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WELFARE REFORM WHAT DOES THIS MEAN FOR EMHG?

WELFARE REFORM WHAT DOES THIS MEAN FOR EMHG?. Christine Ashton Managing Director. Why Welfare Reform?. Financial reasons- poor performing economy and deficit reduction Concept of fairness and the ‘ deserving poor’ Incentives to work- making work pay More to come.

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WELFARE REFORM WHAT DOES THIS MEAN FOR EMHG?

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  1. WELFARE REFORMWHAT DOES THIS MEAN FOR EMHG? Christine Ashton Managing Director

  2. Why Welfare Reform? • Financial reasons- poor performing economy and deficit reduction • Concept of fairness and the ‘ deserving poor’ • Incentives to work- making work pay • More to come

  3. Impacts of Universal Credit • Many tenants no longer have the choice to have benefits paid direct to their landlord • Increased level of arrears and debt for tenants • Increased costs for landlords - Arrears recovery, slower payment times and bad debt - Legal costs - Need for additional staff working on income recovery - Need to give more support to tenants - New payment methods - Higher transaction costs • Impact on the attitude of lenders to the sector

  4. Other Welfare Reform Impacts • Size criteria- impact of stock profile • Housing Benefit cap for larger families • Service Charges impacts • Supported housing • ICT and digital inclusion

  5. What is EMHG doing? • Welfare Reform Group established • Communications plan for staff and residents • Detailed organisational impact model being used • Lettings policies being examined- does this need revising • Implications for Financial Plan have been modelled

  6. Response • Awareness campaign- For Your Benefit • Advising new tenants at offer and sign up stage if they are likely to be subject to a charge for under occupation • Prioritising the collection of key tenant profiling information and developing it’s use • Visiting those that are affected • Strategic review of income management • Allocations policies being revisited

  7. Policy Considerations • Changes how we approach income management • Supporting tenants to downsize • Tenants letting out rooms • Facilitating Mutual Exchanges • Digital Inclusion • Payment methods- the return of the rent collector • Assisting with on line applications • Stronger role in supporting tenants into work • Agile working methods • Facilitating bank accounts

  8. Conclusions • Welfare Reform Act is the biggest change to social welfare in 60 years • Changes planned will have a significant impact on social landlords and their tenants • Linked to other changes such as lower or no subsidies for new development, cuts to Supporting People funding and changes to housing markets we need to think differently about how we deliver out services in the future

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