1. 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

2. 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?

3. 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

4. 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

5. 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

6. What did we learn?

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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”

13. 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

14. 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

15. Questions?