- Welfare reforms have negatively impacted low-income households, leaving the average working-age household £41.45 per week worse off. Rising costs of living and the benefits freeze have been major drivers. - National and local initiatives aim to help support vulnerable consumers, but data sharing and proactive outreach efforts could be expanded. Initiatives partnering local councils and utilities companies have shown success. - Policy in Practice's data analytics software allows identification of households most in need of support and eligible for assistance programs to increase their ability to pay bills. The software empowers advisors to provide holistic support.

1. Policy in Practice
Deven Ghelani The changing living standards of
low income households and their
ability to pay

2. Agenda
• About Policy in Practice
• The impact of welfare reforms on low income households
• National and local initiatives to help support vulnerable consumers
• Identifying and supporting vulnerable consumers
www.policyinpractice.co.uk

3. www.policyinpractice.co.uk

4. We make the welfare system
simple to understand, so that people can make
the decisions that are right for them

5. About Policy in Practice
Policy
national impact
impact
Analytics
local impact
Software
individual
impact
www.policyinpractice.co.uk

6. Working age households are hit
hardest at £41.45 per week
The main drivers are:
• the benefits freeze, losing £33.54
per week on average
• rising rents and living costs
(2.4%)
• combined impact of multiple
reforms hitting the same family
People are going to be worse off
www.policyinpractice.co.uk

7. Universal Credit and other changes
Budget changes to Universal Credit
improve the situation
• Ending 7-day wait
• Two week HB run-on
• Twelve month advance payment
• 63% taper & Living Wage
But losses are not fully mitigated
through the National Living Wage,
Personal Tax Allowance, or
Discretionary Payments
Utilities are a lower priority payment
under Universal Credit
www.policyinpractice.co.uk

8. www.policyinpractice.co.uk
www.policyinpractice.co.uk
National and local initiatives to support vulnerable
households

9. The safeguarding tariff:
Data sharing proposals between the
Department for Work and Pensions
(DWP) and licensed gas and electricity
suppliers
PIPs recommendations
• Include local councils
• Allow for proactive take-up campaigns
• Offer holistic support when you speak
with customers
BEIS Consultation on data-matching
www.policyinpractice.co.uk

10. Cambridge councils partnership
with South Staffs water
Connected to DHPs:
£55k to 210 people
Removed the income threshold.
Great partnership
Partner with local authorities
www.policyinpractice.co.uk

11. • 36,443 low income families
Proactively target support
www.policyinpractice.co.uk

12. • 36,443 low income families
• 217 families with children, with a
disability who are in arrears
Proactively target support
www.policyinpractice.co.uk

13. • 36,443 low income families
• 217 families with children, with a
disability who are in arrears
• Drilldown to get a single view or
support, arrears and barriers to
work
Proactively target support
www.policyinpractice.co.uk

14. • 36,443 low income families
• 217 families with children, with a
disability who are in arrears
• Drilldown to get a single view or
support, arrears and barriers to
work
• Link into a financial support tool
Proactively target support
www.policyinpractice.co.uk

15. We help people on the frontline
• Access our calculator through
GOV.UK
• Link in your own regional
support tariffs
• Empower your advisors to offer
holistic support
• Link into the Single Financial
Statement
www.policyinpractice.co.uk

16. Supporting vulnerable households
• Universal Credit is rolling out, and rolling out fast
• The ‘real’ impact due to rising rents and benefit freeze is significant,
impacting ability to pay
• Local data allows identification of households most in need of support,
and eligible
• You can work proactively with councils today
• Your own vulnerability teams can check eligibility and increase take-up
of other support, making is more likely customers will be able to pay
their bills
www.policyinpractice.co.uk

17. Winner: Credit & Collections Technology Awards 2017,
Affordability Assessment Solution
Engage as early as possible in the collection process:
• Before high fees and charges are incurred
• It’s more cost effective to support people in poverty prior to enforcement action
• Because more people will be can’t pays, ineffective enforcement action drains resources
• Creditors will recover more if people feel supported by agents
• Positions the enforcement agent as a partner for the local authority client and their residents
• Ethically, it is the right thing to do
Policy in Practice’s Benefit and Budgeting calculator helps Phoenix understand their customer’s
financial circumstances and develop an achievable management plan
www.policyinpractice.co.uk

18. Data analytics helps strategic resource planning
Cambridge City Council has commissioned Policy in Practice to help model
the migration of customers from housing benefit onto Universal Credit, and
the implications for the council.
1. Natural migration onto Universal Credit
2. Managed migration onto Universal Credit
3. Interpreting the implications for the council
Data analysis of the migration informs strategic resource planning of the
department as well as understanding the impact on customers

19. Would you like to know how many Londoners are eligible for
a Warm Home Discount?
www.policyinpractice.co.uk

20. Questions for you, please come and find me
Utility companies face a similar challenge to local authorities administering discretionary support
…
1. How does the data matching scheme work for you now?
2. How do you currently target support and determine vulnerability?
3. Do your advisor teams provide holistic support?
www.policyinpractice.co.uk

21. www.policyinpractice.co.uk
Thank you
Deven Ghelani
deven@policyinpractice.co.uk
07863 560677
hello@policyinpractice.co.uk
0330 088 9242
www.policyinpractice.co.uk