Welfare reforms wfta 12 march 12 kh

Welfare reforms wfta 12 march 12 kh

• 1.
  Welfare Benefit Reforms AnIntroduction Mark Henderson, Director of Housing Wolverhampton Homes March 2012
• 2.
  Impact upon CouncilTenants  Introduction of universal credit  New size criteria rules where a tenant is deemed to be under-occupying a property  An overall household benefit cap £500 per week (or £350 for single claimants)  Payment of housing support direct to the tenant and not the landlord  Proposed national administration arrangements for the new benefit
• 3.
  Housing Benefit changesand welfare reform  What are the key changes?  When do the changes take effect?  What do we think the impact is likely to be?  How can we plan?
• 4.
  Non-dependant deductions – April2012 NON DEPENDANT DEDUCTIONS 23% inc 23% inc 50 week rate 2010 2011 2012 In receipt of main phase ESA(IR). Aged 25 or over and on IS/JSA(IB) or aged 18 or over and not in remunerative work 7.70 9.78 11.91 Age 18 or over and in remunerative work, gross income: less than £124.00 7.70 9.78 11.91 £124.00 - £183.00 17.68 22.41 27.30 £183.00 - £238.00 24.28 30.78 37.54 £238.00 - £316.00 39.73 50.39 61.41 £316.00 - £394.00 45.24 57.41 69.94 not less than £394.00 49.66 63.02 76.80
• 5.
  Impact  Around 860 tenants will be affected by the 23% increase  From £2.13 to £13.78 per week increase  Average need to find £4.75 pw (£237.50 pa)  Around 30 tenants taken out of benefit altogether (last year 35)  Annual impact £206K extra to collect  Further steep rise planned 2013
• 6.
  Size criteria fortenants from April 2013  Working age households up to age 65  Eligible rent reduced by 14% or 25% if under- occupying by 1or 2 or more bedrooms  Profiling indicates that 31% of working age tenants will be affected (4,193)  Assume 60% on benefit  Average losses £12.85pw, some over £20pw  Total impact £35K per week , £1.75m per year
• 7.
  Size criteria impact Property type 2 Bed 3 Bed 4 Bed Average rent April £69.01 £75.20 £81.93 2012 Reduction 1 bed under occupation £9.66 £10.53 £11.47 2 bed under occupation n/a £18.80 £20.48
• 8.
  One bedroom for Every adult couple  Any other adult aged 16 or over  Any two children same sex aged under 16  Any two children different sex aged under 10  Any other child aged under 16  A non-resident carer (claimant/partner have disability and need overnight care)
• 9.
  More likely toimpact  Women/couples whose children have left home  Disabled couples where a separate bedroom is needed (Discretionary?)  Singles/couples living in high rises which are no longer regarded as family accommodation  Families with children whose age and gender do not “fit the rules”  Ages 35 to retirement most affected
• 10.
  Introduction of capping– from April 2013  Working age claimants  £350 pw single claimants. £500 pw families/couples - based on current figures  Housing costs ‘balancing figure’  Partial exemption for ‘working families’.  Not Disability Living Allowance recipients/ War widows  Impacts larger families who could lose average £93 per week.
• 11.
  Move to UniversalCredit – From October 2013  All new claims and changes in circumstances  Existing claims between 2014 and 2017, regional switchover  Monthly payments in arrears (like a salary)  Online claims/telephone  National call centre in Warrington  limited local service
• 12.
  Direct payments October 2013  Working age households in social rented sector  Applies when claim/move onto Universal Credit  Existing claims by 2017  Default – direct payments to individuals  Amendments to Bill to give claimants the choice for payment direct to landlord, withdrawn by House of Lords
• 13.
  Housing support for pensionage claimants – From 2014?  New claims made to the Pension Service  New claimants choose whether rent is paid to self or landlord  Existing claims – gradual transfer and paid direct to landlord  Choice to be extended to existing pensioner claimants later
• 14.
  Issues to consider  Identifying who will be affected –  Customer and stock profiling  Customer Insight available,  HQN / HB modeling  Risk assessing potential tenants  Collecting the shortfall  Use of hardship fund / discretionary payments  Requests for rehousing:  Tocheaper/smaller accommodation  Due to family breakdown – non dep v lodger?
• 15.
  Issues to consider Facilities/assistance with making and maintaining online claims  Identifying claimants who move onto Universal Credit  Liaison with DWP  Dealing with rent arrears if paid monthly in arrears
• 16.
  Issues to consider  Collecting rent (does everyone in our organisation realise this!?)  Identifying tenants who qualify for payment to landlord  Record more tenant and household information  Identifying and supporting tenants who are finding it difficult to manage their finances  Systems amendments to monitor and identify problems quickly
• 17.
  Planning for theHousing Benefit changes and Welfare Reform  We now need to inform residents, staff, Board members and the Council about the changes  Continue to profile and target those likely to be most affected  Develop a communication strategy  Tenant focus group  Board champion (s)  Roadshow approach  Be prepared to start collecting rent from most of our tenants