Deven Ghelani presented about The Impact of Universal Credit at this National Housing Federation Conference on 21 June 2018 in Manchester.
In his session, accompanied by Donna Gallagher who has just joined Policy in Practice from Your Homes Newcastle, Deven shared analysis and policy commentary about how Universal Credit is impacting social housing tenants.
For more information visit www.policyinpractice.co.uk, email hello@policyinpractice.co.uk or call 0330 088 9242.
2. We make the welfare system
simple to understand, so that
people can make the decisions
that are right for them
3. Agenda
• Universal Credit
• Rollout update
• The impact on rent arrears
• Recent policy changes
• NAO report
• What do we know about tenants
• Mapping the aggregate impact of UC on tenants
• The impact on individual families and how to engage them
• How housing associations are meeting these challenges
• The experience at YHN
• How things have changed
• Q&A with the audience
5. A fundamental aspect of both Local
Housing Allowance and Universal Credit is
that the payments go to the claimant not
the landlord.
DWP Full Service Survey
• Just over a third of UC recipients were
experiencing housing payment
arrears and for 44 per cent, the
situation had deteriorated between
the two surveys.
• One in three claimants in arrears in
both waves said the situation had
improved.
• Two thirds (65 per cent) said they fell
into debt after they made their claim
for UC
Universal Credit and rent arrears
6. Groups of claimants more likely to be in
arrears were:
• Those with a household income of
less than £10,000.
• Those with a long-term health
condition.
• Those renting from social landlords
(council, local authority or housing
association).
• Those who have received an advance
payment from Jobcentre Plus in the
last three months
• Those with an APA in place.
Smith report: Arrears do stabilise with
time at around 6%: a pattern of arrears
accumulating
Universal Credit and rent arrears
Smith report:
Arrears do stabilise with time at around 6%
Not until week 13 do arrears fully stabilise and tenants begin to
pay back arrears
7. National Audit Office report
“The National Audit Office (NAO)
concludes that Universal Credit has not
delivered value for money and it is
uncertain that it ever will.”
“The Department for Work and Pensions
(the Department) will never be able to
measure whether it has achieved its
stated goal of increasing employment.”
“The NAO believes there is no practical
alternative but to continue with Universal
Credit.”
8. PIP Recommendations
• Work with third parties
• Be flexible
• Properly resource support
• Be open and transparent
• Blog on visits
Introduce KPIs
• Lower cost per claim
• Positive employment impact
• Payment timeliness
Our response to the report...
9. Universal Credit: Recent changes
Recent changes to Universal Credit should improve the situation
• Ending 7-day wait
• Two week HB run-on
• Twelve month repayment of payment in advance
• 63% taper & Living Wage
• Universal Credit on the frontline
• Claimants in the private rented sector will have their housing benefit paid directly to
landlords when they join UC, if that is the case today.
• Protection for those losing out unfairly through transitional protection, including
those losing the severe disability premium, with changing earnings or childcare
costs, and protection for savers for 12 months.
• Backed by PIPs ‘leading lights’ policy work ahead of the budget
10.
11. 111111
What is the single biggest issue you face
with Universal Credit rollout?
What percentage of tenants struggle?
12. Key issues for supported housing
Other barriers faced by supported housing tenants in making and
managing their Universal Credit claim are common to many in
general needs accommodation.
While some tenants had access to a support worker, in general
interviewees revealed barriers related to digital access,
identification, budgeting, overpayments and access to a bank
account.
Better communication with DWP to support claim management,
access to their work coach and ability to establish alternative
payment arrangements would help all landlords, including
supported housing support workers.
Full service for all new claims will be rolled-out by end of 2018
Roll-out ramps up - only 6 councils in March and 6 in April. But 25 in May, 34 in June, 41 in July
Then migration of existing cases from July 2019
What is the single biggest issue you face with Universal Credit rollout?
Managing delays to payments
Securing Alternative Payment Arrangements
Gaining explicit consent from tenants
Getting tenants to pay
Other
What are the biggest issues landlords face at the moment?
What challenges are you hearing about in relation to UC features such as Alternative Payment Arrangements, overpayments and explicit consent?
What are the core issues facing DWP?
What’s the most common advice you’re giving to social landlords and tenants at the moment?
What are the biggest issues claimants face?
What do you think of the guidance / legislation that is in place?
What best practice have you seen from housing associations?
How can Policy in Practice’s Benefit and Budgeting Calculator help tenants and income managers?
Knowledge for tenants and frontline advisors
Advocacy
Payment scheduling
Overall advice and how the system has been designed to work