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ARCH/CWAG/NFA Welfare Reform Survey Early Results

ARCH/CWAG/NFA Welfare Reform Survey Early Results. Matthew Warburton. Context. Underoccupation charge in operation from 1 April 2013 Need for early analysis of impact on rent arrears and council policies Survey of all ARCH, CWAG and NFA members carried out in August 2013

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ARCH/CWAG/NFA Welfare Reform Survey Early Results

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  1. ARCH/CWAG/NFA Welfare Reform Survey Early Results Matthew Warburton

  2. Context • Underoccupation charge in operation from 1 April 2013 • Need for early analysis of impact on rent arrears and council policies • Survey of all ARCH, CWAG and NFA members carried out in August 2013 • Focus on impact in 1st quarter of 2013/14 • Considering repeating the survey quarterly

  3. Early results • Responses from 20 ARCH members (31%) • Some incomplete returns (“too early to tell”, “policy still under review”) • Will chase additional responses and compare with results from ALMOs sector, and incorporate in final report

  4. Impact on arrears Between 1 April 2013 and 30 June 2013: • Median increase in no. of tenants in arrears: 16.5% • Median increase in total arrears: 21% • Median percentage of tenants subject to underoccupation charge in arrears rose from 27% to 68% • Median increase in arrears of these tenants rose by 43%

  5. Other impacts • Arrears recovery action initiated in relatively small number of cases so far • Number of underoccupying tenants moved to alternative accommodation insignificant so far in nearly all responding councils • Even fewer underoccupying tenants have left council housing

  6. Discretionary housing payments • DHP is only reaching a fraction of tenants affected by the underoccupancy charge • Median: 18.5% of tenants affected • Range: 4% - 70%

  7. Policy changes • Most responding councils are reviewing or have changed arrears recovery policy • A few have non-eviction policies for tenants affected by the underoccupancy charge; most do not • Very small numbers of dwellings may be reclassified • Estimates of time needed to move all relevant tenants to suitable property range from 7 to 15 years; most respondents unable to provide estimate.

  8. Conclusions • Early days but impact of changes already significant • Important to continue to monitor impact • Councils and ALMOs may benefit from sharing information on impact and responses • ARCH should continue to work with NFA, CWAG, HouseMark and CIH to keep developments under close scrutiny

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