Welfare Reform .....responding to risk

1. Welfare Reform .....responding to risk Scott Sanders - Director of Housing

2. The biggest change to the welfare system for over 60 years.....

3. making the benefits and tax credits systems fairer and simpler.......

4. creating the right incentives to get more people into work......

5. ........protecting the most vulnerable in our society

6. ........delivering fairness to those claiming benefit and to the taxpayer

7. what does it really mean

9. communicationmaking sure everyone who needs to know, knows! partnerships creating efficiency, sharing expertise & experience structures getting the most out of our staff resources staff welfare supporting through stressful times data & systems getting an in depth understanding efficiently training bringing through new skills and abilities policy & practice changing the way we do things risk Understanding and managing the scale of the problem

10. the Direct Payment Demonstration Project

11. 1 in 5 over 65 • 39,000 households • 27% live in social rent • 70% in social rent on Housing Benefit • 1 in 6 have household member • with disability • 50% have internet • 4 areas in 10% most deprived in Wales Torfaen

12. Direct payment: how & when? • 1868 BronAfon & Charter households • 9 communities • Phased entry - most able first • Bank account • First Direct Payment 23 July 2012 • Extended until December 2013

13. What are we testing?

14. what else are we testing • Communication with tenants – Yes! • Communication with DWP admin – No! • Support assessments • Bank Accounts • Exceptions / Alternative Payment Arrangements

15. Alternative Payment Arrangements • Tier One factors – Highly likely / probable need for alternative payment • Drug / alcohol and / or other addiction problems e.g. gambling • Learning difficulties including problems with literacy and/or numeracy • Severe / multiple debt problems • In Temporary and / or Supported accommodation • Homeless • Domestic violence / abuse • Mental Health Condition • Currently in rent arrears / threat of eviction / repossession • Claimant is young either a 16/17 year old and / or a Care leaver • Families with multiple and complex needs • Tier Two factors - Less likely / possible need for alternative payment arrangements • No bank account • Third party deductions in place (e.g. for fines, utility arrears etc) • Claimant is a Refugees / asylum seeker • History of rent arrears • Previously homeless and / or in supported accommodation • Other disability (e.g. physical disability, sensory impairment etc) • Claimant has just left prison • Claimant has just left hospital • Recently bereaved • Language skills (e.g. English not spoken as the ‘first language’). • Ex Service personnel • NEETs - Not in Education, Employment or Training

16. what else................ Switch back Lord Freud announcementsChartered Institute for Housing Conference27th June 2013 Three levels of protection for RSL’s: • Decisions about whether tenants should receive DP’s will be made in collaboration with RSL’s • If arrears build up to the equivalent of 1 month’s rent the decision to make DP’s will be reviewed • If arrears reach the equivalent of 2 months rent, housing payments will be switched to landlord, or managed payments

17. Lord Freud announcementsChartered Institute for Housing Conference27th June 2013 Accelerating the rate at which arrears are recovered ......”typically, if a claimant is not repaying other debts we would expect to recoup the rent arrears from tenants hitting the two month trigger point within six to nine months. This will help ensure that landlords’ cash flows are protected”.... £650 repaid in 9 months!

19. our experience 5 NOSP’s 6 switched back Significance of non payment 8.5% rent not received V rent due

20. Staff workload Increasing capacity to retain quality & increase sustainability Impact on...... 3 x the level of contact compared to pre DP

21. payments received (ave)..... Staff workload Increasing capacity to retain quality & increase sustainability

22. Impact on......staff communicationmaking sure everyone who needs to know, knows! structures getting the best outcomes skills development bringing through new skills and abilities staff welfare supporting through stressful times

23. Impact on......I.T systems core systems ensuring fit for purpose enhanced analytical software Creating greater efficiency data extraction and analysis learning from profiling

24. and there’s more....the bedroom tax A couple A person who is 16+ Two children of the same sex Two children under 10 A carer providing overnight care 14% for 1 bedroom 25% for 2 bedrooms

25. Under occupation impact 599 tenants under occupying @ £13.91pw annual shortfall £434,935 43% make full payment 33% make part payment @ 70% 24% make no payment Potential rent arrears increase: £147,442 pa

26. The only way – tackle it head on Court Service Jam jar accounts Money Management Debt Advice Community Cohesion Digital Inclusion Support Networks Employment Initiatives

27. Welfare Reform .....responding to risk Scott Sanders - Director of Housing