Under‐occupation Preparing for the social sector size criteria
Learn with us. Improve with us. Influence with us | www.cih.org
This session explores: • The key features of the social sector size criteria • The likely impact • What you can do to prepare • CIH’s Making it Fit guide • Learning from others
Learn with us. Improve with us. Influence with us | www.cih.org
2
Social sector size criteria (1) • Applies to working‐age adults claiming HB and ‘under‐occupying’ social rented homes by 1 or more bedrooms
Exempt if 61 on/before 5 October 2012
• HB will be reduced by:
14% of eligible rent for one extra bedroom 25% of eligible rent for two extra bedrooms
• Effective from April 2013 Learn with us. Improve with us. Influence with us | www.cih.org
3
Social sector size criteria (2) • Bedroom size not considered • 1 bedroom allowed for:
Each adult /couple living as part of the household Two children under 16 of same sex Two children under 10 – different sex Non‐resident overnight carer for disabled tenant/partner
Learn with us. Improve with us. Influence with us | www.cih.org
4
Social sector size criteria (3) No exceptions, so implications for: • Couples using a spare • Separated parents bedroom when sharing care – recovering from illness designated ‘main carer’ receives the full HB • Families with disabled children (Gorry case?) • Parents whose children visit but are not part of • Disabled people, the household including those in • Foster children ‐ not adapted/specially part of the ‘benefit’ designed properties household Learn with us. Improve with us. Influence with us | www.cih.org
5
What’s the likely impact (1)? • Affects c.670k UK tenants
530k under‐occupying by one bedroom 32% of existing working age HB claimants in social sector 60k in West Midlands
• DWP impact assessment:
Average loss per week of £13 £14 for HA tenants
• Tenants expected to pay the difference from benefit/wage income Learn with us. Improve with us. Influence with us | www.cih.org
6
What’s the likely impact (2)? • More people paying rent
Increased transactions/ costs
• Rent arrears
Although many will try to keep up
• People resorting to expensive credit to pay rent? • People struggling to afford to stay in their homes
Increased turnover, family and community instability, FTAs
• Increased demand for smaller units • Some properties becoming difficult to let
Increased refusals and longer relet periods Learn with us. Improve with us. Influence with us | www.cih.org
7
The clock is ticking… • Be proactive – you can’t afford to ignore this, it’s not going away • You have 39 weeks to prepare
Learn with us. Improve with us. Influence with us | www.cih.org
8
What are tenants’ options? • • • • •
Pay the shortfall Find work/extra hours Take in a lodger Mutual exchange – same/other landlord Transfer to a smaller property:
Same/ different landlord
• Privately rent • You can help with all of these Learn with us. Improve with us. Influence with us | www.cih.org
9
Things to think about (1) • Identify tenants affected • Develop your action plan • Good, clear, regular communication and information
With tenants and staff Face to face – with action plan Clear illustration of what it means ‐ ££££s
• Tenants will be anxious
Reassure those who aren’t affected
• Think about vulnerable people
Knowing your tenants/ their needs is so important
Learn with us. Improve with us. Influence with us | www.cih.org
10
Things to think about (2) • Tell prospective tenants about the changes – now • Review your lettings strategy/policy and nominations agreements
Do they permit under‐occupation at lettings stage? Review local lettings policies Priority for under‐occupation Flexibility on transfers with rent arrears?
• Work with partner providers to offer an enhanced mutual exchange scheme
Proactive matching Events Flexibility on arrears? Learn with us. Improve with us. Influence with us | www.cih.org
11
Things to think about (3) • Sharing:
Joint tenancies Lodging schemes Safeguarding and risk assessment are important
• Strengthen links with the private rented sector • New housing developments
Increased focus on smaller units? Lettings policies
• Work with partner providers
You can’t solve this on your own Learn with us. Improve with us. Influence with us | www.cih.org
12
Things to think about (4) • Open and honest discussions with tenants
No pressure ‐ it’s their personal choice Explain pros and cons
• Discretionary Housing Payments • How much help and support will/can you give?
Removal costs? Handyperson support? Dedicate a post to deal with this? Balance cost of this against cost of increased rent arrears Learn with us. Improve with us. Influence with us | www.cih.org
13
Making it Fit • • • •
Free download – launched 13 June 2012 Supported by LGA, NHF and NHC Hints, tips and practice examples Focus on:
Communicating messages Partnerships Supporting tenants to pay Supporting tenants to move Learn with us. Improve with us. Influence with us | www.cih.org
14
Learning from others (1) L • Calico Homes: carried out a full tenancy audit in preparation • Leeds City Council: monthly, multi‐disciplinary, housing‐focused Welfare Reform Operational Group • Gateshead: working group of housing providers, advice, jobs and training agencies
Learn with us. Improve with us. Influence with us | www.cih.org
15
Learning from others (2) • Gateshead: ‘Money Matters’ guide on welfare reform, advice on saving and debt, how to access training and business advice • Berneslai Homes: leaflet on size criteria giving examples, estimated HB reductions, housing options • Leicester City Council: reviewed offer letters, developed information sheet for single applicants, and trained staff Learn with us. Improve with us. Influence with us | www.cih.org
16
Learning from others (3) • Halton Housing: Welfare Reform coffee mornings and weekly Budget Buster workshops – focused on budgeting skills and benefits advice • Tristar Homes/ WorkSTEPS Partnership: helping people to become ‘job ready’ and gain/retain jobs
Learn with us. Improve with us. Influence with us | www.cih.org
17
Learning from others (4) • Derwentside Homes: employed a specialist Welfare Rights Officer • Aspire Homes: increased in‐house money advice staff from one to three • Walsall Housing Group/Walsave Credit Union: offer a budgeting account which ‘ring‐fences’ money for bills
Learn with us. Improve with us. Influence with us | www.cih.org
18
Learning from others (5) • RB Kensington and Chelsea: open day for all affected by size criteria • LB Southwark: speed‐dating coffee morning • Stockport Homes: offering single people the chance of a joint tenancy
Learn with us. Improve with us. Influence with us | www.cih.org
19
Learning from others (6) • Wigan CAB/ Wigan Council: Wigan Housing Solutions – managing agent for private landlords • Wishaw and District HA: lodger policy • Eastleigh Council: letting out a room guide • Derby Homes: lodging information sheet
Learn with us. Improve with us. Influence with us | www.cih.org
20
Key messages • The clock is ticking…if you haven’t done so, develop your action plan • Identify all tenants affected and contact them in person • Work with your partners/other providers to develop appropriate solutions
Learn with us. Improve with us. Influence with us | www.cih.org
21
Need help/ advice? • Free CIH Making it Fit guide • Contact the Making Best Use of Stock Team mbus@cih.org • See our free Practicehub: www.practicehub.cih.co.uk • melanie.rees@cih.org T: 07950 506692
Learn with us. Improve with us. Influence with us | www.cih.org
22
Thank you for listening! Over to you…
Learn with us. Improve with us. Influence with us | www.cih.org
23