Chris Hobson, Lead manager for the East Midlands, National Housing Federation The impact of welfare reform

-Housing backdrop to welfare reform -Key welfare reform measures -Impact -on housing? -on tenants? -Working toether The impact of welfare reform

The National Housing Federation in the East Midlands 131 members operating in the region (65 based) Total stock: 140,000 – housing one in every 14 households in the region. This includes housing of all types and tenure. Housing associations in the East Midlands employ 6,473 people directly Housing associations in the East Midlands had a combined turnover of nearly £493m in 2011 and spent around £183m managing and maintaining customers’ homes, with a GVA of £413m, supporting 9,500 jobs HA offer is more than just building homes – regeneration; levering in investment in communities where others won’t go; each year HA’s in the region invest over £9m on community projects.

Background - Supply vs Demand Basic equation 390,000 new households were formed in 2010/11 – only 111,250 new homes were built = new demand outstripping supply by over 3:1 (CLG)

Supply vs Demand – the bigger picture Top-line results -37% increase in private sector rents in 5 years (NHF, CIH, Shelter) -94% increase in house prices over the past 10 years (Land registry) -1.8 million families on waiting list for social housing (CLG) -25% increase in homelessness acceptances over past 2 years – 50,000 families accepted as homeless in 2011/12 (CLG) -417,830 more working people now rely on housing benefit to pay their private sector rents, an 86% increase in 2 years (DWP)

And in Blaby? East Midlands Home Truths 2012 House Prices -Mean 2011 house price: £177,895 -Median 2011 income: £22,651 -Ration of house price to income: 7.9 (slightly below average) Pressure on individuals -Households on waiting list (2011): 811 -Unemployment rates April 2011-March 2012: 5.5% (below average) -Homelessness acceptances per 1000 of the population: 0.1 (well below average)

Key welfare reform measures Total saving 2.2bn

Size criteria 14% cut for one ‘spare’ bedroom 25% for two or more ‘spares’ £14 average weekly loss 660,000 claimants affected across GB 63% (420,000) are disabled 200,000 on Disability Living Allowance 100,000 disabled and in adapted properties

How does it work? All claimants who are deemed to have at least one spare bedroom will be affected. This includes: Separated parents who share the care of their children and who may have been allocated an extra bedroom to reflect this. Benefit rules mean that there must be a designated ‘main carer’ for children (who receives the extra benefit) Couples who use their ‘spare’ bedroom when recovering from an illness or operation Parents whose children visit but are not part of the household Disabled people including people living in adapted or specially designed properties.

How does it work? Two children under 16 of same gender expected to share Two children under 10 expected to share regardless of gender Disabled tenant or partner who needs non-resident overnight carer will be allowed an extra bedroom Approved foster carers will be allowed an additional room so long as they have fostered a child, or become an approved foster carer in the last 12 months. Adult children in the Armed Forces will be treated as continuing to live at home when deployed on operations. In addition, local councils have been advised to allow an extra bedroom for children who are unable to share because of their severe disabilities.

Universal Credit

Universal Credit – a culture change Single payment Monthly payment Direct to tenant Online Supporting work Conditions and sanctions

Timetable for roll out Pathfinders First Universal Credit claims in Ashton under Lyne (Tameside) from 29 April Wigan, Warrington and Oldham in July Starting with newly unemployed single claimants with no children. Once on Universal Credit, stay on it forever – housing associations in other areas may see small number of people on Universal Credit

Timetable for roll out ‘Prove before you move’ Everything tried in Pathfinders before expanding geographically and to more complex cases Blueprint coming soon from DWP to expand on timetable plans National roll out - complete by the end of 2017.

Rent currently not a problem – but in the future? % of tenants find it difficult to afford:

Impact assessment January 2013April 2013

Impact on arrears Rising rent arrears Increasing bad debt provision Decreased income

Impact on development Associations cannot live with WR and self-finance any large development programme Choices on the scale and type of future development need to be made Tension between the Government’s ambition to reform welfare and desire to see more housing Change mix of new housing built – developing smaller homes or avoiding larger families

Impact on business planning UncertaintyTenant responsesCumulative impact of changes Hard to calculate additional resource needs Changing priorities Prioritise rent collections and tenancy support Some may reduce wider community support programmes

Working to mitigate impacts Local Authorities and HAs need to work closely together: -Data sharing Data sharing – importance of working together to support tenants and sharing data in timely way on cap, UC and bedroom tax. -Local welfare assistance programme (social fund replacement) – making sure that HAs are aware of the new schemes so are able to sign post tenants effectively -Supporting vulnerable people Transparency and communication over allocations of DHPs Local support services framework - work with local HAs to map and deliver support services for UC claimants -Service levels during wind down of HB Importance of maintaining good relationships and service levels with HAs over roll out of UC and wind down of HB

Responding to welfare reform: a practical guide Signpost for boards Factsheet for MPs Factsheet for caseworkers and local councillors Welfare reform Q&A New resources

Contact Chris Hobson National Housing Federation Further information: ResourcesResources – Impact assessment – NewsImpact assessment News