining one of the founding principles of the programme, that it should be a partnership between commissioners, providers and users.'
PFmar2003
