1. What’s the Benefit?
Steve Hepworth

2. Welfare Reform - overview
What is happening?
• The Government is bringing in major changes to the
benefit system from 2013 onwards.
• The majority will only affect people of working age.
Why are they doing this?
• Reduce the welfare bill
• Reduce welfare dependency
• Simplify the system
• Ensure people are better off in work than on benefit

3. What is really happening?
• Universal Credit – one payment, paid monthly
in arrears and recipients have to pay their own
rent from this. 3,401 NLH tenants affected.
• Cuts in Housing Benefit / bedroom tax/
underoccupation – working age tenants may no
longer get enough benefit to cover the rent.
1,547 NLH tenants are affected.

4. Universal Credit – will I need to do anything?
• Don’t panic – it will only affect you from October 2013 if
you are a new claimant or an existing claimant who has a
significant change of circumstance.
• Direct payment – unless you are considered ‘vulnerable’
by the DWP you will be responsible for paying your rent.
You will therefore need to contact us to agree how you
will do this.
• Bank account – you will need a bank account to have your
benefit paid into. This will also help with managing bills.
• Set up a Direct Debit – this is the best way to ensure your
rent is paid on time.
• Online access – you will need to make and manage claims
using the internet.

5. Universal Credit – how might this affect me?
• Simpler benefit system • With one big
so easier to change monthly payment, it
from being in or out of will be important to
work.
budget carefully.
• More generous tapers
mean possible • Some people might
increase in overall find it difficult to
benefit income. manage a monthly
• Paying bills online or budget.
by direct debit can
mean big savings on • Some people might
things like gas or fall behind with their
electricity. bills.

6. Universal Credit – what are NLH doing?
We are going to introduce a number of measures to:
 Identify vulnerable or ‘at risk’ tenants who might
need help;
 Offer support with budgeting and help to put more
money in our tenants’ pockets;
 Help tenants access bank accounts or other ways to
pay their bills;
 Review how we deal with tenants who get into
arrears;
 Have effective referral procedures to debt and
benefit advice in place.

7. Cuts in Housing Benefit for under-
occupiers
• Introduction of room criteria for working age
Housing Benefit claimants from April 2013:
 Single person/couple = 1 bedroom
 Children under 16 same gender = share
 Children under 10 different gender = share
• Cut in Housing Benefit of 14% for one room and
25% for two rooms under-occupying = average loss
of between £11 & £20pw
• No planned exceptions for separated parents,
foster carers, disabled people etc.

8. Cuts in Housing Benefit for under-
occupiers – the numbers
• A 3 bed house with 4 people living in it can be under-
occupied
• 1,547 of our households are under-occupying. In many
areas 1 out of every 4 homes is under-occupied
• The HB gap for these tenants will be £885,199 per year
• 73% of under-occupying tenants are already in rent
arrears – an average of £155.04 each
• 993 households in 3 bed properties are under-
occupying – but only 44 two bed houses /maisonettes
came empty last year.
• IF NLH doesn’t collect the shortfall then we will lose
nearly £1million a year

9. Under-occupiers – what choices do I have?
• Stay in your home and pay the shortfall by:
Making it up from your current benefit income;
Increasing your income through employment;
Asking other people living in the home to help;
Taking in a lodger (consider effect on benefits).
• Downsize to a smaller property:
Not enough properties for everyone to move into;
Might not get the same type of property or in the
same area; BUT.....
Cheaper to run a smaller house as lower utility bills;
Mutual exchange to somewhere you would like to live.

10. Under-occupation: what are NLH doing?
1. Find out what tenants are going to do – run focus
groups
2. Adopt a tailored approach using information to:
 Review our under-occupation scheme & introduce a
dedicated officer to help tenants downsize;
 Facilitate and promote mutual exchanges;
 Explore a matching service for those who want to share
or take in a lodger;
 Protocols with other housing providers;
Review the Choice-Based Lettings policy to increase
priority banding for under-occupiers;
Review our own Lettings Criteria.

11. Case study – April 2012
Income Support
Housing Benefit
Council Tax Benefit
Child Benefit
Dave is a lone parent who doesn’t work and receives Income
Support.
He lives in a 3 bedroom house and gets Housing Benefit which
covers his rent of £85 per week in full.
He has 2 dependant daughters aged 8 and 6;
He also has a son aged 16 who lives elsewhere with his mum - he
often stays at weekends.

12. Case study – April 2013
 From April 2013, Dave will be classed as under-
occupying his home by one bedroom as no room
allowance is made for his son’s visits.
He will therefore have his Housing Benefit cut by
14% and will he will have to pay the shortfall of
£11.90 per week.
 If Dave cannot afford this, he will have to
consider downsizing to a 2 bedroom property.
 The only 2 bed properties available are high rise
flats or bungalows 4 miles away from his
daughters’ school.

13. Other changes – April 2013
• Replacement of Disability Living Allowance with
Personal Independence Payments (PIP) – will
affect those in and out of work
• Changes to council tax benefit
• Abolition of the Social Fund – social services to
administer Crisis Loan/Community Care Grant
payments & budgeting loans now ‘benefit
advance’.
• Benefit Cap of £500 per household per week

14. What else are we doing?
• Improving tenant profile information
• Developing a communication plan for tenants
• Working in partnership with other agencies –
e.g. advice providers, other landlords, financial
inclusion groups
• Ensuring front-line staff are trained and able
to deal with potential problems
• Introducing a Financial Inclusion Team to help
tenants

15. If you would like further information
or to discuss any issues that may be
affecting you, visit our Welfare
Reform stall or speak to one of our
Welfare Reform Guides