The four categories of specified accommodation

When Universal Credit started, the government had a problem. Supported housing costs more to run than ordinary housing, and the Universal Credit housing element was never designed to pay those costs. The fix, made by regulations in 2014, was to keep certain supported housing on Housing Benefit. The law calls that group "specified accommodation".

The four categories side by side

Category 1: exempt accommodation

This is the category most people mean when they talk about the sector, and the one under the most scrutiny. The landlord has to be one of the listed not-for-profit bodies or a county council, and that landlord, or someone acting for it, must provide care, support or supervision that is more than minimal. Our full guide to exempt accommodation covers each test.

The reason providers care so much about category 1 is the rent rules. Exempt accommodation keeps the rent restriction rules that applied before 1996, so the starting point is the actual rent, and a council can only cut it by showing it is unreasonably high against suitable alternative accommodation.

Category 2: managed properties

Managed properties are not-for-profit supported housing where the landlord does not provide the support itself. A common example is a housing association that owns a scheme for people with learning disabilities while a separate care company, commissioned by the council, provides the care.

Two conditions apply. The resident must have been admitted to the property to meet a need for care, support or supervision, and they must actually receive it. Who provides the support does not matter.

Category 3: domestic abuse refuges

Category 3 covers accommodation provided by a local authority or a not-for-profit body to someone who has left their home because of domestic abuse, where the building is used wholly or mainly as non-permanent accommodation for people in that situation. There is no requirement for the landlord to provide support, although almost every refuge does.

Dispersed refuge flats, sanctuary schemes and second-stage housing do not always fit this category neatly. Our guide to domestic abuse safe accommodation looks at the options.

Category 4: local authority hostels

Category 4 is for hostels run by councils. Leeds City Council's published guidance sets out the conditions most councils use. The accommodation is owned or managed by the local authority, is not self-contained, is not a care home, provides board or adequate food preparation facilities, and the resident receives more than minimal care, support or supervision.

What all four categories have in common

Every resident in specified accommodation claims help with rent through Housing Benefit from the council, even if Universal Credit covers the rest of their living costs. Two other rules follow:

1. Housing Benefit paid for specified accommodation is left out of the benefit cap calculation, according to Shelter's practitioner guidance.
2. The Universal Credit housing element is not paid for the same home, so a resident should not be claiming housing costs in both systems.

How to evidence your category

A council decides the category claim by claim, so the evidence has to be there for every resident, not only for the scheme. Keep these on file:

1. Proof of the landlord's legal status.
2. The occupancy agreement and any lease or management agreement behind it.
3. For category 1, the agreement showing any separate support provider acts for the landlord.
4. For category 2, the referral or allocation record showing why the resident was admitted.
5. The needs assessment, support plan and records of support delivered.

If your evidence would only support category 2, it is better to know that before you set rents than to find out at review.