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Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
Managing housing and homelessness through incentives
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Managing housing and homelessness through incentives

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Rachel Sharpe, London Borough Lambeth: Managing housing and homelessness through incentives

Rachel Sharpe, London Borough Lambeth: Managing housing and homelessness through incentives

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  • As the calculation of housing costs is the last part of the Universal Credit assessment, the Overall Benefits Cap will restrict the amount allowed for housing costs before any restriction is applied to the household‟s Personal Allowance. This means that, even if the housing costs are paid direct to the landlord, the landlord will still only receive the „restricted‟ amount of rent allowed within the Overall Benefits Cap. From the personal allowances we can work out UC and cap impacts
  • UC works alright in Lambeth where there is only 1 child
  • Where a 4 person household shares a three bed things start to get difficult Options for family Share in a 2 bed locally Move out of area if they want a three bed Pay the shortfall out of benefits TA – three bed will be capped so who is going to pay
  • Subsidy – we know the ambition is to level the subsidy to equalise the offer btw PRS and TA. 30 th LHA rate percentile. Problems of procuring will get worse welfare reform cap will pose budget issues – TA is expensive and the £500 cap will apply equally so TA will become unaffordable. What will Las do? Subsidise? These figures reflect the amount of rent that the Council and housing associations will be unable to collect from the families already living in TA (£3.4m) and those families that are expected to move into TA, from private rented housing, part of the way through 2013/14 (£2.6 m). What will we do? Need to incentivise landlords to take lower rents and or tenants to move
  • Discharge and prevention – both the same as in strategy Q is how and where are you going to procure – see rent examples from Lambeth How are you going to procure Can you procure locally or is the applicant going to have to move? Contribute to shortfalls – incentivise LL or ask tenant to pay? Homelessness prevention – incentivise people to stay at home
  • Have a private rented strategy aimed at giving both landlords and tennants incentives
  • To maximise homelessness prevention you have to provide the services LLs want and offer incentives to persuade them to work with us How do we know what landlords want? – we have contributed to the Association of Housing Advice Services national landlord survey
  • Several LLs surveyed in Jan / Feb 2012 This is what landlords tell us what they want
  • Will the landlord take an incentive in return for lower rents? We asked landlords if there was a shortfall in the rent what would they do – broken down whether the landlord currently works with local authorities or not
  • Cash incentives - £1000 or 1 months rent guarantee sor in lieue of a deposit Non cash incentives – after care – advice + 2 year support promise – sorting out any disputes etc Prevention fund to help pay for items – eg training for landlords on accreditation, small scale works or white goods etc
  • Why do we need to give tenants incentives? – don’t they / wont they just become homeless. Choice is either TA somewhere else or PRS locally. With UC its going to be a much more complex
  • 50 prevention points – prioritise them over homelessness Future strategy will need to be based around incentives for taking a local option – eg 2bed TA will be out of borough but PRS may be in borough
  • Transcript

    • 1. Managing housing andhomelessness through incentivesRachel SharpeDivisional Director HousingLondon Borough Lambeth
    • 2. The Co-operative Council – How can we improve public services? – What should the state be doing? – How do we deal with significant budget cuts? Its all about a different settlement . . . .
    • 3. What does the cooperative council aim todo?• Turn citizens from passive recipients into active shapers of services• Deliver more effective, more responsive services by giving users more control• Strengthen civil society so it’s better able to deal with challenges• Do things ‘with’ our communities rather than ‘to’ our communities
    • 4. Managing homelessness - whyincentivise? Homelessness acceptances nationally increased by 18% HB caps have led to most local authorities to report more difficulties in procuring private accommodation Universal Credit and overall caps will make procurement worse Local context of 1300 homelessness applications annually
    • 5. Universal credit and the overallbenefit cap• All benefits in one payment Based on the 2012/13 benefit rates: from October 2013 • couple with 2 dependants -• Overall cap on benefits at personal allowance of £258.83 average earnings from April per week 2013 (£500 for families/£350 for • couple with 3 dependants singles & couples) £323.82 per week• Housing costs will be the last • couple with 4 dependants payment and so be the one £388.81 per week capped • couple with 5 dependants• Housing costs will be paid to £453.80 per week the claimant, rather than direct to the landlord• Will apply to TA
    • 6. UC rent exampleFamily of 3 sharing 2 bed 2 non-working parents one dependent child Income 2 bedroom property at LHA rate of 235.38 Inner South East London BRMA Jobseekers Allowance (Income based) £105.95 Child Tax Credit £59.36 Housing Benefit (LHA) £235.38 Child Benefit £20.30 Total weekly income £420.99
    • 7. UC rent example Family of 4 sharing 3 bed2 non-working parents Income2 children – 1 over 103 bedroom property at LHA rate of 235.38Inner South East London BRMAJobseekers Allowance (Income based) £105.95Child Tax Credit £108.29Housing Benefit (LHA) £300.00Child Benefit £33.70Total weekly income £547.94
    • 8. Temporary accommodation• Temporary accommodation – Possible subsidy changes – Welfare reform cap will pose budget issues• One London borough estimates the costs through lost income will be a minimum – £6m in 2013/14 – £10m a year from 2014/15
    • 9. Homelessness choices• Procuring for discharge and prevention – How are you going to procure – Can you procure locally or is the applicant going to have to move? – Contribute to shortfalls• Homelessness prevention - Finding homes & keeping people there
    • 10. Lambeth’s approachIncentives for landlords and tenants
    • 11. Incentives for landlords• Incentives to keep tenants in their home and prevent homelessness• Procure new properties to let to homeless families• For both strategies we need to be clear what landlords and clients want and need
    • 12. Landlord survey 2012
    • 13. Landlord survey 2012
    • 14. What incentives do we give landlords?• HB paid to landlord• Financial incentives – rent and deposit guarantees• After care, support and advice services for landlords• Prevention fund products – free insurance, repairs, lettings and or management service
    • 15. Why do we need to incentivise clients?1. We need to them to make positive choices about prevention TA will be out of borough so if you want to stay you will -2. Stay put and use prevention points – reward for helping to prevent your own homelessness3. You want to live locally - PRS locally4. Want to live locally next year – UC and pay a contribution
    • 16. What incentives do we give tenants?• Prevention points – improve bidding position for social housing• Tenants Incentive Scheme – the right sized property for the right household• Money management and help to get a job & stay local• Qualifying Offers -– getting homeless households into - permanent homes• What next? – Allocations review – prevention, local contribution. Homes swapping, equity share schemes……

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