1. Welfare Benefit Reforms
An Introduction
Mark Henderson, Director of Housing
Wolverhampton Homes
March 2012

2. Impact upon Council Tenants
 Introduction of universal credit
 New size criteria rules where a tenant is deemed
to be under-occupying a property
 An overall household benefit cap £500 per week
(or £350 for single claimants)
 Payment of housing support direct to the tenant
and not the landlord
 Proposed national administration arrangements
for the new benefit

3. Housing Benefit changes and
welfare reform
 What are the key changes?
 When do the changes take effect?
 What do we think the impact is likely
to be?
 How can we plan?

4. Non-dependant
deductions – April 2012
NON DEPENDANT DEDUCTIONS 23% inc 23% inc
50 week rate 2010 2011 2012
In receipt of main phase ESA(IR). Aged 25 or over and
on IS/JSA(IB) or aged 18 or over and not in
remunerative work 7.70 9.78 11.91
Age 18 or over and in remunerative work, gross
income:
less than £124.00 7.70 9.78 11.91
£124.00 - £183.00 17.68 22.41 27.30
£183.00 - £238.00 24.28 30.78 37.54
£238.00 - £316.00 39.73 50.39 61.41
£316.00 - £394.00 45.24 57.41 69.94
not less than £394.00 49.66 63.02 76.80

5. Impact
 Around 860 tenants will be affected by the 23%
increase
 From £2.13 to £13.78 per week increase
 Average need to find £4.75 pw (£237.50 pa)
 Around 30 tenants taken out of benefit
altogether (last year 35)
 Annual impact £206K extra to collect
 Further steep rise planned 2013

6. Size criteria for tenants
from April 2013
 Working age households up to age 65
 Eligible rent reduced by 14% or 25% if under-
occupying by 1or 2 or more bedrooms
 Profiling indicates that 31% of working age tenants
will be affected (4,193)
 Assume 60% on benefit
 Average losses £12.85pw, some over £20pw
 Total impact £35K per week , £1.75m per year

7. Size criteria impact
Property type 2 Bed 3 Bed 4 Bed
Average rent April £69.01 £75.20 £81.93
2012
Reduction
1 bed under occupation £9.66 £10.53 £11.47
2 bed under occupation n/a £18.80 £20.48

8. One bedroom for
 Every adult couple
 Any other adult aged 16 or over
 Any two children same sex aged under 16
 Any two children different sex aged under 10
 Any other child aged under 16
 A non-resident carer (claimant/partner have
disability and need overnight care)

9. More likely to impact
 Women/couples whose children have left home
 Disabled couples where a separate bedroom is
needed (Discretionary?)
 Singles/couples living in high rises which are no
longer regarded as family accommodation
 Families with children whose age and gender do
not “fit the rules”
 Ages 35 to retirement most affected

10. Introduction of capping – from
April 2013
 Working age claimants
 £350 pw single claimants. £500 pw
families/couples - based on current figures
 Housing costs ‘balancing figure’
 Partial exemption for ‘working families’.
 Not Disability Living Allowance recipients/ War
widows
 Impacts larger families who could lose average
£93 per week.

11. Move to Universal Credit
– From October 2013
 All new claims and changes in
circumstances
 Existing claims between 2014 and 2017,
regional switchover
 Monthly payments in arrears (like a salary)
 Online claims/telephone
 National call centre in Warrington
 limited local service

12. Direct payments
October 2013
 Working age households in social rented sector
 Applies when claim/move onto Universal Credit
 Existing claims by 2017
 Default – direct payments to individuals
 Amendments to Bill to give claimants the choice
for payment direct to landlord, withdrawn by
House of Lords

13. Housing support for
pension age claimants
– From 2014?
 New claims made to the Pension Service
 New claimants choose whether rent is
paid to self or landlord
 Existing claims – gradual transfer and paid
direct to landlord
 Choice to be extended to existing
pensioner claimants later

14. Issues to consider
 Identifying who will be affected –
 Customer and stock profiling
 Customer Insight available,
 HQN / HB modeling
 Risk assessing potential tenants
 Collecting the shortfall
 Use of hardship fund / discretionary payments
 Requests for rehousing:
 Tocheaper/smaller accommodation
 Due to family breakdown – non dep v lodger?

15. Issues to consider
 Facilities/assistance with making and
maintaining online claims
 Identifying claimants who move onto
Universal Credit
 Liaison with DWP
 Dealing with rent arrears if paid monthly in
arrears

16. Issues to consider
 Collecting rent (does everyone in our
organisation realise this!?)
 Identifying tenants who qualify for payment to
landlord
 Record more tenant and household information
 Identifying and supporting tenants who are
finding it difficult to manage their finances
 Systems amendments to monitor and identify
problems quickly

17. Planning for the Housing
Benefit changes and Welfare
Reform
 We now need to inform residents, staff, Board
members and the Council about the changes
 Continue to profile and target those likely to be
most affected
 Develop a communication strategy
 Tenant focus group
 Board champion (s)
 Roadshow approach
 Be prepared to start collecting rent from most of
our tenants