The Impact of Welfare Reform in Middlesbrough

1. The Impact of Welfare Reform in Middlesbrough Bridges of Hope - 3rd October 2013

2. Around £380m lost to region as a result of changes to: • Council Tax Benefit • Benefits Cap • Move from IB to ESA • DLA change to PIP • Size criteria for HB (‘bedroom tax’) • With other changes – up to £940m

3. Resilience – a bleak picture. In November 2012, there were 7.5 Job Seeker Allowance claims for every unfilled job centre vacancy across the region (12/1 in Middlesbrough) Patterns of under occupation show issues of concentration and extent throughout the region (e.g. 410 households in Thorntree affected) BBC Experian Survey 2010 – 324 local authorities – Middlesbrough 324/324 – the LEAST resilient in the England

4. Under occupation • Mismatch between housing availability and need: • Social housing stock in the NE is skewed towards family-sized units (75%+); the proportion of 1-bedroomed homes averages out at 22% (46,700 properties) (20% in Middlesbrough) • The actual number of 1-bedroomed properties that become available within a year stands at less than 6,500; compared to over 45,000 people registered on waiting lists for this property size;.

5. Under occupation and housing policy • The features of the regional housing market make Middlesbrough particularly vulnerable to the changes proposed for social housing tenants • Acknowledgement that not enough properties to accommodate relocations • Leading to less saving on HB than anticipated • Leading also to increased risk of empty properties and perverse allocation practices

6. Organisational challenges • Considerable concern over new responsibilities: • Large numbers of people paying Council Tax for the first time • Administration of the Social Fund replacement (LAs) • Use of Discretionary Housing Payments • For social landlords: • Increasing arrears • Changing allocation policies • For all agencies – how to coordinate effective advice services to meet increased need

7. Future administrative challenges • Concerns over size and complexity of changes • Delivery and administrative changes: • Monthly payments • Direct payments • One payment per household • On-line

8. Emerging issues • Council tax – a new primary debt and new payers. • DHPs –criteria and spend • Social fund replacement –criteria and spend • “more stringent” systems – less resource available?

9. Emerging issues • Increase in bids for 1 bed properties and increased terminations • Issue of larger properties – implications for who they are let to or develop innovative schemes for their use • Significant increase in demands for advicee and guidance – is this available?

10. Recommendations • Monitoring framework needed to track changes and adapt policies where possible (Northern Housing Consortium): • Economy, employment and social impacts • Housing • Discretionary Housing Payments, Social Fund and Council Tax Benefit • Advice and support • Impact on groups

11. Real concerns • Increased activity for pay day loan companies – including illegal activity • Larger numbers of food banks and charity activity • Early confirmation of health issues becoming a factor • Residents vulnerable to a range of pressures (multiplier effect) with little flexibility in local governance to mitigate them

12. Thank you for listening…..