Some specialist housing providers could be claiming too much transitional housing benefit because they have failed to separate their care and support services as required under the new Supporting People regime.
And many remain unclear how this should be done.
The federation said that some providers may end up being pressured by councils to switch care costs over to the transitional benefit as an accounting device.
Transitional housing benefit was introduced to smooth the separation of rent and support under the new funding regime which starts next year.
Services defined as care are not eligible for Supporting People funding and will continue to be funded by social services departments. Only services defined as support are eligible.
Nick Sweet, the federation's policy officer for Supporting People, said the lack of a clear definition of either care or support meant that people did not know what line to take.
He said: "By making the transitional housing benefit more flexible, the government has inadvertently opened the floodgates for benefit claims."
Supporting People teams across the country have called on the government to clarify what types of services constitute both care and support.
"At the moment everything is still up in the air," Sweet said. "We are not sure what should or should not be funded through housing benefit."
However, the Department of Work and Pensions dismissed the claims. Housing benefit officials required providers to give a full breakdown of costs that are used to determine what services are eligible for the transitional benefit or Supporting People funding, it explained.
But it said it would investigate if providers approached it with serious concerns.
A DTLR spokesman said: "We have been working with the DWP and Treasury to ensure that housing benefit regulations are being correctly implemented.
"We are working to ensure that any confusion is resolved through supported guidance and circulars, which have been ongoing since January 2001."
Source
Housing Today
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