Five Million Private Renters 'Risk Housing Crisis Without Wage'

More than five million working rental sector tenants are at risk of being unable to cover their housing costs if they lost their wage, a report estimates. The research, authored by Steve Webb, a former pensions minister, warned the growth of the rental sector in recent years, combined with possible post-EU referendum rises in unemployment, could create a "toxic cocktail" for tenants who may find they are not eligible for housing benefit or that it may not fully cover their rent. The report found a steep rise across the UK in the number of working people who would potentially be at risk of being unable to meet their rent if they lost their wage through unemployment or sickness. Read more on the AOL website.

Housing Benefit – Parliamentary Written Answer

Heidi Alexander: To ask the Secretary of State for Work and Pensions, what his most recent estimate is of the number of working households claiming housing benefit.

Steve Webb: Latest figures show that there are just over 1 million in-work housing benefit claims.

Social Rented Housing: Landlords – Parliamentary Written Answer

Stephen Timms: To ask the Secretary of State for Work and Pensions, what recent progress his Department has made in sharing data with registered social landlords.

Steve Webb: The Social Security (Information-sharing in relation to Welfare Services etc.) (Amendment) Regulations 2015 (S.I.2015/46) were laid on 23 January 2015 and come into force on 13 February 2015. Commencing on 16 February 2015, registered social landlords, local authorities and arms length management organisations will be notified when one of their tenants

makes an application for Universal Credit, or when a person already receiving Universal Credit becomes a tenant of theirs. The data shared will be limited to that required by the landlord to identify the tenant and enable them to confirm that Universal Credit has been claimed. This will enable the landlord, at the earliest possible opportunity, to decide whether they wish to offer, or refer the claimant to, additional welfare support.

Lies, Damn Lies and Failing DWP Bedroom Tax Reports

On the same day as the cabinet reshuffle the DWP released a 163-page interim report into the bedroom tax.  Unfortunately this deliberate burial of a report is the best that can be said for it as it really is that bad. It only records the first 5 months of the bedroom tax from April 2013 to August 2013 and so this report is already ELEVEN MONTHS OUT OF DATE. Let’s begin with the Executive Summary which starts on page 13.

This Interim Report presents early findings from the evaluation of the Removal of the Spare Room Subsidy (RSRS). A final report will be published in 2015.

We have already been told by Steve Webb, then a minister at DWP, that the final report will be published in Summer 2015, that is AFTER the next general election.  Hence this sham of a report is to be the ONLY coalition report on the bedroom tax in this parliament which you would not know from reading this cleverly worded sentence. Read more on the Speye blog.

Universal Credit – Parliamentary Written Answer

Alison McGovern: To ask the Secretary of State for Work and Pensions what processes his Department has agreed to enable housing associations to be informed when tenants migrate to universal credit. 

Steve Webb: Universal credit is currently only available for new claims. Migration will be part of the future delivery plans which were announced in the written ministerial statement made by the Secretary of State for Work and Pensions. The Department recognises the advantages of data sharing to help both landlords and the Department deliver their objectives and this will be considered as part of our overall test and learn approach. (Extract)

Universal Credit – Parliamentary Written Answer

Jim Dobbin: To ask the Secretary of State for Work and Pensions what assessment he has made of the effect of universal credit on landlords who have claimants as tenants; what the results were of the direct payment demonstration projects on the effect of paying housing benefit direct to tenants; and if he will reduce the two calendar month rent arrears trigger point before a landlord can go directly to his Department for direct payment. 

Steve Webb: Interim evaluation from the first six months of the Direct Payment Demonstration Projects was published in December 2013 and can be foundat: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/265257/direct-payment-demo-figures-dec-2013.pdf   

DWP has developed three levels of safeguards for tenants and landlords based on findings from the Direct Payment Demonstration Projects and continuous improvements through our test and learn approach in live service. We make an initial judgment on each claim as to whether the claimant is at risk of default and if so, we can put them on managed payments immediately. In the majority of cases Direct Payments will apply and we have two safeguards in place:

(1) We will review the initial decision if we are advised that arrears have reached the equivalent of one months rent.

(2) We will move to payment to the landlord if we are advised that arrears have reached the equivalent of two months rent.

Housing Benefit – Parliamentary Written Answer

Stephen Timms: To ask the Secretary of State for Work and Pensions how long tenants who move from direct payment of housing support to managed payment because they have eight weeks of rent arrears will be allowed to stay on managed payment before they revert to direct payment.

Steve Webb: It is expected that this arrangement would be reviewed six months after the arrears have been repaid, with a view to the tenant returning to the standard monthly payment, having received additional personal budgeting support where appropriate. All alternative payment arrangements are discretionary and based on individual circumstances and consequently this timescale may vary depending on the capabilities and support needs of the claimant(s).

Housing Benefit – Parliamentary Written Answer

Sarah Teather: To ask the Secretary of State for Work and Pensions what estimate he has made of how much each local authority returned to his Department in unused discretionary housing payment funding in 2013-14. 

Steve Webb: Local authorities are required to submit their claims for funding for discretionary housing payments by 30 April following the end of the financial year. Until the returns have been received from each authority, we are not in a position to say how much of this funding has been unused.  At the end of the 2012/13 year, of the £67,906,916 made available by central Government towards discretionary housing payments, £12,453,471 (18.34%) was unspent.

Housing Benefit – Parliamentary Written Answer

Mr Nicholas Brown: To ask the Secretary of State for Work and Pensions whether people classed as homeless will be defined as vulnerable under the proposed mechanism within universal credit to pay housing benefit directly to landlords. 

Steve Webb: We do not want to automatically label any claimant as financially incapable. Alternative payment arrangements (including payments to landlords) are assessed on their individual merits. The nature of the accommodation status of a claimant is one of a number of factors to be considered when assessing the necessity for an alternative payment arrangement, and this is set out in the operating guidance we published in February last year.

Housing Benefit – Parliamentary Written Answer

Mr Ainsworth: To ask the Secretary of State for Work and Pensions what assessment he has made of the potential effect on the number of tenant evictions resulting from the decision to pay housing benefit direct to claimants rather than landlords.  

Steve Webb: The Government does not expect an increase in the number of evictions in relation to the direct payments of housing benefit. Most tenants in the private rented sector are already used to receiving their housing payments directly, and managing their own finances. For other tenants, including many in the social rented sector, this will represent more of a change. We are working with the advice sector to ensure that claimants are able to access budgeting support services to help them to manage their money successfully. Money advice will be offered at a national and local level, and include a mix of online, telephone and face to face services. A minority of claimants may require alternative payment arrangements. This might include paying rent direct to the landlord, making payments more frequently than monthly, or splitting the payment for a couple.

Housing Benefit: Social Rented Housing – Parliamentary Written Answer

John Hemming: To ask the Secretary of State for Work and Pensions what assessment he has made of the use of discretionary housing payment to deal with people affected by the under-occupancy penalty over the next two financial years; and if he will make a statement.

Steve Webb: The Department has commissioned an independent two year evaluation to monitor the effects of the removal of the spare room subsidy, including the use of discretionary housing payments. The final report will be published in 2015. In addition the Department is collating and publishing information about the use of discretionary housing payments by local authorities in Great Britain twice yearly. The information covering the period April 2013 to September 2013 was published on 20 December 2013 and can be accessed at:

https://www.gov.uk/government/publications/use-of-discretionary-housing-payments

Housing Benefit: Disability – Parliamentary Written Answer

John Hemming: To ask the Secretary of State for Work and Pensions if he will take steps to encourage local authorities to make longer term awards of discretionary housing payments for those people with disabilities. 

Steve Webb: As announced in the autumn statement discretionary housing payment (DHP) funding will actually be increased by £40 million in 2014-15 to £165 million. The increase in DHP for 2014-15 is relative to the previously announced Government allocation for 2014-15 of £125 million. This gives local authorities the confidence they need to make longer-term awards for people with on-going needs.  DWP provides local authorities (LAs) with a guidance manual regarding DHPs, along with a good practice guide which offers advice on how DHPs can be used to provide support to claimants affected by some of the key welfare reforms. The guidance is clear that LAs can consider making long term or indefinite awards for disabled people. Guidance for 2014-15 is currently being reviewed and will continue to highlight this. This information for 2013-14 can be accessed through the following link: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/233096/discretionary-housing-payments-guide.pdf

Housing Benefit – Parliamentary Written Answer

Alex Cunningham: To ask the Secretary of State for Work and Pensions what assessment he has made of the availability of shared accommodation for single people under 35 in receipt of the shared accommodation rate of housing benefit.  

Steve Webb: No assessment has been made of the availability of shared accommodation for single people under 35. However the Department has commissioned a major independent evaluation of the changes to local housing allowance, including the impacts on single people under 35. The interim report was published last year and can be found at:

https://www.gov.uk/government/publications/monitoring-the-impact-of-changes-to-the-local-housing-allowance-system-of-housing-benefit-interim-report-rr-838

The final report from the evaluation is due to be published in the summer.

Housing Benefit: Disability – Parliamentary Written Answer

Mr Betts: To ask the Secretary of State for Work and Pensions for what reasons his Department's guidance to local authorities on assessing applications for discretionary housing payments, gave discretion to authorities to take account of applicants' entitlement to disability living allowance.

Steve Webb: The regulations covering discretionary housing payments (DHPs) are The Discretionary Financial Assistance Regulations 2001. These regulations allow local authorities to ask for information relating to a claimant's circumstances and income, including entitlement to DLA, as appropriate to enable them to make a decision on a DHP application. DWP guidance states that local authorities may wish to consider the purpose of the claimant's income, and where appropriate can decide to disregard income from disability related benefits as they are intended to be used to help pay for the extra costs of disability. In addition local authorities may like to bear in mind that such money might be committed to other liabilities for which the money was intended.  Local authorities have a duty to act fairly, reasonably and consistently. Each case must be decided on its own merits, and decisions should be consistent throughout the year. However, if a claimant is refused DHP, they could ask the local authority for the decision to be reviewed.

Housing Benefit – Parliamentary Written Answer

Guto Bebb: To ask the Secretary of State for Work and Pensions what estimate he has made of the proportion of the total discretionary housing budget that was spent during the first six months of 2013-14.

Steve Webb: The Department has collated six-monthly returns detailing DHP awards made by local authorities in Great Britain between the beginning of April to the end of September 2013. The Department has pre-announced that this information will be published on 20 December 2013. This year the Government contribution to discretionary housing payments has been increased to £180 million. As part of this, local authorities are able to bid for funding from a £20 million reserve fund. The scheme is open to bids until 3 February 2014.

Housing Benefit - Parliamentary Written Answer

Roger Williams: To ask the Secretary of State for Work and Pensions what housing needs of tenants claiming housing benefit can be met by the discretionary housing payment scheme; and whether a local authority can change its allocation policy within a financial year. 

Steve Webb: Housing costs which may be eligible for assistance via discretionary housing payment are comprised of rental liability, rent in advance, deposits and other lump sum costs associated with a housing need such as removal costs. Local authorities are able to amend their DHP allocation policy as required according to their assessment of local needs and in order to best reflect their particular circumstances and priorities. This may be within the financial year where appropriate. The Department provides comprehensive guidance to local authorities on administering DHP. A link to the guidance is included here:

www.gov.uk/government/uploads/system/uploads/attachment_data/file/184207/discretionary-housing-payments-guide.pdf

Housing Benefit – Parliamentary Written Answer

Dr Whiteford: To ask the Secretary of State for Work and Pensions whether the entire discretionary housing payment budget has been allocated for 2013-14.

Steve Webb: The discretionary housing payment budget for 2013-14 is £180 million of which £160 million has been allocated. The £180 million includes the extra funding of £35 million that was announced on 30 July 2013, of which £10 million was for transitional payments, £5 million was for the 21 least densely populated areas and £20 million was set aside as a reserve fund. The reserve fund will be allocated to those local authorities who are able to provide a robust business case to receive extra funds.

Housing Benefit – Parliamentary Written Answer

Stephen Timms: To ask the Secretary of State for Work and Pensions what the consequence is for entitlement to housing benefit when a claimant loses jobseeker's allowance for a period as a result of a sanction. 

Steve Webb: Housing benefit would be unaffected as long as entitlement to the sanctioned income-based jobseeker's allowance remains. Where a sanction results in cessation of entitlement to the sanctioned benefit (that is, in this case either income-based or contributory-based jobseeker's allowance), housing benefit would need to be reassessed. Additionally, regulations exist which allow sanctions to be applied to benefit payability. These provisions can affect the amount of housing benefit payable, but not where a Two Strike sanction has been applied to income-based jobseeker's allowance. Further details are at paragraphs 6.230 onwards of the Housing Benefit Guidance Manual: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/236955/hbgm-a6-deciding-and-paying-benefit.pdf

Universal Credit – Parliamentary Written Answer

Stephen Timms: To ask the Secretary of State for Work and Pensions what estimate he has made of how long it will take when a universal credit claimant reaches the eight-week rent arrears trigger for direct payments to be transferred to managed payments.

Steve Webb: When a claimant reaches the two calendar month rent arrears trigger point, the landlord will be required to provide DWP with evidence of the rent arrears. Our intention will be to implement the managed payment of rent before the next UC payment is issued wherever possible, so that further arrears do not accrue.

Housing Benefit – Parliamentary Written Answer

Mike Crockart: To ask the Secretary of State for Work and Pensions whether his Department plans to allow underspends in the (a) 2013-14 and (b) 2014-15 discretionary housing payment budget to be carried over.

Steve Webb: Discretionary housing payment funding is intended to be used to support housing benefit claimants during the financial year for which it has been allocated. We do not intend to allow unspent funding to be carried over from this financial year into the budget for 2014-15. We allowed carrying over of the DHP underspend from 2011-12 to 2012-13. This was because the transitional arrangements for the reforms to the local housing allowance that were introduced during 2011-12 meant that they only took full effect during 2012-13.