The Welfare Reform Act, Universal Credit & Intensive

Housing Management

Michael Patterson & Danny Key:

Support Solutions National Conference

November 2012

Key Questions

Welfare ReformWhat is Universal Credit?Bedroom TaxBenefit CapDirect PaymentVulnerabilityExempt Accommodation

Key QuestionsIntensive Housing ManagementResponding

Welfare Reform

Public expenditure problems. Need to save £18bn from "welfare" by 2015

Need to ease transition to work & to “make work pay”

DLA to become PIP: 20% savings targetCouncil Tax Benefit to be devolved to LAs

with 10% budget reduction & protection for pensioners

Welfare Reform

Simplification and administrative cost-saving

Social Fund to be abolished: Community Care Grants, Crisis Loans & Budgeting LoansTo be replaced by discretionary LA support that

may not take the form of cash payments

Welfare Reform

ESA revised: Work Related Activity Group claim limit of 365

days; Support Group indefinite entitlement

Problems with Work Capability Assessments

What is Universal Credit?The Centrepiece of the Welfare Reform ActSingle benefit to replace many others:

Income SupportIncome-based Job Seeker’s AllowanceIncome-based Employment Support AllowanceHousing BenefitChild Tax CreditWorking Tax Credit

Claimed online by working age people

What is Universal Credit?www.supportsolutions.co.uk

/briefing/issue_12/ucihm.htmlhttp://www.dwp.gov.uk/policy/welfare-reform/

universal-credit/

http://www.supportsolutions.co.uk/docs/uc_vulnerabilty_pdf.pdf

http://www.supportsolutions.co.uk/docs/frontier_report_-_financial_benefits_of_investment.pdf

“Bedroom Tax”

The size criteria in the social rented sector will restrict housing benefit from April 2013 to allow for one bedroom for each person or couple living as part of the household, with the following exceptions: Children under 16 of the same gender will be

expected to share Children under 10 expected to share regardless

of gender

“Bedroom Tax”

Disabled tenant or partner requiring a non-resident overnight carer will be allowed an extra room.

Any household deemed to have more bedrooms than they require, as defined by the criteria, will lose a proportion of their housing benefit. The level of cut will be a fixed percentage of the Housing Benefit eligible rent, initially set at a 14% cut for one extra bedroom and a 25% cut for two or more extra bedrooms.

“Bedroom Tax”

The draft regulations for Universal Credit appear to exclude people living in supported/sheltered housing (Exempt Accommodation) from this requirement.

Benefit CapFrom April 2013 caps will be introduced on total

weekly benefit entitlement:£350 per week for single people without

children£500 per week for families

People on DLA (soon to be PIP) and people on ESA (Support) are exempt from the Benefit Cap

May affect people in temporary accommodationDomestic violence & abuse services announced

as exempted from the cap

Benefit Cap If people in supported housing/exempt accommodation

are subject to the Benefit Cap the cost of these services may exceed the cap www.housing.org.uk/publications/find_a_publication/legislation/

universal_credit_regulations.aspx

Where Intensive Housing Management is charged to service charge outside Universal Credit it may render the cap untenable in some cases

Typically this won’t be the caseSince the Conference the DWP has announced that

people in Exempt Accommodation will not be subject to the benefit Cap

Payment Exceptions Financial and Vulnerability FactorsTier One factors – Highly likely/probable need

for a PE Drug/alcohol and/or other addiction problems

e.g. gambling Learning difficulties including problems with

literacy and/or numeracy Severe/multiple debt problems In Temporary and/or Supported

accommodation

Payment Exceptions Financial and Vulnerability Factors

Homeless Domestic violence/abuse Mental Health Condition Currently in rent arrears/threat of

eviction/repossession Claimant is young either a 16/17 year old

and/or a Care leaver

Payment Exceptions Financial and Vulnerability FactorsTier Two factors - Less likely/possible need for a

PE No bank account Third party deductions in place (e.g. for fines,

utility arrears etc.) Claimant is a Refugees/asylum seeker History of rent arrears Previously homeless and/or in supported

accommodation

Payment Exceptions Financial and Vulnerability Factors

Other disability (e.g. physical disability, sensory impairment etc)

Claimant has just left prison Claimant has just left hospital Recently bereaved Language skills (e.g. English not spoken as the

‘first language’). Ex Service personnel NEETs - Not in Education, Employment or Training

Direct Payment

There are 6 Pilots running to test direct payment, including vulnerable claimants: www.dwp.gov.uk/policy/welfare-reform/housing-support/social-

sector 54% of all tenants would manage, so 46%

wouldn’t

Council Tax BenefitHistorically local authorities have been

topped-up by central government for paying Council Tax Benefit.

The Welfare Reform Act localises the responsibility for Council Tax Benefit with a 10% funding reduction, a fixed funding pot & protection for pensioners & possibly “vulnerable” people: this may mean even less for other people.

Responding

Diversify non-housing revenueLook at NHS budgets to fund prevention on a

payment by results basis with demonstrable savings to Health which we all know we already deliver. Engage with Clinical Commissioning Groups!

Think about how we engage with the new social investment agenda

Welfare Reform: What are the impacts on Intensive Housing Management?

What exactly is IHM?1. Repetitive ordinary housing management

functions, i.e. lettings, tenancy sign ups

2. Additional housing management functions due to the nature of the tenant group and the accommodation, see (hyperlink to toolkit)

3. Housing Management functions linked to communal areas and the provision of systems, i.e. testing of door entry, CCTV and alarms, re-provision of furniture and equipment etc.

Intensive Housing ManagementHousing Corporation defined – ‘A guide to

Supported Housing’ www.supportsolutions.co.uk/docs/guide_to_supported_housing.pdf

Judge Turnbull Legal PrecedentBristol CC v AW [2009] UKUT 109 (AAC) –

satisfactory test for determining support is more than minimal is to ask whether support provided likely to make a real difference to the claimant’s ability to live in the property

Intensive Housing ManagementWhy refer to support when defining IHM?Judge Turnbull Legal Precedent continued;

R(H) 6/08, R(H) 4/09 – ‘Support’ involves the landlord doing more than, or different from, the exercise of its ordinary property management functions

Chorley BC v IT (HB) [2009] UKUT 107 (AAC) – support not confined to counselling, advising, encouraging etc. ‘the carrying out of repairs which clearly go beyond ordinary housing management can amount to support’

IHM can therefore be sufficient to qualify as exempt accommodation!

Welfare Reform - Potential Impacts for IHM Temporary Accommodation

Exempt Accommodation

Additional Demand for above services

Temporary Accommodation

New subsidy rates in 2013 – lower subsidy to Local Government for people living in shared accommodation

Benefit Caps – particular issue in LondonIncreased Demand due to welfare reformLess supply, and/or, shortfall of funding

due to lower subsidy rates payable

Exempt Accommodation

Sheltered accommodation – exempt or not?Agency Managed Supported Housing – exempt

or not?Implications if not………..Housing Benefit Regulations amendments, i.e.

service charge eligibility – Plan B!Increased Demand

Potential Solutions to Implications

Re-negotiate lease/management agreementsRevise occupancy agreementsPlan B – incorporate IHM into rent, over and above

social rentHow to react to Increased Demand for services;

IHM only – low level supportTenancy sustainment services in general needs

Attracting other investment such as social enterprise investment/reserves

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