Poverty in Old Age

Housing Conditions in Northern IrelandPolicy Implications & Challenges

Joe Frey & Heather Porter

Introduction

• Background

• The evidence – improving housing conditions

• Rising Fuel Poverty

• Policy responses – recent NI research

• The “Big Society” - fiscal realities

• Conclusion: Age or Class

Background

• Ageing population profile: – “10m expected to reach 100”– NI 2008-18: no. & % of people of pensionable age to rise

by 28k (9%) – BUT no. & % of 75+ to rise by 34k (30%)

• Older People’s Housing Research Programme: overall aim – “to provide a comprehensive assessment of the current provision of housing for older people, determine the adequacy of this provision; identify what new accommodation models and services are required as well as the policy implications of these findings”

• Desire to “age in place”

Housing Conditions: NIHCS

• Data Source: successive house condition surveys undertaken on a regular basis – every 3-5 years (Sample size:3-8,000)

• Remarkable improvement in housing conditions from the early 1970s when almost one quarter of all dwellings in NI failed the statutory fitness standard to 2009 when the figure was <3%

• BUT analyses have indicated that older people in particular still live in poorer housing conditions.

Household Growth: 2001-2009

0

50,000

100,000

150,000

200,000

250,000

300,000

18-24 25-39 40-59 60-74 75+

2001

2009

Housing Conditions (1): Tenure

HRP60-74 HRP 75+

O/O 2001 74 62

2009 77 71

PRS 2001 4 7

2009 6 9

Social 2001 22 31

2009 18 20

Housing Conditions (2):Age & Condition

• 2009: 18% of 75+ in pre-1919 (overall 13% - and 10% for 60-74)

• 2009: 3% of all 75+ in unfit homes (1% overall for occupied housing)

• 2009: 50% of 7,000 occupied unfits – occupied by 60+

• Clear relationship between age of property/age of HRP and housing conditions.

Housing Conditions (3): Basic repair costs

2001 (£) 2009 (£)

18-24 773 563

25-39 638 443

40-59 894 708

60-74 1,159 555

75+ 1,579 974

Housing Conditions (4): Decent Homes

• 2009: 28% of 75+ age group in non-decent homes (overall 14% and 12% 60-74)

• Fail primarily on “thermal comfort”: requires dwellings to have “effective insulation and efficient heating”

Housing Conditions (5): Energy Efficiency

• SAP rating (Standard Assessment Procedure) developed by the BRE

• 41% of all homes with SAP < 20 had HRP of 75+

2001 2009

All 46 58

60-74 45 57

75+ 42 53

Rising Fuel Poverty

• NI has significantly higher levels of FP than GB – combination of lower incomes and higher dependency on oil, solid fuel electricity

2001 2006 2009

All 27 34 44

60 -74

32 43 53

75+

46 56 76

Policy Responses (1): New Build

• Paris & Porter (2010): high levels of home ownership in areas of demand for increased supply of age-specific housing – not much evidence to support general increase in social housing

• Health-related frailty a major reason for needing to move – rapid growth in 85+ - increasing need for care-related residential accommodation – rapid rise in dementia

• Life time homes as standard for new build

Policy Responses (2): Supported Living

• Social Research Centre (2010): Barn Halt Cottages: 26 units – provides accommodation, care and support to frail older people who require more than 10 hours care a week

• Alternative to residential care• Mix of assistive technology, staff support and social

activities coupled with the design of the scheme facilitates opportunities for independence and a good quality of life for older people with a range of needs.

• Issue is cost – substantial in terms of ongoing SP and Care funding.

Supported Living: Barn Halt

Supported Living: Barn Halt

Policy Responses (3): Home Improvement Grants

• Traditional approach – significant expenditure since the 1970s

• Problems:– Reluctance of older to move or go through

trauma of major improvement work: “Won’t it do me rightly”! (Rural Community Network, 2007)

– Significant reductions grant budget: cut by two-thirds over a three year period. Focus on Disabled Facilities Grant

Policy Responses (3): Equity Release

• Fiona Boyle Associates (2010): potential of equity release in NI to fund home improvements / repair (48% of older owner occupiers have some disrepair (HCS,2009).

• Issues in relation to commercial viability, falling house prices, lack of information, value for money, affects welfare benefits, risk – resistance because of desire to pass on accumulated wealth.

Policy Options (4) Care & repair / HIA Services

• Core Services: – repairs and adaptations– housing-related advice and information

• Ancillary– handyperson– falls prevention / Home safety check– gardening services– energy efficiency advice– hospital release support

Policy Options (4/1) HIA

• The structure and provision of HIA services in N.Ireland is complex and fragmented

• There is no central strategy supporting development • There is a statutory commitment to funding albeit

indirectly• Community and voluntary sector play a crucial role

in delivering services at local level – few NI wide examples.

• There is a need for a NI wide model that is flexible enough to react to local demand.

• It needs to be an interagency approach / social economy model delivered at community level.

Policy Options (5): Electronic Assistive Technology

• (Martin (2010): Positive contribution EAT can make in reducing burden on carers and supporting risk management – major contribution to “aging in place” & cluster living.

• Needs to be introduced at an earlier stage in provision of support

• General awareness of products – but much more specific knowledge required – and increased level of finance.

Big Society – Fiscal realities

• “Big Society”: “a guiding philosophy – a society where the leading force for progress is social responsibility, not state control”… Underlying approaches include: “breaking state monopolies, allowing charities, social enterprises and companies”.

• Privatization – “rolling back the state” – by another name?

Big Society – Fiscal Realities (2)

• Social policy being driven by ambitious deficit reduction plan:

• March Budget measures:– Winter Fuel Payment reduction (up to

£100)– No increase in personal allowance (£630)

for older people from 2012 – Increase in state pension – but price

increases on food and fuel hit the elderly disproportionately

Fiscal Realities – Fuel Poverty

• “New Fuel Poverty Strategy for NI” (2011)– Committed to “eradication”!!– Sound evidence base– Focus on increasing energy efficiency – Energy brokering– New definition of Fuel Poverty (Hills review)– Education, benefit uptake simplified welfare

BUT if incomes raised by £2,500 – would have “eradicated” approximately 50% of Fuel Poverty

Fuel Poverty – income a key issue

• Median incomes FRS 2008/9 (NI)– for lone older: £10,600– for two person older: £20,300– For all households: £25,000

• Limits to energy efficiency measures – huge programme of retro-fitting unrealistic

• Fuel prices to remain high

Conclusion: Age or Class

• Fuel Poverty analysis (as well as housing conditions of older people generally) indicates that much of the problem is about low incomes – it is essentially a class issue.

• Attributing relative importance of causes in statistical terms is more about modelling change than underlying causes.

• Politicians and policy makers tend to avoid the income (class) issue – seen as a given – addressing it would need a serious re-distribution of wealth/resources!