Impact of welfare reform

William JonesSenior Housing Law Caseworker

Shelter Cymru

The Welfare Reform Act…

‘….will restore fairness and simplicity to a complex, outdated and wildly expensive benefits system.’ DWP

Impacts

Impacts

Impacts

Impacts

Impacts

Impacts

Are we seeing a tougher approach to arrears from housing associations and councils? April – June 2013: •11% increase in possession orders •16% increase in court orders•78% of claims were from the social housing sector

…we are starting to see some Housing Associations asking for one week’s rent in advance

Where are people already in financial difficulties going to find this money?

• Number of homelessness decisions taken by LAs indicates levels of households approaching them for help

• From a high of more than 22,500 in 2004-05, levels dropped steadily until 2010, when the welfare changes were introduced

• Since then, levels have started rising again

• Homelessness is increasing and it seems that HB and other welfare cuts are a contributing factor

• Large parts of some cities are becoming unaffordable to people on benefits and/or low incomes

• Work is not paying – more than 90% of new HB claims between 2010-2012 were from working households

• The introduction of the bedroom tax has created huge insecurity for tenants and threatens to undermine communities

• Meanwhile, smaller properties in the PRS will actually be more expensive, increasing overall HB costs

• Legal Aid cuts mean people can’t get prevention advice at early stages of problems

• The welfare reforms have had a disproportionate impact on the poorest and most vulnerable people in society, but we are all poorer for it

• It’s a bleak picture, but it has shown how many of us are committed to working together to mitigate the worst effects

• Thank you for your time today