1. Welfare Reform Brent Housing Partnership Eamon McGoldrick Managing Director - NFA

2. Impact of Welfare Reform NFA and ARCH have been doing joint surveys on the emerging impacts of welfare reform on the HRA business plan and council tenants since 2013. Focus initially was on the impact of the removal of the spare room subsidy and overall arrears. Now focused on roll out of Universal Credit and emerging issues.

3. The 2015 Survey Findings Responses from 36 organisations, responsible for managing a total 386,000 homes. Of these 26 ALMOs and 10 local authorities.

4. Overall Rent Arrears 31% of tenants were in arrears at the end of the 2014/15 financial year. Regional variations, with landlords in London and the North reporting higher proportions than those in the Midlands and the South.

5. The percentage of all tenants in arrears over time

6. Removal of the spare room subsidy In total respondents reported that 10% of their tenants were still affected by the removal of the spare room subsidy at the end of the 2014/15 financial year. Of these, 51% of were in arrears. Significant regional variations in the effect of the removal of the spare room subsidy: o Greatest impact in the North of the country with 13% of tenants affected and only 5% of tenants affected in London. Not much change in situation from the year before.

7. Preparations for Universal Credit All of the respondents to our survey indicated that they are already preparing for Universal Credit. Most common preparations were: o training or briefings for staff o reviewing arrears processes o increasing the provision of money advice/financial inclusion/tenancy support services o improving IT systems o increasing resources for income collection o increasing provision of digital inclusion services

8. Initial Experiences of Universal Credit 67% of respondents housed some tenants who were already in receipt of UC. In total these organisations were housing around 2,000 households in receipt of UC. Big variations from one organisation to another - from a low of just a single household to a high of more than 600. Numbers were also concentrated geographically, with around 1,700 out of 2,000 live cases being in the North of the country.

9. Initial Experiences of Universal Credit Overall 89% of those tenants who were already receiving UC were in arrears 34% were subject to an alternative payment arrangement (APA) – meaning that they had accrued at least eight weeks of arrears.

10. Initial Experiences of Universal Credit Respondents reported a number of practical problems with the way in which UC is currently operating. The most common problems reported were: o not receiving timely notification of tenants going on to UC o claimants experiencing hardship while waiting for their first payment o payments of UC being delayed o the housing element of UC being calculated incorrectly or omitted entirely

11. Findings from 2016 survey Arrears amongst UC claimants fell to 79% but still very high (31% of tenants overall in arrears) Still seeing increased demand for money and debt advice services, foodbanks and hardship funds. Half of all UC claimants were in arrears previously, half were not. 6 week wait seems to be strongest cause of arrears but other factors come into play too:

12. What the NFA is calling for For the Government to allow “payment direct” to landlords to be a tenant choice for all tenants. For Universal Credit claims to be processed quicker. For the waiting period for payment under Universal Credit to be scrapped.

13. Welfare Reform & Work Act 2016 1% social rent reduction a year for four years from April 2016. Reduced household benefit cap to £20,000 (£23,000 in London) from £26,000 per year. Other welfare reform-related legislation.

14. Welfare Reform & Work Act 2016 Most working age social security benefits and tax credits have been frozen in cash terms for four tax years since April 2016. o Disability benefits, Maternity/Paternity benefits and Statutory Sick Pay, will be uprated in line with the Consumer Prices Index (CPI). The child element of Universal Credit will be limited to two children or qualifying young persons for those born after April 2017. Single parents with children aged 3 and 4 are now subject to all work-requirements.

15. LHA rates to apply to social housing As announced in the Autumn Statement 2015, the amount of rent that Housing Benefit will cover in the social sector will be capped to the relevant Local Housing Allowance. Will include the Shared Accommodation Rate for single claimants under 35 who do not have dependent children. This will apply to tenancies signed after 1 April 2016, with Housing Benefit entitlement changing from 1 April 2018 onwards.

16. NATIONAL FEDERATION OF ALMOs www.almos.org.uk chloe.fletcher@almos.org.uk