Over 150 organisations, including Age UK and Refuge, have issued an urgent appeal to the government, warning that supported housing in England is heading towards a financial collapse that could force tens of thousands of vulnerable people into homelessness.
In a letter to Downing Street, charities, housing associations and public bodies have called for immediate government intervention to protect the sector, which currently provides homes for around 500,000 people with complex needs.
Supported housing plays a crucial role for groups including older people, care leavers, veterans, individuals with disabilities, and survivors of domestic abuse.
However, rising costs and sustained funding cuts have pushed many providers to the brink. Nearly one in five supported homes is now at risk of closure, according to figures from the National Housing Federation (NHF), threatening 70,000 homes.
The NHF found that a third of providers said they may have to stop delivering supported housing altogether, while 32% have already closed homes in the past year due to financial pressures.
Kate Henderson, chief executive of the NHF, said the sector is at a breaking point. She warned that without urgent action from the government, thousands of homes could be lost, along with the vital support that enables people to live independently.
Demand for supported housing continues to grow, yet the supply is shrinking. England has lost a net total of 3,000 supported homes over the past three years, and there are now fewer units than there were in 2007. Experts estimate a current shortfall of 325,000 supported homes nationwide.
A lack of supported housing is now the leading cause of delayed discharges from mental health hospitals, costing the NHS an estimated £71 million. Without these services, the country would need 14,000 more psychiatric inpatient beds, 2,500 residential care spaces, and 2,000 extra prison places.
The letter, to be delivered on Friday, has been signed by a wide coalition of organisations, including the Church of England, YMCA, St Mungo’s, the Royal British Legion, the Royal College of Psychiatrists, Homeless Link and the Nationwide Foundation.
Among those affected is Jason Lui, a 42-year-old with autism, a learning disability and mental health challenges. After being stuck in hospital for months, he was placed in supported housing by the provider Advance. But due to ongoing cost pressures, even this scheme is now at risk.
Jason’s father, Shaoxiong Lui, said supported housing transformed his son’s life. “He couldn’t come home due to his health needs, and we couldn’t find anywhere for him. Now he’s happy and settled – if they closed it, I don’t know what we would do.”
Julie Layton, chief executive of Advance, said the organisation has supported people to live independently for decades, but years of underfunding are now forcing them to review the future of their housing schemes. “It would be a tragedy to see decades of progress undone,” she said.
The financial crisis facing supported housing has deep roots. Since the removal of ringfenced funding in 2009, many councils have been forced to redirect already limited resources. The National Audit Office estimates funding for supported housing fell by 75% between 2010 and 2020.
In response, a spokesperson for the Department for Levelling Up, Housing and Communities acknowledged the importance of supported housing and pledged that the government would continue investing in the sector. A £2 billion package for social and affordable housebuilding is due in 2026–27, with further details to follow in a new long-term housing strategy later this year.
Charities are calling on ministers to use the upcoming spending review to commit to long-term funding for supported housing. They argue that investing now will not only protect vulnerable people but reduce future costs to the NHS, social care and criminal justice systems.
