Communities Minister Baroness Andrews has confirmed that councils in England are to receive £1.66 billion Supporting People Programme Grant funding - as an unringfenced named grant.
The Supporting People programme helps around a million vulnerable people each year to live independently in their homes or safely within supported accommodation. These include older people, victims of domestic violence, teenage parents and those with mental health problems.
Since its launch in 2003 Supporting People has been paid as a ringfenced fund for councils, to be spent according to specific rules. However, next year - for the first time - Supporting People will be allocated to councils as a non-ringfenced named grant, paid separately to, but with the same financial flexibility as, Area Based Grants. This removal of the ring fence provides councils with the opportunity to come up with new and innovative ways to support vulnerable people in a range of different situations.
To ensure a smooth transition to the new system, in 2009/10 Supporting People funding will continue to be paid to councils as a specific named grant, but with the same financial flexibility as the Area Based Grant.
Supporting People is the largest single grant in the financial settlement for local government. The changes are part of a wider commitment that by 2010-11, £5 billion funding will have been moved into non-ringfenced Area Based Grants - delivered in one single payment to councils each month.
A package of measures is being developed to support the sector during this period of change. This includes a new financial modelling tool, to be published next year, which will provide evidence at a local level on the financial benefits of investment in housing support.
