Funding Furniture

Michael Patterson:

Support Solutions

September 2013

Key QuestionThe provision of furniture packages to some tenants in general needs and in supported/sheltered housing has always been necessary; but how is it funded and does it make a difference if you’re a vulnerable tenant?

Universal Credit Service Charge

Under the new Universal Credit Service Charge regulations, furniture & white goods are fundable:“Charges relating to the rental of basic furniture

or essential domestic appliances to tenants in the accommodation they occupy, only where the items being rented remain the property of the original owner and do not form part of a purchase or part-ownership agreement”.

Tenants Claiming Universal CreditWhat is meant by “basic furniture or

essential domestic appliances”?What is a reasonable charge?The 2nd may often define the 1st

Custom and practice is/will be established at local level.

Some blots on the landscape: VAT component allegedly unfundable.

Tenants in Exempt Accommodation?Tenants who are “vulnerable” (supported/sheltered

housing)What is Exempt Accommodation?

Landlord: County Council, Registered Provider, Charity or Voluntary Agency

With a legal interest in property (ownership or lease) In which they accommodate someone in need of “care, support

& supervision” The “care, support & supervision” should be provided by the

landlord or an agent on its behalf.

Tenants in Exempt Accommodation:

Tenants in Exempt Accommodation

Have the housing component of their Universal credit separately administered by the local authority through the Exempt Accommodation rules.

Are entitled to enhanced levels of HB, including (but not limited to) service charge elements for furniture and white goods and much else.

Are exempt from the “Bedroom Tax”Are exempt from the Benefit CapRent is paid direct to the Landlord.

Tenants in Exempt AccommodationLocal authorities reclaim from the DWP what they pay

out through the Exempt Accommodation rulesProbably more generous than Universal Credit service

charge and for good reasonSome argument over what constitutes Exempt

AccommodationExempt Accommodation scenarios are good for a lot

more than just furniture packages, but they’re good for those too.

Quite a few vulnerable social tenants don’t live in Exempt Accommodation

Vulnerable Tenants Not In Exempt Accommodation Supported/Sheltered housing schemes that fall

foul of the Exempt Accommodation rules, for example, because they’re agency managed

And where public subsidy is paid for the provision for support

No “Bedroom Tax” No Benefit Cap Not clear whether Universal Credit service

charges or Exempt Accommodation rules apply but either way furniture is fundable.

What About Vulnerable Tenants in General Needs?Might be vulnerable over the short or longer

termTenancy sustainment and floating supportRequires additional housing management

services, including but not limited to furniture.We believe that it’s Exempt Accommodation;

however, also fundable through the Universal Credit service charge

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