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Claire Astbury, Lead Manager National Housing Federation

Welfare reform: Universal credit and other changes. Claire Astbury, Lead Manager National Housing Federation. Welfare reform. Size criteria Universal Credit Overall benefit cap Localisation Looking Forward. Housing Benefit cuts by 2014-15. Total Housing Benefit cuts: £2.2bn.

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Claire Astbury, Lead Manager National Housing Federation

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  1. Welfare reform: Universal credit and other changes Claire Astbury, Lead Manager National Housing Federation

  2. Welfare reform • Size criteria • Universal Credit • Overall benefit cap • Localisation • Looking Forward

  3. Housing Benefit cuts by 2014-15 Total Housing Benefit cuts: £2.2bn

  4. Discretionary Housing Payments

  5. Discretionary Housing Payments Total DHP available: 2010-11: £20m 2011-12: £30m 2012-13: £60m 2013-14: £155m 2014-15: £125m

  6. Federation impact assessment Measuring the impact on tenants and landlords…

  7. 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

  8. Social sector size criteria

  9. 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

  10. Size criteria – exemptions? Pensioners? Foster carers? People who need round-the-clock care? People with severely disabled children? Armed forces families?

  11. Options for avoiding the size criteria Downsize? (transfer, mutual exchange, move to private rented sector) Lodger? Pay the shortfall?

  12. Universal Credit 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

  13. Universal Credit – culture change • Single payment • Monthly payment • Direct to claimant • Online • Supporting work • Conditions and sanctions

  14. Direct payments to tenants

  15. Rent currently not a major problem – but in future? % of social tenants find it difficult to afford:

  16. Direct Payment Pilots • Six Pilot Schemes – 6220 tenants volunteered • First six months, arrears doubled overall but wide range of success in collecting rent due • One scheme in Wales, half of those falling into arrears had never been behind on rent before • 316 had payments revert back to landlord

  17. Household benefit cap

  18. Benefit Cap impact £500 per week cap 56,000households 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

  19. What’s left for rent? Typical benefits entitlement excluding housing costs Maximum available for housing costs within the cap Couple plus… Lone Parent plus… Children Children Examples only – actual benefits receipt will depend on household circumstances

  20. Options for escaping the cap Work? Move?

  21. Exempt Accomodation • Lord Freud, April 2013 Uncertainty for supported housing projects

  22. Localisation

  23. A reminder of timings • Already happened: • LHA changes, size criteria, Benefit cap starts, Disability benefits start changing, Council Tax support replaces Council Tax Benefit, Social Fund localised • From July • Benefit Cap rollout • From October • Universal Credit starts

  24. 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 • Need to be on-line and have access to the right financial products

  25. Implications for housing providers

  26. Implications for housing providers

  27. Implications for housing providers • Collecting rent/portions of rent for the first time • Supporting tenants with employment, advice, training, moves and financial inclusion • Implications for allocations and exposure to benefits • Need for co-operation for tenant moves and support • New types of homes required • Concern about supported accommodation and temporary accommodation/homelessness work

  28. Implications for local authorities • Administering and assessing Discretionary Housing Payments • Collecting small amounts of Council Tax • Homelessness likely to increase • Demand for smaller homes – implications for planning and SHMA • Advice and support • Commissioning issues re supported housing • Councillors mailbag

  29. Contact Claire Astbury National Housing Federation 07788 148590 claire.astbury@housing.org.uk Further information: www.housing.org.uk/welfare Join our LinkedIn Group

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