Planning for Direct Payments & UC

Review Today Some of our findings from the Direct Payment Demonstration Project The outcome of the independent evaluation and practical changes being undertaken by DCH in preparation for UC The practical steps DCH are taking to prepare for UC

Direct Payment Management Information – after 18 months Across the different areas, levels of payments by tenants varied from 91% to 99% - an average rent collection rate of 95%. Key issue  The vast majority of tenants paid their rent  Rent arrears accumulated initially – stabilised thereafter  “Part payment” of rent rather than “non – payment” more common.  The exercise has demonstrated the need for revisions to traditional working and communication practices In the case of DCH  Cumulative rent collection – 96.25%  81% of rental paid following month (£188,000)

Rent Arrears - National

Trends and Patterns Period leading up to and immediately following initial introduction of direct payments – critical to success. Stability after – 8/9 months “Part payment” – rather than “Non payment” most common reason for arrears Household characteristics & Payment methods – a factor in payment

Communications 19% of DCH tenants have significant literacy and numeracy difficulties Traditional and established methods of communication were simply shown not to work Tenant support has been hugely resource intensive and it will be a challenge to replicated in long term.

Knowing our Customers Tenant profiling  Demographics, household composition / issues and vulnerability  Financial, digital inclusion and capability.  Support requirements and  Communication preferences.

Advice and Assistance Much more early intervention - “Triage Arrangements” – at commencement of tenancies and in the event of payment failure. Landlords need to be able to identify rent non – payment and act promptly on requests for aid or assistance. Developing combinations of in – house and specialist external partnerships / expertise

Inter Agency Working & Data Sharing Tenants tend not to recognise referral or signposting to external agencies as support resulting in high drop out rates. We need to rebadge “support” Landlords, JC+ and support agencies – need clarity of role and function and the establishment of new relationships Data – sharing will be key to future success – “but we don’t need to know everything”

Preparing to meet the challenges of Direct Payments and Welfare Reform ……………………… Key issues highlighted in evaluation reports

Key lessons from DPDP Start preparing for the introduction of UC as early as possible. It is difficult to forecast who will manage on Direct Payments and who will not. “There are no neat categories of good or bad payers” The importance of knowing your tenants. Making support available

Key lessons from DPDP The period leading up to and first few rent payments following direct payment are absolutely critical. Delivering Direct Payments is hugely resource intensive and additional resources need to be allocated to arrears collection identification and recovery. Review the suitability of IT / rent accounting systems.

Key lessons from DPDP Landlords need to be better at assessing the benefits and impacts of interventions Cultural and organisational changes are required There is some evidence from the DPDP that it changed customer behaviour.

What we’re doing in Edinburgh Council, RSL’s Jobcentre+ joint planning group. Sharing and updating information consistently and promptly. Developing a communication strategy Joint training and shadowing Establish a common template for tenancy validation. e – learning modules for all staff.

And at DCH Establishing clear responsibilities for dealing with UC claimants. Refining support, triage and debt identification / recovery processes. Advising and educating, tenants, tenants groups and other stakeholders. Taking the fear out of the change

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