The Local Government Association (LGA) has urged the Government to boost spending on supported housing and consider a ring-fenced fund in next month's Budget.

It argued that supported housing, in which older people and people with a learning disability or mental health needs receive support, supervision or care, had ‘huge social value' and could ease pressure on public spending elsewhere.

The LGA found that one scheme in Bradford saved the NHS up to £47,000 per person.

Community wellbeing board chairman, David Fothergill, said: ‘High quality supported housing means astounding savings across other public services.'

But the association warned that years of cuts and the loss of ring-fenced funding in 2011 had left supported housing ‘on a knife edge', with standards falling.