Universal Credit What it has meant for residents and social housing tenants in Southwark so far….and what we think it will mean in future London Funders, Breakfast Briefing, 27th March 2018 Eugene Nixon, Southwark Council

Background The Universal Credit proposition – policy intent Why such a big change for a social housing tenants? Concerns in the social housing sector Direct Payment Demonstration Project (DPDP) Government response – recognising and mitigating risk?

UC full service comes to Southwark evidencing impacts – developing a response policy and design - influencing Government rent payments – understanding impacts for tenant behaviours operations – flexing the model understanding and meeting support needs

Safe As Houses? How is the early roll-out of Universal Credit affecting rent payment behaviours among social housing tenants in the London borough of Southwark? evaluate the impact of changes to how housing cost support is claimed calculated and paid to social housing tenants looking specifically at whether behaviours are changing compared with legacy (HB) identify obstacles to positive behaviour change where absence of such change may make it more difficult to for tenants to cope develop proposals on how obstacles may be overcome

Safe As Houses? How are identified changes in behaviour – or the absence of behaviour change – affecting the tenancies of those social housing tenants who are claiming UC? evaluate the effectiveness of arrangements for making payments to social landlords and the associated safeguards for rent payments evaluate the effectiveness of communication with social housing tenants intended to increase their readiness for new arrangements and enhance their ability to cope evaluate the accessibility and effectiveness of the forms of support available to help those needing it

What did we learn? www.smith-institute.org.uk

What did we learn? Underpayment of rent due / rent arrears appear to be worse under UC than under HB Obstacle to positive behaviour change appears to be payment delays Alternative payment arrangements “work” Levels of awareness / readiness for UC are low – communication needs to improve Universal Support offer not attractive

How are we applying lessons? (1) immediate change to treatment of rent arrears for UC claimants increasing use of APAs (Trusted Partner) new work to understand impacts of UC for rent income teams changes to communications – working through tenant and community organisations testing new approaches to Universal Support

How are we applying lessons? (2) reduce waiting period for first payment introduce a two week HB run on for those moving from HB to UC trust rent figures provided by social landlords – develop the new landlord portal improve APA arrangements publish long awaited Universal Support Framework

Budget 2017 big, important and welcome changes £1.5 billion in new funding abolition of seven day waiting period introduction of a two week housing benefit run on change to UC advances – bigger payments with a longer period to repay changes take effect fully from April 2018

The next frontier phase three of Universal Credit roll-out “managed migration” from summer 2019 millions of households will need to migrate from legacy benefits to UC full details still unknown but migration will require action by claimants – time barred managed migration cohort expected to include the most vulnerable…those with most complex needs

Why are we concerned? there is a very significant risk that large numbers of those required to migrate during phase 3 will fail to do so successfully – without support large numbers could simply have their financial support “switched off” vulnerable people at risk of falling into destitution can local authorities, social landlords and voluntary sector “pick up the pieces”

What are our concerns? Government has no plans to publish a refreshed Universal Support Framework Government has no plans to carry out research into effectiveness of Universal Support offer during early stages of full service roll-out current Government funding to local authorities to meet Universal Support costs is precarious future Government funding to meet Universal Support costs is uncertain

What are we doing? we continue to experiment and diversify our own local support offer – working with partners we continue to press Government to ensure that support needs are well understood before managed migration commences so that costs of identifying and meeting support needs are met but we also need to recognise that some or all of these costs may not be met by Government and that it will be for local authorities, social landlords and voluntary sector to mobilise to fill the gap

Questions?