One In Five Private Renters Expect To Lose Their Job In Next Three Months

Research commissioned by the housing charity found an estimated 1.7 million adults living in the private rented sector expect to become unemployed as a result of the pandemic. Polling carried out by YouGov shortly after the government announced its job retention scheme revealed that 24% of private renters have already seen their incomes fall or lost their jobs. Some two million renters – 23% – believe losing their job would leave them immediately unable to pay their rent, the survey suggested. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/one-in-five-private-renters-expect-to-lose-their-job-in-next-three-months-says-shelter-66079?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Housing ‘Shake-Up’ Could Save £3bn On The Welfare Budget

A housing shake-up that could knock £3bn off the welfare budget rewards housing associations that turn tenant lives around. Citing social housing tenants as “four times more likely” to be unemployed than private renters, the Centre for Social Justice (CSJ) is calling on associations to extend skills training – with big falls in rent arrears as an incentive. The Government is already giving the idea serious consideration given its potential to save some £3bn on the welfare budget. CSJ says that with housing associations, with their “established personal relationships” with tenants – are best placed to support individuals facing barriers to work, the report argues. Read more on 24housing.

https://www.24housing.co.uk/news/housing-shake-up-could-save-3bn-on-the-welfare-budget/

Housing Scam Reaps Millions

Thousands of unemployed benefit claimants are being “warehoused” in small rooms in terraced houses that landlords are presenting as flats in order to obtain the highest possible housing benefit, a Sunday Times investigation has revealed. Council officials say the bogus flats, which have been found in London, the West Midlands and Leeds, are costing taxpayers tens of millions of pounds in wasted housing benefits. A two-bedroom terraced house can be divided into up to six rooms with lavatories without planning permission. Landlords say the units are single rooms for the purposes of avoiding planning enforcement, yet insist they are flats when claiming housing benefit.  Read more on the Sunday Times website.

Millions At Risk Of Losing Their Home

Soaring rents and a post-Brexit rise in unemployment could create a ‘toxic cocktail’ for millions of working renters because of large gaps in the housing benefit ‘safety net’, according to ‘Renters At Risk’, a new report by Royal London. The report found millions of workers renters could find that housing benefit would not cover the full cost of their rent in the event of losing their job. Based on the Government’s 2013/14 Family Resources Survey, the report found 5.5 million working renters would be at risk of losing their home due to gaps in the housing benefit ‘safety net’, up from 2 million in 2003/04. Download the report from the Royal London website.

Worklessness and Social Housing: A Look behind the Numbers

Out-of-work people living in social housing are too often referred to as one big group with the same enduring stigma. Around half (52%) of working-age people who live in social housing are not working, compared to just 29% in private tenures. The sector undeniably houses a significant proportion of unemployed and economically inactive people. Unsurprisingly it also provides the important function of sheltering society’s most vulnerable people, for example disabled people and single parents. In many circumstances, worklessness is largely the result of these disadvantages. A key point to understand is that only 10% of this population can actually be classified as unemployed. A much larger group of 40% is economically inactive. So what’s the story behind these 40% economically inactive social renters who haven’t been looking for work? Read more on the Guardian website.

Councils 'Frustrated' By Universal Credit

The government’s failure to provide ‘clear information’ about universal credit is causing ‘frustration’ among councils, a government report has said.  Research carried out by Ipsos Mori, on behalf of the DWP, said ‘lack of clarity’ about the timescales for the government’s flagship welfare reform was causing ‘uncertainty’ and ‘preventing certain decisions being made’. According to figures published by the DWP last week, 75,427 people are currently claiming universal credit, of which 68% are not in employment. Download a copy of the report from the DWP website.

The Budget: Housing Changes

From April 2017, those out of work between the ages of 18 and 21 will not be automatically entitled to claim housing benefit. Parents whose children live with them will be excluded from this measure. Vulnerable groups will also be excluded, as will claimants who have been in continuous work for the preceding six months. As many as 300,000 fewer people are expected to be eligible for Universal Credit as a result of the changes. Higher earners will have to pay more in rent for social housing. Those earning more than £30,000 (£40,000 in London) will have to make a bigger contribution if they live in council or housing association property. However, for everybody, rents will be reduced by 1% a year for four years from 2016. Read more on the BBC website.

New Benefit Cap Means Workless Private Renters Now Banned From 92% of UK

A reduction in the benefit cap was a centre piece of the Tory manifesto in the run-up to May's election. Even as some other 'commitments' were downgraded the reduction in the cap from £26,000 per year to £23,000 is to be pushed through in the first year of parliament. For most claimants only housing benefit - the one part that varies according to cost - will be affected. Working people, most pensioners and many disabled people are exempt, regardless of the level of benefits they receive and ignoring the idea of affordability. This measure is targeted directly at unemployed people, the lepers of the welfare world.  This targeting of housing benefit means the cap is likely to affect claimants' homes and choice of accommodation more than any other aspect of their lives.

Read more on the Huffington Post website.

Jobless May Lose Share of Home In Return For Benefits

Unemployed homeowners will have to give a stake of the equity in their home to the State in return for help in paying their mortgage, under a plan favoured by ministers. The move would break new ground in funding the welfare state and could save millions of pounds. Under the proposals, unemployed homeowners who qualify for the scheme would be given indefinite help paying the interest on their mortgage. The State would recoup some of the money when the claimant died or sold their house. From The Times.

Conservative Conference: Housing Round-Up

From housing benefit cuts for unemployed under-25s to Eric Pickles's tenants charter, catch up with all the housing news from the Conservative conference. Here are the headlines;

·         Housing benefit to be withdrawn for unemployed under-25s

·         Eric Pickles unveils tenants' charter

·         Help to Buy scheme brought forward

·         Armed forces offered interest-free home loans

Read more on the Guardian website.

Universal Credit – Parliamentary Written Answer

Katy Clark: To ask the Secretary of State for Work and Pensions if he will exempt families with an unemployed non-dependant aged under 25 years old from housing cost contributions following the introduction of universal credit. [

Steve Webb: It is a long-established principle that someone living in a benefit claimant's home should be expected to contribute towards the rent. This principle will be carried forward into universal credit, although the system will be simpler and will provide improved work incentives. We are introducing a single flat rate of housing cost contribution which will apply, irrespective of income, to non-dependants aged 21 and over.  While many non-dependants aged under the age of 21 are currently expected to make a contribution in housing benefits, under universal credit all will be exempt. For those aged 21 and over, a contribution will be expected only where the person is either in work or there is an expectation that they should be working/can return to work. A contribution will not be expected if the person is a carer, is responsible for a young child, or is in receipt of a specified disability benefit.

Katy Clark: To ask the Secretary of State for Work and Pensions if he will exempt people who are (a) in receipt of employment and support allowance and (b) awaiting a work capability assessment from housing cost contributions under universal credit.

Steve Webb: It is a long-established principle that someone living in a benefit claimant's home should be expected to contribute towards the rent. This principle will be carried forward into universal credit, although the system will be simpler and will provide improved work incentives.  Employment and support allowance does not of itself exempt a non-dependant from the contribution in housing benefit. This principle will be carried into universal credit.

Unemployed Hired To Build Their Own Homes

Unemployed people will be recruited to help build their own homes under a scheme which could be rolled out across the country.  Association Trent & Dove Housing is constructing 14 affordable homes as part of a self-build pilot with a building contractor. Four formerly unemployed people are directly employed by contractor Harvey and Clark on an apprenticeship scheme which will give them an NVQ qualification. They will each live in one of the homes, which will be for rent or shared ownership, when they are completed.  Read more on Inside Housing.

Council Offering Self-Build Scheme

Lewisham Council is offering residents a rare opportunity to build their own home.  The Council is re-introducing its self-build scheme as a further step towards meeting the growing demand for social housing in the borough and to provide new skills for unemployed local people.  The initiative will be supported by the National Self Build Association and run in partnership with an experienced house builder.  The scheme has been designed for people on Lewisham’s housing waiting list who want to develop their skills in house building trades such as electrical, carpentry, plumbing and bricklaying – and who also want to build their own home.  In addition to gaining a new home, residents will acquire new skills to help them access future employment opportunities. Read more on the Lewisham Council website.

8 Million People One Paycheque Away From Losing Their Home

One in three people could not pay their rent or mortgage for more than a month if they lost their job, new figures from a YouGov survey for Shelter show. Of those questioned:

    *35%, equivalent to 8.6 million people, could not pay their rent or mortgage from their savings for more than a month.

    *18%, equivalent to 4.4 million people, wouldn’t be able to pay their rent or mortgage at all if they couldn’t secure a new job immediately.

The research reveals families with children are in the most precarious situation. 43% could not pay for their home for more than a month, and nearly a quarter (23%) could not meet their payments at all. In total, 3.9 million British families may be just one paycheque away from losing their family home. Read more on the Shelter website.

Time to Make a Noise about Housing Attacks

In simpler times, the rent was just the rent. The breakdown of council rents in recent years, to include many itemised service charges, was never for our benefit as tenants. Today, housing experts say that it is "uncertain" whether the universal credit, being phased in from October 2013, will cover tenant service charges, as current housing benefit does. Draft regulations published in June 2012 look set to exclude 13 different types of service charge from benefit coverage. The impact on tenants would be severe, and for some, devastating.  We estimate that the changes would cut the disposable income of single unemployed tenants by one-third, from £64.87 to £42.97 per week. That's on top of the Tories' other benefit changes - the council tax shortfall, the "bedroom tax" and so on. Many councils and housing associations have been considering the withdrawal of some services, because tenants would be unable or unwilling to pay high service charges from their benefit income.  Read more on the Morning Star website.