Agenda item

Elira Mano, Tenancy and Estates Manager to deliver a presentation.

Elira Mano, Tenancy and Estate Manager, was accompanied by Cath Stocks, Housing Manager with knowledge of benefit issues, and delivered a presentation on how welfare reform will change the benefits system and the predicted challenges ahead for both tenants and Nottingham City Homes as a landlord.

The following points were highlighted:

(a)  the old benefits system enabled housing benefit to be paid directly to the landlord. Universal Credit (UC) will only pay the benefit to the claimant and it is the claimant’s responsibility to manage their finances and pay their rent. However, when a claim is made, it will take approximately 6 weeks for the funds to be paid to the claimant, resulting in the tenant immediately owing rent arrears (currently 80% of citizens on UC have an average arrears of £648);

(b)  currently only single, fit for work non-homeowners in the City are receiving UC but it will start to be rolled out with a digital service during June 2018 with all claimants receiving UC by 2022: a predicted 13,500 citizens in Nottingham;

(c)  in addition to the way in which ‘housing benefit’ will be paid, as of the Autumn of  2016, significant benefit caps were introduced, as outlined in the presentation and as of April 2017, automatic help with housing costs was removed for the majority of claimants registered for the full digital UC service;

(d)  NCH is understandably concerned that with UC claimants facing reduced benefits, rent arrears will increase. However, as well as the existing ‘make rent a payment priority’ campaign,  NCH’s Tenancy Sustainment Team have several mechanisms and schemes in place to help tenants with the benefit transition;

(e)  all claims will have to be completed online with face to face support for applications will be removed. Support will initially be available for the more vulnerable tenants who initially need help with digital applications but the aim will be to help them to help themselves;

(f)  NCH have several employability strategies in place to help support and encourage tenants into paid work.

Questions from the Committee were responded to as follows:

(g)  where tenants are in and out of work they are more likely to have rent arrears due to the payment delay. Overall 25% of all tenants have rent arrears of some level but this is partly due to the 6 week delay in payments. The largest social group most at  risk of rent arrears is males aged up to 25 years old;

(h)  when the benefit changes to UC, everyone will be subject to the 6 week delay in payment, not just new applicants;

(i)  where a claimant is not attempting to reduce rent arrears and is not engaging to resolve the arrears, an eviction is likely. The tenant will continue to owe the rent, even if they are evicted and NCH will legally pursue the funds until the debt is paid off;

(j)  Nottingham Credit Union has created a rent account for claimants where the claim is paid directly into a specific account and then forwarded to the landlord. This will remove the temptation (or necessity) of spending rent benefit on other things. Tenants are informed of this option;

(k)  with the caps on benefits meaning that citizens receive less money, NCH are aware that meeting the rent contribution above benefit payments will be a challenge for tenants and therefore NCH.

RESOLVED to note the presentation.