Dugdale Centre Enfield 1st July 2013

Laurence Coaker

Head of Housing Needs London Borough of Brent

Welfare Reform Mitigation Supporting Tenants in TA

Main Welfare Reforms

• Local Housing Allowance Caps – April 2011

• Size Criteria for Social Sector Tenants – April 2013

• Local Council Tax Support – April 2013

• Overall Benefit Cap - 15 July - Sept 2013

• Universal Credit – from Nov 2013

Households affected in Brent Benefit Reform Tenure Number affected

Overall Benefit Cap Temporary accommodation 831

Private rented sector 985

Brent Housing Partnership 45

Other social landlord 155

Gypsy and traveller site 14

Overall Benefit Cap total 2,030

Size Criteria Brent Housing Partnership 687

Other social landlord 1,600

Council Tax Support All tenures 21,000

Universal Credit All tenures, all claimants

(eventually)

43,626

Overall Benefit Cap

• "no family will be allowed to receive more in benefits than the average family receives for going out to work". (George Osborne)

• Combined Benefit payments capped at £500 per week for couple or lone parent or £350 per week for single person

• The cap is applied to the Housing Benefit.

• Exemptions: pensioners, disability benefits, working tax credit

• Pilots from 2 April 2013 (Bromley, Croydon, Enfield, Haringey)

• The rest from July 2013, all cases by September 2013 (phasing?)

OBC by benefit type Benefit Under £50 £50 + £100 + £150 + £200 + £250 + £350 + £500 + Total %

Employment Support Allowance 110 46 36 31 29 22 17 9 300 15%

Income Support 331 223 138 71 83 85 50 22 1,003 49%

Job Seekers Allowance 138 104 51 43 42 50 25 18 471 23%

Other 47 64 35 28 24 26 25 7 256 13%

Total 626 437 260 173 178 183 117 56 2,030 100%

49 % of households are on Income Support, of these families 449 are losing more than £100 per week

What’s driving the scale of loss?

• Poverty

– higher levels of benefit dependency

– transient population

• Large Families

– needing larger properties

• High rents

– location and property size

An example • A family of 5, a couple with 3 children living in Harlesden,

NW10 in temporary accommodation. • Family are on IS and receive around £324 a week in benefits.

– This amount is to cover basic living costs: food, clothing, travel costs etc.

• The average rent in this area, is £400 per week. – HB has been assessed and fully covers this amount.

• From Summer 2013 with the OBC the total benefit payment is restricted to £500 per week – The balance is deducted from the HB entitlement.

• This leaves £176 per week of HB entitlement. • Shortfall of £224 p/w - Annual reduction in HB of £12k

Three Choices

1. Customers can avoid the cap by working more than 16 hours if a lone parents or 24 hours for couples, and be entitled to Working Tax Credit, or

2. Pay the shortfall from their other income (Income Support/Jobseekers allowance, Tax Credits and Child Benefit), or

3. Move to cheaper accommodation

Brent

Band 1

1A+ 1C

1A+ 2C

1A+ 3C

1A+ 4C

2A+ 1C

2A+ 2C

2A+ 3C

2A+ 4C

2 Bed North

Under Cap

Under Cap

Under Cap

Under Cap

2 Bed South

Under Cap

£8.64 Under Cap

£49.09

3 Bed North

£7.10 £72.23 £137.36 £47.55 £112.68 £177.81

3 Bed South

£58.64 £123.77 £188.90 £99.09 £164.22 £229.35

4 Bed North

£129.92 £195.05 £170.37 £235.50

4 Bed South

£183.77 £248.90 £224.22 £289.35

Local Housing Allowances Rate

Weekly rate for May 2013

Rent in £/week for each property size*

*Indicative rents, may be subject to change on 1 April 2014

Location: 1-bed 2-bed 3-bed 4-bed

Brent South 255.50 296.38 347.48 408.80

Brent North 176.89 224.05 288.46 346.14

Luton 109.62 135.61 161.54 200.47

Milton Keynes 115.38 144.23 173.08 219.23

Birmingham 96.92 117.92 126.92 165.09

Liverpool 91.15 109.62 121.15 155.77

Cardiff 103.85 126.92 150.00 190.38

Leicester 88.44 109.62 126.92 160.38

Sheffield 91.15 105.00 115.00 150.00

Support & Mitigation

• Establish Project & Delivery Teams – Action plan

• Cross Departmental, RP’s community leaders, Voluntary Sector

– Welfare Reform Mitigation Teams established

• HB, TA, JCP, Navigators, CAB

• Communications – Unambiguous messaging across teams – Use all means: web, local papers, bill boards, children’s

centres, GPs, meetings, visits – Community Events

Employment

• Develop employment offer – Built relationship with JCP – co-location, protocols

for referrals & feedback

– Clear child care offer

– Training and support

• Navigators – Dedicated 121 support for households with

complex needs

– Identify and overcome barriers to work

Mobility

• Supporting households – Suitability Order – Clear links to children & families – Match to Troubled Families & protection register – Protocol to keep children in education if moved

• Relocation Package – Welcome Pack – Removal costs – Support worker

Outcomes Total

Couple-WTC 55

Lone Parent-WTC 83

Household has increased their working hours 2

DLA & similar-proof provided 31

DWP list error 99

Opts to pay shortfall (<50) 18

Qualifying Offer 2

Re-housed-direct offer 3

Re-housed-direct offer/ Locata 4

TA Discharge 3

Grand Total 300