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Housing Benefit Reform

Housing Benefit Reform. Ged Millar, Housing Benefit Reform & Affordable Rents. Welfare Reform. Practicalities Single benefits payment Overall benefits cap Improved benefits taper. ALL CLAIMANTS. Uprating non-dependant deductions

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Housing Benefit Reform

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  1. Housing Benefit Reform Ged Millar, Housing Benefit Reform & Affordable Rents

  2. Welfare Reform Practicalities • Single benefits payment • Overall benefits cap • Improved benefits taper

  3. ALL CLAIMANTS • Uprating non-dependant deductions i.e. increasing contribution to rent by household members with income • Increased to reflect rent increases since 2001/02 when frozen • Annually for 3 years from April 2011

  4. PRIVATE RENTED TENANTS • Cover additional room for carer for disabled people • Changes to Local Housing Allowance (April 2011) affecting 55,000, losing £10 average p/wk • Based on 30th percentile instead of 50th • Removal of £15 excess • Capping of 1/2/3/4 bedroom rate • Single people under 35 entitled to Shared Accommodation Rate only (January 2012) affecting 7,500, losing from £17-£54 p/wk • Uprating by CPI instead of RPI (April 2013) • significantly reduce HB over time

  5. HOUSING ASSOCIATION & COUNCIL TENANTS • Under occupancy penalties for working age tenants (April 2013) affecting 95,000 households, £9 - £16 p/wk • Direct payments to tenants (April 2013)

  6. Impact • £100m from Scottish economy annually (2011 changes) • Higher proportion of income on housing costs • Rent arrears, homelessness presentations • HB not reflecting housing costs • Direct payments –not everyone will be able to manage • Parental responsibilities, shared accommodation rate and under-occupancy penalty • Non-dependent allowance uprating - family tensions? • Claimants less attractive to private landlords, less PRS affordable for claimants

  7. HB reforms – other issues • Pace of reform • Lack of detail • Local authorities • No longer main housing benefit administrator - in 2010/2011 DWPprovided £50m to local authorities to administer • Lack of face to face contact • Increased demand for other services

  8. SG response Influencing • Scottish Housing Adv Group • Analysis and related research papers available via SG housing web page • Mitigating • (DWP trebled discretionary housing payments) • Devolution of Social Fund • Advice to Ministers • (http://www.scotland.gov.uk/Topics/Built-Environment/Housing/16342/hbreform)

  9. Actual impact depends on claimant & landlord behaviour Bottom line – less money, increased pressure on households incomes Housing benefit reform

  10. Further information • 0131 244 0700 • Ged.Millar@scotland.gsi.gov.uk • http://www.scotland.gov.uk/Topics/Built-Environment/Housing/16342/hbreform • Questions?

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