Welfare reforms wfta 12 march 12 kh

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  • We are focusing particularly on issues likely to affect rent arrears and income streams.
  • We are focusing particularly on issues likely to affect rent arrears and income streams.
  • House of Lords amendment limited to 2 or more bedroom potential cost = £200m
  • Size of bedrooms same sex teenage children DWP definition slightly at odds with DCLG who consider under occupation of two or more bedrooms
  • Woman having children at a younger age – couples in their 40s likely
  • Introduction of capping – from ?April? Oct 2013 tied to univ credit Partial exemption for ‘working families’. eg tapers out at around £600 joint earned and universal credit income for a family of 4 Impacts larger families, no more money for more than 3 or 4 children, larger families could lose average £93.
  • Originally from April 2013…slipped Claims and processing centres may be different?
  • Demonstration projects’ to include: HB only – response to sensitivity expressed by landlords and tenants Direct payments to claimants Payment monthly in arrears Safeguards to pay the landlord directly Testing a variety of arrears levels which trigger direct payment Details of how the safeguards will operate will be defined during the project Expect safeguards to be rules based and automated
  • New pensioners??
  • Lettings Policy – informed choices Allocations review increased preference Impact on estates like Heath Town Where are the properties to downsize Find a lodger scheme
  • Supports digital inclusion Building up a credit National insurance numbers – suffix/prefix
  • Welfare reforms wfta 12 march 12 kh

    1. 1. Welfare Benefit ReformsAn Introduction Mark Henderson, Director of Housing Wolverhampton Homes March 2012
    2. 2. Impact upon Council Tenants 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. 3. Housing Benefit changes andwelfare 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. 4. Non-dependantdeductions – April 2012 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. 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. 6. Size criteria for tenants 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. 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. 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. 9. More likely to impact 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. 10. Introduction of capping – fromApril 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. 11. Move to Universal Credit– 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. 12. Direct paymentsOctober 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. 13. Housing support forpension age 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. 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. 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. 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. 17. Planning for the HousingBenefit changes and WelfareReform 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

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