Transcript NWHS Client Seminar

CCH Conference Workshop
14 July 2012
Welfare Reform
Phil Earl and John McGuigan
Introduction
• Welcome
• Introductions
• Objectives
– To increase your understanding of the Government’s
welfare reforms
– To evaluate the potential impact on your organisation
– To consider how you can respond to the planned changes
Background
• Context
–
–
–
–
–
World economic crisis
Coalition government and deficit reduction
Cuts in public expenditure
£18bn cut in welfare budget
Further cuts on the way!
• Government Objectives
– Create incentives to get more people into work by ensuring that work
always pays
– Protect the most vulnerable in society
– Deliver fairness to those claiming benefit and to the taxpayer
• Welfare Reform Act 2012
Housing and the Welfare Reform Act
• Under-occupation
• Household benefits caps
• Universal Credit
Under-occupation
• Housing Benefit (Amendment) Regulations 2012
• From April 2013
• Working age tenants who are under-occupying social
housing will have Housing Benefit cut
– 14% for one spare bedroom
– 25% for two or more spare bedrooms
•
•
•
•
Same-sex children under 16 to share
Different-sex children under 10 to share
No definition of what constitutes a bedroom
Excluded tenancies
Under-occupation: who is affected?
• In receipt of Housing Benefit
• Working age
–
–
–
–
Below the qualifying age for Pension Credit
Expected to be 61 at April 2013
To rise until women’s state pension age = men’s in 2018
For couples, under-occupation penalty will not apply if
either or both have attained qualifying age
• Disabled tenants
– Penalty will apply except where an additional bedroom is
required for a non-resident carer providing overnight care
(but see recent Court of Appeal case)
Under-occupation: what can tenants do?
•
•
•
•
•
Pay the difference
Move to a smaller home
Apply for discretionary housing payments
Take in a lodger
Earn more money!
Household Benefit Caps
• From April 2013
• Total benefit will be limited to around £500 per week
for couple/lone parent households and around £350
per week for single person households
• Cap implemented by adjusting Housing Benefit
• The policy will most affect large families who are out
of work (in the most part with three or more children)
and households in high rent areas receiving large
Housing Benefit payments
• Likely to affect around 50,000 UK households in
2013/14
• DWP notifying claimants now
Universal Credit
• Phasing in between October 2013 and October 2017
• Does not apply to pensioners
• Replaces
•
•
•
•
•
•
Working Tax Credit
Child Tax Credit
Housing Benefit
Income Support
Income-based JSA
Income-related ESA
• DLA will be replaced by Personal Independence
Payments
• Housing element within Pension Credit
Universal Credit
• Administered by DWP
• Online applications
• 50% in 2013
• 80% by 2017
• Single monthly payment in arrears
• Includes housing element
• Vulnerable tenants
• Demonstration projects
Universal Credit: issues for landlords
• Increased rent arrears and bad debts
• Increased costs of rent collection
• More legal action
• Higher tenancy turnover
• Increased void rent loss and void costs
• Advice and support for tenants
What Can You Do?
•
•
•
•
•
•
Impact assessment
Communication with tenant members
Allocations
Mutual exchanges
Rent arrears
Payment methods
Impact Assessment
• Update tenancy records and household details
• Assess the potential impact of under-occupancy and
direct payment of benefits
• Analyse the results and present to
committee/membership
• Identify tenants who may need advice and support
•
•
•
•
Communication with Tenant Members
Target tenant members who may need advice
and support
Consider opportunities to inform tenant
members of the changes
Send out information to raise awareness
Let people know where they can get help
Allocations
• Assess current allocation policies
• Consider policy on lodgers
• Start raising awareness at home visit stage
regarding under-occupation rules
• Reiterate under-occupation at sign up due to
possible changes of financial circumstances
• Re-designation of properties
• Encourage existing tenants to downsize through
internal transfer or mutual exchange
• Co-operation between co-operatives
Mutual Exchanges
• Home & Communities – Regulatory Framework
for Social Landlords, Section 1.2 of the Tenancy
Standard states:
“registered providers shall enable their tenants to
gain access to opportunities to exchange their
tenancy with that of another tenant by way of
internet-based mutual exchange services”
Rent Arrears
• Review current rent arrears policies
• Review amount of bad debt provision
• Consider collection v writing off arrears
• Consistent approach to arrears pursuance
Payment Methods
• Assess current methods
• Consider whether the current service allows
members to cope with the challenges ahead
• Offer wider choice of payment methods
• Direct debit
• Credit unions