Rhona Brown Policy Officer

National Housing Federation

Welfare Reform: Getting it right!

In the next 20 minutes or so…..

• Brief Summary of where we are and the overall numbers, Bedroom Tax, Benefit Cap, Universal Credit

• What are the opportunities for joint working between local authorities and housing associations

Bedroom Tax impact

14% cut for one ‘spare’ bedroom

25% for two or more ‘spares’

660,000 claimants affected across GB

£14 average weekly loss

Source: DWP Impact Assessment

Social housing only

Who will the Bedroom tax impact on?

• HB for working-age families to reflect household size

• Affects existing tenants – 60-year-olds; disabled; lone parents

• Hits 560,000 households in England

Social housing only

Bedroom tax: regional breakdown

Region Households hit as % of social HB tenants

North West 120,000 43%London 70,000 19%Yorkshire & Humber 70,000 36%West Midlands 60,000 33%East 60,000 36%East Midlands 50,000 37%South East 50,000 26%North East 50,000 46%South West 30,000 28%England 560,000 N/A

Social housing only

‘Mismatch’ between need and availability of one-bedroom social homes

Region Estimated ‘shortfall’North West 70,832North East 34,685 South West 26,818Yorkshire & Humber 26,555South East 23,076East 20,952West Midlands 19,451 East Midlands 14,999London 1,467England total 240,000

Bedroom Tax from April 2013 Bedroom Tax under Universal Credit

Those over State Pension Credit age will not be affected, including where one member of a couple is over and one under.

Mixed age couples - both will need to be over pension age to not be affected by the bedroom tax. Those where one is already in receipt of pension credit will however be protected.

Non-dependant deductions (NDD): six separate rates varying by income and under 25s on benefit are exempt.

One, flat-rate Housing Cost Contribution (HCC). All under 21s are exempt from HCC.

Non-dependants: couples get one room between them. They pay the NDD unless both are exempt.

Each adult non-dependent gets a room. Each pays the HCC unless exempt.

In joint tenancy cases the bedroom tax can still apply

Bedroom tax not applied in joint tenancy cases.

Protection on death for up to 52 weeks. Benefits run-on for 3 months.

13 week protection where the tenant could previously afford the rent and housing benefit has not been claimed in the last 52 weeks.

Bedroom tax applies immediately.

Lodgers get a room but income is taken into account and deducted pound for pound from benefit apart from first £20

No room allowance but any income from lodgers is disregarded.

Options for avoiding the bedroom tax

Downsize?

Pay the shortfall?

Lodger?

Benefit Cap

Source: DWP Impact Assessment

£500 per week cap

56,000 households affected

46% of those affected are in social housing

49% of those affected are in London

£93 per week average loss 

What’s left for rent?

Children

Couple plus…

Typical benefits entitlement excluding housing costs

Maximum available for housing costs within the cap

Examples only – actual benefits receipt will depend on household circumstances

Discretionary Housing Payments

HB cuts HB help

£2.1bn

£135m

HB cuts vs. HB help 2014-15Total DHP available:

2010-11: £20m2011-12: £30m2012-13: £60m2013-14: £165m2014-15: £135m

Included in UC:• Income-based Jobseeker’s

Allowance• Income-related Employment and

Support Allowance• Income Support (including Support

for Mortgage Interest)• Child Tax Credits• Working Tax Credits• Housing Benefit

Excluded from UC:• Council Tax support• Disability Living Allowance• Contributory Benefits

(although earnings rules aligned)

• State Pension• Child Benefit• Pension Credit• Carer’s Allowance

Universal Credit

Measuring the impact on tenants and landlords…

Federation impact assessment

• Coherent messaging to inform tenants.• Working together on financial inclusion and

other mitigation strategies and signposting.• Making strategic decisions about funding of

services – debt advice etc.• MP and Councillor training.

Joint working: can we fix it?

Contact

Rhona BrownNational Housing Federation

0207 067 1145Rhona.brown@housing.org.uk

Andy TateNational Housing Federation

020 7067 1081andy.tate@housing.org.uk

Further information: www.housing.org.uk/welfare