Welfare Reforms Update

Maxine Stavrianakos - Unit Manager, Income Management

Background to Welfare Reforms

• Biggest Change to Welfare Reforms in 60 years- make work pay- simplify benefits system

• 30+ changes to Welfare Benefits• Impact on Sheffield £173m p.a.

SCC Housing Stock

• 26,933 of Sheffield’s 40,379 (66.7%) tenants are receiving either full or partial HB (Full 51%)

• 2012/3 - Annual Debit £159,717,824 - HB £91,885,338

Under-occupancy

• Implemented from 1st April 2013.• Currently affects 4,401 SCC tenants

- 85% (3,740) affected by 1 bed losing average £10.22p.w.- 15% (671) affected by 2 bed+ losing average £18.84p.w

• As at end of Jul 13- 463 tenants paid nothing (10.52%)- 2,425 tenants paid part (55.10%)- 1,513 paid all (34.38%) (640 due to discretionary housing payment)

Discretionary Housing Payments (dhps)

• Budget of £995k + £153k

• Criteria- Must prove hardship- In repeat applications looking at what tenants have done to remedy situation- DLA: Mobility element disregarded

Care element included

• 4 weeks for award

• For SCC tenants Council Housing Services have - applied for 1,820 first time awards as at end of Aug.13 resulting in £261,030 paid onto tenants rent a/c- applied for 597 second awards resulting in £6,578 paid onto tenants rent accounts

Benefits Cap

• Benefit Cap- £350pw single person- £500pw family- 86 SCC tenants affected- Implemented in Sheffield from 12.8.13

• Joint visits with DWP

Additional Challenges

• DLA to PIP

• Council Tax

• Economic Climate- Sanctions- 0 hours contracts

Universal Credit

• All working age benefits paid monthly in arrears

• First claimants in Sheffield From Oct 13• First tenants in Sheffield from April 13• Mass migration expected Summer 16• Based on pilots expected arrears increase -

£28m by 17/18• Potential increase in legal action

Mitigation - support to affected tenants

• Visiting all affected customers from October 2012• Carried out 8,280 visits and seen 2,706 households

- Advising re changes- Advice on rehousing- Money and Debt Advice - Referrals for Employment Support- Support to open bank/credit union accounts- Advice on taking a lodger- Access to the Internet- Completion of a Discretionary Housing Payment (dhp)

• In addition advice to tenants in arrears

Mitigation - support to affected tenants

• Communications – internal and external• Work with local partners• Increased financial inclusion work• Links to worklessness• Credit Union budgeting accounts (SCUBA)• Hardship Fund• Man and a Van• CAB Debt Advice Workers• No legal action if tenant engaging & done

everything possible