Homeless charity fears closure over funding dispute

Northampton Association for Accommodation for Single Homeless has been in operation for 25 years

A charity which houses homeless people says it faces closure because its position has "become impossible" following a funding dispute.

Northampton Association for Accommodation for Single Homeless (NAASH) provides supported accommodation for about 200 people and works to help them move into longer-term housing.

The charity is financed by claiming housing benefit to secure accommodation for its clients, but NAASH said it had been told by West Northamptonshire Council that funding had been held up as the authority disputed the "validity" of its claims.

The Reform UK-controlled council said it was "very mindful" of the impact the dispute.

Charlie Hastie, the cabinet member for housing, said: "The council has been working over a long period to try to address anomalies in the housing benefits claims made for NAASH properties and the tenants that live there.

"Housing benefit is governed by nationally set regulations, and where evidence cannot be provided to support claims that have been put in then we are not able to pay benefit.

"This is also true of historic payments which if, upon review, are not supported by the required evidence also have to be recovered as overpayments.

"The council has no choice in this matter as the government both sets the regulations and will not pay the council to meet these costs if they do not comply with the regulations."

The charity, which has been supporting homeless people since 2000, does not own its housing and mostly rents rooms in houses of multiple occupation (HMOs).

'Time critical'

The Department for Work and Pensions (DWP), which administers housing benefit, said it could not comment on the case.

It said: "We support over a million people through housing benefit every year, which is managed and administered by local authorities.

"Local authorities decide if a customer is eligible for the benefit, applying DWP rules to ensure the right support is going to the right place."

In a statement, the trustees of NAASH said: "All those supported [by the charity] are people who need accommodation assistance and support, and have been recommended by West Northants Council and formerly Northampton Borough Council.

"Negotiations continue with [the council] but the timing is now critical. Unless resolved immediately, NAASH will have to close."