4. “Vulnerable groups are concentrated in the social
housing sector” - Shelter
In England:
• 44% households’ annual income <£10k
• 60% of tenants are economically inactive (31% retired
and 29% sick/disabled/full-time students/looking after
family or home)
• 21% of +65yr olds live in social housing
• 44% of single parents live in social housing
5. Digital Technology meets the twin imperatives of
social housing
Deliver more for less
+
Fulfil core social commitments
6. +40% residents offline
&
Housing providers overestimating cost and
underestimating benefit of channel shift
7. Digital By Default social housing: the Business Case
Initial analysis suggests £3bn total benefits to UK plc
• Housing Providers cost-effective communications = £340m per year
• adults offline pay bills and shop online = £530m per year
• children in offline social housing boost future earnings = £1.5bn
• Just 3.5% of people offline and unemployed find work online = £217m
• Just 3.5% of people offline and in work developed their ICT skills = £750m
• Local government moves online just one monthly
transaction with offline adults = £360m per year
• Increased wellbeing and reduced isolation for tenants
8. Peabody’s business case
£330,792 estimated saving if the 125,300 tenant contacts in 2009 were
switched from telephone to online (£2.64 per contact)
£219,667 saved by moving repairs and maintenance enquiries online
8% saving on transaction costs if all rent payments made online (currently
just 5% of rent payments are made online)
Likely fewer rent arrears + faster and cheaper income collection process
9. Home Group
More functional and user-friendly website, enabling customers and clients to pay
rent online, view statements, report a repair
Planned to take six months and £250,000, took five weeks and £150,000
£1.6m of rent transactions processed in pilot’s first 4 months
Predicted to save £200,000 a year
o As transaction volumes increase, further savings from reduced processing
time
Other benefits include
o Secure and self-service
o 24 hours/day
o Faster rent payments and real-time online account information
o All web-pages translatable through Google Translate
o Free and easy to use, available for any customer
o In time, more services will be built on the platform to further Home’s digital
strategy
10. Digital housing summit
"Internet connectivity should be a
necessity, not a luxury.
Government is committed to helping
demolish the unacceptable digital divide
blocking social mobility for millions of
council tenants.”
Grant Shapps, Housing Minister
11. Digital housing summit
“A Digital Deal”
“The 4th Core Utility”
Hooks to first use are vital
30 million people use the internet everyday
Main barrier is lack of understanding of benefits (64%)
Digital Champions
Teamwork needed
HAs + LAs + tech providers + agencies = success!
Use existing tools and blueprints
Champions tools
Go ON Places
RO12 = partnership org and campaign = started by UK Digital Champion Martha Lane Fox
Success with casebook on charity sector digital tech use / benefitsEnough great examples of strong use of digital channels and tech in the charity sectorLeveraged much larger work with Big Lottery Fund, Comic Relief, funding bodies... Govt interestSo, thought “why not do something similar around housing?” But to be honest, plenty of nice smaller scale stories out there, but larger demonstrations of efficiencies, successes, outcomes, benefits, were not being measured or reported on the same scale. Peabody an exception, thanks to UK Online’s work with them through the Strategy Group that Helen chairs. Odd as... NEXT SLIDE = VULNERABLE GROUPS CONCENTRATED IN SOCIAL HOUSING
But, as I saiddearth of adequate business case data to properly support fuller technology adoption specifically within the social housing sector. So..........................
So we started with the premise that with digital tech you can:Cheaper channels, better service (more personalised), Boost employment opps (25% more likely), earning power up 10% with digital skills, education (2 grades for kids in homes with internet), reduce isolation, boost well-beingSo we worked with housing providers with around a million residents between them... supported by groups like Helen’s strategy group, NHF, CIH, etc.... to collate info on number of people not online in their homes... Combining their info with figures from PwC and CLGNEXT SLIDE – WHAT WE FOUND
40% = 4m of 9.5mUnderestimates on next slide... Around 7fold.NEXT SLIDE – INITIAL ANALYSIS (BROAD BRUSH)
NB These are broad brush / initial analysisRace Online 2012 + 15 housing associations (1 million residents) to understand how the internet can enable huge benefits throughout the social housing sector. Housing Providers cost-effective communications = £340m per year. But our research says they think the benefits would be just £50m. 4.1m adults offline pay bills and shop online = £530m per year = based on lowest 10% income households (from PWC report (i.e. £200 per year not £560))245,000 children in offline social housing boost future earnings = £1.5bn = PwC said £10bn to all UK. 15% of population live in social housingJust 3.5% of people offline and unemployed find work online = £217m = £12k lifetime benefit (PwC), 8.8% (CLG) / 500k (DWP) unemployed in social housing. 100% = £6bnJust 3.5% of people offline and in work developed their ICT skills = £750m = 2.6m in work but offline x £8.3k lifetime benefit (PWC). 100% = £21bnLocal government moves online just one monthly transaction with offline adults = £360m per year (PWC)Increased wellbeing and reduced isolation for tenants = 1m UK over-65-year-olds say they always or often feel lonely. 3.1m over-65-year-olds in the UK don’t see a family, friend or neighbour once a week. 81% said computer literacy made them feel part of modern society-----------------------------------------------------------------------------------------
NB – broad brush and reflects their ambition
So we showed CLG and Grant Shapps the reporthe was keen to co-host a ‘digital housing summit’ with Martha.This took place on Tuesday attended by senior reps from DWP, LGANHF, Chartered Institute of Housing Affinity Sutton, Peabody, Home Group, Circle, Family MosaicBarnsley Borough Council, Sunderland City Council (Tom Baker)UK Online centresNEXT SLIDE = SHAPPS QUOTES FROM SUMMIT
We heard case studies, strong debate and very positive, strong language from Grant Shapps... GS – this work has really put digital housing on the agenda for me... Obviously all just 2 days ago, but Martha now looking to work closely with parties on...HCA (broadband in new builds), DCMS (USO to include bband?), and NHF, CIH (Go ON UK?) Support Social Housing Providers Digital Inclusion Strategy Group Idea of “Digital Deal” along lines of Green DealSupporting HAs to use existing free tools and adviceGet digital strategies underwaywon’t steal other people’s content (Helen’s free day?) but Digital Champs network/low cost kit/Go ON Places/ SHPDISG We’ll be publishing progress and securing a follow-up summit with CLG