30 July 2004
Money intended to help 'unpopular' groups such as drug users and ex-offenders should be ring-fenced to ensure it gets through to the front line, MPs said this week.
The Commons committee that monitors the work of the Office of the Deputy Prime Minister criticised the poor funding arrangements for the Supporting People fund, which provides housing support to vulnerable groups such as the elderly, drug users and victims of domestic violence.
They found that the absence of a national formula meant funds were inconsistently distributed and some administering authorities and providers were missing out.
'The ODPM should as a matter of urgency establish clear criteria as to what money can properly be spent on, and if necessary ring-fence funding for less “popular” groups,' the July 27 report states.
It also criticises the scheme's ballooning costs, which stood at £1.8bn by the time the programme was launched in April 2003 – more than £1bn above original estimates.
Labour MP Chris Mole, who chaired the inquiry, said: 'The vision behind the Supporting People programme is commendable, but in practice preparations for funding of the programme were problematic.
'The significant difference between the estimated costs of the programme and the actual spend was unacceptable, although wholly predictable.'
Following an independent review commissioned to establish how the money was being spent, local authorities are expected to make 2.5% efficiency savings.
Although the MPs were supportive of the tighter financial regime recommended by the review, they warned that applying it blindly to each authority without taking account of individual circumstances could damage services for vulnerable people in an 'unacceptable' way.
The committee also called on Whitehall departments whose services benefit from Supporting People to contribute to the fund.
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