Our responses to consultations on local authority funding allocations

We’ve responded to two consultations by the Ministry of Housing, Communities and Local Authorities (MHCLG) on the provisional local government finance settlement 2025-26 and on new funding allocations for local authorities in England from 2026-27.

NHF members can log in using the link below to read both full submissions. We will update this page with any next steps following the consultations.

What did our responses include?

Provisional settlement 2025 to 2026

Supported housing has traditionally been commissioned by local authorities through revenue funding allocated to them by the government. Now, there is flexibility for councils in how they spend the funding, but there are broad lines such as funding for social care or homelessness, which are relevant to supported housing.

Our response to the consultation outlines what needs to happen for supported housing to continue to be funded as the council funding system changes, so that it can continue to deliver positive outcomes for residents, take pressure of social care and help deliver an NHS fit for the future.

Local authority funding reform 2026 to 2027

In our response, we said we welcome this consultation, and its aims to reform the local government finance system and allocate funding based on an updated assessment of local need. The consultation also sets out plans to commit to a multi-year financial settlement, which aims to give local authorities more certainty to plan.

In our response, we highlighted that supported housing and housing-related support must be an important part of assessing this need at a local level. We also said that funding for supported housing should be clearly identifiable, safeguarding funding for vital support services.

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