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Learn with us. Improve with us. Influence with us. www.cih.org Housing Policy and Welfare Reform in Wales: Julie Nicholas, Policy & Public Affairs Manager,

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Presentation on theme: "Learn with us. Improve with us. Influence with us. www.cih.org Housing Policy and Welfare Reform in Wales: Julie Nicholas, Policy & Public Affairs Manager,"— Presentation transcript:

1 Learn with us. Improve with us. Influence with us. www.cih.org Housing Policy and Welfare Reform in Wales: Julie Nicholas, Policy & Public Affairs Manager, CIH Cymru, 10.04.2013 Pembrokeshire Coast National Park Authority

2 Learn with us. Improve with us. Influence with us | www.cih.org Contents 1.CIH 2.Context & Policy Drivers 3.Around the UK 4.Homes for Wales White Paper 5.Other stuff 6.Welfare reform

3 Learn with us. Improve with us. Influence with us | www.cih.org Chartered Institute of Housing Victorian philanthropist Octavia Hill initiated the profession of housing management to make 'lives noble, homes happy & family life good‘ 1916: Association of Women Housing Workers 1931: Institute of Housing 1965: Merged into Institute of Housing Managers 1974: Renamed the Institute of Housing 1984: Royal Charter 1994: Renamed Chartered Institute of Housing Our goal is simple – we want to transform lives. – Decent, affordable home in a thriving, safe community – To provide housing professionals with advice, support & knowledge Responding to the devolution agenda CIH Cymru is one of 3 NBUs We have over 22k members Learn-Improve-Influence Join us!

4 Learn with us. Improve with us. Influence with us | www.cih.org Context & Drivers Growth negative/weak Jobless recovery: Youth unemployment Mortgage and Credit rationing Weak Housing supply – house building at its lowest level since the WW2 Housing Waiting lists rising Tenure shift- growth in PRS Long-term demographic change- ageing population Longest & deepest sustained period of public service cuts since WW2 – Welfare Reform Policy Divergence

5 Learn with us. Improve with us. Influence with us | www.cih.org UK GDP: Economy shrank end of 2012 If economy shrinks in first quarter of 2013, UK re-enters recession; defined as 2 consecutive quarters of contraction Savills research 2013: ‘The prime residential markets across England and Wales appear to be stabilising’.

6 Learn with us. Improve with us. Influence with us | www.cih.org Westminster Influence on Wales Austerity & Welfare Reform Public Service Spending 1950-2016

7 Learn with us. Improve with us. Influence with us | www.cih.org New Dwelling completions in Wales by Tenure

8 Learn with us. Improve with us. Influence with us | www.cih.org Growth in the PRS

9 Learn with us. Improve with us. Influence with us | www.cih.org WHO12: Homeless Households accepted by priority need and period 2002/3- 2011/12 Source: Stats Wales DCLG Feb 2013: Rough sleeping up 6% in England from 2011 to 2012

10 Learn with us. Improve with us. Influence with us | www.cih.org Tour of the UK

11 Learn with us. Improve with us. Influence with us | www.cih.org Montague Report 2012 Construction & House building major contributor to national economy, – provide average 3% of GDP in the last decade. – for every £1m of new housing output 12 additional jobs supported per year – for every £1 invested £2.60 generated in supply chain. “Real potential" in large-scale development for PRS by organisations & institutional investment

12 Learn with us. Improve with us. Influence with us | www.cih.org England Housing Stimulus Package announced in September – £10b loans guarantee for PRS & affordable housing – £300m capital afford housing & empty properties Localism Act 2011 opportunities for radical change – E.g LA able to offer new tenants ‘flexible tenure’ (fixed term) Budget 2013: support for home ownership & construction – Help to Buy, Increasing Right to Buy Access, Build for Rent scheme – Extra £225m to support up to 15,000 new affordable homes – No lift local authority borrowing caps so they can invest more in developing new homes. CIH welcome recognition of role of housing in economic recovery concerned that this will inadvertently stoke up house prices rather than increase new house building

13 Learn with us. Improve with us. Influence with us | www.cih.org Update from CIH Scotland & N. Ireland Scotland – Unified council & HA tenancy – in 2001 Act – Included extension of RTB to HAs; now being reversed – 2003 homeless leg. removed priority need by 2012 – Housing Bill due shortly – Lessons learnt… 9 years on, some legislation still not in force N. Ireland – NI Housing Exec is largest landlord in NI – Influence of the Republic crash/‘NAMA’ – Social Housing Reform Programme announced Jan 2013 develop sustainable financing model for social housing; improve regulation and inspection of landlords Develop new landlord function

14 Learn with us. Improve with us. Influence with us | www.cih.org The Welsh Context Cabinet reshuffle March 2013 Carl Sargeant: Housing & Regeneration Minister – (incl Planning) Huw Lewis: Communities & Tackling Poverty – (former Housing Minister, now incl. sustainable dev) Supply: 14,300 new homes p.a. – 9,200 market homes & 5,100 non-mkt (social/affordable) p.a. Mortgages availability reduced Growing PRS Homelessness increasing: +4% in 2011/12 Growing & Ageing Population – 2011 Census 3.1 million people, 31% aged 55+ Post-devolution housing policy There is growing £ pressure, inequality & housing need

15 Learn with us. Improve with us. Influence with us | www.cih.org Homes for Wales White Paper: New Legislation Proposed System Stewardship Improve the PRS – mandatory WALLS scheme Prevent homelessness – early intervention & increased options End Family Homelessness Empty Homes; discretionary higher rate of council tax Statutory duty to provide Gypsy Traveller sites to meet need – Consultation 2013 for LA Gypsy & Traveller sites under the defn of ‘protected sites’ within Mobile Homes Act 1983 Define Community Land Trusts & Enable Co-operative housing Require LAs to produce/update regular Local Housing Market Assessments

16 Learn with us. Improve with us. Influence with us | www.cih.org Other Legislation in WP Tenancy reform – separate Bill within lifetime of Assembly – ‘Renting Homes’ Bill – Merge RSL & LA tenancies – Model PRS contracts Set standards for LAs - rents, service charges & quality of accommodation (to meet WHQS) Duty of co-operation on HAs to address – Homelessness – Social lettings – Needs of vulnerable people – Anti-social behaviour

17 Learn with us. Improve with us. Influence with us | www.cih.org Targets: 7,500 affordable, 500 on surplus pub. Sector land, 5000 empty properties, Co-op Housing target (500) LA Mortgage schemes Regeneration: town centres /empty shops Improve social housing through WHQS Housing led regeneration Property Improve. Loans Accessible Housing registers Explore fuel poverty investment Create Jobs & Training Opps Increasing Supply & Improving Quality

18 Learn with us. Improve with us. Influence with us | www.cih.org A better PRS, Improving Services & Support and Preventing Homelessness PRS is ‘a sector of extremes’ :Recognise importance 20% by 2020 PRS accreditation; national & mandatory Lettings & Management agents Simple, effective & self-financing Improved HMO info sharing between LAs Develop more social lettings schemes Separate PRS Consultation Reduce inequality--Health & wellbeing agendas -Supporting People –RCCs, ring-fencing Homelessness: -Prevention as corporate duty -‘Housing Solution’ model & Prevention agenda -No intentionality for households with children -End Family Homelessness -Consider phasing out ‘priority need’

19 Learn with us. Improve with us. Influence with us | www.cih.org Other Consultations Proposals for a Better PRS – Registration & accreditation of landlords & agents Mobile Homes (Wales) Bill Council Tax & Long Term Empty Homes in Wales Renting Homes Bill: Due May 2013 Towards a Welsh Planning Act Recommends – Local Development Plan process to be improved not replaced – Planning White Paper due by end 2013 Vibrant & Viable Places: New Regeneration Framework – strengthened governance, improved partnership & collaboration – 3 Regions, focus on opportunity as well as need

20 Learn with us. Improve with us. Influence with us | www.cih.org As well as…. McClelland report: – Maximising Impact of Welsh Procurement Policy – Confirm WG expects delivery of ‘balanced set of wider benefits’ Implementing Mobile Homes Act 1983 on LA Gypsy & Traveller sites – bring LA sites under defn of ‘protected sites’ Consultation on legislation to end VAW & DA – policy and legislative proposals consultation ends Feb 2013 Together for Mental Health strategy consultation ended 2012 11 more WG Bills on the way incl Social Services (Wales) Bill Plus Westminster...ASB draft bill Dec 2012 – intro. Community Trigger & Remedy

21 Learn with us. Improve with us. Influence with us | www.cih.org Welfare reform The reforms announced in 2010 estimated to save over £18 billion by 2014–15 – around 8 per cent of the UK budget for social security benefits and tax credits Further welfare cuts announced in Autumn Statement 2012 amount to £3.7 billion by 2015–16

22 Learn with us. Improve with us. Influence with us | www.cih.org Welfare reform: Includes Universal Credit phased from Oct 2013; – single working-age benefit Total benefit cap for households of £26k Social Sector size criteria; ‘bedroom tax’ LHA rates uprated by CPI rather than actual market rents New pension credit limit will replace HB DLA replaced by Personal Independence Payments (PIP) Discretionary social fund abolished & Community care grants / crisis loans replaced by ‘Local Welfare assistance’ Direct housing benefit payments to landlords will end + Council tax benefit replaced by council tax scheme – WG 100% protection for 2013/14; reduce to 90% after this??

23 Learn with us. Improve with us. Influence with us | www.cih.org

24 Social Sector Size Criteria AKA ‘The Bedroom Tax Commences April 2013 In Wales expected to affect 40,000 – 18% of all tenancies in social housing sector – Largest ‘region’in UK Total loss of income to tenants in Wales – £26,707,200 per year Limited supply of smaller properties in Wales – Community cohesion impact – Planning implications??

25 Learn with us. Improve with us. Influence with us | www.cih.org

26 Household Cap: £26k p.a.

27 Learn with us. Improve with us. Influence with us | www.cih.org Direct Payments Tenant implications – Rent huge proportion of household budget for low-income families – change from weekly to 4-weekly payments (arrears) – Financial management & support needs – Financial inclusion; large number without a bank account – Digital inclusion; expectation claimants will apply on-line Landlord Implications – Arrears impact; Demo projects significant increases in arrears – Impact on Landlords business planning, service delivery and preferential borrowing rates Impact on IT and rent account systems

28 Learn with us. Improve with us. Influence with us | www.cih.org Impact of welfare reforms in Wales: Feb 2013 ‘Will have a huge and damaging effect on Wales as a whole’ Estimate WR reduce total benefit & tax credit entitlements in Wales by £520 million (or £590 million if UC is excluded). Corresponds to £6.40 pr family pr wk on ave, 1.5% of net income Income losses per claimant could be over £80 per week – affected by DLA & Employment & Support Allowance alone Hardest hit by income losses: – Households with children – those towards bottom of income distribution – impact of the changes in financial work incentives on employment and hours of work is predicted to be, at best, very modest. http://wales.gov.uk/topics/socialjustice/welfare-reform-in- wales/;jsessionid=F716C2A39D462ECFBBCD778C5CA74683?lang=en http://wales.gov.uk/topics/socialjustice/welfare-reform-in- wales/;jsessionid=F716C2A39D462ECFBBCD778C5CA74683?lang=en

29 Learn with us. Improve with us. Influence with us | www.cih.org What needs reviewing? Development – Type of letting (smaller, bedroom sizes) – Affordability Housing management and tenant support – Lettings policy and procedures – Arrears policy – Financial inclusion strategy Finance – Income stream projections – Bad debt provision – Payment systems Landlords & Added Value Services Other challenges – Cuts to advice agencies & Cuts to Public Services – Community Cohesion

30 Learn with us. Improve with us. Influence with us | www.cih.org The Welsh Housing Review 2012 http://www.cih.co.uk/publication-free/display/vpathDCR/templatedata/cih/publication- free/data/Wales/Welsh_Housing_Review_2012 Email: julie.nicholas@cih.orgjulie.nicholas@cih.org

31 Learn with us. Improve with us. Influence with us | www.cih.org Join Us! Become a member of CIH CIH Cymru 4 Purbeck House, Lambourne Crescent Cardiff Business Park, Llanishen, Cardiff, CF14 5GJ 029 2076 5760 Contact Us Email: cymru@cih.org Twitter: @CIHCymru Website: www.cih.org Already a member? Become a CIH Champion in your Organisation


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