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Shall I stay or shall I go?Preparing for the ‘size criteria’ element of Welfare Reform

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This session will cover

• The key features of the ‘size criteria’ • The likely impact - for tenants and landlords• Working with people who intend to stay• Discretionary Housing Payment• Lodgers• Financial Inclusion/ Capability


The size criteria• Applies to working-age adults claiming HB and under-

occupying social rented homes by 1 or more bedrooms

• HB will be reduced by: 14% of rent for one extra bedroom 25% for rent for two or more extra bedrooms

• Effective from April 2013


The size criteria • One bedroom for every adult/couple ( over 16)• Two children under 16 of same gender - expected to

share• Two children under 10 expected to share - regardless

of gender• Disabled tenant or partner needing a non-resident

overnight carer - allowed one extra room• Size of bedroom not considered


How will it affect households?• Foster children will not be treated as part of the

household• Disabled people in specially adapted properties will

not be exempt• Children with serious health problems or disabilities

could be exempted from sharing with a sibling at the discretion of the local authority


What’s the likely impact? Impact Assessment Average loss per week of £21 per week in London

Tenants expected to :• pay the difference from benefit/wage income,• Move to a smaller property• Find or increase employment• Take in a lodger


Working with tenants who intend to stay

• On average in surveys carried out in by individual housing providers in Midlands, South West and North West of England 50-60% of tenants say they intend to “ stay and pay”


Discretionary Housing Payment

Increase in Local Authorities Discretionary Housing Payment allocation (£80m 2013/14 £50m 2014/15)particularly aimed at:• households with foster children• People with disabilities living in significantly adapted properties.Funding not ring- fencedDHP Draft guidance and good practice guide was released by DWP in August for consultation.www.dwp.gov.uk/consultations/2012/discretionary-housing-payments.shtml

http://www.dwp.gov.uk/consultations/2012/discretionary-housing-payments.shtml






Issues re DHP

• Ensure tenants are aware they can claim but be realistic about their chance of getting it

• Talk to Housing Benefit department about their plans for awarding DHP- are they focusing on other key groups?

• Consider developing hardship fund for some tenants who might not get awarded DHP


Lodgers

• Lodgers will be treated as part of household, for size criteria reduction however income from lodger’s rent will not be disregarded until claimant becomes moves to universal credit system


Housing providers considering• Not promoting lodgers as option but offering basic

advice and guidance on legal position and safety issues

• Actively promoting taking lodger as one solution, offering comprehensive advice, signposting to “spare room”, template agreements

• Reviewing how to facilitate lodgers schemes through CBL or set up or include in PRS letting scheme.


Issues• Safety and guarding against exploitation and abuse

• Could this lead to the creation of unregistered HMOs?

• Guard against illegal subletting


Working on financial inclusion

• Reviewing approach to financial inclusion

• Emphasis on tenants’ financial capabilityToynbee Hall offering training to housing

providers on how to do financial capability training

• Reviewing income management- issues re affordability checking


Support with budgeting• Citysave, Credit union covering all Birmingham

developed community budgeting account, working with housing providers and utility companies

• London Mutual working with tenants involved in the HB direct payment project offering current and budgeting account

• Other commercial companies Thinkbank, Secure Trust bank , cost is main issue.


Promoting financial products• Transactional bank account not a regulated product,

less restriction on how their promoted.

• Important to offer choice but can signpost or refer to one specific bank or branch

• FSA has produced guidance for social housing providers on promoting financial products

http://www.fsa.gov.uk/pubs/guidance/guidance9.pdf




Learning from others

Support for tenants taking lodgersNottingham City HomesDeveloping guidance for tenants plus template tenancy agreements



Communicating with customersHalton Housing:

Welfare Reform coffee mornings Weekly Budget Buster workshops – budgeting

skills and benefits advice YouTube film


Supporting tenants to payDerwentside Homes: employed a specialist Welfare Rights OfficerAspire Homes: increased in-house money advice staff from one to threeYour Homes Newcastle: expanded financial inclusion teamWalsall Housing Group/Walsave Credit Union: currently pays for budgeting accounts



Learning from others (5)Helping tenants into training and workWolverhampton Homes – LEAP projectTristar Homes/ WorkSTEPS: helping people to become ‘job ready’ and gain/retain jobsEastlands Homes: employment support officer working with financial inclusion teamGreater Manchester: ‘Talent Pool’ – 26 RPs committed to fill 25% entry-level vacancies with local people – 48/79 vacancies filled from Pool


Need help/ advice?CIH guides available to download free:


Need help/ advice?

Contact us:[email protected]• Mobile 078244-36881

mailto:[email protected]

Learn with us. Improve with us. Influence with us | Shall I stay or shall I go? Preparing for the...

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