1.1 Identify sources of funding and benefits that are available for housing and accommodation services

This guide will help you answer 1.1 Identify sources of funding and benefits that are available for housing and accommodation services.

Housing and accommodation services offer support for people who need somewhere safe and suitable to live. Services might include supported living, residential housing, emergency accommodation, or other settings. The way these services are paid for often depends on government funding, support schemes, benefits, and sometimes local resources. Knowing where the money comes from helps workers support people to access the right housing at the right time.

This guide covers where funding for housing and accommodation comes from, what benefits are available, and who can get them.

Statutory Funding Sources

Statutory sources refer to official money from central or local government. Organisations providing housing often rely on these funds.

Local Authority Funding

Local councils handle housing in most areas of the UK. The council can pay directly for supported or specialist housing for people with care needs. For example:

• Adults with learning disabilities
• Older people needing supported accommodation
• Homeless individuals needing emergency housing

The council can pay by commissioning services from housing providers or managing their own housing stock. People must meet strict criteria after an assessment. Funding from local authorities is subject to eligibility rules and budget pressures.

Supporting People Programme

The Supporting People Programme was a significant government funding stream for supported housing. Although the ring-fenced funding has ended, some local areas still offer money for similar services. The goal is to help people remain independent in their homes. Money might fund housing support workers or contribute to rent in supported accommodation.

Statutory Homelessness Duties

Councils must help people who are legally classed as homeless or at risk of homelessness. Under laws such as the Homelessness Reduction Act 2017, councils must assess applicants and may have to provide temporary or permanent housing. Funding to meet these duties comes from central government grants and local revenue.

NHS and Health-Related Funding

In certain cases, the NHS pays for accommodation. If someone has ongoing health needs requiring continuous care outside of hospital, NHS Continuing Healthcare funding can cover the costs. Sometimes, people leaving hospital need to stay in intermediate or step-down housing—funding for this may come from health budgets.

Housing Association and Registered Provider Funding

Housing associations are not-for-profit organisations that provide affordable homes. They use a mix of government grants, rental income, and borrowing to build and maintain housing. Many work with local authorities to meet demand for supported housing. Some have special schemes for people with disabilities, those with mental health needs, or older people.

They may access:

• Government funding through Affordable Homes Programmes
• Social Housing Grant
• Charitable funding (sometimes)

Charitable Funding

Many charities support people with housing problems. Some offer grants or loans, pay for rent deposits, or provide support funding. Examples include Shelter, Crisis, and The Salvation Army. The funds are usually targeted at people who might fall through gaps in statutory support.

Charitable grants are often:

• One-off payments
• Sometimes paid direct to landlords for rent arrears
• Available for particular groups (e.g. young people leaving care, people fleeing domestic violence)

Charities usually have clear eligibility rules. Applicants may need to show proof of need or face financial assessment.

Private Sector and Other Sources

Some accommodation is funded privately, for example by the residents themselves or family members. In some settings, people pay market rent or full fees for extra care.

Private landlords and letting agents sometimes work with local authorities through schemes to house people at risk of homelessness. In such cases, the council may pay deposits or guarantee rent as an incentive for the landlord.

Employers sometimes offer accommodation or housing allowances as part of a job offer. This is common in some health and care roles.

Benefits That Support Housing Costs

Most people in housing need get help through the welfare benefits system. These are government payments to help with living and housing costs.

Housing Benefit

Housing Benefit is a means-tested payment to help people on low incomes pay their rent. It covers some or all rent for people renting from local authorities, housing associations, or private landlords. Eligibility depends on income, savings, age, and who lives with the person. Most new claims are now part of Universal Credit, except for some groups (e.g. pensioners).

Universal Credit

Universal Credit replaces six previous benefits, including Housing Benefit for most working-age people. It includes a housing element that helps with rent. The amount depends on income, who lives with the person, the type of accommodation, and the local housing allowance rate.

The payment goes directly to the tenant, who then pays the landlord. In some cases, especially for vulnerable tenants, the housing cost can be paid straight to the landlord.

Local Housing Allowance (LHA)

Local Housing Allowance is used to work out how much help people renting from private landlords get with rent through Universal Credit or Housing Benefit. The rates depend on the number of people in the household and the area where they live.

LHA can sometimes mean that benefit does not cover the full rent, creating a shortfall the tenant must pay.

Discretionary Housing Payments (DHP)

Discretionary Housing Payments are extra payments made by local councils to people getting Housing Benefit or the housing element of Universal Credit who face a shortfall in rent or unexpected expenses. DHP can help cover:

• Rent not covered by benefits
• Rent deposits
• Removal costs

Payments are temporary and decided based on individual need.

Support for Mortgage Interest (SMI)

This is a government loan to help people who own their homes pay interest on their mortgage if they are on certain income-related benefits. It does not pay off the mortgage itself, only the interest. The loan must be repaid if the home is sold.

People must be on benefits such as:

• Universal Credit
• Pension Credit
• Employment and Support Allowance

Council Tax Support

Most local authorities offer Council Tax Support or Reduction. This helps people on low incomes reduce their Council Tax bill. The rules and amounts differ between councils.

Other Welfare Benefits That Affect Housing

People might also receive other benefits that help with living and housing costs indirectly, such as:

• Employment and Support Allowance (ESA)
• Income Support
• Jobseeker’s Allowance (JSA)
• Personal Independence Payment (PIP) for disability

While not housing-specific, these funds can increase the person’s overall income so they can afford accommodation.

Grants and Loans for Housing Costs

Several government and charity-backed schemes offer extra help. These often provide one-off payments or interest-free loans. Examples include:

Local Welfare Assistance Schemes

Most councils have schemes to help people in emergency financial crisis. Often, this is for people threatened with homelessness or unable to afford basic items for a new home. This might include:

• Rent deposits
• Essential household goods (e.g. beds, cookers)
• Food vouchers

Help is usually paid directly to suppliers, not given as cash.

Budgeting Loans and Advances

People on some benefits can apply for an interest-free Budgeting Loan or Budgeting Advance from the government. These help with:

• Rent in advance
• Moving costs
• Essential home repairs

Loans are repaid from ongoing benefit payments.

Homelessness Prevention Funds

Some councils and charities run funds to help people at risk of homelessness by paying for rent arrears, or providing deposit guarantees. The aim is to keep people housed or support quick moves into new housing.

Specialist Housing Support for Vulnerable Groups

People with extra needs may access specialised funding. Examples include:

• Care leavers: local authorities have a duty to support young people leaving care, which can include paying for accommodation or providing grants to set up home.
• People with disabilities: funding through Social Services or Disabled Facilities Grants to make a home suitable (e.g. ramps, accessible bathrooms).
• Survivors of domestic abuse: specialist charities and local authorities fund refuges and move-on accommodation.
• People with mental health difficulties: supported accommodation may be funded through joint health and social care budgets.

Eligibility and Access

All these sources of funding and benefit have strict rules on:

• Who can apply
• What the funds can be used for
• How long support lasts

Eligibility depends on factors such as:

• Immigration status
• Income and capital
• Disability or health needs
• Local connection to the area

Most funding requires an application process, assessment of needs, and regular review.

Challenges in Accessing Support

Accessing funding and benefits for housing can be difficult. People often need help with filling in forms, providing evidence, and understanding letters. Waiting times for assessments can be long.

Workers should support people by:

• Keeping clear records of what applications have been made
• Supporting completion of forms
• Liaising with housing officers and benefits staff
• Helping people gather the right documents

Benefit rules and funding arrangements change over time. Workers should check local guidance or speak to experts if unsure.

Key Points for Health and Social Care Workers

• Funding comes from a mix of government grants, council budgets, housing associations, benefits, loans, and charities.
• Most people rely on Housing Benefit or Universal Credit to pay rent.
• Local councils play a central role in assessing needs and deciding who qualifies for supported accommodation.
• Grants and loans provide occasional help for emergencies, moving costs or essential items.
• Charities may help with deposits, rent arrears, and advice.
• Specialist funding is available for people with extra needs, including care leavers, people with disabilities, or survivors of abuse.
• Rules and eligibility criteria can change and may differ between areas.

Main Funding and Benefit Sources

Source	How It Supports Housing	Who Can Apply	Notes
Local Authority Funding	Pays for supported/specialist housing	Based on needs assessment	Budget limits apply
Housing Benefit	Pays some or all of rent	People on low income, most renters	Now part of Universal Credit for many
Universal Credit (Housing Element)	Part of monthly payment covers rent	Working age tenants, low income	Replaces Housing Benefit for new claims
Discretionary Housing Payments	Tops up shortfalls in rent	Those on Housing Benefit/UC	Short-term help
Charitable Grants	Can pay for deposits, arrears, household items	People with particular need	Limited funds, strict criteria
Support for Mortgage Interest	Loan for home owners on benefits	Homeowners on certain benefits	Must be repaid, only covers interest
Local Welfare Provision	Emergencies and household setup grants	People in crisis	Managed by councils, may differ locally
NHS Funding	Step-down, aftercare, continuing healthcare	People with high health needs	Covers accommodation linked to health
Specialist Funds	Funds for care leavers, disabled, at risk	Members of those groups	Usually applies only to certain groups

Practical Actions for Workers

1. Get up-to-date information on local schemes and eligibility rules.
2. Support people to apply for the rights benefits and grants.
3. Work with housing officers, social workers, and voluntary organisations.
4. Encourage clients to keep evidence of income, ID, and tenancy agreements ready for applications.
5. Check if special funds or local support are available for emergencies.

Final Thoughts

There are many funding sources and benefits to help with housing and accommodation costs in the UK. Each has different rules and ways to apply. Support is focused on those with the greatest need, or who meet specific legal criteria. Health and social care workers have an important role in supporting clients to access the right options, helping to maintain or secure safe and stable housing. This means knowing where to go for information and helping people understand what help they can get.