The LGA is urging government to address subsidy rules and invest in supported housing to reduce pressures on health services and ensure effective implementation of the Supported Housing Act 2023.
A shortage of supported housing in England in 2023-24 cost the NHS £71 million through delayed mental health hospital discharges.
Expanding provision has the potential to save up to £50 million a year for the NHS and a total annual saving of £6 billion for the wider public purse.
Supported housing provides a vital safety net for individuals with complex needs, including people experiencing or at risk of homelessness, care leavers, people with disabilities and those with mental health needs.
It is a lifeline service offering safety and stability in a secure home environment, enabling people to live independently, preventing homelessness and reducing pressure on hospital admissions.
Cllr Dr Wendy Taylor, Chair of the LGA’s Health and Wellbeing Committee, said: “Councils are committed to providing high-quality supported housing for residents and want to invest more to continue enabling people who draw on care to lead independent and fulfilling lives.
“But, without much-needed long-term investment in this essential preventative care service, many older people and those with physical and learning disabilities will continue to be in hospital and residential care longer than necessary.
“Young care leavers, people fleeing domestic abuse, and those experiencing homelessness will be without stable housing.”
The LGA has published free new guidance, ‘Supported housing: guidance for local authorities in England’.