1. Welfare Reform & Homelessness
Daniel Coote & Nick Harleigh-Bell, SCSH

2. The Impact on People who are
Homeless
Headlines!
 Under-occupation
 Non-dependent deductions
 The Work Programme
 Exempt accommodation changes
 Universal Credit – direct payments, calculation
 Shared Accommodation Rate
 Local Housing Allowance
 Community Care Grants and Crisis Loans devolved
 2012
 Hidden homelessness

3. Universal Credit
Universal Credit (UC) is
intended to replace;
 Income Support  It will be claimed on-line,
 Income Based Jobseekers administered by the DWP,
Allowance paid to the household
 Income Based Employment monthly in arrears and
& Support Allowance based on the previous
month’s circumstances.
 Housing Benefit
 Child Tax Credit  Universal Credit will be
 Working Tax Credit capped at £500 per week
 Social Fund Budgeting per household.
Loans

4. Impact on Current Working Age Tenants
Impacts & Access to Housing
 Increased Non-Dependent
 Likely to lead to increased
demand/reducing supply
Deductions and churning
 Claimants up to 35 now on  Pressure on PRS to
Shared Accommodation “absorb” all whose
Rate circumstances don’t fit
socially rented profile
 Introduction of under-
occupancy penalties
 LHA rates (30th percentile Effects on future housing
and caps) investment and supply?

5. Think...
 If as professionals we think the change in regime is
confusing, consider how it must seem to members of
the general public.

6. Task 1
 In groups:
 Discuss where you are in relation to preparing for
impending changes. What issues have you already
identified?
 Who needs to be involved in planning for changes?
What additional resources will you need?
Prioritise three points for discussion & be prepared
to feed back to group.

7. CRISIS LOANS
By law
'the applicant needs to show that a crisis
loan is the only way that serious damage
or serious risk to the health or safety of
your family can be avoided.'

8. Crisis Loans 2009/10
Some info 2009/10 (Scottish
Government):
The average loan amount was £82
DWP estimate that in 2010:
 47% of applicants made one  The initial reason for refusal in
application 76% of cases was no serious risk
 20% made 2 to health or safety,
for 10% previous application
 11% made 3 applications and decision,
 23% more than 3 applications for 5% excluded items (14% for
 3% made 10 or more pensioners),
applications 3% inability to repay
& 3% benefit sanction.

9. Crisis Loans 2011 to 2013
What has changed so far (changes introduced April 2011)
 Crisis Loans no longer payable for items, including cookers
and beds, unless following a disaster such as floods, in
which case there will be some residual support.
 The rate paid for living expenses decreased from 75% to
60% in line with Jobseekers Allowance cases paid at the
hardship rate.
 A cap of 3 Crisis Loan awards for general living
expenses in a rolling 12 month period introduced.

10. Intro to CCGs.....and some current issues
 Help people on income support/income-based jobseeker's allowance who
need extra financial help to enable them to live independently
 ...or to help or to ease exceptional pressure on you and your family
 Unlike crisis loans, you don't have to pay them back
 Eligibility is restricted to those already getting certain benefits
 Must also meet other criteria
BUT
 Huge amount of time taken to process claims for clients
 Current appeal process – refused first time, 50% then granted on appeal
 Also, consistency of decision making, acceptance of only postal
applications and no ‘in principal decision’

11. Crisis Loans & CCGs
from 2013
April 2013 - CCGs and Crisis Loans will be abolished and
replaced by another provision.
The exact details of the new
schemes have yet to be confirmed...
However, it is likely that the budget will be allocated to Scottish
Government and will then be allocated to each local authority
area.

12. Crisis Loans & CCGs
from 2013
The SCSH response to the Devolution of CCGs & Crisis Loans
Consultation Oct 2011 included: there are advantages and
disadvantages in both local and national delivery.
A locally delivered CCG system
 suit the needs of the local population
 able to adapt quickly to the changing needs of individuals within these
areas.
 (If rules were flexible), could be an integral part of a homelessness
prevention strategy, and added to other support packages.
Concerns: refusals, appeals, protection built into new system, & fund
exhaustion.

13. Crisis Loans & CCGs
from 2013
A centralised system
 likely to reduce the costs of implementation and ongoing
delivery
 a higher proportion of the funds be targeted directly to
individuals most in need
However, effective monitoring and evaluation processes
will need to be in place to help assess whether local need
is being met appropriately.
Who will be the body
to deal with
complaints, etc.?

14. Task 2
 In groups, discuss:
Assuming you will be starting from scratch, what
would you want to put in place to prevent
homelessness through the new devolved locally
delivered Social Fund?
 Again, be prepared to report back to the group
with three main points.

15. Anything else to add?
 Questions/Comments?
 ...any other issues related to the reforms that could
affect homelessness?
 Any issues you want SCSH to take further for you?

16. Contact Details
nick@scsh.org.uk
daniel@scsh.org.uk
Tel: 0131 337 8243
www.scsh.org.uk