Universal Credit: Tranche 1 Strategic Meeting Monday 16 th March 2015

The Supporting Sustainable Tenancies Team

Number of tenants (circa) Percentage of tenants affected Arrears (Net of HB) Housing Benefit (per month) Likely to be affected for the Housing Benefit element of Universal Credit 3,70042%£300k£265K Not Likely to be affected for the Housing Benefit element of Universal Credit 5,10058%£420k£200K Total8,800£720k Data: Tenants likely to be affected by Universal Credit across NPT We have 2,500 Tenants on Housing Benefit over the UC age restriction of 60.5

-Help me keep a roof over my head -I know how much I owe, when its due and how I can pay -Make it easy for me to pay my rent, and easy to change my way of paying -Don’t give me the wrong information or complicate the system -I know who and where I can turn to if I have a problem and I’m helped in reasonable timescales -I would like to trust you and have confidence in you as a landlord What matters to tenants

“Help” People to Sustain Their Tenancy Purpose

The review has identified the need to understand all tenants (regardless of whether they are in arrears or not) to help them sustain their tenancies. Multiple Case files (Mr & Mrs C) Methods to support and safeguard our clients could include alternative payments and the tier 1/2 managed payments Working in partnership will enable us to safeguard individual clients and avoid duplication Vulnerability of our clients

Risks and NPT Homes Learning

Risk FactorWhy the RiskMitigation Financial RiskMagenta arrears have increased by 50% (Cardiff / Bron Afon similar stories) We intend working with Tenants at first point of contact when they claim UC to ensure that we are able to make them aware of their obligation to Pay their Rent and Help them through the process APA’s - Magenta experience suggests DWP have accepted all Managed Payment APA’s for 8 week arrears and problem 4 week tenants. Arrears for Tenants who have come in since July 14 have dropped by 40% Possibility of 3,700 UC Tenants owing 8 weeks full rent of say £85 = £2.5m plus any delays in DWP APA’s on top Increase in Bad Debt Prov have been included in budgets

Risk FactorWhy the RiskMitigation DWPLack of automation. Letters need to be sent manually by recorded delivery, Payments on APA’s need to be processed manually. Potential delays as more RSLs come online DWP have stated this will be addressed. As we are expecting small numbers in first year circa 100, this hopefully will have minimal impact Job Centre plusSkill set of work coaches and their ability to understand Tenants needs and to help tenants sustain their tenancies is unknown We are working closely with the Job Centre and they have agreed to us working with the coaches as tenants come into the process. Meeting Job Centre Managers on 17 th March VulnerabilityDWP suggest Managed Payments to landlords for tier 1 / tier 2 vulnerability factors should be low (Nationally). Our evidence suggests 50-70% Potential Trusted Partner Status and 3 rd Party evidence by Social Services etc. should enable us to identify Vulnerable tenants to keep on Managed Payments direct to Landlord. Plus CEO raising on Local Service Board I.TOur own I.T systems need to be geared up to accommodate UC tenants and provide the teams with automated letters, certification and alternative arrears reports etc Productive meetings held with Directors/ I.T to move this forward

Landlord Certificate

Risk FactorWhy the RiskMitigation Helpline on “Gateway” The helpline quoted for providing I.T assistance goes through to a Careers Service (English equivalent to Careers Wales). They have no benefits training and are unable to help with UC claims at all. Their number is given solely to provide support with accessing IT, but they can only provide this service in England, so it’s important that the equivalent number is provided for Welsh claimants CHC raised with Helen Matthew (DWP)and will contact the winner of the new Communities2.0 contract to establish whether that could be advertised here as a Welsh alternative. The online map does work for Welsh postcodes (could this option be used by the Careers Service?) Data sharing protocol Learning from other RSLs (Magenta Living) is that the DWP are not currently notifying them when tenants make a claim for UC (only received one notification). Also new claimants are only receiving the personal element of their first UC payment This has been raised with the DWP housing team and it is likely to be the norm because of the current workload (the housing element of UC claims is more complex aspect of the claim)

Positives issueWhy Alternative Payment Arrangements Magenta experience suggests DWP have accepted all Managed Payment APA’s for 8 week arrears and problem 4 week tenants. Arrears for Tenants who have come in since July 14 have dropped by 40% 3 rd party DeductionsDeductions of up to 20% (or 10% if other deductions in place) are recoverable from tenants to repay any arrears accumulated once Tenant moves onto a managed payment Relationship WorkingLandlord Services, FIT, Housing Benefits and Job Centre have all been working closely. This Forum today and Yammer accounts Engagement with Tenants The review has identified the need to understand all tenants (regardless of whether they are in arrears or not) to help them sustain their tenancies. Multiple Case files e.g O Connors DWP evidence Acceptance We have devised a process for local sign off - meeting DWP 17 th March e.g Rent Statements

Barcud update -Merthyr Valley Homes, Bron Afon, Valleys to Coast and NPT Homes are part of a consortium that is chaired by internal auditor -Met in February – lots of positive sharing and pooling of expertise -Texting – variation from zero texts being sent to 2,000 a week -Redemption balance – concept of offering tenants who leave a reduced redemption figure on their potential former arrears (on the basis that 50% of something is better than 100% of nothing -2 weeks payment in advance – expecting new tenants to make payments in advance and holding a credit balance -Trusted Partner Status ((Bron Afon are part of the core Landlord Group that feed back to Lord Freud)

Any questions Claire Maimone Director of Housing and Community Regeneration Andrew Harris Head of Change Management Mark Edwards Senior Community Housing Officer