Lack of Supported Housing Costs NHS £71m in Delayed Mental Health Discharges, Report Finds

by Daphne Watson

A shortage of supported housing has been identified as the primary cause of delayed discharges from mental health hospitals in England, leading to a £71 million cost to the NHS in 2023-24, according to a new report by the National Housing Federation (NHF). The analysis reveals that 109,029 days of delayed discharge occurred last year, with an alarming increase in the number of patients unable to leave hospitals due to housing-related issues, more than tripling since 2021.

The report highlights that in September 2024, waiting for suitable supported housing accounted for 17% of all delays in discharges for mental health patients deemed fit to leave the hospital. This situation has put additional pressure on NHS resources, leading to increased use of out-of-area placements for hospital admissions.

Rhys Moore, Director of Public Impact at NHF, criticized the systemic failure to address the housing crisis affecting mental health patients. He stated, “Not only are tens of thousands of people being failed in their recovery, but the shortage of supported homes is also increasing pressure on public services, exacerbating homelessness, and costing the NHS—and ultimately the taxpayer—more in the long run.”

Currently, there are around half a million supported housing units in England, but the availability of these homes is dwindling. A survey conducted by the NHF revealed that 32% of supported housing providers have been forced to close services in the past year due to financial difficulties.

Chris Hampson, Chief Executive of Look Ahead, an organisation that offers specialist supported accommodation in London and the South East, warned that the sector is facing unprecedented challenges. “Never in our 50-year history have we faced such difficulties,” Hampson said. “We’re being forced to withdraw from contracts and close services where we’ve had no choice but to operate at a loss. Inflation, recruitment costs, and local government budget cuts, combined with a surge in mental health pressures post-Covid, have made this situation untenable.”

One resident at Look Ahead’s Ibis Step-down Centre, a facility in Newham, East London, shared their positive experience transitioning from hospital to independent living. The man, in his 30s, who had struggled with drug addiction and homelessness, described the supported accommodation as “the best place for my recovery.” He reflected on his hospital stay, saying, “I feel much better off here than in the hospital. In the hospital, it felt like I was wasting their bed. But here, I can breathe and start getting myself back together again.”

Sophie Boobis, Head of Policy and Research at Homeless Link, emphasized the interconnectedness of the NHS and supported housing crises. “A lack of sufficient and appropriate provision in the community is preventing people from moving out of hospitals, creating a cycle where hospitals are clogged, and people are unable to receive the care they need,” Boobis explained. She called for a more integrated approach to healthcare and housing, suggesting that supported housing should be viewed as a vital part of the healthcare system. “These are not separate issues,” she added. “They ensure that people not only leave hospital but stay well.”

The NHF report urged the government to integrate health and housing strategies in its upcoming national housing plan and NHS 10-year strategy. The Federation advocates for closer collaboration between Integrated Care Boards (ICBs) and housing providers to better coordinate resources and services.

David Fothergill, Chair of the Local Government Association’s Community Wellbeing Board, stressed that without long-term investment, many patients will remain in hospital longer than necessary, putting further strain on an already overburdened health and social care system. “There is a clear need for a dedicated housing support fund and greater investment in preventative care services,” he said, adding that the upcoming spending review represents a crucial opportunity for the government to address these issues.

In response, a government spokesperson acknowledged the severity of the housing crisis, describing it as the worst in living memory. “We are determined to turn the tide, which is why we have committed to the biggest increase in social and affordable housing in a generation, with the goal of building 1.5 million new homes,” they said. “Our 10-year health plan, backed by a £26bn investment in the NHS and social care, will focus on shifting care from hospital to the community and improving the links between the NHS and social care to reduce delayed discharges.”

The report highlights a pressing need for coordinated efforts between health and housing services to address the challenges faced by mental health patients and ensure that they have access to appropriate accommodation as part of their recovery journey.

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