The Approach of the City of Manchester to Welfare Reform

To : CWAG

Mark SlaterCity of Manchester Strategic Housing

An Introduction

• City Leaders recognise that Housing is a fundamental contributor to economic growth and has a role in ending our dependency culture

• The analysis has been used to give emphasis and direction to our housing strategy

•It is also articulated through the Greater Manchester Strategy and City Deal

Slide 2

Largest population growth outside London

Slide 3

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

En

g a

nd

Wales

En

gla

nd

No

rth W

est

GM

Sto

ckp

ort

Bu

ry

Ro

chd

ale

Tam

eside

Old

ham

Wig

an

Bo

lton

Sa

lford

Traffo

rd

Man

chester

Change between 2001 MYE and 2011 Census in GM (%)

Source: Office for National Statistics, Crown copyright

Population

Population per Census 2011

503,127

Population Change

• Increase in the natural population • Long term trend of in-migration• Projected growth in population to

2031 of further 18%, including:- Increase in 60-64 age group

- Increase in age groups below 29 years

- Out-migration 30-59 age-group

Accommodation

Total of residential units of accommodation at 1 Jan 2014

= 221,591

Tenure Change 2001 to 2011

• Social housing fallen 3.3% to 38.5% of tenure

• Owner occupation fallen 7.8% to 31.6% of tenure

• Private renting has risen by 11.9% to 26.9% of tenure

Tenure Change

Tenure trend - Manchester

0

10

20

30

40

50

60

1961 1971 1981 1991 2001 2007 2010 2011

Ow ner Occupier

Social Housing

Private Rented

Manchester Tenure comparison

Comparison of Tenure Types

0%

10%

20%

30%

40%

50%

60%

70%

80%

Social Private Rent Owner Occ

Manchester

UK

Neighbourhoods need to be rebalanced

• Concentrations of social housing

• Poor quality private rented sector

• Spatial impacts of Welfare Reform = risk

• We have both fragile and the v successful

Slide 10

Supply of Social Housing – reducing picture

• Ten year trend is of a reduction in turnover of our 67,300 homes available for letting …

• Recent turnover 2009/10 was 6.9% • Turnover 2012/13 was 5.7%• Anticipated Turnover 2013/14 is 5.6%

New Registrations for Rehousing ( Demand)• Trend for increase in applications for social housing tenancies

continues …rate running at about 29,000 applications per annum for this year

• Marked increase in requests for transfers by existing social housing tenants since early 2013 = welfare reform

Live applications To Manchester Move (Demand)

• Manchester Social Housing Register has remained broadly constant at c 19,000 applicants in the past year

• Increase in applicants in urgent need has not been caused by requests from “under occupiers” to downsize

Under-occupation

‘hot spots’

Numbers effected by Bedroom Tax

• Northwards Housing “under occupiers” affected by bedroom tax have reduced 500 since 1 April to 2703.

• This is in part Revs/Bens identification of overnight carers and the late legislative changes that allowed us to add an extra bedroom in respect of disabled children or fostering.

• Also a number of tenants have chosen to downsize or found other solutions

Will tenants actually downsize? a cautious approach ( whilst waiting for evidence)

• Principle adopted by Council and its Partnership is to proceed cautiously and be evidence led

• Support via interim amendments to prioritisation of lettings in Allocations Scheme

• Council Executive of 29 May gave delegated powers to operate this flexible approach

Rehousing Prioritisation from 1 June 2013

• We are prioritising applicants who wish to downsize who are of working age and claiming Housing Benefit

• To be given a backdated award of twenty years if they are in Band 2 or 3 and at the discretion of their landlord .

• Housing management undertaking will be made by the tenant with the landlord that the tenant will do everything necessary to find a smaller property

Outcomes to 1 Jan 2014

• Northwards have made 94 transfers to downsizers in seven months

• Agreements have been made with 265 other tenants to downsize per policy

Collecting Rent payments 2012/13

• It was a priority to maximise rent collection in the Council housing stock. We achieved a collection rate of 99.8% in 2012/13

• Rent Arrears rose in 2012/13 in the Council stock by 0.08%

Collecting Rent payments 2013/14

• Council rent debit received directly from Housing Benefit reduced by 4.2%.

• Gross Council rent collection fallen by 1.3% to 98.5% of debit

• Percentage of rent collected from “under occupiers” was 96.5%

• Helped by DHP of £140,000 ( 0.3%)

Direction of Travel – Universal Credit

• Considerable uncertainty about Universal Credit start makes planning difficult

• Staff trained and aware to extent possible• Watching the DWP/NFA Univ Credit

preparation strategy• Risk = rent collection Pilots suggesting 30%

of all tenants benefit claimant will default• Risk = Pilots only collecting around 92% of

gross rent debit

Welfare Reform and Citizens Advice enquiries• Increases in requests for advice on debt issues throughout

2013 to become 21% of all enquiries• Housing enquiries increased because of bedroom tax• Northwards report increased levels of enquiries for all types of

assistance

Benefit Cap

• Have 42 households who are benefit capped

• Each household has been contacted and advice offered and given

• All referred to YES project • Reputational problem for Council and

Northwards = don’t want to evict but households have to engage

Other Northwards Activity

• Money Advice services has increased with personal debt and benefits issues

• 50 % increase in workload at the drop in sessions

• Do four regular surgeries Partnership with the Manchester Credit Union Flexi-loan schemes

• Northwards and also promote the SmarterBuys Store

Other Northwards Activity - YES

• YES is the Northwards social enterprise for Manchester residents to find local jobs and take advantage of training and volunteering opportunities

• up to 40 plus customers per day• Partners inc Careers, Money advice,

Blue Orchid and the Manchester College

Questions and discussion

Slide 26