delivering promises, improving lives Direct Payments: News so Far Kevin Dodd Wakefield and District Housing

delivering promises, improving lives Where is Wakefield?

delivering promises, improving lives For tenants to have the choice! Why did WDH want to be involved in the Demonstration Project?

delivering promises, improving lives What we are trying to understand? Evaluate the impact on claimants Test and further develop the trigger points for making payments to landlords Evaluate the best / most effective forms of support to help individuals to pay their rent Develop a definition of vulnerable groups

delivering promises, improving lives Thoughts!

delivering promises, improving lives Cognitive Dissonance The Conversation! Governments View - people are rational beings Housing View - change a person’s beliefs to change their behaviour Governments View - reframing - help to re-examine beliefs and develop healthier ways of viewing the situation

delivering promises, improving lives ECONOMYECONOMY

T T T + 3 T + =

delivering promises, improving lives Tick

delivering promises, improving lives Blue Red Green Yellow Black Orange Pink Violet Blue Black Red Orange Pink Green Yellow Blue Red Green Blue Red Black Orange Pink Violet Orange Green Pink Yellow Green Orange Blue Red Black Blue Orange Pink Green Blue Red Black The Stroop Effect

delivering promises, improving lives WDH’s Income Profile £49m – Pensioners £67m – Working Age Tenants - £27m – Low Income Household - £40m – Housing Benefit £116m – Annual Rent

delivering promises, improving lives Impact of Universal Credit £40m – Housing Benefit £3m – Under Occupancy £27m – Low Income £70m – At Risk

delivering promises, improving lives = Reduced Income Universal Credit Equation Arrears Cost of Collection Bank Charges Cost of Admin Cost of Cash Flow x 20, Bedroom Tax Viability =

delivering promises, improving lives The Project 2,034 tenants considered for direct payment 5 phases of tenants entering into project 290 deemed vulnerable Started on 25 June 2012 Average age – 28 years Average tenancy – 7 years 96% had bank accounts

delivering promises, improving lives Project Implementation 1,153 provided bank accounts 119 budgeting support 75 bank account support 29 owed 8 weeks rent

delivering promises, improving lives The Project Over 1,000 tenants have received Direct Payments None initially assessed as in need of high level support Over 50% use Direct Debit for all or some part of payments Approximately 20% have internet access

delivering promises, improving lives Story So Far…..! Payments £250k a month 50% of tenants are making partial payment 199 tenants have reverted back - no evictions Admin costs £250+ tenant Debt £180 per tenant Good news!

delivering promises, improving lives Case Studies - £3,300 - £800 + £100 £0

delivering promises, improving lives The Sting…bedroom tax +! - £5.7k bedroom tax 378 tenants affected 30% under occupying by one bedrooms 300 declared as having a disability - £4k Local Tax Support

delivering promises, improving lives Current Tenant Residential Arrears £3,000,000 £3,500,000 £4,000,000 £4,500,000 £5,000,000 AprMayJunJulAugSepOctNovDecJanFebMar 2011/122012/132013/14 Projected Debt?

delivering promises, improving lives Responsibilities! Cleared utility bills Banks paid debts Had a bereavement Cash machine limited withdrawal Bought school uniforms Didn’t know money had gone into account Bought chocolate Paid doorstep lender Paid Vet bills

delivering promises, improving lives How To Make It Work! Intensive support Increase ongoing advice Segmentation Always expect the unexpected Communication!

delivering promises, improving lives Barriers to Success ‘E-literacy’

delivering promises, improving lives What Should Success Look Like? Local Partnerships Dot.com shops Use other peoples’ experiences Reduce household expenditure Realign services to eat the elephant! Plan for the future!

delivering promises, improving lives Income vs Expenditure The Game Plan!