The Supported Housing Green Paper looks set to be delayed again as the government focuses on the aftermath of the Grenfell Tower fire.
The government was due to publish the paper in the spring, but it is likely this will be delayed, with some sources pointing toward being after summer recess.
Angela Lockwood, vice chair at PlaceShapers, said the “clock is ticking” to find a solution to the funding problem.
She said: “We fully understand and support the governments priority on Grenfell which was unprecedented and devastating.
“However the repeated delays to the Green Paper is a blow to those housing associations providing supported housing.
“We need a resolution as the clock is ticking with changes due to be fully implemented in April 2019. The continued level of uncertainty is causing anxiety to vulnerable tenants, and is leading to the stalling of much needed new supply.”
Terrie Alafat CBE, chief executive of the Chartered Institute of Housing, said: “We already know that the ongoing uncertainty around the LHA cap has resulted in some housing organisations having to press the pause button on their development of supported housing – accommodation which is so crucial for so many vulnerable people in our society.
“Supported housing transforms lives and importantly makes a vital contribution to relieving pressure from our strained health and social services.”
A National Housing Federation statement said: “Securing appropriate stable funding for supported housing is still an urgent priority for us so that housing associations can continue to provide vital services for some of the most vulnerable people in society.
“We are continuing to gather evidence and meet with government officials, MPs and other stakeholders to discuss this important issue.”