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MD2877 Mayor’s Care and Support Specialised Housing programme 2021-22

Key information

Decision type: Mayor

Reference code: MD2877

Date signed:

Date published:

Decision by: Sadiq Khan, Mayor of London

Executive summary

Since 2013-14, the GLA has been administering the capital’s share of the Department of Health and Social Care’s (DHSC’s) Care and Support Specialised Housing (CASSH) fund to develop homes for older and disabled people in London. To date, £112m has been spent on CASSH schemes in the capital. The Mayor recently secured a further £43.5m of capital funding for the programme in London (61 per cent of the national pot), for schemes that will start on site during 2021-22. This will increase the size of the London’s capital programme to £155.5m. The DHSC will also provide the Greater London Authority (GLA) with up to £150,000 of administration funding for 2021-22. Approval is sought to receive and expend this capital and revenue funding. Funding allocations will be approved in line with decision making processes and delegated authority to the Executive Director of Housing and Land for the affordable housing programmes.

Decision

That the Mayor:

1) approves the receipt and expenditure of £43.5m capital grant funding from the DHSC’s CASSH programme for schemes starting on site by 31 March 2022, and up to £150,000 revenue grant funding to administer the programme in London during 2021-22

2) delegates authority to the Executive Director of Housing and Land to approve funding allocations in line with decision making processes for the Affordable Homes Programmes.

Part 1: Non-confidential facts and advice

1.1 Since 2013-14, the GLA has been administering the capital’s share of the DHSC’s CASSH to deliver homes for older and disabled Londoners (approved by MD1073, MD1476, MD2256 and MD2672). To date, £112m has been spent on CASSH schemes in the capital. The Mayor recently secured a further £43.5m of capital funding for the programme in London (over 60 per cent of the national pot), for schemes that will start on site during 2021-22. This will increase the size of London’s capital programme to £155.5m.

1.2 As at 21 September 2021, 1,657 starts and 830 completions had been achieved through the CASSH programme in London. Some allocations were made through specific bidding rounds and some through continuous bidding. Additional projects will come forward through continuous bidding in 2021-22. As currently, providers will submit bids through the GLA’s Open Project System and bids will be assessed according to criteria set out in the Mayor’s Care and Support Specialised Housing Fund prospectus. Officers will assess bids and, following peer review, make recommendations for funding allocations. The Executive Director of Housing and Land will approve funding allocations, in line with decision-making processes for the affordable housing programmes, as set out in the ‘Mayoral Decision-Making in the GLA’ document.

1.3 The GLA and the DHSC will shortly enter into a memorandum of understanding (MOU) that sets out the terms of the 2021-22 funding and the responsibilities of each of the parties.

2.1 This funding will enhance the scale of delivery to continue to meet the aim of the Mayor’s CASSH programme, which is to boost the delivery of a range of specialist housing provision with an element of care and support for older and disabled people in London. This includes extra care, assisted living, dementia care, retirement housing, supported housing for disabled adults and people with mental health problems, wheelchair-adapted homes and housing specifically designed for people with learning disabilities and autism. While it will mainly grant-fund affordable housing (for rent and shared ownership), the programme can also provide loans to enable the development of private housing.

2.2 Benefits of the types of housing delivered through this programme include:

  • peace of mind, safety and security for vulnerable older and disabled people
  • support to maintain independence
  • improved physical and mental health
  • delays and reductions in the need for primary care and social care interventions, including admission to long term care settings
  • prevention of hospital admissions
  • lower care costs
  • maintenance and development of links with the community
  • maximisation of incomes and reduced fuel poverty
  • freeing-up of family housing for the wider community.

3.1 Under section 149 of the Equality Act 2010, public authorities – of whom, the Mayor is one – are subject to a public sector equality duty and must have ‘due regard’ to the need to:

  • eliminate unlawful discrimination, harassment and victimisation
  • advance equality of opportunity between people who share a relevant protected characteristic and those who do not
  • foster good relations between people who share a relevant protected characteristic and those who do not.

3.2 Protected characteristics under section 149 of the Equality Act are age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation, and marriage or civil partnership status (all except the last being “relevant” protected characteristics).

3.3 The funding is specifically designed to address the housing pressures and challenges faced by older people and those living with a physical or mental disability. Older people make up the fastest-growing demographic in London. More than one in ten Londoners is aged 65 or over, with the number projected to rise by 24 per cent over the next decade. Older-person households are more likely to under-occupy housing than their younger counterparts. In London, 54 per cent of older homeowners and 16 per cent of older renters are under-occupying by at least two bedrooms. Disabled people account for around 14 per cent of London’s population.

3.4 The continuation of the programme will not only provide more suitable accommodation for older and disabled people in need of an affordable home, but will also have an impact on the market, by enabling older homeowners to downsize and free up larger properties into the market in return for a stake in or full ownership of a more appropriate home where care and support can be received.

Key risks and issues

4.1 The key risks are set out in the table below.

Risk description

Rating

Mitigating action

The funding could be undersubscribed.

Low

There is already a healthy pipeline of projects, and the programme will continue to be promoted widely among investment partners.

The emerging uncertain housing market conditions, including constrained access to labour and materials may limit providers’ appetite to take up the full amount of funding available.

Medium

While there continues to be some uncertainty, officers will work with providers to identify and mitigate potential risks.

The allocation of funding from the DHSC to the GLA on a year-by-year basis does not enable sufficient flexibility to operate the programme effectively.

Medium

The MOU with the DHSC allows for completion payments to be made up to four years after the allocation of grants. The Specialist and Supporting Housing team within the GLA is lobbying the DHSC for a longer-term settlement for the programme, which it is anticipated will be announced in the comprehensive spending review in October 2021.

Links to Mayoral strategies and priorities

4.2 Policy 5.2 of the London Housing Strategy includes the following proposals that are relevant to the CASSH programme:

  • Policy 5.2A: The Mayor will work with councils, housing associations, government and others to ensure that London’s homes and neighbourhoods support London’s diverse housing needs. This will include:
    • ensuring more of London’s new and existing homes are accessible and appropriate for disabled Londoners, older Londoners and families with children, including requiring councils to provide guidance on the size mix of low-cost rented homes
    • increasing opportunities for older homeowners to move to accommodation more suitable for their needs, including benchmarks for older people’s housing requirements in the draft London Plan.
  • Policy 5.2B: The Mayor will work with councils, housing associations, government, and others to ensure that Londoners who need it are provided with support so that they can live independently. This will include:
    • investing at least £100 million in supported housing for older and disabled Londoners
    • making the case to government that the new funding arrangements should meet the support and housing costs of supported housing in London.

4.3 Policy H13 of the London Plan states:

  • Boroughs should work positively and collaboratively with providers to identify sites which may be suitable for specialist older persons housing taking account of:
    • 1) local housing needs information including data on the local type and tenure of demand, and the indicative benchmarks set out in Table 4.3
    • 2) the need for sites to be well-connected in terms of contributing to an inclusive neighbourhood, having access to relevant facilities, social infrastructure and health care, and being well served by public transport
    • 3) the increasing need for accommodation suitable for people with dementia.

4.4 Table 4.3 of the London Plan sets out annual borough benchmarks for the delivery of specialist older persons' housing.

Impact assessments and consultations

4.5 The London Housing Strategy and the London Plan set the strategic framework underpinning the Mayor’s CASSH programme. Consultation on the London Housing Strategy was undertaken between September and December 2017. Consultation on the London Plan was undertaken between December 2017 and March 2018. Both have been subject to impact assessments.

4.6 The delivery of the Mayor’s CASSH programme since 2013-14 has involved extensive consultation with partners.

Conflicts of Interest

4.7 There are no known conflicts of interest to declare for those involved in the drafting or clearance of this decision.

5.1 This decision is seeking approval for GLA to accept £43.5m capital funding from the DHSC. The capital funding will be used to fund the development of homes for older and disabled people. The profile of spend of the £43.5m will be reported in the GLA’s capital programme.

5.2 The total value of the capital allocation to the CASSH programme in London has increased to £155.5m to reflect the allocation of £43.5m of capital funding for 2021-22.

5.3 Revenue funding of up to £150,000 will be reimbursed by DHSC against spend on the cost of administering the programme in 2021-22.

5.4 Both capital and administration funding in the programme will be paid to the GLA in arrears.

6.1 Under section 30(1) of the Greater London Authority Act 1999 (as amended) (GLA Act), the GLA has the power to receive and distribute the funding as set out above providing it considers that doing so will further one or more of its principal purposes of: promoting economic development and wealth creation, social development, and the improvement of the environment in Greater London.

6.2 As set out above, the funding will aid delivery of housing, including affordable housing. It is open to the GLA to take the view that funding it will promote both social and economic development, and is therefore within its powers, contained in section 30(1) of the GLA Act.

6.3 Further, the foregoing sections of this report indicate that in preparing the proposals in respect of which a decision is sought officers have complied with the GLA’s related statutory duties to:

  • pay due regard to the principle that there should be equality of opportunity for all people
  • consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom
  • consult with appropriate bodies.

6.4 In taking the decisions requested of him, the Mayor must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity between persons who share a relevant protected characteristic (race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section 3 (above) of this report.

6.5 Any function exercisable by the Mayor on behalf of the GLA may also be exercised by a member of the GLA’s staff albeit subject to any conditions which the Mayor sees fit to impose. To this end, the Mayor may make the requested delegation to the Executive Director of Housing and Land if he so chooses.

Activity

Timeline

Continuous bidding

October 2021 to March 2022

Starts on site

By 31 March 2022

Signed decision document

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