Universal Credit Full Service What it has meant for social housing tenants in Southwark? Eugene Nixon, Head of Strategy & Compliance, Exchequer, Finance & Governance Southwark Council Good morning everyone – I am pleased to have an opportunity to talk to you today – at this event and let me thank Chris and Alice for inviting me to do so – It is timely that we meet today – almost two years exactly since Southwark became one of the very first places in the country- the third in fact - to see UC full service or UC in its fully fledged form – albeit in proto-type. As many of you will know roll out began initially at London Bridge jobcentre and eventually to all the jobcentres that serve Southwark residents – Peckham and Kennington Park WE have been very much at the cutting edge of what the Government describe as the biggest change to the benefit system since Beveridge and of course it is 75 years almost to the month since the Beveridge report was published on 01 December 1942 And today is an opportunity to share some reflections and I hope to discuss Southwark Council’s perceptions of UC progress both as a local authority with our own responsibilities for the health and wellbeing of our residents, as the local strategic planning organisation which already has more rented social housing as a share of its total dwelling stock than any other LA in England and committed to building more affordable housing and more Council housing and of course not least as a very big social landlord in our own right. We have worked closely with Citizens Advice and the Money Savvy project in particular closely throughout that period and Money Savvy is funded by Big Lottery Fund grant conceived earlier this decade largely in preparation for UC rollout and recognising that social housing tenants were among those most likely to be financially excluded – lacking access to the kind of transactional bank account – possession of which would be a prerequisite for anyone claiming UC and financial exclusion remains we think a still submerged but very real risk to the safe and successful implementation of UC

Background The Universal Credit proposition – policy intent Why such a big change for a social housing / Council tenants? Concerns in the social housing sector Direct Payment Demonstration Project (DPDP) Government response – recognising and mitigating risk?

UC full service comes to Southwark Evidencing impacts – developing a response Policy and design - influencing Government Rent payments – understanding impacts for tenant behaviours Operations – flexing the model

Safe As Houses? How is the early roll-out of Universal Credit affecting rent payment behaviours among social housing tenants in the London borough of Southwark? evaluate the impact of changes to how housing cost support is claimed calculated and paid to social housing tenants looking specifically at whether behaviours are changing compared with legacy (HB) identify obstacles to positive behaviour change where absence of such change may make it more difficult to for tenants to cope develop proposals on how obstacles may be overcome

Safe As Houses? How are identified changes in behaviour – or the absence of behaviour change – affecting the tenancies of those social housing tenants who are claiming UC? evaluate the effectiveness of arrangements for making payments to social landlords and the associated safeguards for rent payments evaluate the effectiveness of communication with social housing tenants intended to increase their readiness for new arrangements and enhance their ability to cope evaluate the accessibility and effectiveness of the forms of support available to help those needing it

What did we learn? www.smith-institute.org.uk

What did we learn? Underpayment of rent due / rent arrears appear to be worse under UC than under HB Obstacle to positive behaviour change appears to be payment delays Alternative payment arrangements “work” Levels of awareness / readiness for UC are low – communication needs to improve Universal Support offer not attractive

How are we applying lessons? (1) immediate change to treatment of rent arrears for UC claimants increasing use of APAs (Trusted Partner) new work to understand impacts of UC for rent income teams changes to communications – working through tenant and community organisations testing new approaches to Universal Support

How are we applying lessons? (2) reduce waiting period for first payment introduce a two week HB run on for those moving from HB to UC trust rent figures provided by social landlords – develop the new landlord portal improve APA arrangements publish long awaited Universal Support Framework

Questions?