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TRANSCRIPT
Andy Tate, Policy Officer, National Housing Federation
Welfare reform: Overview and impact
Welfare reform
• Size criteria
• Overall benefit cap
• Universal Credit
• Localisation
Social sector size criteria
(£490m)
Up-rating LHA by inflation –
not actual rents (£390m)
Cut LHA rate to cheapest third
(£425m)
Rise in non-dependant
charges (£340m)
Household benefit cap
(£270m)
Limit LHA for under-35s (£215m)
LHA caps (£65m)
Housing Benefit
cuts by 2014-15
Total Housing Benefit cuts:
£2.2bn
Measuring the impact on tenants and
landlords…
Federation impact assessment
What housing associations are
doing to prepare…
• Informing tenants
• Investment in financial and digital inclusion
• Helping tenants to downsize
• Encouraging tenants to take lodgers?
• Re-designation of properties?
• Long-term: considering fixed-term tenancies and
reviewing development plans
Discretionary Housing Payments
Discretionary Housing Payments
£2.2bn
£125m
HB cuts HB help
HB cuts vs. HB help 2014-15 Total DHP available:
2010-11: £20m
2011-12: £30m
2012-13: £60m
2013-14: £155m
2014-15: £125m
Social sector size criteria
Size criteria impact
14% cut for one ‘spare’ bedroom
25% for two or more ‘spares’
£14 average weekly loss
660,000 claimants affected across GB
63% (420,000) are disabled
200,000 on Disability Living Allowance
100,000 disabled and in adapted properties
Size criteria – exemptions?
Pensioners?
Foster carers?
People who need round-the-clock care?
People with severely disabled children?
Armed forces families?
Options for avoiding the size criteria
Downsize? (transfer, mutual exchange, move to private rented sector)
Pay the
shortfall?
Lodger?
Household benefit cap
Benefit Cap impact
£500 per week cap
56,000 households affected
50% will contain a disabled person
46% of those affected are in social housing
49% of those affected are in London
£93 per week average loss
What’s left for rent?
Children Children
Lone Parent plus… Couple plus…
Typical benefits entitlement excluding housing costs
Maximum available for housing costs within the cap
Examples only – actual benefits receipt will depend on household circumstances
Options for escaping the cap
Work? Move?
Included in UC:
• Income-based Jobseeker’s
Allowance
• Income-related Employment and
Support Allowance
• Income Support (including Support
for Mortgage Interest)
• Child Tax Credits
• Working Tax Credits
• Housing Benefit
Excluded from UC:
• Council Tax support
• Disability Living Allowance
• Contributory Benefits
(although earnings rules
aligned)
• State Pension
• Child Benefit
• Pension Credit
• Carer’s Allowance
Universal Credit
• Single payment
• Monthly payment
• Direct to tenant
• Online
• Supporting work
• Conditions and sanctions
Universal Credit – culture change
Direct payments to
tenants
Rent currently not a major problem –
but in future?
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Rent
Replacing things have been stolen
Medical or dental treatment
Repaying credit or loan agreements
Petrol/Transport
Food
Electricity/Gas
Replacing/repairing equipment
Shoes/Clothing
Essential major purchases
Entertainment, days out or holidays
Christmas or birthday presents
% of social tenants find it difficult to afford:
Impact of welfare reform on
tenants
• Tenants know little about changes
• Many tenants will be unable to afford rent
• Arrears expected to rise by 51%
• Evictions expected to increase
• Families affected more than single people
Contact
Andy Tate
National Housing Federation
020 7067 1081
Further information:
www.housing.org.uk/welfare
Home Group Welfare Reform Changes
Presentation by Richard Glaister, Customer Services Manager & Richard Partington, Customer Services Partner,
Home Group
Home Group – What we do?
• Home Group is a social enterprise and a charity with a turnover of over £300m
• We provide general needs and supported housing and services targeted towards helping some of society’s most vulnerable people take control of their own lives
• We house over 120,000 people a year in 55,000 homes in over 200 local authority areas in England, Scotland and Wales.
• We work with almost 30,000 vulnerable people through over 500 supported housing, justice and health services each year.
Home Group – Welfare Reform
• Home Group Video – Under Occupancy Explained
Our response so far Under Occupation
•Visiting every customer affected by the size criteria & highlighting how customers are impacted •Discussing what options & support is available •Offer a range of options to assist existing customers:
– down-sizing via Mutual Exchange, transfer, move to another landlord – lodgers – accessing employment, training & volunteering opportunities – range of payment options to ensure shortfall in rent & HB is paid – budgeting tools, financial inclusion information & support – Aligned our Allocations Policy with DWP size criteria – Tailored communications in the form of video, leaflets, magazines,
letters for customers & colleagues
Our response so far
Welfare Reform Patch Survey
•Hillingdon and Hounslow patch (250 properties)
•Aim: to create a snapshot of our customers’ awareness of – and readiness for – welfare reform
•Phone survey conducted by London team on 20th December 2012
•Survey targeted towards most at-risk customers – those who receive HB and do not receive pension credits
Our response so far
Survey results
•57% were unaware of the changes
•38% ‘concerned’ for their own situation; 38% ‘very concerned’
•14% have no bank account, 21% no internet access
•50% would need help filling in a benefit application online
•72% feel they need support from Home in adapting to the changes
•43% would like help with money management
Our response so far Under Occupation – Rayners Lane (450 properties) •94 customers identified as possibly being affected •Contacted all 94 customers initially by letter, followed up with phone calls and face to face meetings •92 customers have had successful phone calls or face to face meetings •28 customers will be actually affected •5 customers will be supported by Stonham •Of the remaining 23, seventeen customers have said they will pay the difference.
Welfare Reform Presentation
•Any questions
www.amicushorizon.org.uk
AmicusHorizon XXXX XXXXX XXXXXXXX Making homes, helping people
www.amicushorizon.org.uk
Making homes, helping people
AmicusHorizon Universal Credit and Direct Payments
26/03/2013
John Barr - Customer Experience Director David Ellis – Financial Inclusion Manager
www.amicushorizon.org.uk
AmicusHorizon XXXX XXXXX XXXXXXXX Making homes, helping people Making homes, helping people Our homes
40% of our homes are in London
www.amicushorizon.org.uk
AmicusHorizon XXXX XXXXX XXXXXXXX Making homes, helping people Making homes, helping people Our customers
3 Regions:
• London & Surrey
• Sussex
• Kent
• 28,000 homes
• 19,500 working age households
• 10,500 receiving Housing Benefit
• 8,000 likely to receive Direct Payments
www.amicushorizon.org.uk
AmicusHorizon XXXX XXXXX XXXXXXXX Making homes, helping people Making homes, helping people Income/Financial Inclusion Structure
Open 08.00 – 20.00 (weekdays) and 09.00 – 13.00 Saturdays
www.amicushorizon.org.uk
AmicusHorizon XXXX XXXXX XXXXXXXX Making homes, helping people Making homes, helping people Financial Inclusion Strategy
www.amicushorizon.org.uk
AmicusHorizon XXXX XXXXX XXXXXXXX Making homes, helping people Making homes, helping people ‘Benefit Matters’ and DVD
www.amicushorizon.org.uk
AmicusHorizon XXXX XXXXX XXXXXXXX Making homes, helping people Making homes, helping people Information leaflets (14)
www.amicushorizon.org.uk
AmicusHorizon XXXX XXXXX XXXXXXXX Making homes, helping people Using technology… Making homes, helping people
www.amicushorizon.org.uk
AmicusHorizon XXXX XXXXX XXXXXXXX Making homes, helping people Making homes, helping people Campaign & inform…
• Call
• Visit
• Write (targeted letters/leaflets
• Events
• Benefit Advice/Money Management
• Help to open bank/credit union acs.
• Benefit Matters/DVD
• Facebook/Website/Calculator
• Mobile Working
www.amicushorizon.org.uk
AmicusHorizon XXXX XXXXX XXXXXXXX Making homes, helping people Making homes, helping people More help…
www.amicushorizon.org.uk
AmicusHorizon XXXX XXXXX XXXXXXXX Making homes, helping people Making homes, helping people Implications for AmicusHorizon…
Still early to know how many will cope
with the challenges…
• Managing budgets in a different way
• Managing money monthly
• Shift to electronic payments
• Access to computers/skills
• Very few have savings (5 -10 %)
• Need money management support
www.amicushorizon.org.uk
AmicusHorizon XXXX XXXXX XXXXXXXX Making homes, helping people Making homes, helping people What happens next?
• Higher arrears & legal costs
• More evictions?
• More debt?
• Increased borrowing costs
• Lower build capacity
www.amicushorizon.org.uk
AmicusHorizon XXXX XXXXX XXXXXXXX Making homes, helping people
www.amicushorizon.org.uk
Making homes, helping people
Thank you - questions?
Welfare Reform and
Financial Inclusion
Presented by Andrew Sodje - Head of Revenues
26 March 2013
About Us
• Founded in 1862 by George
Peabody
• 20,000 + homes in the capital
and affordable housing for 55,000
+ Londoners
• Wide range of community
programmes:
- employment and training
- health and wellbeing
- family support
- welfare benefits advice
- digital inclusion
• A good home, a real sense of
purpose and a strong feeling of
belonging
The effects of Financial Exclusion
• Generational worklessness
• Child Poverty
• Poor housing conditions
• Anti-social behaviour
• Poor literacy and numeracy skills
• Low self esteem
• Young people not in education or training
• Poor credit history
• Poor health/depression and anxiety
Financial Inclusion –
Our Objectives
Improve access to:
• Banking and affordable credit
• Money and debt advice
• Employment and training
• Reduce fuel poverty
Our Welfare Benefits Team
Financial Inclusion – How we can help
Utility costs
• Negotiating reduced utility payment plans
Rent arrears
• Helping tenants claim backdated housing benefit – increased tenant income
by £305k in 2011/12
Tax Credits and Overpayments
• ‘Better off’ calculations and early assistance to maximise take up of tax credits
Debt
• Frontline departments signpost residents to specialist advisory services such
as MyBnk – over 800 referrals each year
• Improving access to low cost finance and affordable credit
• Supporting with budgeting and prioritising debt – over 1,000 sessions
delivered by Money Advice Service in past 12 months
• Working with local credit unions
Employment & Training
• Over 1,000 people into jobs and training opportunities in 2012
Case Study - Mr A
• Mr A suffers from mental health issues following a violent attack
• He was not opening post or engaging with any services
• He lost all benefit entitlements and was not receiving medical care
• Mr A was referred to the Peabody Welfare Benefits team who liaised with his
GP, Social Services & DWP
• He now receives Disability Living Allowance and its passported benefits
• Welfare benefits team will gather supporting evidence to help Mr A apply for
Personal Independence Payments (PIPs)
• The team will also help Mr A prepare for entitlement interviews, and advocate
for him in the event of an appeal
Our Financial Inclusion Action Plan
• Deliver customised face to face money advice and telephone debt advice.
• Discuss financial capability with tenants before/during sign up, and signpost to
employment and training service.
• Advice on grants available for utility costs, discounts and sources of free
energy help.
• Information on bank accounts and incentives for direct debits.
• Hardship fund to support vulnerable tenants.
• Advice on affordable credit and credit union services.
• Offer community space at regional hubs and facilities for debt advice and
management sessions.
• Promote advice services via video, surgeries, home visits, resident
publications, rent statements.
Welfare Reform – key
challenges
• Universal credit and direct
payments – increased arrears,
management costs and higher levels
of debt for residents already on low
incomes.
• Underoccupation – 750 affected by
the spare room subsidy.
• Benefit cap
• Reputational damage
• Relationship with lenders
• Impact on growth strategy
Questions