New Services on a Block Subsidy Payment System
It is inevitable that in some circumstances a new service will not be occupied by all service users from day one of its opening. However the service provider may well have recruited staff and be incurring support costs from day one. Under these circumstances, the following guidance will apply:
1. The total 4 weekly support cost will be paid by Supporting People to the service provider 4 weeks in advance of day one of the service opening. This will not be dependent on the number of service users in occupancy.
2. If the service provider can demonstrate and evidence clearly that as a consequence of point 1 above the service provider would have difficulties, then negotiation with Supporting People will be required.
3. After the initial payment, Supporting People will then apply the normal subsidy system. This will require the provider to demonstrate which of the service users are in receipt of Housing Benefit (or assessed under the Fairer Charging policy). The Supporting People grant will then be paid for service users entitled to subsidy only.
4. Voids and nil proof of Housing Benefit entitlements will result in a reduced level of Supporting People grant.
New Services on a Block Gross (Non-Chargeable) Payment System
1. The total 4 weekly support cost will be paid by Supporting People to the service provider 4 weeks in advance of day one of the service opening. This will not be dependent on the number of service users in occupancy.
2. Supporting People will then continue to make payments on a four weekly in advance payment.
New Services on a Block Gross (Chargeable) Payment System
1. The total 4 weekly support cost will be paid by Supporting People to the service provider 4 weeks in advance of day one of the service opening. This will not be dependent on the number of service users in occupancy.
2. If the service provider can demonstrate and evidence clearly that as a consequence of point 1 above the service provider would have difficulties, then negotiation with Supporting People will be required.
3. After the initial payment, Supporting People will then apply the normal Block Gross Chargeable payments system. This will require the provider to demonstrate which of the service users are in receipt of Housing Benefit and payments will then be paid as per the contract value net of the chargeable element.
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