The Impact of Welfare Reform in Middlesbrough Bridges of Hope - 3 rd October 2013 2.
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Transcript of The Impact of Welfare Reform in Middlesbrough Bridges of Hope - 3 rd October 2013 2.
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The Impact of Welfare Reform in Middlesbrough
Bridges of Hope - 3rd October 2013
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Around £380m lost to region as a result of changes to:
Council Tax BenefitBenefits CapMove from IB to ESADLA change to PIPSize criteria for HB (‘bedroom tax’)
With other changes – up to £940m
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Resilience – a bleak picture. In November 2012, there were 7.5 Job Seeker Allowance claims for every unfilled job centre vacancy across the region (12/1 in Middlesbrough)
Patterns of under occupation show issues of concentration and extent throughout the region (e.g. 410 households in Thorntree affected)
BBC Experian Survey 2010 – 324 local authorities – Middlesbrough 324/324 – the LEAST resilient in the England
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Under occupation
• Mismatch between housing availability and need:– Social housing stock in the NE is skewed towards family-sized
units (75%+); the proportion of 1-bedroomed homes averages out at 22% (46,700 properties) (20% in Middlesbrough)
– The actual number of 1-bedroomed properties that become available within a year stands at less than 6,500; compared to over 45,000 people registered on waiting lists for this property size;.
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Under occupation and housing policy
• The features of the regional housing market make Middlesbrough particularly vulnerable to the changes proposed for social housing tenants
• Acknowledgement that not enough properties to accommodate relocations
• Leading to less saving on HB than anticipated• Leading also to increased risk of empty properties and
perverse allocation practices
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Organisational challenges
• Considerable concern over new responsibilities:– Large numbers of people paying Council Tax for the first
time– Administration of the Social Fund replacement (LAs)– Use of Discretionary Housing Payments
• For social landlords:– Increasing arrears– Changing allocation policies
• For all agencies – how to coordinate effective advice services to meet increased need
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• Concerns over size and complexity of changes• Delivery and administrative changes:– Monthly payments– Direct payments– One payment per household– On-line
Future administrative challenges
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• Council tax – a new primary debt and new payers.
• DHPs –criteria and spend• Social fund replacement –criteria and spend• “more stringent” systems – less resource
available?
Emerging issues
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• Increase in bids for 1 bed properties and increased terminations
• Issue of larger properties – implications for who they are let to or develop innovative schemes for their use
• Significant increase in demands for advicee and guidance – is this available?
Emerging issues
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• Monitoring framework needed to track changes and adapt policies where possible (Northern Housing Consortium):– Economy, employment and social impacts– Housing– Discretionary Housing Payments, Social Fund and Council
Tax Benefit– Advice and support– Impact on groups
Recommendations
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Increased activity for pay day loan companies – including illegal activity
Larger numbers of food banks and charity activity
Early confirmation of health issues becoming a factor
Residents vulnerable to a range of pressures (multiplier effect) with little flexibility in local governance to mitigate them
Real concerns
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Thank you for listening…..