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Welfare Reforms Update

Welfare Reforms Update. Maxine Stavrianakos - Unit Manager, Income Management. Background to Welfare Reforms. Biggest Change to Welfare Reforms in 60 years - make work pay - simplify benefits system 30+ changes to Welfare Benefits Impact on Sheffield £173m p.a. SCC Housing Stock.

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Welfare Reforms Update

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  1. Welfare Reforms Update Maxine Stavrianakos - Unit Manager, Income Management

  2. Background to Welfare Reforms • Biggest Change to Welfare Reforms in 60 years- make work pay- simplify benefits system • 30+ changes to Welfare Benefits • Impact on Sheffield £173m p.a.

  3. SCC Housing Stock • 26,933 of Sheffield’s 40,379 (66.7%) tenants are receiving either full or partial HB (Full 51%) • 2012/3 - Annual Debit £159,717,824 - HB £91,885,338

  4. Under-occupancy • Implemented from 1st April 2013. • Currently affects 4,401 SCC tenants- 85% (3,740) affected by 1 bed losing average £10.22p.w.- 15% (671) affected by 2 bed+ losing average £18.84p.w • As at end of Jul 13- 463 tenants paid nothing (10.52%)- 2,425 tenants paid part (55.10%)- 1,513 paid all (34.38%) (640 due to discretionary housing payment)

  5. Discretionary Housing Payments (dhps) • Budget of £995k + £153k • Criteria- Must prove hardship- In repeat applications looking at what tenants have done to remedy situation- DLA: Mobility element disregarded Care element included • 4 weeks for award • For SCC tenants Council Housing Services have - applied for 1,820 first time awards as at end of Aug.13 resulting in £261,030 paid onto tenants rent a/c- applied for 597 second awards resulting in £6,578 paid onto tenants rent accounts

  6. Benefits Cap • Benefit Cap- £350pw single person- £500pw family- 86 SCC tenants affected- Implemented in Sheffield from 12.8.13 • Joint visits with DWP

  7. Additional Challenges • DLA to PIP • Council Tax • Economic Climate- Sanctions- 0 hours contracts

  8. Universal Credit • All working age benefits paid monthly in arrears • First claimants in Sheffield From Oct 13 • First tenants in Sheffield from April 13 • Mass migration expected Summer 16 • Based on pilots expected arrears increase - £28m by 17/18 • Potential increase in legal action

  9. Mitigation - support to affected tenants • Visiting all affected customers from October 2012 • Carried out 8,280 visits and seen 2,706 households- Advising re changes- Advice on rehousing- Moneyand Debt Advice - Referrals for Employment Support- Support to open bank/credit union accounts- Advice on taking a lodger- Access to the Internet- Completion of a Discretionary Housing Payment (dhp) • In addition advice to tenants in arrears

  10. Mitigation - support to affected tenants • Communications – internal and external • Work with local partners • Increased financial inclusion work • Links to worklessness • Credit Union budgeting accounts (SCUBA) • Hardship Fund • Man and a Van • CAB Debt Advice Workers • No legal action if tenant engaging & done everything possible

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