1. ng homes The Impact of the Welfare Reform Lynne Cooper Assistant Director of Housing Services

2. About ng homes Established 1976 5,500 Tenants £22 Million turnover
RSL in area of multiple deprivation
51% of youngsters in our Springburn area living in poverty
Partnership working is key to our success
69% of our tenants in receipt of Housing Benefit

3. Significant Changes Child Trust Fund DLA to PIP
Maternity Grant Universal Credit
RPI to CPI change Digital by default
Winter Fuel Frozen wages
Non dependant Food/Fuel rises
Bedroom Tax Jamjar accounts
Benefits Cap Sanctioning
150% rise in rent arrears calls to National Debt Line

4. Universal Credit
Currently £14m (of ng homes’ £22m annual rent income) comes from Housing Benefit
Currently benefit receipts incur little cost, but Universal Credit will mean;
Increased cashiering costs (coin!);
Increased arrears & support staff costs;
Increased void, court and eviction costs;
Increased bank and borrowing costs.

5. Universal Credit 74 Tenants on Universal Credit
43 Tenants on UC being paid directly to ng homes
22 Tenants in receipt of Arrears Direct Payments

6. Universal Credit The Money
Balance of 74 Current Tenant uc cases is £57,680
Balance of 7 Former Tenant uc cases is £16,166
Balance of 9 Former uc cases is £8,648
Value in total is £82,494 to our arrears

7. The challenge for Housing Associations
A “direct payment” pilot in 2002;
Their arrears increased 133%
2002 economy was different, not as harsh;
Arrears would probably increase with economic climate without additional challenge of UC;
A 133% increase would mean almost £100,000 extra lost every month!

8. Concerns for tenants Accrual of rent arrears – risk of homelessness
Less disposable income – more chance of falling into debt
Spiral of debt – once in debt it is often difficult to get out
Responsibility to prove ‘actively seeking work’ – often limited pc access and skills
Sanctions

9. Comments from ng homes survey
“Just about manage financially” 41%
“Find it difficult to cope financially”- 31%
Payment meter for electricity/gas - 53%
Been unable to pay for electricity/gas in last year - 15%
No home content insurance - 49%

10. What do Housing Associations need to do ?
We need to inform tenants about the changes
We need to know our tenant’s household circumstances
We need to support them through the changes

11. Who ng homes are working with?
Scotcash
Debt & Money advice
Tenancy support
PCU prepaid
Card accounts
Bank accounts

12. Epic 360
Welfare reform & Universal Credit Budgeting Income & Spending Borrowing & Saving Debt & Wellbeing Recap & Plan

13. Referrals from over 45 different sources
We’ve helped clients to:
Improve knowledge of bank acct use.(233)
Assisted opening Bank accounts/ credit union accounts.(149)
referrals since Aug ‘15
Re prioritise spending habits when starting/stopping work.
Use budgeting tools.(199)
Understand Universal Credit better.(444)
Find fuel advice.
3863 outcomes.
“It generally made me focus more on my finances. Epic 360 made me examine, in a positive way, more than just my financial situation”
“If I have a friend in the same situation as me or struggling I will definitely recommend them to Epic 360.”

14. The Poverty Charter
Housing Associations working together in the North of Glasgow to challenge that poverty is acceptable and necessary.
ng homes
Maryhill
Queens Cross

15. Welfare Reform-Help Available
£££££ from Scottish Government
DHP: Discretionary Housing Payment
SWF: Scottish Welfare Fund
Council Tax Relief
Making Advice Work (SLAB)
Glasgow’s Big Lottery Fund – Epic 360 Project
WHAT ELSE SHOULD WE DO??

16. Thank you for listening Lynne Cooper Assistant Director (Housing Services) ng homes