Housing Benefit and Welfare Reform Mitigation

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1 Housing Benefit and Welfare Reform Mitigation Why Does this Matter? Councils and RSLs are facing fundamental changes in how they manage their housing stock, their budgets and deliver their services. Why? Reasons include: The abolition of Housing Benefit to be replaced with direct payment of housing support to the claimant as part of a Universal Credit The reduction in levels of housing support for claimants with a spare bedroom(s) from April 2013 Conditionality and sanctions for those failing to find work or increase hours The inevitable knock on effect on the levels of support for claimants in special needs housing such as temporary accommodation, supported accommodation etc. Staff at a senior strategic level must now begin thinking in detail about how they will adapt to meet the new and difficult challenges ahead. Board and committee members need to understand their role in monitoring the impact of the changes. Those on the frontline, including housing officers and those giving information and advice, need to be aware of the impact of the changes so that they can give the appropriate advice and support to tenants and others approaching them for advice. CIH Scotland Briefing Sessions and Workshops CIH Scotland has been allocated funding by the Scottish Government to deliver briefing sessions and facilitated workshops aimed at helping landlords to mitigate the impact of housing benefit and welfare reform changes. These will be delivered over the next 6 months and will evolve and develop as detailed regulations and guidance are made available by government (e.g. on definition of a vulnerable person). 1

2 The programme supported by the Scottish Government will cover: 5 mitigation briefings sessions (for up to 30 people) 25 facilitated workshops sessions (for up to 20 people in each workshop) Additionally, based on some of the outcomes of the workshops, and discussions with practitioners, CIH Scotland will also develop practice guidance towards the end of 2012 Mitigation briefing sessions CIH Scotland is working with the homeless Hubs and other groups of organisations to set up the briefing sessions. The first pilot session took place in Aberdeen at the beginning of May. Workshop sessions The menu of workshop sessions comprises: Workshop 1 For Board/committee members and chief executives/directors/senior managers: ½ day facilitated sessions These sessions will focus on the strategic implications of the Welfare Reform Act 2012 and help Board/committee members consider their role. They will look at strategic planning and the actions their organisation can take to mitigate against the potential damage from the housing benefit and welfare reform changes. Cost: 400 (plus VAT) (Cost includes Scottish Government support) Workshop 2 For operational managers and team leaders: 1 day facilitated workshop sessions These workshops will give operational managers and team leaders the chance to examine in detail what the housing benefit and welfare reform changes will mean for the services they manage and their staff teams deliver. They will include an action planning session which will help attendees work out the impact for services and teams and the next steps they need to take. Cost: 790 (plus VAT) (Cost includes Scottish Government support) 2

3 Workshop 3 For frontline housing staff: 1 day facilitated workshop sessions These workshops are aimed at frontline staff. They will help these staff understand the likely impact of the housing benefit and welfare reform change for the people they deal with in the course of their day to day work. The workshops will include a planning session on how best to advise and assist them. Cost: 790 (plus VAT) (Cost includes Scottish Government support) Workshop sessions will consider (at the level of detail appropriate to the particular session): The background to the reforms Changes that have already been introduced in advance of the main reform programme The structure of Universal Credit, coupled with other changes (DLA to PIP, localised Social Fund administration and localised Council Tax Support Fund) Areas of housing policy, practice, management and financial control that are most at risk from the changes Indicative content of learning/information sessions is shown below (NB Sessions will be tailored in discussion with individual organisations so that the appropriate content is delivered.) The Key Issues: 1. Understanding the Implications Increased arrears and general debt among tenants with threat to cash flow Threat to capacity to meet maintenance commitments Affects basis on which new build is developed, in terms of rent assumptions Voluntary overcrowding and unsuitable sharing Some homelessness among existing PRS tenants Increased demand for LA/RSL stock from people unable to access PRS Compromised ability of LAs to house homeless households into the PRS (particularly because of under 35s shared room rate) 3

4 2. Practical Preparations for the Changes (a) Strategic Level Discuss issues with the RSL Board/LA housing committee - Annual business planning and budget setting process - Rent increases, investment, development - Strategic direction on what is acceptable in terms of actions (b) Modelling the Impact Use available tools to estimate potential loss of income Identify those at greatest risk under-occupiers, households with nondependants, large families, disabled tenants, vulnerable tenants, new tenants Looking at the implications for sheltered and supported housing (as situation unfolds) Assess annual turnover and therefore how quickly tenant base will move away from direct payments after October 2013 Analyse lettings trends - demand and impact on voids (e.g. are some tenants moving back in with parents?) Assessing the impact for supported housing clients (once more clarity from government) Identifying what is rent and what covers support costs in supported housing (c) Adapting Landlord Services Maximise direct landlord HB payments prior to the changes In conjunction with other partners, consider improvements to availability of local money/debt advice Consider financial health check as part of housing options approach for applicants (either as part of CHR or by individual landlord if no CHR) Ensure front line staff are trained on benefits advice freeing up welfare rights staff for more complex cases (d) Amend Allocations Processes Prepare for increased demand Give clear information and advice on rent and HB in advance, as part of options approach Review allocation of under occupied properties where possible Prioritise transfers for under-occupiers Alter difficult to let strategies (which often allocate bigger property than needed), where possible 4

5 Look at opportunities to reclassify to meet demand e.g. using unpopular sheltered flats/bedsits for general needs Consider a more proactive approach to facilitating exchanges (e) Development Consider increasing supply of smaller properties Factor in overall pressures on rents across the stock Greater consideration of alternative provision such as mid market rent aimed at non-hb recipients (f) Revised Approach to Debt Recovery Practice Acknowledge that people are getting less benefit (and some working people getting less wages) Early intervention imperative - target advice and assistance: visit tenants, don t just write Look closely at improving access to easy payment methods Open up communications with DWP Communications with tenants more personal contact and use of mobiles and social media Less rigid approach to arrears action not just the usual Stage 1, Stage 2 approach: people in arrears through no fault of their own so different approach needed Pragmatic help and advice dealing with loan sharks etc. (g) Other Changes Changed officer priorities - How much time spent on maximising income? Less time on state/neighbourhood management? - Keep tenants informed of any changes in emphasis - Use of debt recovery specialists? Efficiencies/savings - Help tenants save elsewhere e.g. energy bills - Look at income maximisation more broadly not just housing - Consider new sources of income to sustain the business - Consider shared services or mergers where appropriate. 5

6 How to Apply As the number of workshops supported though this programme limited, organisations interested are invited to apply, through completing and submitting an on-line application form. This must be completed by no later than 6 pm Friday 25 May Organisations with smaller numbers of staff can apply along with others. Please note where organisations wish to apply jointly only one joint application form should be submitted, from the lead organisation. The application form is on-line at Organisations will be notified in early June as to whether or not they have been successful their application. For further information, please contact: Marian Reid, Head of Learning and Development, CIH Scotland marian.reid@cih.org or Holly Woodward, Learning and Development Co-ordinator, CIH Scotland, holly.woodward@cih.org 6

7 Session Leaders The sessions will be delivered by one or a combination of a number of experts and experienced facilitators. Details of current contributors are outlined below. Bill Irvine Bill was previously Head of Benefits, Revenues and Advice Services at South Lanarkshire Council; acted as local government advisor to the Housing Benefit Standing Committee, Westminster; for many years acted as a welfare rights advocate; and has been a CIH tutor on housing benefit andrent arrears issues for many years. Bill was one of the principal witnesses at the DWP Select Committee Westminster hearings relating to local housing allowance in January 2010, where some of his recommendations were adopted as good practice in subsequently produced DWP Guidance. Peter Meehan Peter was lead benefits officer at Glasgow City Council from the introduction of the housing benefit scheme in 1983 up to his departure from the council in Peter is COSLA s representative on national DWP/LAA HB Steering Group. He is also a member of Scottish Government s Housing Benefit Reform Stakeholders Group, a group set up specifically to examine the impact in Scotland of the cuts in local housing allowance and housing benefit, as well as the coalition government s Welfare Reform Bill. Clair Malpas Clair is a welfare rights practitioner with Cassiltoun Housing Association in Glasgow and has also worked as a freelance trainer and benefits consultant for the past 10 years. She holds a Masters in Social Welfare Law and has 16 years experience of delivering Welfare Rights Services to housing associations across Scotland. Clair has co-written advice guides for the National Housing Federation, Refuge and Argyle Community Housing Association and has been working extensively with SFHA on their Housing Benefit campaign. Clair is an experienced speaker, trainer and consultant and delivers services on all aspects of the benefits system including Welfare Reform to a range of organisations across the UK. Ken Dow Ken is an independent consultant and trainer working in the social housing sector. He has experience in the banking and building society sector where he specialised in corporate social responsibility, community development and the promotion and development of financially inclusive products aimed at the social housing sector. Ken has worked with the CIH to provide financial inclusion and financial capability strategies for over 100 housing organisations in Scotland and Northern Ireland. 7