WMBUS Under Occupation

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Under‐occupationPreparing for the social sector size criteria

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This session explores:

• The key features of the social sector size criteria

• The likely impact

• What you can do to prepare

• CIH’s Making it Fit guide

• Learning from others


Social sector size criteria (1)

• Applies to working‐age adults claiming HB and ‘under‐occupying’ social rented homes by 1 or more bedrooms

Exempt if 61 on/before 5 October 2012

• HB will be reduced by:14% of eligible rent for one extra bedroom

25% of eligible rent for two extra bedrooms

• Effective from April 2013



• Bedroom size not considered

• 1 bedroom allowed for:Each adult /couple living as part of the household

Two children under 16 of same sex

Two children under 10 – different sex

Non‐resident overnight carer for disabled tenant/partner


No exceptions, so implications for:

• Separated parents sharing care –designated ‘main carer’receives the full HB

• Parents whose children visit but are not part of the household

• Foster children ‐ not part of the ‘benefit’household

• Couples using a spare bedroom when recovering from illness

• Families with disabled children (Gorry case?)

• Disabled people, including those in adapted/specially designed properties



What’s the likely impact (1)?

• Affects c.670k UK tenants530k under‐occupying by one bedroom

32% of existing working age HB claimants in social sector

60k in West Midlands

• DWP impact assessment:Average loss per week of £13

£14 for HA tenants

• Tenants expected to pay the difference from benefit/wage income


What’s the likely impact (2)?

• More people paying rentIncreased transactions/ costs

• Rent arrearsAlthough many will try to keep up

• People resorting to expensive credit to pay rent?• People struggling to afford to stay in their homes

Increased turnover, family and community instability, FTAs

• Increased demand for smaller units• Some properties becoming difficult to let

Increased refusals and longer relet periods


The clock is ticking…• Be proactive – you can’t afford to ignore this, it’s not going away

• You have 39 weeks to prepare


What are tenants’ options?

• Pay the shortfall• Find work/extra hours• Take in a lodger

• Mutual exchange – same/other landlord

• Transfer to a smaller property:Same/ different landlord

• Privately rent

• You can help with all of these


Things to think about (1)

• Identify tenants affected• Develop your action plan• Good, clear, regular communication and information

With tenants and staffFace to face – with action planClear illustration of what it means ‐ ££££s

• Tenants will be anxiousReassure those who aren’t affected

• Think about vulnerable peopleKnowing your tenants/ their needs is so important



• Tell prospective tenants about the changes – now• Review your lettings strategy/policy and nominations agreements

Do they permit under‐occupation at lettings stage?Review local lettings policiesPriority for under‐occupationFlexibility on transfers with rent arrears?

• Work with partner providers to offer an enhanced mutual exchange scheme

Proactive matchingEventsFlexibility on arrears?



• Sharing:Joint tenanciesLodging schemesSafeguarding and risk assessment are important

• Strengthen links with the private rented sector• New housing developments

Increased focus on smaller units?Lettings policies

• Work with partner providers You can’t solve this on your own



• Open and honest discussions with tenantsNo pressure ‐ it’s their personal choiceExplain pros and cons

• Discretionary Housing Payments• How much help and support will/can you give?

Removal costs? Handyperson support?Dedicate a post to deal with this?Balance cost of this against cost of increased rent arrears


Making it Fit

• Free download – launched 13 June 2012

• Supported by LGA, NHF and NHC

• Hints, tips and practice examples

• Focus on:Communicating messages

Partnerships

Supporting tenants to pay

Supporting tenants to move


Learning from others (1)L• Calico Homes: carried out a full tenancy audit in preparation

• Leeds City Council: monthly, multi‐disciplinary, housing‐focused Welfare Reform Operational Group

• Gateshead: working group of housing providers, advice, jobs and training agencies


Learning from others (2)

• Gateshead: ‘Money Matters’ guide on welfare reform, advice on saving and debt, how to access training and business advice

• Berneslai Homes: leaflet on size criteria giving examples, estimated HB reductions, housing options

• Leicester City Council: reviewed offer letters, developed information sheet for single applicants, and trained staff



• Halton Housing: Welfare Reform coffee mornings and weekly Budget Buster workshops – focused on budgeting skills and benefits advice

• Tristar Homes/ WorkSTEPS Partnership:helping people to become ‘job ready’ and gain/retain jobs


• Derwentside Homes: employed a specialist Welfare Rights Officer

• Aspire Homes: increased in‐house money advice staff from one to three

• Walsall Housing Group/Walsave Credit Union: offer a budgeting account which ‘ring‐fences’money for bills



• RB Kensington and Chelsea: open day for all affected by size criteria

• LB Southwark: speed‐dating coffee morning

• Stockport Homes: offering single people the chance of a joint tenancy



• Wigan CAB/ Wigan Council: Wigan Housing Solutions – managing agent for private landlords

• Wishaw and District HA: lodger policy• Eastleigh Council: letting out a room guide• Derby Homes: lodging information sheet



• The clock is ticking…if you haven’t done so, develop your action plan

• Identify all tenants affected and contact them in person

• Work with your partners/other providers to develop appropriate solutions

Key messages


Need help/ advice?

• Free CIH Making it Fit guide

• Contact the Making Best Use of Stock Team [email protected]

• See our free Practicehub: www.practicehub.cih.co.uk

• [email protected] T: 07950 506692


Thank you for listening!

Over to you…

WMBUS Under Occupation

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