With the Supported Housing Act due to be implemented, the LGA warns that councils already face significant financial pressures in running licensing schemes, enforcing standards, and supporting providers for groups including care leavers, 16–17 year olds in care, and young adults with disabilities.

It urges reform of housing benefit subsidy rules, which currently leave councils millions out of pocket and restrict commissioning of quality housing.

The warning accompanies new LGA guidance for councils on meeting growing demand for supported housing.

The LGA calls on government to invest with councils in building a sustainable, high-quality supported housing system.

Dr Wendy Taylor, chair of the LGA’s health and wellbeing committee, said: “This new guidance will support councils to identify the most effective tools to deliver high-quality supported housing schemes within the context of their local priorities, challenges and capacities.”