Managing housing and homelessness through incentives

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

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Managing housing and homelessness through incentives

  1. 1. Managing housing andhomelessness through incentivesRachel SharpeDivisional Director HousingLondon Borough Lambeth
  2. 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. 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. 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. 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. 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. 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. 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. 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. 10. Lambeth’s approachIncentives for landlords and tenants
  11. 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. 12. Landlord survey 2012
  13. 13. Landlord survey 2012
  14. 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. 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. 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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