Exempt Accommodation

Housing, Communities and Local Government Committee Closed Inquiry
Opened: 7 Dec 2021 Closed: 5 Mar 2024 Parliament page
This inquiry aims to establish a clearer picture of the amount and quality of provision of exempt accommodation. This includes understanding the strengths and weaknesses of current provision and looking for recommendations on the changes that might be needed to improve exempt accommodation.
15 Recommendations
9 Conclusions
1 Report
3 Oral sessions
10 Letters
3 Events
Activity timeline 18 events
27 Jun
2023
Report published
27 Jun
2023
Correspondence
10 Jan
2023
Correspondence
27 Oct
2022
Report published
12 Oct
2022
Correspondence
6 Sep
2022
Correspondence
13 Jul
2022
Correspondence
13 Jul
2022
Correspondence
5 Jul
2022
Correspondence
5 Jul
2022
Correspondence
4 Jul
2022
Oral evidence
4 Jul
2022
Formal meeting (oral evidence session) · Room 16, Palace of Westminster
Oral evidence sessions 3 sessions
4 Jul 2022
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Oral Evidence
Cathy Page · Department for Levelling Up, Housing and Communities David Rutley · Department for Work and Pensions Eddie Hughes · Department for Levelling Up, Housing and Communities James Wolfe · Department for Work and Pensions
27 Apr 2022
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Oral Evidence
Ashley Horsey · Commonweal Housing David Fensome · Concept Housing Association Denise Hatton · YMCA England & Wales Farah Nazeer · Women's Aid Federation of England Henry Meacock · St Petrocs Matt Downie · Crisis Sam Lister · Chartered Institute of Housing
28 Mar 2022
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Oral Evidence
Cllr Neil Jory · West Devon Borough Council Cllr Sharon Thompson · West Midlands Combined Authority Debbie Ivanova · Care Quality Commission (CQC) Guy Chaundy · Birmingham City Council Helen Clipsom · City Of Bradford Metropolitan District Council Jonathan Walters · Regulator of Social Housing Paul Latham · Charity Commission
Title HC No. Published Items Response
Third Report - Exempt Accommodation HC 21 27 Oct 2022 24 Responded
Recommendations & Conclusions
24 results
1 Conclusion Acknowledged
Third Report - Exempt Accommodation
An unknown but significant number of residents’ experiences of exempt accommodation are beyond disgraceful.
An unknown but significant number of residents’ experiences of exempt accommodation are beyond disgraceful. Taxpayers’ money is being spent on uncapped housing benefit on the understanding that residents, who are usually vulnerable, receive some care, support, or supervision—yet it is … Read more
Government Response
The government acknowledges the need to protect vulnerable residents of exempt accommodation, highlighting existing duties on local authorities within the Domestic Abuse Act 2021, the national supported housing standards and will consider the interaction between licensing, national standards and Housing Benefit regulations.
Ministry of Housing, Communities and Local Government
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2 Conclusion
Third Report - Exempt Accommodation
Since areas with high concentrations of exempt accommodation can attract anti- social behaviour, crime, rubbish,...
Since areas with high concentrations of exempt accommodation can attract anti- social behaviour, crime, rubbish, and vermin, neighbours and communities are affected negatively as well as residents. These impacts risk undermining local support for supported housing. Read more
Ministry of Housing, Communities and Local Government
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3 Conclusion Acknowledged
Third Report - Exempt Accommodation
It is egregious that organisations with no expertise are able to target survivors of domestic...
It is egregious that organisations with no expertise are able to target survivors of domestic abuse and their children and provide neither specialist support nor an appropriate or safe environment. Where a prospective resident of exempt accommodation is a survivor … Read more
Government Response
The government acknowledges the need to protect survivors of domestic abuse in exempt accommodation, highlighting existing duties on local authorities within the Domestic Abuse Act 2021, the national supported housing standards and will consider the interaction between licensing, national standards and Housing Benefit regulations.
Ministry of Housing, Communities and Local Government
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4 Conclusion
Third Report - Exempt Accommodation
Due to the scarcity of data on exempt accommodation, our inquiry was unable to establish...
Due to the scarcity of data on exempt accommodation, our inquiry was unable to establish how widespread the very worst experiences are either among residents or among local communities. Where the very worst experiences are occurring, this points to a … Read more
Ministry of Housing, Communities and Local Government
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5 Conclusion Accepted
Third Report - Exempt Accommodation
It was clear from our evidence that the quality of provision of exempt accommodation varies...
It was clear from our evidence that the quality of provision of exempt accommodation varies greatly and that the poor quality provision puts already vulnerable residents at serious risk. The Government fears “unintended consequences” from further regulation and points to … Read more
Government Response
The government will bring forward national standards for support and give local authorities the power to set up licensing schemes where there is poor quality supported housing; they will formally consult with the sector to develop these standards and licensing scheme as soon as possible after Royal Assent.
Ministry of Housing, Communities and Local Government
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6 Recommendation Acknowledged
Third Report - Exempt Accommodation
Within twelve months of the publication of this report, the Government should publish national standards,...
Within twelve months of the publication of this report, the Government should publish national standards, and give local authorities the power and resources to enforce these standards, in the following areas: • The referral process, which should include an assessment … Read more
Government Response
The government will bring forward national standards for support and give local authorities the power to set up licensing schemes. Referral pathways, resident needs assessments, and information provision will be considered as part of developing licensing regulations and national support standards. They are also working to improve housing quality and reviewing the Decent Homes Standard and the Housing Health and Safety Rating System.
Ministry of Housing, Communities and Local Government
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7 Recommendation Acknowledged
Third Report - Exempt Accommodation
Consideration should be given to an accreditation scheme for providers, implemented on a graded basis,...
Consideration should be given to an accreditation scheme for providers, implemented on a graded basis, so that councils can assess the quality of provision in their area and so that poorer quality providers can improve.
Government Response
The licensing regime, national standards for support and strategic plans in the Supported Housing (Regulatory Oversight) Bill will enable local authorities to identify issues, and local authorities may choose to set up accreditation schemes. The government will also ask whether additional measures outside of licensing schemes would support compliance with the national standards, and will keep this closely under review.
Ministry of Housing, Communities and Local Government
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8 Recommendation Accepted
Third Report - Exempt Accommodation
The Government should provide new burdens funding to local authorities to ensure that they can...
The Government should provide new burdens funding to local authorities to ensure that they can carry out these duties to the best of their ability, recognising that improving the overall standard of exempt accommodation and making it more consistent is … Read more
Government Response
The Department will work with local authorities to estimate costs and will carry out a new burdens assessment into the measures set out in the Supported Housing (Regulatory Oversight) Bill once it has Royal Assent.
Ministry of Housing, Communities and Local Government
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9 Recommendation Rejected
Third Report - Exempt Accommodation
The patchwork regulation of exempt accommodation has too many holes.
The patchwork regulation of exempt accommodation has too many holes. We recognise that the exempt accommodation sector is complex with different types of providers, therefore requiring the involvement of multiple regulators. But some providers do not fall under the remit … Read more
Government Response
The government believes the measures in the Supported Housing (Regulatory Oversight) Bill are better placed to provide oversight and control, rather than ensuring mandatory registration for all providers with the Regulator of Social Housing; they also say that reclassifying social housing providers as public sector bodies would burden the government with debt.
Ministry of Housing, Communities and Local Government
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10 Conclusion Acknowledged
Third Report - Exempt Accommodation
The different regulators have oversight for different aspects of exempt accommodation, and this means it...
The different regulators have oversight for different aspects of exempt accommodation, and this means it is not simple to include oversight of exempt accommodation under a single regulator. However, the existing regulators are experts in their own areas and may … Read more
Government Response
The government has committed to establishing a Supported Housing Advisory Panel to provide advice on the regulatory oversight of supported housing and to bring together key stakeholders.
Ministry of Housing, Communities and Local Government
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11 Recommendation Accepted in Part
Third Report - Exempt Accommodation
We recommend that a National Oversight Committee be urgently established to address the oversight issues...
We recommend that a National Oversight Committee be urgently established to address the oversight issues relating to exempt accommodation. Among its functions we expect that it would coordinate awareness of emerging issues, inform the development of policy in this area … Read more
Government Response
The government will establish a Supported Housing Advisory Panel through the Supported Housing (Regulatory Oversight) Bill to provide information and advice on the regulatory oversight of supported housing and bring together key stakeholders.
Ministry of Housing, Communities and Local Government
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12 Conclusion Acknowledged
Third Report - Exempt Accommodation
The dearth of data on exempt accommodation shows how successive Governments have been caught sleeping.
The dearth of data on exempt accommodation shows how successive Governments have been caught sleeping. The Government does not know how much exempt accommodation there is or how many people live in exempt accommodation. The Government claims that poor providers … Read more
Government Response
The government has commissioned research to assess the supported housing sector, to be published by the end of 2023, which will consider systematically collecting and publishing data. DWP has made changes to Housing Benefit data collection and is funding local authority reviews of Housing Benefit stock, and the local authority strategic plans and licensing schemes are expected to improve the evidence base.
Ministry of Housing, Communities and Local Government
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13 Recommendation Acknowledged
Third Report - Exempt Accommodation
Within twelve months of publication of this report, the Government must organise the collection, collation...
Within twelve months of publication of this report, the Government must organise the collection, collation and publication of annual statistics at a local authority level on the following: • The number of exempt accommodation claimants; • The number of exempt … Read more
Government Response
The government has commissioned research to assess the supported housing sector, to be published by the end of 2023, which will consider systematically collecting and publishing data. DWP has made changes to Housing Benefit data collection and is funding local authority reviews of Housing Benefit stock, and the local authority strategic plans and licensing schemes are expected to improve the evidence base.
Ministry of Housing, Communities and Local Government
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14 Conclusion Acknowledged
Third Report - Exempt Accommodation
The Government has no idea how much taxpayer money is spent on exempt accommodation, nor...
The Government has no idea how much taxpayer money is spent on exempt accommodation, nor what this money is spent on. It cannot know whether the current system is delivering value for money. Millions of pounds are being poured into … Read more
Government Response
The government has commissioned research to assess the supported housing sector, to be published by the end of 2023, which will consider systematically collecting and publishing data. DWP has made changes to Housing Benefit data collection and is funding local authority reviews of Housing Benefit stock, and the local authority strategic plans and licensing schemes are expected to improve the evidence base.
Ministry of Housing, Communities and Local Government
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15 Recommendation Rejected
Third Report - Exempt Accommodation
The Government should conduct a review of exempt housing benefit claims to determine how much...
The Government should conduct a review of exempt housing benefit claims to determine how much is being spent and on what. Rent should be capped at a reasonable level that meets the higher costs of managing exempt accommodation. Funding for … Read more
Government Response
The government is working to improve Housing Benefit data, but cannot determine a standardised rent cap due to the complexity of housing models and services. Funding for local support services is provided through the Local Government Settlement, and local authorities have powers to restrict rents covered by benefit awards in cases where rents are unreasonably high.
Ministry of Housing, Communities and Local Government
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16 Recommendation Accepted in Part
Third Report - Exempt Accommodation
Providers of exempt accommodation are supposed to be not-for-profit, and there are many responsible providers,...
Providers of exempt accommodation are supposed to be not-for-profit, and there are many responsible providers, some of whom gave evidence to us. However, we also heard that the current system offers a licence to print money to those who wish … Read more
Government Response
The government agrees costs should be more transparent and will improve transparency through the Supported Housing (Regulatory Oversight) Bill; DWP intends to change Housing Benefit regulations to define ‘care, support and supervision’ to help local authorities drive up standards and ensure value for money.
Ministry of Housing, Communities and Local Government
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17 Recommendation Not Addressed
Third Report - Exempt Accommodation
The Government was unable to provide a satisfactory justification, let alone an explanation, as to...
The Government was unable to provide a satisfactory justification, let alone an explanation, as to why DWP reimburses councils for 100% of housing benefit if the provider is registered but only 60% if it is not registered, leaving the council … Read more
Government Response
The DWP subsidy rules vary according to accommodation type, landlord/housing provider, and eligible rent rules. The current Housing Benefit subsidy rules were intended to incentivise authorities to use registered providers, but increased demand has led to wider use of charities and CICs which are not subject to rent standard and have different subsidy rules.
Ministry of Housing, Communities and Local Government
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18 Conclusion Deferred
Third Report - Exempt Accommodation
The former Minister was reluctant to consider changes to the planning system, arguing that some...
The former Minister was reluctant to consider changes to the planning system, arguing that some councils are having successes with the planning tools available Exempt Accommodation 49 to them, and that raising the overall quality will reduce the negative impacts … Read more
Government Response
While not planning changes to use classes immediately, the government will require local authorities to produce local supported housing strategies and will review the need for planning reform in 3 years, potentially creating a separate use class for exempt accommodation.
Ministry of Housing, Communities and Local Government
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19 Recommendation Accepted in Part
Third Report - Exempt Accommodation
The Government, in its written ministerial statement in March and in evidence to us, said...
The Government, in its written ministerial statement in March and in evidence to us, said it intends to take forward measures that will include new powers for local authorities to better manage their local supported housing market. We recommend that … Read more
Government Response
While there are no plans to make changes to use classes, the Supported Housing (Regulatory Oversight) Bill includes a proposed duty for local authorities to produce local supported housing strategies, and the Secretary of State will review the effect of licensing schemes in 3 years to determine if planning reform is required.
Ministry of Housing, Communities and Local Government
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20 Recommendation Deferred
Third Report - Exempt Accommodation
Specifically, we recommend that the Government end the existing exemptions that registered providers have from...
Specifically, we recommend that the Government end the existing exemptions that registered providers have from HMO licensing and the Article 4 direction. Furthermore, we recommend that the loophole relating to non-registered providers with properties containing six or fewer residents also … Read more
Government Response
The government states that licensing schemes and national support standards are the best way to ensure the right provision, that the Supported Housing (Regulatory Oversight) Bill includes a proposed duty for local authorities to produce local supported housing strategies, and that the Secretary of State will undertake a review of the effect of licensing schemes within 3 years, at which point a determination will be made as to whether planning reform is required.
Ministry of Housing, Communities and Local Government
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21 Recommendation Accepted
Third Report - Exempt Accommodation
Demand for exempt accommodation is driven in part by a shortage of affordable homes.
Demand for exempt accommodation is driven in part by a shortage of affordable homes. To solve the issues found in exempt accommodation the Government must solve the wider housing crisis. We reiterate the recommendations from our 2020 report, “Building more … Read more
Government Response
The government states that through the £11.5 billion Affordable Homes Programme, they deliver affordable homes for both sale and rent, and will increase the share of social rent homes within the programme, also stating that since 2010, they have delivered over 632,600 new affordable homes.
Ministry of Housing, Communities and Local Government
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22 Recommendation Accepted in Part
Third Report - Exempt Accommodation
The multitude of models of exempt accommodation produces a complex landscape with no guarantee of...
The multitude of models of exempt accommodation produces a complex landscape with no guarantee of quality. We have heard concerns about the quality of non- commissioned exempt accommodation, but have also been provided with good examples of specialist non-commissioned providers. … Read more
Government Response
The government is introducing the Supported Housing (Regulatory Oversight) Bill to improve oversight and enable local authority licensing schemes, and will consult on additional measures to ensure compliance with national support standards. However, they believe these measures are better than mandatory registration, and while they won't change use classes, they will introduce a duty for local authorities to create local supported housing strategies and review licensing scheme effects in 3 years to determine if planning reform is needed.
Ministry of Housing, Communities and Local Government
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23 Recommendation Accepted in Part
Third Report - Exempt Accommodation
We also recommend that action be taken to address this complex landscape, by making it...
We also recommend that action be taken to address this complex landscape, by making it compulsory for all providers to be registered. A mechanism is required to ensure that there is better quality provision and that standards are maintained. Good … Read more
Government Response
The government states the Supported Housing (Regulatory Oversight) Bill will improve oversight via licensing schemes, and will consult on additional measures to ensure compliance with national standards. They do not agree with mandatory registration with the Regulator of Social Housing, but will ensure non-social housing providers are covered by the Decent Homes Standard.
Ministry of Housing, Communities and Local Government
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24 Recommendation Accepted
Third Report - Exempt Accommodation
The lease-based model has its place in exempt accommodation, by enabling access to properties for...
The lease-based model has its place in exempt accommodation, by enabling access to properties for decent providers who would otherwise not be able to purchase properties outright. However, it can be exploited by those whose primary objective is to make … Read more
Government Response
The government says it will strongly support local authorities in taking action against exploitative landlords. Measures in the Supported Housing (Regulatory Oversight) Bill include a proposed fit and proper person test. They will also consider how they can align the licensing regime and national standards for support with Housing Benefit regulations.
Ministry of Housing, Communities and Local Government
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Government Response AI assessment · 22 of 15 classified
Accepted 4
Accepted in Part 5
Acknowledged 8
Deferred 2
Not Addressed 1
Rejected 2
Total 15 recs + 9 conclusions
Correspondence 10 letters
27 Jun 2023 To committee Letter from the Secretary of State to the Chair dated 20 June 2023 concerning the Government response to the Committee's report on Exempt Accommodation
Parliament page
10 Jan 2023 To committee Letter from the Secretary of State to the Chair dated 6 January 2023 concerning the Government response to the Committee's report on Exempt Accommodation
Parliament page
12 Oct 2022 To committee Letter from the Minister for Welfare Delivery to the Chair dated 5 September 2022 concerning Exempt Accommodation data
Parliament page
6 Sep 2022 To committee Letter from the Comptroller and Auditor General to the Chair dated 27 July 2022 concerning data on Exempt Accommodation
Parliament page
13 Jul 2022 To committee Letter from the Chair to the Comptroller and Auditor General dated 13 July 2022 concerning exempt accommodation data
Parliament page
13 Jul 2022 To committee Letter from the Chair to the Minister for Welfare Delivery dated 13 July 2022 concerning exempt accommodation data
Parliament page
5 Jul 2022 To committee Letter from the Minister for Rough Sleeping and Housing to the Chair dated 1 July 2022 concerning the Supported Housing Improvement Programme bidding prospectus
Parliament page
5 Jul 2022 To committee Letter from the Minister for Welfare Delivery to the Chair dated 30 June 2022 concerning exempt accommodation data
Parliament page
17 May 2022 To committee Letter from the Chair to the Secretary of State for Work and Pensions dated 17 May 2022 concerning data on exempt accommodation
Parliament page
8 Feb 2022 To committee Letter from the Minister for Rough Sleeping and Housing to the Chair dated 26 January 2022 concerning the Committee's inquiry into Exempt Accommodation
Parliament page