Transcript Slide 1
Universal Credit: Tranche 1 Strategic Meeting Monday 16th March 2015 The Supporting Sustainable Tenancies Team Universal Credit Rent Account Patch Data: Tenants likely to be affected by Universal Credit across NPT Number of tenants (circa) Percentage of tenants affected Arrears (Net of HB) Housing Benefit (per month) Likely to be affected for the Housing Benefit element of Universal Credit 3,700 42% £300k £265K Not Likely to be affected for the Housing Benefit element of Universal Credit 5,100 58% £420k £200K Total 8,800 £720k We have 2,500 Tenants on Housing Benefit over the UC age restriction of 60.5 What matters to tenants -Help me keep a roof over my head -I know how much I owe, when its due and how I can pay -Make it easy for me to pay my rent, and easy to change my way of paying -Don’t give me the wrong information or complicate the system -I know who and where I can turn to if I have a problem and I’m helped in reasonable timescales -I would like to trust you and have confidence in you as a landlord Purpose “Help” People to Sustain Their Tenancy Vulnerability of our clients The review has identified the need to understand all tenants (regardless of whether they are in arrears or not) to help them sustain their tenancies. Multiple Case files (Mr & Mrs C) Methods to support and safeguard our clients could include alternative payments and the tier 1/2 managed payments Working in partnership will enable us to safeguard individual clients and avoid duplication Risks and NPT Homes Learning Universal Credit Rent Account Patch Risk Factor Why the Risk Mitigation Financial Risk Magenta arrears have increased by 50% (Cardiff / Bron Afon similar stories) We intend working with Tenants at first point of contact when they claim UC to ensure that we are able to make them aware of their obligation to Pay their Rent and Help them through the process APA’s - Magenta experience suggests DWP have accepted all Managed Payment APA’s for 8 week arrears and problem 4 week tenants. Arrears for Tenants who have come in since July 14 have dropped by 40% Possibility of 3,700 UC Tenants owing 8 weeks full rent of say £85 = £2.5m plus any delays in DWP APA’s on top Increase in Bad Debt Prov have been included in budgets Risk Factor Why the Risk Mitigation DWP Lack of automation. Letters DWP have stated this will be addressed. As we are need to be sent manually by expecting small numbers in first year circa 100, this recorded delivery, Payments on hopefully will have minimal impact APA’s need to be processed manually. Potential delays as more RSLs come online Job Centre plus Skill set of work coaches and their ability to understand Tenants needs and to help tenants sustain their tenancies is unknown We are working closely with the Job Centre and they have agreed to us working with the coaches as tenants come into the process. Meeting Job Centre Managers on 17th March Vulnerability DWP suggest Managed Payments to landlords for tier 1 / tier 2 vulnerability factors should be low (Nationally). Our evidence suggests 50-70% Potential Trusted Partner Status and 3rd Party evidence by Social Services etc. should enable us to identify Vulnerable tenants to keep on Managed Payments direct to Landlord. Plus CEO raising on Local Service Board I.T Our own I.T systems need to be Productive meetings held with Directors/ I.T to move this geared up to accommodate UC forward tenants and provide the teams with automated letters, certification and alternative arrears reports etc Landlord Certificate Risk Factor Why the Risk Mitigation Helpline on “Gateway” The helpline quoted for providing I.T assistance goes through to a Careers Service (English equivalent to Careers Wales). They have no benefits training and are unable to help with UC claims at all. Their number is given solely to provide support with accessing IT, but they can only provide this service in England, so it’s important that the equivalent number is provided for Welsh claimants CHC raised with Helen Matthew (DWP)and will contact the winner of the new Communities2.0 contract to establish whether that could be advertised here as a Welsh alternative. The online map does work for Welsh postcodes (could this option be used by the Careers Service?) Data sharing protocol Learning from other RSLs (Magenta Living) is that the DWP are not currently notifying them when tenants make a claim for UC (only received one notification). Also new claimants are only receiving the personal element of their first UC payment This has been raised with the DWP housing team and it is likely to be the norm because of the current workload (the housing element of UC claims is more complex aspect of the claim) Positives issue Why Alternative Payment Arrangements Magenta experience suggests DWP have accepted all Managed Payment APA’s for 8 week arrears and problem 4 week tenants. Arrears for Tenants who have come in since July 14 have dropped by 40% 3rd party Deductions Deductions of up to 20% (or 10% if other deductions in place) are recoverable from tenants to repay any arrears accumulated once Tenant moves onto a managed payment Relationship Working Landlord Services, FIT, Housing Benefits and Job Centre have all been working closely . This Forum today and Yammer accounts Engagement with Tenants The review has identified the need to understand all tenants (regardless of whether they are in arrears or not) to help them sustain their tenancies. Multiple Case files e.g O Connors DWP evidence Acceptance We have devised a process for local sign off - meeting DWP 17th March e.g Rent Statements Barcud update - Merthyr Valley Homes, Bron Afon, Valleys to Coast and NPT Homes are part of a consortium that is chaired by internal auditor - Met in February – lots of positive sharing and pooling of expertise - Texting – variation from zero texts being sent to 2,000 a week - Redemption balance – concept of offering tenants who leave a reduced redemption figure on their potential former arrears (on the basis that 50% of something is better than 100% of nothing - 2 weeks payment in advance – expecting new tenants to make payments in advance and holding a credit balance - Trusted Partner Status ((Bron Afon are part of the core Landlord Group that feed back to Lord Freud) Any questions Claire Maimone Director of Housing and Community Regeneration 01639 505870 [email protected] Andrew Harris Head of Change Management 07896173994 [email protected] Mark Edwards Senior Community Housing Officer 01639 505989 [email protected]