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The research reviewed existing formulas, completed fieldwork with local authorities and provides an option for a future funding formula for Housing Support Grant.

The report recommended the following steps to developing a new funding formula for the Housing Support Grant:

  • adhere to local government settlement precedents
  • use 2019/2020 Spending Plans to guide formula design
  •  adjust for rurality or sparsity
  • adjust to address maximum changes in funding
  • design transitional arrangements

The key findings from the proposed formula are:

  • reallocation of a fixed budget will result in some local authorities receiving more funding
  • levelling out the distinct variation from the existing Supporting People allocation sees 12 local authorities experience a funding change of 10% or more (either an increase or a decrease)
  • the relative funding allocation is considerably more evenly spread on a per capita basis under the new funding formula
  • some of the local authorities that see the largest falls in their funding allocations remain among the best funded in relative terms


Housing Support Grant: development of a funding formula , file type: PDF, file size: 2 MB

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Rhian Davies

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