Transitioning Tenants to Manage Housing Costs Benefits

Denise Sadler Head of Benefits and Welfare Winchester City Council dsadler@Winchester.gov.uk

Universal Credit is currently being rolled out and will replace 6 key working age benefits including Housing Benefit for Housing Costs which is planned to be abolished by 2022 Claimants must complete their online application for UC and scan/upload supporting documents within 7 days otherwise face losing benefits The first payment is made after a minimum of 9 weeks DWP will use real time information each month to calculate entitlement UC is paid to a single bank account, monthly, in arrears It poses a risk to Local Authority income streams including housing, homelessness, adult social care, council tax .

Previous DWP pilots moving claimants to UC have resulted in rent arrears increasing to over 85% DWP studies show that over 18,000 claimants are excluded from even basic banking Over 30% of claimants need elements of financial safeguarding to secure them in their own homes ..and yet the DWP roll out plan for UC remains the same, claimants must manage their own finances, with their own bank account, including paying their rent, from the due date of UC roll out and/or when HB is abolished whichever is earlier ..

To identify and raise tenant awareness of cultural changes between housing benefit and universal credit applications/payments. To provide a wrap around support programme, where required, for tenants who are identified as at risk moving from direct HB to UC paid into personal bank accounts To utilise pre-payment cards as a key facilitating method within that support programme To provide relevant levels of support and education for tenants to be bank fit , arrears free and ready for UC roll out.

To successfully transition tenants to managing their own housing costs benefits through their own personal bank account To not create a long term dependency on pre- payment cards but . .to acknowledge a proportion of vulnerable tenants who are unable to manage their own housing costs benefits and Whose only other alternative would be a direct landlord payment/managed payment (which continues to exclude them from housing alternatives)

To raise awareness of UC roll out To mitigate the risk/level of rent arrears created by the change from HB to UC To mitigate potential risk of homelessness/indebtedness created by the change from HB to UC To prepare existing HB claimants for the cultural change presented by UC To provide a sustainable and supported alternative for tenants who require long term help in managing their housing costs benefits to secure them in their homes.

We started to send circa 1100 questionnaires on 7 June (some of the responses to follow) At 29 June we have had around 553 replies (around 49%) We are in the process of setting up PPC with PFS We are testing software updates to faciliate PPC payments from our HB system We have organised the support workshop sessions We are on target for the first claimants to receive their PPC from 1 September 2017

Go live (first cards to be issued) from 1 September 2017 Initial pilot will include 100 claimants who will be offered to support to transition including a PPC and will run for 3 months First data on the economic and welfare impacts will be available from 15 December 2017

Questions? Contact: dsadler@winchester.gov.uk