Mitigating Impact of LHA Cap Hazel Waddington Principal Income Services Manager

Introduction Local Housing Allowance Cap Mitigations including our integrating employment proposals 18-21 year olds

Local Housing Allowance Cap Benefit Status Number of Tenancies Average Weekly rent Total LHA LHA Shortfall Full HB 132 £12,604.83 £6424.44 £6,180.39 Partial HB 37 £3,311.86 £1800.79 £1,511.07 Self payer 135 £11,812.22 £0.00 Grand Total 304 £27,728.91 £8225.23 £7,691.46 The above table shows the number of allocations to single under 35’s between January 2015 and January 2016 Based on shared accommodation rate of £48.67 per week This equates to £400k per annum across just 169 households

U35 Pilot Initial Findings Initial lists of cohorts revealed approximately 50% cohort are far removed from the work place due to complex lifestyle/needs 35% of the cohort were moved into work or training within the 6 months 10% of those in work were already in full time well paid employment Sign ups carried out in the UCAN community setting generated better engagement with services Identified a cohort of young people who are better off financially on benefits, particularly those in receipt of ESA New economy model currently being used to analyse data For the 50% it was identified that personal support for a longer period is required and this group may always struggle to move into paid employment at a level that would meet rental liability For those who are better off on benefits - Incentives to flip this are being explored by the DWP

Mitigations Growth of 2 x Money Advisors posts 2 x Digital Officers to support self service and online benefit claims The BH website is being developed for all key changes and to add further information for applicants A mailshot was issued to all applicants under 35 and on the housing register in July 2016 Affordability assessments for all applicants have been updated to include specific questions and guidance for the under 35s As from 1/4/17 tenancies will only be awarded to single under 35’s on the basis on a risk assessment process that will consider a number of factors that including; The age of the applicant at 1/4/18 The immediate level of housing need The potential for a change of status by 1/4/18 Engagement with initiatives put in place by BH and its partners to move into employability Other rehousing options

Mitigations Revenue Services being restructured to support preventative rather than enforcement approach Hardship fund criteria is being expanded to support customers affected by cuts Exploring whether our supported tenancies can be classified as exempt Greater use of Landlord Services (Lease Management) to procure Houses of Multiple Occupation (HMOs) from the private rented sector Trialling a BH HMO offer Provision of a “house mate matching” service to identify applicants who might be interests in sharing Exploring pre-tenancy engagement conditions and specific tenancy agreement conditions

Unemployment in Bolton In September 2016, Bolton had 5,380 Job Seekers Allowance Claimants and out of work Universal Credit Claimants. This is a rate of 3.1% and the highest rate in Greater Manchester.

Pre-Tenancy to Work Model Pre-tenancy assessment Provide a home Stabilise Tenancy Promote training & employment Provide in work support 5 Step Approach Pre-tenancy assessment to identify household needs and potential risks to tenancy We will provide a home We will work to stabilise tenancies to ensure the best basis for further engagement We will actively promote training and employment for our households

Promote training and employment Engaging with our tenants in a dialogue about work at every appropriate opportunity Throughout rent arrears process especially for those on job seeking benefits Currently piloting engagement with work club to prevent possession proceedings By including E&T responsibilities in all front facing Customer and Community job descriptions By monitoring performance against specific employment and training KPIs Promoting BH tenants within the wider employment market by engaging with local employers to understand demand and skills gap During each contact with housing management functions we will identify customers who have the potential to move into training or paid employment. In recognition of the different stages of work readiness our customers are at, we will provide a range of opportunities for them to improve their employment potential.

In Work Support In work benefit assessments via advice line, drop in or appointment Using hardship fund to incentivise work for those who aren’t necessarily immediately better off Assistance with budgeting Helping with employee/employer relationships Providing advice and support on problems with wages and contracts In work support officer to engage with employers about further opportunities for our other customers Getting people into paid employment used to be the end of the process for us and was our key objective We now understand that keeping people in work can present similar challenges and that people are likely to stay in work once they have been in paid employment for 6 months or more BH has secured funding to create an “In work” support officer. Money advice service to support this offer by creating package for in work money and benefit advice.

18-21 Year Olds Introducing Youth Obligation for people aged 18 to 21 making a new claim for Universal Credit For those geographical areas with full Universal Credit Service this will be from April 2017 Bolton does not have full Universal Credit service so we will be affected anytime from May 2017 to September 2018 Young people making the claims will be expected to participate in an “intensive regime of support” from day 1 of their benefit claim After 6 months they will be expected to: apply for an apprenticeship or traineeship gain work-based skills (daily community work) or go on a mandatory work placement in order to continue to qualify for the housing element which covers their rent There are currently no guidelines of hours they are required to work

18-21 Year Olds Certain categories of young people will be exempt from these changes: Vulnerable young people; No current information on how vulnerability will be defined or any details about supported housing Those who may not be able to return home to live with their parents Those who have been in work for 6 months prior to making a claim - currently no guidelines on how many hours the claimant needs to have worked to fall under this category Claimants on ESA (Support Group), or on Income Support and a lone parent, are likely to be exempt It is likely that those in the Work Related Activity Group (WRAG) of ESA will also be exempt but this is not confirmed It is not clear whether those in the Assessment Group of ESA will be exempt at this stage Work Capability Assessment You must have a Work Capability Assessment while your ESA claim is being assessed. This is to see to what extent your illness or disability affects your ability to work. You’ll then be placed in one of 2 groups if you’re entitled to ESA: work-related activity group, where you’ll have regular interviews with an adviser support group, where you don’t have interviews Assessment group – This is the group that claimants go into once they have made the claim whilst they are being assessed whether they should go into the Support Group or WRAG for 13 weeks but due to backlogs and medical assessments etc it could be longer. The claimant has to provide sicknotes continuously for that period.