Housing Benefit Reform Ged Millar, Housing Benefit Reform & Affordable Rents

Welfare Reform Practicalities Single benefits payment Overall benefits cap Improved benefits taper

ALL CLAIMANTS Uprating non-dependant deductions i.e. increasing contribution to rent by household members with income Increased to reflect rent increases since 2001/02 when frozen Annually for 3 years from April 2011

PRIVATE RENTED TENANTS Cover additional room for carer for disabled people Changes to Local Housing Allowance (April 2011) affecting 55,000, losing £10 average p/wk –Based on 30 th percentile instead of 50th –Removal of £15 excess –Capping of 1/2/3/4 bedroom rate Single people under 35 entitled to Shared Accommodation Rate only (January 2012) affecting 7,500, losing from £17-£54 p/wk Uprating by CPI instead of RPI (April 2013) – significantly reduce HB over time

HOUSING ASSOCIATION & COUNCIL TENANTS Under occupancy penalties for working age tenants (April 2013) affecting 95,000 households, £9 - £16 p/wk Direct payments to tenants (April 2013)

Impact £100m from Scottish economy annually (2011 changes) Higher proportion of income on housing costs Rent arrears, homelessness presentations HB not reflecting housing costs Direct payments –not everyone will be able to manage Parental responsibilities, shared accommodation rate and under-occupancy penalty Non-dependent allowance uprating - family tensions? Claimants less attractive to private landlords, less PRS affordable for claimants

HB reforms – other issues Pace of reform Lack of detail Local authorities –No longer main housing benefit administrator - in 2010/2011 DWP provided £50m to local authorities to administer –Lack of face to face contact –Increased demand for other services

SG response Influencing Scottish Housing Adv Group Analysis and related research papers available via SG housing web page Mitigating (DWP trebled discretionary housing payments) Devolution of Social Fund Advice to Ministers (

Housing benefit reform Actual impact depends on claimant & landlord behaviour Bottom line – less money, increased pressure on households incomes

Further information Environment/Housing/16342/hbreformhttp:// Environment/Housing/16342/hbreform Questions?