Supported Living Reforms 2025: What Support Providers Need to Know

The supported living sector has entered a period of significant change. Following the Supported Housing (Regulatory Oversight) Act 2023, the Government launched a consultation in early 2025 to explore how the reforms should be implemented. The consultation looks at introducing a locally-led licensing regime for supported housing, establishing National Supported Housing Standards, and making changes to Housing Benefit regulations, including defining what “care, support and supervision” means in those terms.

Six months on, while the final regulations and standards are yet to be published, the policy direction is becoming clearer: there is emphasis on stronger standards, alignment with health and social care systems, and amplifying the voices of people who use supported living services.

In this blog, we’ll explore what has happened so far and how Northern Healthcare is preparing to meet the expectations these reform proposals are likely to bring.

Why The Reforms Matter

Supported living provides a vital service for people who need help to live independently, whether due to mental health needs, learning disabilities, or other complex challenges. Yet until recently, oversight of the sector has been inconsistent.

The reforms aim to address this by:

Introducing a licensing scheme for supported housing providers.
Establishing National Supported Housing Standards.
Clarifying the role of local authorities and Integrated Care Systems (ICSs) in planning and commissioning.
Strengthening links between housing, health, and social care.

The Department of Health and Social Care (DHSC) has also asked the Casey Commission to examine the long-term future of adult social care, including whether a National Care Service might be needed.

What Has Happened in the First Six Months?

While reforms of this scale take time, some developments are already shaping the sector:

Consultation closed in May 2025.
Earlier this year, the Government ran a consultation on how licensing and national standards should work in practice. Providers, housing associations, charities, and people with lived experience contributed their views. The feedback is now being reviewed, with draft regulations expected later in 2025, and some indications that this could move into early 2026.
The CQC is embedding its new inspection model.
The Care Quality Commission has started rolling out its Single Assessment Framework, which focuses on five key themes: safe, effective, caring, responsive, and well-led services. Even providers not directly regulated by CQC are feeling the impact, as commissioners increasingly look for alignment with these principles.
The voices of supported people are being heard.
The Casey Commission routinely listen to people who draw on care and support, ensuring that reforms reflect their priorities. People living in supported housing must be recognised as experts in their own lives.
Sector engagement is strong.
Organisations such as the National Housing Federation have shared constructive feedback on funding and regulation. Their contributions aim to ensure reforms support high-quality services while remaining practical to deliver.

What’s Coming Next?

Looking ahead, several important changes are on the horizon:

Licensing schemes. Local authorities will be responsible for licensing supported housing. Holding a licence is likely to become a condition for receiving Housing Benefits, which means providers will need to evidence compliance.
National Supported Housing Standards. Draft standards are expected later in 2025. They will set clear expectations around governance, staffing, supported people outcomes, and safety.
Housing Benefit clarity. The definition of “care, support and supervision” will be tightened to ensure enhanced rent is linked to genuine support. For people living in supported settings, this should mean greater assurance of quality; for providers, clearer rules on funding.
Closer partnership with ICSs. Integrated Care Systems remain central to joining up health and social care. Providers should expect ICSs to play a growing role in shaping local commissioning priorities.
Long-term reform. The Casey Commission will report in 2026 on how adult social care should evolve. This could include a more unified national system or new funding approaches.

Opportunities and Challenges

As with any reform, there are both opportunities and practical considerations.

Opportunities

Stronger national standards can give supported people and their families confidence that services are safe, consistent, and person-centred.

Clearer definitions of support may help distinguish high-quality providers from poor-quality or exploitative practices.

A focus on integration could lead to more joined-up pathways between housing, health, and social care.

Challenges

Providers will need to invest in governance, workforce development, and data systems to meet new requirements.

Local variation in licensing could create differences between areas, especially in the early stages.

Funding models will need to evolve to reflect the real costs of compliance.

Overall, the reforms represent a chance to strengthen the sector, provided implementation is balanced and well-resourced.

What We Do

At Northern Healthcare, we continue to support reforms that aim to improve outcomes for people living in supported accommodation. We look forward to being a part of the future movement to uphold and improve the quality of care and support within the sector by:

Strengthening governance. We are reviewing our policies and quality assurance systems to ensure they align with the emerging National Standards.
Listening to the people we support. We have expanded opportunities for feedback, ensuring that the people we support play a central role in shaping our services.
Investing in our workforce. Staff development is a priority, with enhanced training in areas such as mental health awareness and safeguarding, alongside leadership development opportunities.
Ensuring safe, high-quality homes. All of our 19 services across the North West, Cumbria, Yorkshire and the Midlands are regularly reviewed to meet safety, accessibility, and comfort standards.
Engaging in policy. We continue to contribute to consultations and work with commissioners, ensuring our experience informs future decisions.

Looking Forward

Supported living is on a clear path towards greater consistency and accountability. Licensing schemes, national standards, and stronger integration with health and social care are all designed to raise the bar and protect those who rely on these vital services.

The next year will be crucial as regulations take shape and licensing begins. For providers like ourselves, the key will be to stay informed, collaborate with partners, and prepare systems and staff for new expectations. While reforms inevitably bring change, they also offer a chance to showcase what the best supported living can achieve: safe, supportive, person-centred homes where individuals can thrive.

We at Northern Healthcare see this as an opportunity to reaffirm our commitment to quality and to help shape a sector that works better for everyone; people we support, families, commissioners, and providers alike.