Pressure On Social Landlords Set To Rise As Universal Credit Rolls Out

Housing officers will need to collect an additional £7.268bn each year because of welfare ‘reform’. New research by Mobysoft – a provider of rent collection software to the social housing sector – says rent being collected directly from tenants by housing officers will increase by 63.1%, on average. The study – which covered around one third of the UK’s social housing stock, – equates that percentage increase to an additional £7.268bn being collected nationally each year following the full roll-out of Universal Credit. Social landlords, already hit by a compulsory 1% rent cut until 2020, will be required to allocate additional resources to collection services and manage the cash flow implications of increased rent arrears. Read more on 24housing.

http://www.24housing.co.uk/news/pressure-on-social-landlords-set-to-rise-as-universal-credit-rolls-out/

Councils In Universal Credit Areas Dig Deeper Into DHP Funds

Councils are having to dig deeper into their Discretionary Housing Payment (DHP) funds to help residents affected by welfare reforms and homelessness. Inside Housing contacted councils in areas where the Universal Credit full service has been rolled out to ascertain how the major welfare reform alongside the lower benefit cap is impacting councils’ DHP budgets. Twenty councils responded, with 19 reporting they had spent more at this point in the year compared with the same timeframe in 2016/17. The DWP made £16.5m extra DHP funding available this year to cover the increased cost of helping people hit by the lower benefit cap.  Read more on Inside Housing.

Landlord Defends Sending Eviction Letters Ahead Of Universal Credit Rollout

A Lincolnshire property company has defended threatening all of its tenants with eviction if they fail to pay their rent because of delays in receiving universal credit payments, after sending all tenants pre-emptive notices ahead of the rollout of the welfare reform. The letter from GAP Property in Grimsby was highlighted by Jeremy Corbyn during prime minister’s questions in the Commons on Wednesday. Corbyn said tenants of the property management company faced the prospect of being made homeless before Christmas. GAP Property said the introduction of universal credit would affect the vast majority of its tenants and it needed to take action to avoid a slew of rent arrears, which could put it out of business. Read more on the Guardian website.

Conservatives 'Planning Budget U-Turn' Over Rollout Of Universal Credit Regime

Ministers are reportedly preparing for a major U-turn on the rollout of Universal Credit in the Budget by reducing the controversial six-week wait to four for the first payment to claimants. It comes after weeks of sustained pressure on Downing Street from Conservative backbenchers, the Labour party and charities warning the Government’s flagship welfare programme – due to be accelerated this month – is pushing recipients into poverty, arrears and a reliance on food banks. The main anxiety among MPs and charities focuses on the six-week wait claimants are forced to endure before receiving their first payment under the new regime after transferring from the legacy benefits system. Read more on the Independent website.

Committee Publishes 'Damning' New Universal Credit Evidence

Commons Select Committee Chair Frank Field MP calls evidence submitted to the Committee by Halton Housing Trust the "most damning" he has ever read on what he describes as DWP "maladministration."  The Trust has accumulated over £400,000 of arrears as a direct result of the rollout of Full Service Universal Credit. This means that just 18% of its tenants owe 55% of all its arrears. Over the last 12 months the number of referrals the Trust has made to local food banks has more than doubled. Those claimants who were offered Advance Payments were offered a New Claims Advance that had to be paid back within 6 months: the submission details the even bigger financial problems this caused for families. Read more on the Parliament website.

Universal Credit – Parliamentary Written Answer

Steve McCabe: To ask the Secretary of State for Work and Pensions, what assessment he has made of the effect of further advanced payment loans on financial security in cases were the universal credit recipients roll-out has caused financial hardship.

Damian Hinds: Advances of Universal Credit are advance payments which are then recovered over an agreed period. They are in place to ensure those in need are able to receive financial support and are not reliant on illegal and high-cost lenders. Advances are recovered over a maximum of six months, although exceptionally this period could be deferred by up to three months to prevent hardship. No interest is charged.

Universal Credit Rollout Going Ahead As Planned

Work and pensions secretary David Gauke has suggested that the universal credit rollout will continue despite warnings from Conservative colleagues that the social security system overhaul should be delayed. A dozen Tory MPs have raised concerns with Gauke’s department that claimants were being forced to use food banks because of the mandatory six-week wait to receive money. Speaking at a Conservative conference fringe event, Gauke gave a clear hint there would be no delay in the rollout, suggesting people needed to be more aware that they could claim emergency advance payments instead of waiting for six weeks. Read more on the Observer website.

Tory Rebellion Throws Universal Credit Reforms Into Chaos

The Government's flagship welfare reforms have been thrown into jeopardy after 12 Conservative MPs wrote a private letter to the Work and Pensions Secretary demanding a pause in the roll-out of Universal Credit. The Telegraph understands that the 12 MPs, led by Heidi Allen, have warned David Gauke not to go ahead with a planned tenfold increase in the roll-out of Universal Credit. Ministers had been expected to announce a decision on whether to accelerate the roll-out in the coming weeks but the backbench revolt risks wiping out the Tories' majority in the Commons if Labour forces a vote, throwing the whole scheme into question. Read more on the Daily Telegraph website.

Universal Credit Is A Social Policy Disaster In The Making

Universal credit is the biggest change to our welfare system in 40 years. By the time it has been fully rolled out in 2022 it will potentially affect 8 million people across the UK. The rollout so far has been controversial, and fraught with difficulties. Social housing organisations, in which only around 2.6% of tenants are currently claiming universal credit, have been hit particularly hard by the speed and scale of the change. In August 2017 the DWP released a guide for landlords, in a bid to explain what the changes will mean and how they can support their tenants. Unfortunately, it made little to no mention of how to deal with the slew of administrative issues, faults and delays, which have already caused hardship for so many claimants. Read more on the Guardian website.

DWP To Roll Out Landlord Portal To Help Associations Deal With Universal Credit

The DWP has written to the National Housing Federation to notify them they will be rolling the portal out. Housing associations will get access to the landlord portal and Trusted Partner programme. The DWP has long been pressed by the NHF for this to be implemented. The Fed said the trials of the landlord portal have shown that “even in a very basic form it improves communication between the DWP and landlords, speeds up the verification of claims and cuts the burden of administration.” They add: “Being a Trusted Partner allows landlords to make the recommendation for a tenant to have the rent portion of their Universal Credit paid direct to their landlord.” Read more on 24housing.

Universal Credit – Parliamentary Written Answer

Debbie Abrahams: To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the number of people receiving tax credits who will be receiving universal credit at the completion of full service roll-out.

Damian Hinds: [Holding answer 12 September 2017]: Based on the existing tax credit data and take-up we estimate that around 5.8 million people receiving Tax Credits will be receiving Universal Credit at the completion of Full Service roll-out.

NAO To Re-Assess Universal Credit Roll-Out

The roll-out of Universal Credit (UC) is getting a once-over – for a third time. The National Audit Office (NAO) confirmed it is to undertake another assessment of the roll-out plan after two previous reports found poor performance on delivery of an ‘over ambitious’ programme. The new NAO study will examine whether the DWP is on course to deliver UC in accordance with its plans, assessing whether there are early signs that UC is delivering its objectives, and what impact it is having both on claimants and local stakeholders. Two previous NAO reports – in 2013 and 2014 – identified key areas of poor performance hindering progress. Read more on 24housing.

DWP Launches New Helpline For Landlords

The DWP has introduced a new helpline for landlords whose Universal Credit tenants will not communicate with them. The new number 0345 600 4272 can be used by landlords who are unable to obtain the tenant’s co-operation to get DWP to supply information when it comes to enquiries about major payments –  such as a direct payment to the landlord. This is a significant change as, before now, landlords were totally dependent on the goodwill of the tenant when it came to accessing information. The new number can only be used by landlords in areas where Universal Credit has been fully rolled out. Read more on the RLA website.

MPs Urge Government To Delay Universal Credit Rollout

David Gauke, the work and pensions secretary, has been urged by 31 MPs to delay the expansion of the new universal credit benefit system to stop their constituents suffering severe hardship over Christmas. The group has called on the government to put off the latest rollout of universal credit until the new year, because people would not be able to afford delays to their first benefit payments over the festive period. Ministers are planning to accelerate the introduction of universal credit to about 50 new areas. But the 31 MPs, whose constituencies will be affected, said it would cause misery for thousands of new claimants who may not get their first payments for up to seven weeks after applying. Read more on the Observer website.

JCWI To Challenge Home Office Over Right-To-Rent

The Joint Council for Welfare of Immigrants (JCWI) has written to the Home Office to call for a halt to the rollout of the scheme of the Government’s Right-to-Rent scheme awaiting a full evaluation of its impact in England. The Joint Council is threatening to take legal action if the Government continues to implement the policy, which is yet to expand beyond England. Saira Grant, Chief Executive of JCWI, said: “In the face of clear evidence of discrimination under Right-to-Rent, the Government must show it is not acting illegally before it presses ahead with a rollout to the rest of the UK.”Read more on the NLA website.

Government Rejects Calls To Halt Universal Credit Roll Out

The government has rejected calls to halt the roll out of Universal Credit. During oral questions to Ministers at the DWP, Dr Eilidh Whiteford MP SNP, Banff and Buchan demanded the programme be stopped, claiming it was ‘simply not working’. She said: “Rent arrears are soaring, claimants are waiting up to three months to have their claims processed and some people have even lost their homes.” In calling for the halt to the roll out of UC, she called on the government to launch “an immediate review”. Responding, Work and Pensions Minister, Damian Hinds MP, rejected the calls. Read more on the RLA website.

Universal Credit In Crisis: Calls For Roll-Out To Be Halted

Universal Credit should be halted immediately after claims the roll-out of the new system was in crisis. Highland MP Drew Hendry said that more than 40% of his caseload was now related to the introduction of the controversial scheme.  Hendry said: “Through no fault of their own, people are being left months without money, and when they seek out help every obstacle possible is put in their way .This situation is now at crisis point and the rollout of full service needs to be immediately halted.” Hendry added: “It seems the primary goal of the DWP is to delay payments at all costs. Even today I have had six separate constituents get in touch as their payment, due last week, still hasn’t arrived. This is after waiting months for money.”Read more on the thirdforcenews website.

Things The Government Needs To Consider About Supported Housing Funding

1)      The funding framework has to be adequately sized and resourced, so that people do not fall into arrears on the transition to the new system

2)      Funding needs to reflect the actual costs of supported housing

3)      The long term funding, distribution and protection of the top up fund will be critical to sustain existing schemes, and ensure new development

4)      A different model is needed for crisis and emergency schemes

5)      Local authorities will need support to develop strong and robust partnerships to ensure effective commissioning of future schemes

6)      Older people have been excluded from welfare changes and there is an argument that, until the full roll out of UC, they should continue to be so

Read more on the CIH website.

Renewed Calls To Halt Universal Credit Pilots

Housing leaders said rollout of Universal Credit should be halted until 2019 to avoid the “significant financial hardship” experienced by those in the current pilot scheme. Delays in payments by the DWP are causing significant hardship and driving people to foodbanks or illegal loansharks, according to the National Federation of ALMOs.  Research by NFA of the scheme found people living in areas that were part of the pilot scheme were experiencing higher levels of hardship as a result. The NFA has raised its concerns with the DWP and called on ministers to rethink. Read more on 24housing.

A Low Score For Universal Credit

Universal credit, which amalgamates six welfare benefits, still has cross-party support, despite being beset by delays and fears that it will fail to meet its main objective of encouraging people to work The most ambitious welfare reform for decades was bound to take a while to get right. But did the introduction of universal credit really need to take this long? By the time it is rolled out in job centres across the country over the next 18 months, UC will already have been more than five years in the making. The latest estimate is that some claimants will not switch to UC until 2022. The most recent delay was announced in July by Damian Green, the new work and pensions secretary, and the third person to hold the post this year. Read more on the Public Finance website.