IMA ANNUAL CONFERENCE 2013

Q Hotel Midland Manchester20th and 21st May 2013

“What money advisers need to know about social housing”

Louise HardingHead of Tenant Services

Coast & Country Housing

“What money advisers need to know about social housing”

Changing times, changing advice…..

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

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%

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’

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

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

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

Under-occupation by

Estimated number affected

% of affected claimants

Average Weekly HB loss (2013/14)

One bedroom 540,000 81% £12

Two or more bedrooms

120,000 19% £22

Total 660,000 100% £14

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

‘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

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

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

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

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

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

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

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

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

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.

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.

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