Welfare Reform
Housing Benefit Changes
Almond Neighbourhood Partnership27 February 2013
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Purpose of Update
1. Latest update on benefit changes2. Update on actions to inform tenants
and help them plan for the change
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Housing Benefit Under Occupation
Main Changes from April 2013 • Affects working age tenants claiming Housing
Benefit who have more bedrooms than the new rules say they need
• Housing Benefit will be reduced by: - 14% Total rent due - one extra bedroom - 25% Total rent due - 2 or more extra
bedrooms
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Current Tenants – HB Under Occupation (as at early Jan 13)
• 3,583 Council tenants on housing benefit identified as affected
• 87% (3,114) of those affected – 14% reduction - one extra bedroom (£13 - £15 per week)
• 13% (469) of those affected – 25% reduction - 2 or more extra bedrooms (£20 - £27 per week)
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Advice for Starting a Tenancy• The current Lettings Policy is unchanged – this still
allows single people or couples to bid for two bedroom homes
• Tenants will be made aware if they get HB, and they bid for a home that is bigger than the rules say, they will be expected to pay the difference
• If they fall into rent arrears because they don’t pay the shortfall, they will face eviction and could lose their home
• Tenants that are going to under occupy their home will be asked at tenancy sign up to sign a form indicating that they’re aware of the risk
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Advice for Existing Tenants
• Local neighbourhoods are contacting all tenants identified as affected
• Checking tenants’ current household circumstances - are they under occupying?
• Support providers contacting those who are currently receiving support
• Making tenants aware of the choices available and support available
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Choices for Tenants that are Under Occupying
• Pay the shortfall between their rent and their HB
• Increase their income/reduce outgoings• Have somebody move in• Apply for additional financial help
(Discretionary Housing Payments)• Move to a smaller home
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Getting the Message to Tenants
• Communications plan/strategy in place• Training and information for staff• Further general information Jan 13 rent
statement• Postcards to council tenants affected – 7
February 2013• Benefits letter to affected council & RSL
tenants from 11 February 13• Local open days/events being planned in
neighbourhood offices
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Universal Credit(1)
Universal Credit will be launched in 2013 and will replace:
• Income-based Jobseeker’s Allowance • Income-related Employment and Support
Allowance • Income Support • Child Tax Credits • Working Tax Credits • Housing Benefit
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Universal Credit (2)
• Will be introduced on a phased basis from October 2013 (starting with new applicants)
• Will be paid directly to the applicant• Will be capped at a weekly rate of £350
for a single applicant or £500 for couples or lone parent households
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Summary of the Council’s Approach
• Responsibility to collect rent/service charges as this pays for services and supports investment in new and existing homes
• Tenants responsibility to pay rent due – need to be fair to all tenants
• Help tenants make an informed choice about their best option for the household
• Overall aim is to help tenants remain in their homes and prevent homelessness
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