Welfare Reform

Housing Benefit Changes

Almond Neighbourhood Partnership27 February 2013

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Purpose of Update

1. Latest update on benefit changes2. Update on actions to inform tenants

and help them plan for the change

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Housing Benefit Under Occupation

Main Changes from April 2013 • Affects working age tenants claiming Housing

Benefit who have more bedrooms than the new rules say they need

• Housing Benefit will be reduced by: - 14% Total rent due - one extra bedroom - 25% Total rent due - 2 or more extra

bedrooms

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Current Tenants – HB Under Occupation (as at early Jan 13)

• 3,583 Council tenants on housing benefit identified as affected

• 87% (3,114) of those affected – 14% reduction - one extra bedroom (£13 - £15 per week)

• 13% (469) of those affected – 25% reduction - 2 or more extra bedrooms (£20 - £27 per week)

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Advice for Starting a Tenancy• The current Lettings Policy is unchanged – this still

allows single people or couples to bid for two bedroom homes

• Tenants will be made aware if they get HB, and they bid for a home that is bigger than the rules say, they will be expected to pay the difference

• If they fall into rent arrears because they don’t pay the shortfall, they will face eviction and could lose their home

• Tenants that are going to under occupy their home will be asked at tenancy sign up to sign a form indicating that they’re aware of the risk

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Advice for Existing Tenants

• Local neighbourhoods are contacting all tenants identified as affected

• Checking tenants’ current household circumstances - are they under occupying?

• Support providers contacting those who are currently receiving support

• Making tenants aware of the choices available and support available

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Choices for Tenants that are Under Occupying

• Pay the shortfall between their rent and their HB

• Increase their income/reduce outgoings• Have somebody move in• Apply for additional financial help

(Discretionary Housing Payments)• Move to a smaller home

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Getting the Message to Tenants

• Communications plan/strategy in place• Training and information for staff• Further general information Jan 13 rent

statement• Postcards to council tenants affected – 7

February 2013• Benefits letter to affected council & RSL

tenants from 11 February 13• Local open days/events being planned in

neighbourhood offices

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Universal Credit(1)

Universal Credit will be launched in 2013 and will replace:

• Income-based Jobseeker’s Allowance • Income-related Employment and Support

Allowance • Income Support • Child Tax Credits • Working Tax Credits • Housing Benefit

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Universal Credit (2)

• Will be introduced on a phased basis from October 2013 (starting with new applicants)

• Will be paid directly to the applicant• Will be capped at a weekly rate of £350

for a single applicant or £500 for couples or lone parent households

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Summary of the Council’s Approach

• Responsibility to collect rent/service charges as this pays for services and supports investment in new and existing homes

• Tenants responsibility to pay rent due – need to be fair to all tenants

• Help tenants make an informed choice about their best option for the household

• Overall aim is to help tenants remain in their homes and prevent homelessness

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Please contact me!

Karen Allan : 0131 529 6711 : karen.allan@edinburgh.gsx.gov.uk

Thank you