IMA ANNUAL CONFERENCE 2013

1. IMA ANNUAL CONFERENCE 2013 Q Hotel Midland Manchester 20th and 21st May 2013

2. “What money advisers need to know about social housing” Louise Harding Head of Tenant Services Coast & Country Housing

3. “What money advisers need to know about social housing” • Changing times, changing advice…..

4. Welfare Reform • 8 March 2012 - Welfare Bill enacted marking biggest reform for 60 years • Affects working age benefit claimants • The changes to HB and LHA will affect social and private landlords, tenants and strategic housing authorities

5. Background • Policy Objective • Housing benefit bill £22b • 3.3m Social Sector Housing Benefit claimants • 63% on Housing benefit • 1.7 million households on waiting lists in England • Turn over of social sector around 5%

6. Background • Coalition Government identified two key problems: • work incentives are poor, and • the system is too complex • Reforming system to help people move into work • Aims to make it fairer, more affordable and better able to tackle poverty, worklessness and welfare dependency • DWP – ‘Committed to overhaul the benefit system to promote work and personal responsibility’

7. Key changes • Benefit cap • Child benefit frozen • Education and Maintenance Allowance abolished • Introduction of Personal Independence Payment • Employment and Support Allowance restrictions • Increase in non-dependant charges • 1% limit in welfare benefits increase • Abolition of Council tax benefit • Private rents (Local Housing Allowance) capped, frozen and reduced • Universal Credit • Housing Benefits paid direct to tenants

8. Key impacts on social housing tenants • Bedroom Tax (under occupation rules) • Change to council tax support • Universal Credit • Direct payment to claimants including housing benefit

9. ‘Bedroom Tax’ impacts The DWP estimates Source: DWP Housing Benefit: Under occupation of social housing impact assessment (28 June 2012)

10. Discretionary Housing Payment • Annual government expenditure 2012-13 - £60m • Annual government expenditure 2013-14 - £155m • £20m Baseline DHP fund • £40m LHA reforms • £30m Social sector size criteria • Up to £65m for benefits cap • Annual government expenditure 2013-14 - £125m • £20m Baseline DHP fund • £40m LHA reforms • £30m Social sector size criteria • Up to £35m for benefits cap

11. ‘Bedroom Tax’ local context • Affects 1,900 Coast & Country tenants • £12 - £22 a week reduction in housing benefit • 170 in properties that have been specially adapted owing to disability • Total loss of income to tenants £1.4m a year • R&C DHP 2013-14 £308k • C&C ‘allocation’ £123k

12. Council Tax support • 10% cut in funding • Pensioners protected • Net effect on working age 20% • 3.1m low income households affected • Average loss £2.64 per week

13. Council Tax support – local context • 63,000 households in Redcar & Cleveland • 9,000 affected by cuts • 6,000 where full council tax benefit paid before changes • Band A - £3.18 per week

14. Universal credit & direct payments • £8m affected nationally • October 2013 – 2017 • Trialled in 3 areas from April then further 3 from July • Average gain £16 per month

15. Local context • Coast & Country has 10,000 tenants • 4237 working age and on benefit • Estimate 2816 will receive direct payment of universal credit including rent • £12m per year additional rent to collect

16. Rent debt • 42% tenants in arrears • 75% on housing benefit • 10% increase in debt of those under-occupying after 1 month • Arrears expected to double by 2017 • 16% non-payment of council tax after 1 month

17. What we are doing differently? • Using customer insight information to better target resources • Working with new tenants – before tenancy starts • Involving the whole organisation • Different approach to rent debt • Better partnership working • Pooling resources - Moneywise

18. Access to advice services • Which service to use • Waiting times • Advice line – limited service • Drop in sessions • Access to face to face advice • No home visits • Limited service to rural areas

19. What would work better? • Direct referrals • Ability to make appointments • Advice delivery to meet tenant needs • Contact details of caseworker • Liaison during case • Feedback on cases and outcomes • Caseworker based with housing provider

20. Case study – relationship breakdown • Ms H age 24 living in a 3 bedroom property • Lives alone following relationship breakdown and recently lost part time job • Job Seekers’ Allowance which is £56.80 a week • Rent £89.62 a week – 25% cut in housing benefit • £22.40 rent, £9.76 water rates and £4.18 a council tax per week. • Leaves £5.46 a week for food, heating, lighting and other essentials. • Owes £258.46 gas, £296.68 electricity, £90.79 Council Tax £90.79, and shopacheck£55.50.

21. Case study - disability • Mr B age 48 and has mental health issues • Unable to return to work because of this • His housing benefit has been cut by 25% • He gets £71.70 a week benefit • Has to pay £22.61 rent, £7.63 water rates and £4.18 council tax • Repaying social fund loan at £15 per week • Leaves him £21.58 a week to live on, to pay for gas, electricity, food and other normal living expenses • Turned down when he applied for DLA last year and we are helping him to apply for PIP • M B needs to stay near to his family as they are his lifeline and we don’t have any smaller properties to offer him.

22. Case study – shared access • Steve age 36 separated from partner and lives in a 2 bedroom C&C flat • Son Jamie aged 11 lives with his mam and stays with his dad weekends and some holidays • When Steve first got the flat he was working for Corus however lost his job when Corus closed. He is now looking for work • His rent is £74.28 and his HB has been cut by £10.40 • He gets £71.70 a week JSA and has to pay £10.40 rent, £8 water rates, £4.18 council tax and £19 fuel • This leaves him £30.12 a week for food, bus fares, TV licence and phone