learn with us. improve with us. influence with us. housing policy and welfare reform in wales:...

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Housing Policy and Welfare Reform in Wales:

Julie Nicholas, Policy & Public Affairs Manager, CIH Cymru, 10.04.2013Pembrokeshire Coast National Park Authority

Learn with us. Improve with us. Influence with us | www.cih.org

Contents1. CIH

2. Context & Policy Drivers

3. Around the UK

4. Homes for Wales White Paper

5. Other stuff

6. Welfare reform


Chartered Institute of Housing • Victorian philanthropist Octavia Hill initiated the

profession of housing management to make 'lives noble, homes happy & family life good‘

1916: Association of Women Housing Workers 1931: Institute of Housing 1965: Merged into Institute of Housing Managers 1974: Renamed the Institute of Housing 1984: Royal Charter 1994: Renamed Chartered Institute of Housing

• Our goal is simple – we want to transform lives.– Decent, affordable home in a thriving, safe community– To provide housing professionals with advice, support & knowledge

Responding to the devolution agenda CIH Cymru is one of 3 NBUs• We have over 22k members• Learn-Improve-Influence• Join us!


Context & Drivers• Growth negative/weak• Jobless recovery: Youth unemployment• Mortgage and Credit rationing• Weak Housing supply

– house building at its lowest level since the WW2• Housing Waiting lists rising• Tenure shift- growth in PRS• Long-term demographic change- ageing population• Longest & deepest sustained period of public service

cuts since WW2– Welfare Reform

• Policy Divergence


UK GDP: Economy shrank end of 2012If economy shrinks in first quarter of 2013, UK re-enters recession; defined as 2 consecutive quarters of contraction

Savills research 2013: ‘The prime residential markets across England and Wales appear to be stabilising’.


Westminster Influence on Wales• Austerity & Welfare Reform

Public Service Spending 1950-2016


New Dwelling completions in Wales by Tenure

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 -

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

10,000

Source: Stats Wales

Local AuthoritiesSocial LandlordPrivate Enterprise

Wales requires 14,200 dwelling p.a. ( 5,100 should be non-market housing) Housing Need & Demand in Wales Report, Holmans & Monk:2010


Growth in the PRS


WHO12: Homeless Households accepted by priority need and period 2002/3- 2011/12

Source: Stats Wales

DCLG Feb 2013: Rough sleeping up 6% in England from 2011 to 2012


Tour of the UK


Montague Report 2012

• Construction & House building major contributor to national economy, – provide average 3% of GDP in the last decade. – for every £1m of new housing output 12

additional jobs supported per year – for every £1 invested £2.60 generated in

supply chain. • “Real potential" in large-scale development for PRS

by organisations & institutional investment


England• Housing Stimulus Package announced in September

– £10b loans guarantee for PRS & affordable housing– £300m capital afford housing & empty properties

• Localism Act 2011 opportunities for radical change– E.g LA able to offer new tenants ‘flexible tenure’ (fixed term)

• Budget 2013: support for home ownership & construction – Help to Buy, Increasing Right to Buy Access, Build for Rent scheme– Extra £225m to support up to 15,000 new affordable homes – No lift local authority borrowing caps so they can invest more in

developing new homes. • CIH welcome recognition of role of housing in economic recovery

• concerned that this will inadvertently stoke up house prices rather than increase new house building


Update from CIH Scotland & N. Ireland• Scotland

– Unified council & HA tenancy – in 2001 Act– Included extension of RTB to HAs; now being reversed – 2003 homeless leg. removed priority need by 2012– Housing Bill due shortly– Lessons learnt… 9 years on, some legislation still not in force

• N. Ireland – NI Housing Exec is largest landlord in NI– Influence of the Republic crash/‘NAMA’– Social Housing Reform Programme announced Jan 2013

• develop sustainable financing model for social housing; • improve regulation and inspection of landlords• Develop new landlord function


The Welsh Context• Cabinet reshuffle March 2013• Carl Sargeant: Housing & Regeneration Minister

– (incl Planning)

• Huw Lewis: Communities & Tackling Poverty – (former Housing Minister, now incl. sustainable dev)

• Supply: 14,300 new homes p.a.– 9,200 market homes & 5,100 non-mkt (social/affordable) p.a.

• Mortgages availability reduced Growing PRS • Homelessness increasing: +4% in 2011/12• Growing & Ageing Population

– 2011 Census 3.1 million people, 31% aged 55+• Post-devolution housing policy • There is growing £ pressure, inequality & housing need


Homes for Wales White Paper:New Legislation Proposed

• System Stewardship• Improve the PRS – mandatory WALLS scheme• Prevent homelessness – early intervention & increased options• End Family Homelessness• Empty Homes; discretionary higher rate of council tax • Statutory duty to provide Gypsy Traveller sites to meet need

– Consultation 2013 for LA Gypsy & Traveller sites under the defn of ‘protected sites’ within Mobile Homes Act 1983

• Define Community Land Trusts & Enable Co-operative housing• Require LAs to produce/update regular Local Housing Market

Assessments


Other Legislation in WP• Tenancy reform

– separate Bill within lifetime of Assembly – ‘Renting Homes’ Bill– Merge RSL & LA tenancies– Model PRS contracts

• Set standards for LAs - rents, service charges & quality of accommodation (to meet WHQS)

• Duty of co-operation on HAs to address – Homelessness– Social lettings– Needs of vulnerable people – Anti-social behaviour


• Targets: 7,500 affordable, 500 on surplus pub. Sector land, 5000 empty properties, Co-op Housing target (500)

• LA Mortgage schemes• Regeneration: town centres /empty shops• Improve social housing through WHQS• Housing led regeneration• Property Improve. Loans• Accessible Housing registers• Explore fuel poverty investment• Create Jobs & Training Opps

Increasing Supply & Improving Quality


A better PRS, Improving Services & Support and Preventing Homelessness

• PRS is ‘a sector of extremes’ :Recognise importance 20% by 2020• PRS accreditation; national & mandatory

• Lettings & Management agents• Simple, effective & self-financing

• Improved HMO info sharing between LAs• Develop more social lettings schemes• Separate PRS Consultation

• Reduce inequality--Health & wellbeing agendas • -Supporting People –RCCs, ring-fencing• Homelessness: -Prevention as corporate duty • -‘Housing Solution’ model & Prevention agenda• -No intentionality for households with children• -End Family Homelessness• -Consider phasing out ‘priority need’


Other Consultations• Proposals for a Better PRS

– Registration & accreditation of landlords & agents

• Mobile Homes (Wales) Bill• Council Tax & Long Term Empty Homes in Wales• Renting Homes Bill: Due May 2013• Towards a Welsh Planning Act Recommends

– Local Development Plan process to be improved not replaced– Planning White Paper due by end 2013

• Vibrant & Viable Places: New Regeneration Framework– strengthened governance, improved partnership &

collaboration– 3 Regions, focus on opportunity as well as need


As well as….

• McClelland report: – Maximising Impact of Welsh Procurement Policy– Confirm WG expects delivery of ‘balanced set of wider benefits’

• Implementing Mobile Homes Act 1983 on LA Gypsy & Traveller sites– bring LA sites under defn of ‘protected sites’

• Consultation on legislation to end VAW & DA – policy and legislative proposals consultation ends Feb 2013

• Together for Mental Health strategy consultation ended 2012• 11 more WG Bills on the way incl Social Services (Wales) Bill• Plus Westminster...ASB draft bill Dec 2012

– intro. Community Trigger & Remedy


Welfare reform

• The reforms announced in 2010 estimated to save over £18 billion by 2014–15– around 8 per cent of the UK budget for social

security benefits and tax credits • Further welfare cuts announced in Autumn

Statement 2012 amount to £3.7 billion by 2015–16


Welfare reform: Includes• Universal Credit phased from Oct 2013;

– single working-age benefit

• Total benefit cap for households of £26k• Social Sector size criteria; ‘bedroom tax’• LHA rates uprated by CPI rather than actual market rents• New pension credit limit will replace HB• DLA replaced by Personal Independence Payments (PIP)• Discretionary social fund abolished & Community care grants /

crisis loans replaced by ‘Local Welfare assistance’• Direct housing benefit payments to landlords will end• + Council tax benefit replaced by council tax scheme

– WG 100% protection for 2013/14; reduce to 90% after this??

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Expenditure on key benefits 1991/92 - 2010/11Mobility Allowance / Disability Living Al-lowance / Attendance Allowance / Carers Al-lowance

Sickness / Invalidity / Incapacity Benefits

Income Support (lone parents, sick, disabled, other)

Unemployment Benefit / Income Support (unemployed) / Job-seekers Allowance

Housing Benefit / Council Tax Benefit / Discretionary Housing Payments

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Social Sector Size Criteria AKA ‘The Bedroom Tax

• Commences April 2013 • In Wales expected to affect 40,000

– 18% of all tenancies in social housing sector– Largest ‘region’in UK

• Total loss of income to tenants in Wales – £26,707,200 per year

• Limited supply of smaller properties in Wales– Community cohesion impact– Planning implications??


Household Cap: £26k p.a.

Single Couple Couple + 1 Couple + 2 Couple + 3 Couple + 40.00

100.00

200.00

300.00

400.00

500.00

600.00

71111.45 111.45 111.45 111.45 111.45

279.00

388.55

306.21241.22

176.23111.24

20.30 33.70 47.10 60.5062.04

113.63

165.22

216.81

JSA Child Benefit Child Tax Credits Maximum Housing Costs

£ p

er w

eek


Direct Payments• Tenant implications

– Rent huge proportion of household budget for low-income families

– change from weekly to 4-weekly payments (arrears)– Financial management & support needs– Financial inclusion; large number without a bank account– Digital inclusion; expectation claimants will apply on-line

• Landlord Implications– Arrears impact; Demo projects significant increases in

arrears– Impact on Landlords business planning, service delivery

and preferential borrowing rates• Impact on IT and rent account systems


Impact of welfare reforms in Wales: Feb 2013‘Will have a huge and damaging effect on Wales as a whole’

• Estimate WR reduce total benefit & tax credit entitlements in Wales by £520 million (or £590 million if UC is excluded).

• Corresponds to £6.40 pr family pr wk on ave, 1.5% of net income• Income losses per claimant could be over £80 per week

– affected by DLA & Employment & Support Allowance alone• Hardest hit by income losses:

– Households with children– those towards bottom of income distribution– impact of the changes in financial work

incentives on employment and hours of work is predicted to be, at best, very modest.

• http://wales.gov.uk/topics/socialjustice/welfare-reform-in-wales/;jsessionid=F716C2A39D462ECFBBCD778C5CA74683?lang=en

http://wales.gov.uk/topics/socialjustice/welfare-reform-in-wales/;jsessionid=F716C2A39D462ECFBBCD778C5CA74683?lang=en




What needs reviewing?• Development

– Type of letting (smaller, bedroom sizes)– Affordability

• Housing management and tenant support– Lettings policy and procedures– Arrears policy– Financial inclusion strategy

• Finance– Income stream projections– Bad debt provision– Payment systems

• Landlords & Added Value Services• Other challenges

– Cuts to advice agencies & Cuts to Public Services– Community Cohesion


The Welsh Housing Review 2012http://www.cih.co.uk/publication-free/display/vpathDCR/templatedata/cih/publication-free/data/Wales/Welsh_Housing_Review_2012

Email: [email protected]

http://www.cih.co.uk/publication-free/display/vpathDCR/templatedata/cih/publication-free/data/Wales/Welsh_Housing_Review_2012



mailto:[email protected]


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learn with us. improve with us. influence with us. housing policy and welfare reform in wales:...

Documents

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