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End of ring fencing is cue for anxiety

Posted: 24 March 2005 | Subscribe Online


Supporting People funding is set to lose its ring-fenced status, the departing head of the programme has claimed.

In a letter to local authorities, Wendy Jarvis said she expected the ring-fence to be relaxed at some point after April 2006.

The current arrangements prevent local authorities from diverting funds into the general spending pot, and housing providers have argued that services for "less popular" groups could lose out if the ring-fencing is weakened.

Nigel Rogers, director of Sitra, which provides support services to voluntary organisations and housing associations, said that he feared preventive services could lose out with local authorities opting to provide only the services that they were legally obliged to.
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He said: "Already we are seeing very worrying signs that some local authorities are attempting to restrict access to services to local people... Supporting People still needs the protection of ring-fencing to deliver the massive benefits it can offer."

Diane Henderson, National Housing Federation policy officer, said she was concerned that less popular groups could lose out.

But, she said evidence from the 39 "excellent" local authorities that already had freedom from ring-fencing suggested this had not happened
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A spokesperson for the Office of the Deputy Prime Minister said no decision had been made, but confirmed that the department was "considering options which would relax ring-fencing in a controlled manner".

She insisted that any change would be unlikely to come into effect immediately from April 2006, but would be phased in.


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