ng homes The Impact of the Welfare Reform Lynne Cooper Assistant Director of Housing Services

About ng homes Established 1976 5,500 Tenants £22 Million turnover RSL in area of multiple deprivation 51% of youngsters in our Springburn area living in poverty Partnership working is key to our success 69% of our tenants in receipt of Housing Benefit

Significant Changes Child Trust Fund DLA to PIP Maternity Grant Universal Credit RPI to CPI change Digital by default Winter Fuel Frozen wages Non dependant Food/Fuel rises Bedroom Tax Jamjar accounts Benefits Cap Sanctioning 150% rise in rent arrears calls to National Debt Line

Universal Credit Currently £14m (of ng homes’ £22m annual rent income) comes from Housing Benefit Currently benefit receipts incur little cost, but Universal Credit will mean; Increased cashiering costs (coin!); Increased arrears & support staff costs; Increased void, court and eviction costs; Increased bank and borrowing costs.

Universal Credit 74 Tenants on Universal Credit 43 Tenants on UC being paid directly to ng homes 22 Tenants in receipt of Arrears Direct Payments

Universal Credit The Money Balance of 74 Current Tenant uc cases is £57,680 Balance of 7 Former Tenant uc cases is £16,166 Balance of 9 Former uc cases is £8,648 Value in total is £82,494 to our arrears

The challenge for Housing Associations A “direct payment” pilot in 2002; Their arrears increased 133% 2002 economy was different, not as harsh; Arrears would probably increase with economic climate without additional challenge of UC; A 133% increase would mean almost £100,000 extra lost every month!

Concerns for tenants Accrual of rent arrears – risk of homelessness Less disposable income – more chance of falling into debt Spiral of debt – once in debt it is often difficult to get out Responsibility to prove ‘actively seeking work’ – often limited pc access and skills Sanctions

Comments from ng homes survey “Just about manage financially” 41% “Find it difficult to cope financially”- 31% Payment meter for electricity/gas - 53% Been unable to pay for electricity/gas in last year - 15% No home content insurance - 49%

What do Housing Associations need to do ? We need to inform tenants about the changes We need to know our tenant’s household circumstances We need to support them through the changes

Who ng homes are working with? Scotcash Debt & Money advice Tenancy support PCU prepaid Card accounts Bank accounts

Epic 360 Welfare reform & Universal Credit Budgeting Income & Spending Borrowing & Saving Debt & Wellbeing Recap & Plan

Referrals from over 45 different sources We’ve helped clients to: Improve knowledge of bank acct use.(233) Assisted opening Bank accounts/ credit union accounts.(149) 1400 + referrals since Aug ‘15 Re prioritise spending habits when starting/stopping work. Use budgeting tools.(199) Understand Universal Credit better.(444) Find fuel advice. 3863 outcomes. “It generally made me focus more on my finances. Epic 360 made me examine, in a positive way, more than just my financial situation” “If I have a friend in the same situation as me or struggling I will definitely recommend them to Epic 360.”

The Poverty Charter Housing Associations working together in the North of Glasgow to challenge that poverty is acceptable and necessary. ng homes Maryhill Queens Cross

Welfare Reform-Help Available £££££ from Scottish Government DHP: Discretionary Housing Payment SWF: Scottish Welfare Fund Council Tax Relief Making Advice Work (SLAB) Glasgow’s Big Lottery Fund – Epic 360 Project WHAT ELSE SHOULD WE DO??

Thank you for listening Lynne Cooper Assistant Director (Housing Services) ng homes 0141 630 4260 lcooper@nghomes.net