That this House has considered supported exempt accommodation in Birmingham.
It is an honour to serve under your chairship, Ms Lewell. I declare my interest as a landlord.
It is fair to say that most people up and down the country will not know much, if anything, about supported exempt accommodation, but in Birmingham it is something that almost everyone has become all too familiar with. In just eight years, the number of people housed in supported exempt accommodation in our city has tripled to more than 32,000 across 11,200 properties. My Birmingham Perry Barr constituency alone hosts 20% of the city’s total units. That means thousands of vulnerable individuals placed in a small number of neighbourhoods. This is not a marginal issue for us; it is shaping daily life.
With the city containing more supported exempt accommodation than anywhere else, Brummies face a completely different reality on the ground from every other community in the country. Of most immediate concern to my constituents is the antisocial behaviour, criminal activity and fly-tipping that come with a high number of these properties in such close proximity.
Let me be absolutely clear from the outset that this debate must not be about stigmatising vulnerable people. Many of those housed in supported accommodation are there because they have experienced trauma, addiction, serious mental health issues, abuse, time in care or even time in custody. They deserve compassion, dignity and meaningful support.
But compassion must be matched with realism. Some of the individuals placed in ordinary residential streets have needs so acute that they require intensive, structured and often 24-hour care. When someone is in such crisis that they are unable to manage basic personal safety, hygiene, or addiction issues in public spaces, that person is not being supported adequately. They are not “bad neighbours”. They are people who require structured, possibly clinical support environments—not standard terraced housing or residential streets. The same applies to certain ex-offenders, particularly those leaving custody with complex behavioural, psychological or substance misuse issues. Reintegration is vital, but it is a delicate process that needs close management and the right resources.
The issues that are being caused in my constituency are a matter not of law and order, but of care. I have had reports of individuals experiencing severe mental health breakdowns defecating in public spaces. Residents have described open drug use on streets where parents are walking their children to school. There are cases of individuals injecting themselves in broad daylight, in full view of families. For many of my constituents, everywhere they look they see visible manifestations of profound vulnerability and unmet need.
I spoke to the hon. Gentleman beforehand, and he knows where I am coming from. I congratulate him on bringing forward this critical issue for vulnerable people. He will know that every constituency, wherever it may be in the United Kingdom of Great Britain and Northern Ireland, has immense housing pressures, and it is often the most vulnerable—the very people he is referring to—who fall through the cracks. Does he agree that every local authority and housing authority—in Birmingham or, as it may be, in Northern Ireland—must have greater access to supported living for those who could thrive with a little help? We have a duty of care, as do the Government, to ensure that everything possible can be done to change the way things currently are.
I wholeheartedly agree with the hon. Gentleman’s analysis. Often this comes down to adequate resourcing. As I described, we have a situation in which individuals who need intensive support are not being provided that support. They are being placed in neighbourhoods, which in itself is very challenging; someone might have an addiction to alcohol and be placed in a community where there is very little infrastructural support. It is vital not only that there is suitable accommodation but, more fundamentally, that we have the right level of support in and around particular areas. When we have large saturation without the support, the problems faced by many of my constituents and people in Birmingham more broadly are inevitable.
That brings me nicely to the Supported Housing (Regulatory Oversight) Act 2023, which was passed to resolve some of the issues that we are facing in Birmingham. It promised to introduce compulsory national minimum standards for exempt accommodation, including on referrals, care and support, and quality of housing. It promised to grant local councils the powers and resources needed to enforce such standards, and greater control over the licensing and planning permission given to providers. Since the Act received Royal Assent, however, it has been stuck in the consultation stage, with disagreements over how to implement it on the ground. While the Act shows no sign of taking effect, the expansion of exempt accommodation in Birmingham continues unabated.
The Government seem intent on painting the situation in Birmingham as simply a local matter that is nothing of their making, and the council’s call for powers to regulate the concentration of these properties as some kind of nimbyism, and yet the city’s importing vulnerable individuals from other local authorities against the council’s will is what caused the explosion in the first place.
While supported exempt accommodation plays an important role in housing vulnerable people, the concentration and volume of provision in Birmingham far exceeds local need. This is not something that the Government have not known about; in written evidence it submitted to the Levelling Up, Housing and Communities Committee in 2022, Birmingham city council confirmed that only 42% of properties were needed to meet local need, with much of the remaining 58% being used to house people referred through local authorities or national bodies outside the Birmingham area. In all too many cases, people are being put in exempt accommodation in Birmingham simply because it is available, with no afterthought for the relative level of support that tenants can be provided or for the impact on the local area. Worst of all, Birmingham city council knows that is happening, but the Government still have not given it the licensing powers to stop it.
It is a pleasure to serve under your chairship, Ms Lewell. I thank the hon. Member for Birmingham Perry Barr (Ayoub Khan) for securing this debate.
Since I was elected in 2017, issues with supported exempt accommodation have been persistent in parts of my constituency. When supported housing works, it changes lives: it helps prison leavers turn a corner, helps people get off the streets, and helps those battling addiction or mental illness rebuild their lives. But in Birmingham the system is not just being abused; it is broken. Supported housing provision in Birmingham has tripled since 2018. Today, nearly 33,000 people live in 11,200 supported exempt properties, and the cost has risen to almost £400 million—about half the entire country’s exempt spending. The council is clear that that level far exceeds local need, yet the sector continues to expand at pace.
In September 2024, I secured a Westminster Hall debate on this topic. I was very pleased to hear the ambition of the newly elected Government to finally get a grip on the wild west sector, but unfortunately progress has been slow, and we are here again. Many people who enter supported accommodation do so because they have nowhere else to turn. Public funding is there to give them safety, stability and a pathway to independent living. When it works, it saves lives and money. As the National Housing Federation reports, quality providers save the public purse approximately £3.5 billion annually by alleviating pressures on the NHS, social care services and the criminal justice system. As I have seen time and again in my constituency, however, bad actors have been allowed to exploit the system and profit from the neglect of people who are suffering.
I thank my hon. Friend and constituency neighbour for giving way. She is making a very important point about rogue providers. The council needs to be given the necessary regulatory powers and all loopholes need to be closed if we are to make supported accommodation effective in neighbourhoods. Does she agree that it is not simply about the money? The rogue providers who exploit vulnerable people have to be acted on very quickly.
Yes, absolutely. We are here to talk about when we can expect the regulations, and I look forward to hearing from the Minister.
In 2021, I worked with the council, my local police inspectors and north Edgbaston residents to shut down Saif Lodge. That example makes the case for why regulation is needed. I carried out a spot check with the police and was appalled to find 25 residents with one support worker, and no staff on site at weekends. The conditions were filthy and cramped. Prostitution, drug use and other antisocial behaviour had become routine. It was the first case in the country of an exempt property being shut down, but it took more than a year, with the matter before the courts. That really makes the case for why regulation is so important. Saif Lodge was a symptom of our system.
I want to thank many campaigners, but in particular I thank Jane Haynes at Birmingham Live and Nick Hall, a constituent of mine who wrote an excellent piece in Central Bylines for which he spoke to many residents in north Edgbaston living in exempt accommodation. He told me that one 42-year-old man said that he feared for his health and doubted that he will reach 50. Another said:
“It is safer to live in a park than in the provider’s rooms.”
Since then, West Midlands police has publicly highlighted links between the exempt sector and organised crime gangs, money laundering, fraud and drug dealing. The impact on the community is real. One constituent, a veteran who served for 36 years, recently told me that he plans to sell his home and leave the area because the property next door had suddenly been converted into exempt accommodation without any consultation. He fears that the rogue providers have no care for those they support or the local areas they set up shop in.
We cannot continue like this. In the last Parliament, I campaigned for a new regulatory system for supported exempt accommodation that would introduce minimum standards of support, update housing benefit rules to define care and supervision requirements, and give councils the power to manage local provision and act swiftly against rogue operators, yet we are still waiting for the new regulations to be introduced under the Supported Housing (Regulatory Oversight) Act 2023.
It is a pleasure to serve under your chairmanship this afternoon, Ms Lewell. I thank the hon. Member for Birmingham Perry Barr (Ayoub Khan) for securing this important debate. Shelter is a basic human need. It is a human right. The Liberal Democrats and I believe that everyone has the right to a safe, secure and adequate home.
This issue is close to my heart. When I served as the Mayor of Woking, I supported Woking’s local homeless shelter, the York Road Project, by raising money and awareness for it. I knew at the time that I was raising money for a good cause, but the covid pandemic hit as soon as we had finished raising that money, and it was invaluable in protecting vulnerable people at one of the most vulnerable times. That project is a high-quality provider of support.
Woking’s women’s refuge, Your Sanctuary, is a high-quality provider of exempt accommodation, but I know that residents of exempt accommodation elsewhere are being let down badly, whether in Birmingham or elsewhere in the country. Those residents have effectively been denied the support they need. Meanwhile, millions of pounds of public money is wasted—or, more accurately, transferred to the bank accounts of landlords and providers who are taking advantage of the destitute. We need to sort that problem out right now. The system of exempt accommodation was described in the Levelling Up, Housing and Communities Committee’s October 2022 report as a “complete mess”.
The Ministry of Housing, Communities and Local Government’s supported housing review, published in 2024, estimated that there are over 634,000 units of supported housing in Great Britain, with 535,400 units located in England alone. The review estimated that by 2040 between almost 1 million and 1.3 million supported housing units will be needed, considering the current demand, predicted increase, demographic trends and unmet need. The situation is spiralling out of control, and the Government need to get a grip.
It is a pleasure to serve under your chairship, Ms Lewell. I congratulate the hon. Member for Birmingham Perry Barr (Ayoub Khan) on securing this important debate.
Supported exempt accommodation plays a critical role across the country, but as we have heard, there are clear issues that need to be resolved. It provides housing to support those living independently, and crucially, it supports some of the most vulnerable people in our society, including care leavers, people with disabilities, those who have experienced homelessness or rough sleeping, those recovering from a drug or an alcohol addiction, individuals recently released from prison, and victims of domestic abuse and modern slavery. The nature of supported accommodation and the support that it provides mean that it is exempt from the usual caps on housing benefit. That exemption exists for a good reason. However, the sector is fragmented, regulated by multiple bodies and lacks a single, coherent regulatory framework.
For some time now, there have been serious concerns about inconsistency, poor standards, poor-quality provision in some areas and the long-term financial sustainability of the sector. More recently, the Government’s supported housing review, published in November 2024, showed that in 2023, there were 634,000 units of supported housing in Great Britain. More than a third of those—more than 215,000 units—were claimed through the housing benefit system. Critically, the review also highlighted a substantial shortfall. It estimated that nearly 400,000 additional supported housing units are needed right now to meet the unmet demand. Looking ahead, that figure rises dramatically, with up to 640,000 additional units required by 2040, particularly for older people.
Against that backdrop, it is deeply concerning that the sector itself has warned that it is in crisis. In April 2025, more than 170 organisations wrote to the Prime Minister to call for at least £1.6 billion a year in long-term funding for local authorities. Further warnings followed in July 2025, highlighting the risks of strengthening regulation without providing the funding to make it work. In August 2025, the Local Government Association echoed those concerns, calling for increased funding and new guidance to help councils prepare for the implementation of the new regulatory requirements.
It is a pleasure, as always, to serve with you in the Chair, Ms Lewell. I congratulate the hon. Member for Birmingham Perry Barr (Ayoub Khan) on securing this important debate, and thank him for his clear and comprehensive account of the challenges of poorly managed, and in particular non-commissioned, exempt accommodation in his constituency.
I also thank other hon. Members who have participated in the debate, including my hon. Friends the Members for Birmingham Hall Green and Moseley (Tahir Ali) and for Birmingham Edgbaston (Preet Kaur Gill). My hon. Friend the Member for Birmingham Edgbaston, along with my right hon. Friend the Member for Birmingham Ladywood (Shabana Mahmood) and my hon. Friend the Member for Birmingham Selly Oak (Al Carns), have championed this issue for, in some cases, many years. I remember the debates about it in the previous Parliament.
Members will have noticed that I am not the Minister responsible for supported housing. The Minister for Local Government and Homelessness, my hon. Friend the Member for Birkenhead (Alison McGovern), is currently in the main Chamber updating the House on changes to local government finance. I will obviously do my best to respond to the various points raised by the hon. Member for Birmingham Perry Barr and others, but I know that the Minister for Local Government and Homelessness will be happy to follow up with any Member in relation to specific issues of concern. I have no doubt that she will be more than happy to meet the hon. Gentleman and, indeed, his constituents, should that be appropriate, to discuss matters in more detail.
In general terms, let me reassure Members of two things. First, the Government take incredibly seriously the need to ensure that all individuals who benefit from supported housing live in safe and decent accommodation and get the support that they need to get back on their feet and improve their lives. As we have heard, in many cases these are very vulnerable individuals who need support if they are to get their lives back on track.
Given the delay in the Act coming into force, would the Minister consider issuing interim guidance so that local authorities can get on more swiftly with some of the changes that they have been asking for for a very, very long time?
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Inaction on the Government’s part has been glaring, but I am pleased that the same cannot be said of activists in my constituency. During my time as Member of Parliament for Birmingham Perry Barr, I have been encouraged by the tireless efforts of local groups to raise the issue, including the HMO Action Group, the Handsworth Triangle Action Group, the Soho Road business improvement district and Handsworth Helping Hands. I must also thank Birmingham city council and West Midlands police for mobilising in the way they have to try to tackle the crisis.
A particular bright spot has been the council’s in-house SEA pilot, which we can safely say has punched well above its weight and made Birmingham better for it. With minimal Government funding, the pilot has recovered £8.8 million in overpaid housing benefit, while also completing 2,600 antisocial behaviour investigations. That is with only 21 people covering the entire Birmingham city area. We must think of what more can be done to reduce fraud and waste in Government spending by giving the council the means to expand that operation.
The SEA pilot and groups of committed activists have done an incredible job to improve care standards for vulnerable people in supported exempt accommodation, where such action is needed, but they simply cannot fill the gap that the Government have allowed to grow. To make matters worse, rather than supporting them, the Government are refusing to fund the SEA pilot—its funding runs out next month. As a result, the bankrupt Birmingham city council has been left in an impossible position. It must either scrounge the money together to fund the initiative itself, or lose what little grip it had left on the situation.
That point is worth repeating. After depriving the council of the powers to regulate the market for three years, the Government are now refusing to give it the means to provide even a band-aid solution to a problem that they are compounding. While assurances were given that the Government would respond to the consultation as soon as possible, we have been hearing that for a long time.
This is not just about some additional antisocial behaviour taking place on the streets; it is about the vulnerable individuals who are being let down by the system, and it is about the residents who have paid the price for Government inaction and seen the character of their streets tainted. Residents feel that their neighbourhoods have been lost and, worst of all, they feel as though no one in Whitehall cares enough to solve the problem.
This is not to say that there is no place for supported exempt accommodation in Birmingham, because it plays a pivotal role. When it works well, it changes lives. I have been to neighbourhood forums in my constituency and spoken to people who have turned their lives around because of the support they receive from their registered providers—people rebuilding their lives after serving prison sentences, suffering domestic abuse, leaving care, or combating debilitating addictions or mental health conditions. But without the efficient, effective and meaningful licensing scheme for supported housing that the council was promised three years ago, Birmingham is simply unable to cope. We are asking neighbourhoods to absorb extremely high numbers of people with complex needs, but we are not providing the council with the tools required to support those individuals or reassure residents, and inevitably it is only the vulnerable individuals and the residents around them who stand to lose.
The problem of over-concentration is exacerbated by the inefficient support infrastructure that comes with it. The SEA pilot shows that when Birmingham is given tools, it delivers, but the city has more supported exempt accommodation than anywhere else in the country, and yet it does not have the corresponding level of funding, enforcement capacity, clinical provision or community-safety staffing required to manage the consequences.
If someone requires 24-hour wraparound care, addiction services, psychiatric input and structured supervision, they need a properly funded care facility, not a standard residential property with light-touch oversight. We must distinguish individuals who are stabilised and ready for supported community living from those in acute crisis who require secure, high-support environments before they can safely transition into neighbourhoods.
At present, that distinction is not being properly resourced and the result is unfair on everyone. It is unfair on residents who see behaviour that is deeply distressing and feel that their concerns are dismissed, it is unfair on vulnerable individuals who are placed in environments that do not meet the scale of their needs, and it is unfair on Birmingham city council, which is expected to manage the situation without adequate funding or authority.
The council’s supported exempt accommodation pilot has demonstrated what can be achieved when resources are provided, but pilots and short-term funding are not enough. What Birmingham needs is sustained funding for community safety, including more community safety officers and a greater neighbourhood policing presence in areas with a high concentration of supported housing. I would be incredibly appreciative if the Minister could make the necessary representations to his colleagues in the Home Office on that front.
The council needs the ability to manage concentration and set boundaries on the number of people from outside the city that it must house, because no neighbourhood should be asked to shoulder a disproportionate share of highly complex placements without the consultation, infrastructure and services to match it. When it comes to managing such complex matters, having an ineffective, watered-down licensing scheme is worse than having nothing altogether, because we end up with the same outcome at a higher cost to the taxpayer.
I am looking forward to hearing the Minister’s reflections on what can be done to ensure that the 2023 Act is implemented in a way that reflects the impact that exempt accommodation can have on neighbourhoods and community harmony. I would also be grateful to hear what is being done to increase the speed with which the Act is implemented, and clarification on when the Government will respond in full to the most recent consultation.
Finally, the council needs the necessary powers to ensure that vulnerable individuals receive the best care possible. That means clarifying the extent of providers’ duty of care to their tenants, with tailored and specialist plans that not only provide personal support to the individual, but outline their obligations to ensure harmony with neighbours and the local community.
To conclude, I have a couple of final questions for the Minister. What financial support do the Government intend to provide to Birmingham city council in its efforts to contain the local crisis that the Government’s prolonged inactivity has exacerbated? The SEA pilot, in particular, is of great value to my constituents, and it would be a real shame if it disappeared. Will he agree to meet with me and local groups so that they can convey to him the true scale of the impact that the oversaturation of SEAs is having on their neighbourhoods and communities?
At the end of the day, this is about vulnerable people who need structured care, communities that need reassurance, and a local authority that cannot continue to carry a national burden without national support. Birmingham is not asking to step away from its responsibilities; it is asking for the means to fulfil them properly. It is my sincere hope that the Government will escalate their efforts to deliver exactly that.
In July 2025, the previous Minister for Homelessness stated that they aimed to publish the Government’s full response to the consultation on these measures after the summer recess. In response to my written parliamentary question, the current Minister for Local Government and Homelessness said on 13 January this year that the response would be published “as soon as possible”. I hope the Minister responding to the debate will update us on when we can expect to see the Government’s response to the consultation so that we can get on with bringing in these crucial regulations.
I thank the Minister for Local Government and Homelessness for visiting my constituency to see for herself the diverse accommodation available. I also welcome the steps taken by the Government and Birmingham city council to date. Birmingham city council has set up a specialist team to tackle antisocial behaviour and crime, and to improve property standards. I am grateful to the Government for extending the supported housing improvement programme with an additional £1.5 million for Birmingham. Since the team was set up, over 9,000 of the most severe hazards, such as severe mould and fire risks, have been removed. It has issued 48 community protection orders against antisocial behaviour and £8.8 million has been saved by refusing unjustified housing benefit claims.
Birmingham city council also set up its own quality standard programme, but voluntary schemes cannot replace statutory oversight. So far, only 15% of providers have successfully achieved gold, silver or bronze accreditations. The council’s actions starkly evidence the need for regulation of the sector. The Minister will be aware that the SHIP funding ends in March 2026 and the council is bridging the gap with the homelessness prevention grant. Only clear regulation will give the council the tools it needs to manage local provision effectively.
I welcome the Government’s publication this week of the statutory guidance for local supported housing strategies. The local strategy will be an important step in mapping current and future provision. Proper processes will be formulated for referrals, and housing teams will work with colleagues in health and social care to deliver a much better co-ordinated system, but we must go further.
Local authorities are still saying that without new regulations to define minimum standards of support and empower councils to crack down on exploitative providers, vulnerable people and taxpayers will continue to be ripped off. The statutory guidance is an important first step, but it will not fix the problem that my constituents are facing today unless we move at pace to bring in these regulations.
None of that is intended to dismiss the many excellent providers that deliver high-quality support every day—many of them are doing a really good job; they play a crucial role and change lives—but the sector has also attracted landlords who see vulnerable people as a source of income rather than a responsibility. Without firm oversight, those operators undermine good practice, exploit residents and damage our communities.
Everyone agrees that people fleeing abuse, leaving prison or care, or battling mental health and addiction deserve somewhere safe that they are connected to and that truly helps them rebuild their lives. Our communities deserve to feel safe and taxpayers deserve to know that their money is protecting people, not enriching those who exploit them. The stories of fear, failure and sometimes outright abuse are heartbreaking. We cannot look away any longer.
There are many good providers—I have talked about some in my constituency, and I hope that all Members have similar examples—but there are awful and appalling instances where the system allows the exploitation of vulnerable people who should be receiving support, while unscrupulous providers make excessive profits by capitalising on loopholes. It is apparent that there is a gold rush, with money mainly being transferred from the taxpayer through housing benefit. That is a sorry state of affairs.
It has now been three years since the Supported Housing (Regulatory Oversight) Act, a private Member’s Bill introduced by the hon. Member for Harrow East (Bob Blackman), was passed and received Royal Assent. Unsurprisingly, the wheels of Government have ground along at a snail’s pace. Three years have gone by, but the Act has still not been implemented due to difficulties in creating regulations. Last year, The Guardian reported:
“People are dying…and communities are being irreversibly damaged due to delays to a…law to clamp down on unregulated supported housing”.
Will the Government enable a situation in this Parliament in which we can create regulations, stem the flow of cash into what is essentially a black market, and halt those deaths?
Right now, as we debate in Westminster Hall, vulnerable people in our society—the homeless, survivors of domestic abuse, those with mental health issues and those released from prison—are subject to dangerous housing conditions with little or no support. There is a general consensus across the major political parties that the regulation contained in the Act is needed, so surely it should be implemented as soon as possible. The Government should stop dragging their feet.
The Act was meant to improve the situation when it was passed. It states that a panel should be set up and that after three years, the panel should come up with recommendations for changing planning law. That panel has not yet been convened. I have heard from constituents, local authorities and campaigners who are worried that it was forgotten about in the light of the general election. The extended timeline risks further escalation of these issues without immediate intervention.
On behalf of people affected by this issue, I urge the Minister to consider, first, convening the panel now to enable action on this issue and, secondly, accelerating the panel’s timeline for giving its recommendations. Given that there has already been a delay of over a year in setting up the panel, having it make recommendations three years after it is set up will mean that these ongoing issues will continue to affect people for too long. I urge the Minister to act.
All that sits in a wider housing context that should worry us all. The Government have set a target of delivering 1.5 million homes by the end of this Parliament, yet their own figures show that housing supply in England fell to 208,600 net additional dwellings in the year 2024-25 —a 6% decrease on the previous year and the biggest fall in 12 years, outside the pandemic. Just over 190,600 new homes were built, which is fewer than in the final year of the previous Government and 16% below the peak of 2019-20.
Against that backdrop, let me turn to the Supported Housing (Regulatory Oversight) Act 2023. I welcome the fact that the Conservative Government supported the passage of the Act, which is the first to directly regulate the standard of support provided in supported accommodation in England. It received Royal Assent in June 2023, and has the potential to drive up standards, improve accountability and protect residents from poor-quality provision. However, legislation alone is not enough. The Government consulted on the implementation of the Act in the summer of 2025, and in January 2026 they said they would respond “as soon as possible”. Given the pressures facing the sector, a response cannot come soon enough. Will the Minister confirm when the Government will publish their response to the consultation and when the Act will be fully implemented?
Finally, let me put on the record the action taken by the previous Government in this area. Alongside the passage of the Act, they published a national statement of expectations for supported housing, setting out what good looks like and how local authorities should plan to meet the demand. They invested £5.4 million in enforcement pilots, including in Birmingham, and an independent evaluation showed that the pilots improved the quality of accommodation and support while preventing an estimated £6.2 million in illegitimate or unreasonable housing benefit payments. Further support was provided through updated guidance, good practice resources and £20 million from the supported housing improvement programme to help councils to drive up quality and value for money.
The challenge is clear. Regulation must be implemented properly, swiftly and with adequate funding. Supported housing is not a niche issue; it is a lifeline for hundreds of thousands of people and a cornerstone of our wider housing system. If we fail to get this right, the most vulnerable people will pay the price. That is why I urge the Government to act with urgency, with clarity and with the resources needed, so that the sector can thrive.
Secondly, we remain firmly committed to addressing exploitation and profiteering at the hands of rogue exempt accommodation operators. Understandably, that has been the focus of the debate. As the Liberal Democrat spokesperson—the hon. Member for Woking (Mr Forster) —and others noted, there are lots of high-quality providers out there. There is also, as the shadow Minister—the hon. Member for Broxbourne (Lewis Cocking)—rightly argued, huge unmet need in this area. That is why, as Members will know, at the spending review the Government announced £39 billion for a new 10-year social and affordable homes programme. We want to see new supply of supported housing in England come through that new programme in greater numbers. Although we did not set any numerical targets or ringfence budgets for that programme, it has been designed with the flexibility necessary to ensure that those types of accommodation that require higher grant rates can come through the new programme in the appropriate numbers.
We are also providing wider support for the supported housing sector. We announced £159 million, through the local government finance settlement for 2026 to 2029, for support services in supported housing. We are working with targeted local areas and officials are confirming allocations with those areas in the coming days and weeks.
I recognise not only that Birmingham has significantly more supported exempt accommodation than anywhere else in the country—the hon. Member for Birmingham Perry Barr rightly said approximately 31,000 individuals are housed in around 11,000 units—but that it faces acute challenges in respect of unsafe and poor-quality supported housing. I think it was mentioned earlier, but the Local Government and Homelessness Minister recently met the leader of Birmingham council and Members representing a number of Birmingham constituencies to discuss the ongoing problems that Birmingham faces.
It is worth my saying a few general remarks about supported housing. It helps those who need extra support to live as independently as possible in the community, and that support can take many forms. Some individuals may need supported housing for a short time while they recover from a period of crisis; for others, supported housing is a home for life, helping them to live independently outside of institutional settings. The Government fully appreciate that there have been real issues in parts of the supported housing market. Over recent years, far too many residents have been placed in inappropriate accommodation or dangerous situations, with little to no support.
As we have heard today, the impact of unsafe, poor-quality supported housing on residents, their families and communities should not be understated. Increased antisocial behaviour resulting from poorly managed housing and knock-on impacts for wider services such as the NHS and the police are frequently brought to the Department’s attention. Communities in a number of areas across the country have been blighted by these problems, but we know, as I have said, that the issue is most prevalent in Birmingham. Let me be very clear: that state of affairs is intolerable. It cannot be allowed to continue, which is why the Government are taking action.
Action has been taken prior to and alongside the legislation that the previous Government supported and that we have been taking forward. The supported housing improvement programme has been in place in Birmingham since 2022, and before that the supported housing oversight pilots resulted in real improvements—I think the hon. Member for Birmingham Perry Barr made that case in his speech. The multidisciplinary teams that have been established in the local authority, across housing enforcement, adult social care and housing benefit teams, have strengthened understanding and allowed targeted action to take place.
Although the programme will end in March, the lessons learned and the actions taken by Birmingham city council should now be firmly embedded. We are ending that funding as we work towards the implementation of the Act and, thereafter, local authorities will charge fees for the administration and enforcement of licensing in particular going forward. We have not cut off all funding with a view to having no replacement; there is work alongside our intentions to roll out the legislation.
Let me turn to that legislation, which has rightly been the focus of much of the debate. I remember it going through the House when I was the shadow Minister. We should commend the hon. Member for Harrow East (Bob Blackman) on his private Member’s Bill, which the previous Government supported, and on all his work on the wider homelessness agenda. That legislation was a response to long-standing concerns about the quality of non-exempt supported accommodation, its oversight and the value-for-money questions we have heard about today.
Despite there being many excellent supported housing providers, regulation in this area is absolutely needed. The Government are working to introduce the necessary measures to improve quality and oversight as soon as possible. I am happy to tell Members that we intend to implement the Act in stages over the coming months, and I will provide some more detail on the different elements of the Act that we intend to take forward, and the timescales. It should be said that local authorities can and should still use their existing enforcement powers to take action against poor-quality accommodation as we do so.
I am pleased to say that, this week, we have allocated £39 million in new burdens funding to local authorities, including Birmingham, to start work on their local supported housing strategies. Those strategies ask local authorities to assess their current supply of supported housing, and to estimate their unmet need and future demand. They must then set out how they will meet them. The first strategies are due to be completed by 31 March 2027, and statutory guidance to support this work was published earlier this week.
The Liberal Democrat spokesman challenged me on the advisory panel. I can assure him that it has not been forgotten about. We are moving forward with its establishment. The chair will be officially appointed imminently and the panel will be officially convened. As the hon. Gentleman knows, the panel will then advise the Government on the implementation of the Act as a whole and consider what further support the supported housing sector needs going forward. We are taking that part of the Act forward.
As has been mentioned a number of times, the Government have also consulted on our proposals for supporting housing licensing and new support standards. We did that last year, and I know that a response has been anticipated for some time. It will be published as soon as possible. I well understand the urgency that Members from across the House have expressed. We will publish the new national supported housing standards along with guidance, so that residents, providers and local authorities know the standard of support we expect.
We will consult on licensing regulations later this year, giving stakeholders an opportunity to comment on the regulations before they are debated in Parliament. This is really important, and it goes to the point about high-quality providers that several Members made. We need to ensure that we introduce the licensing scheme in a way that is both proportionate and effective, so that the expense of bearing down on the rogue providers and operators does not penalise high-quality providers. Local authorities will receive new burdens funding to establish their licensing schemes, and we will monitor the licensing schemes to ensure that they are having the intended effect.
The Government are committed to implementing the measures in the Supported Housing (Regulatory Oversight) Act and to giving local authorities the powers they need to tackle the problems evident in supported housing in Birmingham and across England. The progress that has already been made is worth noting, and we want that to continue. We want councils like Birmingham to make use of their existing powers. I think my hon. Friend the Member for Birmingham Edgbaston mentioned some of the progress made under SHIP in Birmingham. SHIP and the previous programme received a total of £6.5 million in funding, and that has rightly generated huge amounts of benefit: £8.8 million of housing benefit spend was prevented; the number of cases where support was deemed to be inadequate has dropped from 33%; and we are seeing the proportion of inspected properties that meet the decent homes standard rising from 44%. Progress has been made, but the regulatory framework that the Act introduces does need to be brought forward.