To ask the Minister for Social Development why his Department has decided to cut the funding for the Special Needs Management Allowance.

In 1993 the Department introduced a payment known as Special Needs Management Allowance hereafter known as SNMA.

At that time it was Departmental policy to invest in housing which provided a permanent home for tenants, or equipped them with the life skills and confidence to move into permanent accommodation. Schemes that did not provide tenants with a permanent home were expected to ensure that its tenants received the necessary help and advice to enable them to move to more independent and appropriate housing and were required to have a strategy in place to enable

move–on accommodation to be found.

SNMA was a cash limited source of funding paid to qualifying Housing Associations that attracted higher than normal management costs due to the intensive style of management required by vulnerable clients.

On 1 April 2003 the Supporting People Programme was introduced which provided new arrangements for vulnerable people living in supported accommodation.

The new policy marked a change of direction for the provision of housing accommodation with a focus on providing people with accommodation and housing support services to enable them to achieve independent living.

The new funding source combined a number of legacy funding streams available at that time including SNMA into a single funding stream known as the Supporting People Grant.

The change in direction of policy led to the Department examining the nature and policy intention of all its housing stock and determined that the majority of the schemes in receipt of SNMA were able to demonstrate that the policy intention was being achieved with the exception of Registered Care Homes.

The Housing Support Services Order NI 2002 and the Housing Support Services Regulations NI 2003 outlined the terms and conditions and eligibility criteria for accessing the new funding stream and all Registered Care Homes were excluded from accessing Supporting People grant from 1 April 2003 because Registered Care Homes, which provide twenty four hour board and care, as opposed to individual tenancies, were considered to be outside the scope of the Supporting People policy intention which was to enable people to live independently.

In 2009 the Department carried out a review of the continued payment of Special Needs Management Allowance. The review concluded that continued funding to Registered Care Homes from the supporting people grant was not delivering the Policy Intention to promote independent living.

On 30 March 2011 representatives from the Northern Ireland Federation of Housing (NIFHA) met with the previous Department for Social Development Minister and Director of Housing to discuss the continued payment of Special Needs Management Allowance. At the meeting the Director of Housing indicated to the Northern Ireland Federation of Housing Associations the Department’s intention to cease the payment of Special Needs Management Allowance from the Supporting People grant as continued payment of the allowance did not adhere to the original policy intent of the programme.

The intention at that time was to reduce funding by 10% in the 2012/2013 financial year and to cease payment from April 2014 to allow the Housing Associations and their Joint Management Partners sufficient time to prepare for the phasing out of the payment.

A high level task force was formed to include representation from DHSSPS, the Health Trusts, the Regulation and Quality Improvement Authority and DSD officials to assist the housing associations through the transitional period and explore options on a scheme by scheme basis to minimise disruption to service users

Housing associations are working closely with the task group and departmental officials to bring forward individual plans to address the deficit to include;

Remodelling schemes

Reviewing the registration status of schemes

Reviewing contracts with the relevant trusts

Reviewing internal finance to absorb costs.

A great deal has been achieved to date and early indications are that service delivery can be maintained with appropriate transitional plans actioned and continued assessment of potential impact to service users monitored closely.