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The Impact of Welfare Reform in Middlesbrough

Bridges of Hope - 3rd October 2013

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Around £380m lost to region as a result of changes to:

Council Tax BenefitBenefits CapMove from IB to ESADLA change to PIPSize criteria for HB (‘bedroom tax’)

With other changes – up to £940m

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Resilience – a bleak picture. In November 2012, there were 7.5 Job Seeker Allowance claims for every unfilled job centre vacancy across the region (12/1 in Middlesbrough)

Patterns of under occupation show issues of concentration and extent throughout the region (e.g. 410 households in Thorntree affected)

BBC Experian Survey 2010 – 324 local authorities – Middlesbrough 324/324 – the LEAST resilient in the England

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Under occupation

• Mismatch between housing availability and need:– Social housing stock in the NE is skewed towards family-sized

units (75%+); the proportion of 1-bedroomed homes averages out at 22% (46,700 properties) (20% in Middlesbrough)

– The actual number of 1-bedroomed properties that become available within a year stands at less than 6,500; compared to over 45,000 people registered on waiting lists for this property size;.

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Under occupation and housing policy

• The features of the regional housing market make Middlesbrough particularly vulnerable to the changes proposed for social housing tenants

• Acknowledgement that not enough properties to accommodate relocations

• Leading to less saving on HB than anticipated• Leading also to increased risk of empty properties and

perverse allocation practices

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Organisational challenges

• Considerable concern over new responsibilities:– Large numbers of people paying Council Tax for the first time– Administration of the Social Fund replacement (LAs)– Use of Discretionary Housing Payments

• For social landlords:– Increasing arrears– Changing allocation policies

• For all agencies – how to coordinate effective advice services to meet increased need

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• Concerns over size and complexity of changes• Delivery and administrative changes:– Monthly payments– Direct payments– One payment per household– On-line

Future administrative challenges

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• Council tax – a new primary debt and new payers.

• DHPs –criteria and spend• Social fund replacement –criteria and spend• “more stringent” systems – less resource

available?

Emerging issues

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• Increase in bids for 1 bed properties and increased terminations

• Issue of larger properties – implications for who they are let to or develop innovative schemes for their use

• Significant increase in demands for advicee and guidance – is this available?

Emerging issues

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• Monitoring framework needed to track changes and adapt policies where possible (Northern Housing Consortium):– Economy, employment and social impacts– Housing– Discretionary Housing Payments, Social Fund and Council

Tax Benefit– Advice and support– Impact on groups

Recommendations

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Increased activity for pay day loan companies – including illegal activity

Larger numbers of food banks and charity activity

Early confirmation of health issues becoming a factor

Residents vulnerable to a range of pressures (multiplier effect) with little flexibility in local governance to mitigate them

Real concerns

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Thank you for listening…..