Local government leaders are urging the UK Government to increase investment in supported housing, warning that the NHS could save up to £50 million annually if demand is met. The Local Government Association (LGA) has highlighted that the shortage of supported housing in 2023–24 cost the health service £71 million due to delayed mental health hospital discharges.
The LGA argues that boosting supported housing capacity would not only reduce unnecessary hospital stays but also deliver wider economic benefits. According to its estimates, a well-funded expansion of supported housing could save the public purse as much as £6 billion every year.
Cllr Dr Wendy Taylor, chair of the LGA Health and Wellbeing Board, said councils across the country are already laying the groundwork ahead of the Supporting Housing Act. She stressed that without long-term investment in this vital service, older people and those with physical or learning disabilities will remain in hospitals and residential care longer than necessary, putting additional pressure on frontline services.
The LGA’s renewed call for funding comes alongside new guidance for councils that underlines the growing demand for supported housing nationwide. The National Housing Federation has projected that by 2040, demand will exceed 200,000 additional supported housing units, placing further urgency on the need for strategic investment.
With supported housing seen as a crucial preventative service, local authorities insist that funding now will relieve pressure on both the NHS and social care systems in the years ahead.
