A large charity that provides supported accommodation in West Northamptonshire is facing closure due to a funding dispute with a local authority.
The Northampton Association for Accommodation of Single Homeless (NAASH) said it might have to close unless it resolves an ongoing dispute with West Northamptonshire Council.
NAASH, which registered a total income of £1.99m last year, is principally financed by benefits recovered from West Northamptonshire Council on behalf of the clients it accommodates.
However, a few months ago, the council “stopped paying the housing element of residents’ benefits” after demanding NAASH provide “evidence for 450 claims within a limited timeframe”, according to a petition on change.org.
“Despite efforts by the charity to meet this demand, the council have refused to pay for the residents to reside in their accommodation,” the petition reads.
The petition says 250 vulnerable adults with a history of homelessness are now facing eviction from the charity as early as mid-August without emergency intervention from the council.
Dispute over validity of claims
The Northampton Chronicle & Echo reported that Northampton Against Cuts held a meeting last week to prevent the eviction of 250 vulnerable adults from NAASH.
During the meeting, Jim Treliving, a subcontracted worker for NAASH, said: “NAASH is financed by recovering benefits from WNC on behalf of the clients who are accommodated. This is NAASH’s principal income.
“Unfortunately, there’s a dispute between NAASH and West Northamptonshire Council on the validity of those claims.
“As a result, West Northamptonshire Council have ceased making any payments which has caused NAASH’s financial position to become impossible.
“Without that funding, NAASH won’t be able to continue to operate.”
Council: ‘We’ve no choice in this matter’
Charlie Hastie, cabinet member for housing, told Civil Society that West Northamptonshire Council is “very mindful of the impact the current situation is having, and of the difficult position tenants now face as a result of the challenges affecting NAASH”.
“We remain committed to supporting our residents and the people who rely on these supported accommodation services,” he said.
“The council has been working over a long period to try and address anomalies in the housing benefits claims made for NAASH properties and the tenants that live there.”
Hastie said housing benefit is governed by national regulations, and “where evidence cannot be provided to support claims that have been put in, then we’re not able to pay benefit”.
“This is also true of historic payments which if, upon review, aren’t supported by the required evidence, also have to be recovered as overpayments,” he added.
“The council has no choice in this matter as the government both sets the regulations and won’t pay the council to meet these costs if they don’t comply with the regulations.”
Civil Society has contacted NAASH for comment.
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