Welfare Reform update

1. Welfare Reform update Paul Hayward Head of Income Services Resident Liaison Group Wednesday 5th June 2013

2. Welfare Reform change – timelines; • What have Hackney Homes been doing; • Early impact of bedroom tax; • Benefit cap and Universal credit updates.

3. Key change timelines: • 1st April 2013 Under occupancy – Social Sector size criteria (bedroom tax) introduced • April 2013 – other benefit changes affecting residents disposable income, non dependent increase, Council tax benefit scheme abolished, replacement of social fund with local Hackney discretionary crisis support scheme. • June 2013 Disability Living Allowance/Personal Independence Payment – new claims change of circs renewals October 2013 • Benefit cap rollout from 15/07/2013 – end September 2013. • Universal Credit new claims October 2013/April 2014 • 2014 change in circumstances • 2014 – 2017 remaining HB claimants move to UC

4. What has Hackney Homes been doing: • Welfare reform project plan • Welfare Reform Officers recruited December 2012 • Targeted engagement with residents affected • Staff, resident and member briefings • Staff crib sheets devised • You tube video produced • DHP training for frontline staff • Key stakeholder as part of Communication Strategy and various Welfare Reform working groups

5. Under Occupancy (Bedroom Tax) • Commenced 1st April 2103 • HB restricted for tenants occupying a property defined as being larger than their needs • 1 extra bedroom 14% HB cut, 2 or more extra bedrooms 25% cut • Social rented sector only • Working age only (not pensioners) • Under occupancy defined as: - one bedroom for a couple - one bedroom for a single person over 16 - one bedroom for any two children of the same sex under 16; - one bedroom for any two children of the same or opposite sex who are younger than 10; - one bedroom for any other child under 16; - one bedroom for an overnight carer if appropriate *Final changes include extra bedrooms for armed forces, disabled children and foster children.

6. Under Occupancy cont… • Example: A couple living in a 3 bedroom house with two girls aged 15 and 8 would be deemed as over occupying by 1 room and would lose 14% of any HB entitlement.

7. Contact *Over past 12 months ongoing engagement through resident meetings

8. Bedroom tax options Options available: • Pay the shortfall • Move* • Take in a lodger / family member • Increase working hours/move into work • Apply for Discretionary Housing Payments (DHP) short term *Property matching event 4th July 2013 Social Housing Providers, Benefits Service, Home swapper, Credit Union, Moneysmart.

9. Bedroom tax impact Hackney Homes

10. Arrears management of bedroom tax cases *Key target 1097 increasing and new arrears cases

11. Benefit Cap • Introduced 15th April 2013 in four London boroughs Bromley, Croydon, Enfield and Haringey • Introduced between 15th July 2013 – 30th September 2013in Hackney • Working age only • £350 a week for single people and £500 a week for couples (with or without children) and lone parents • All out of work benefits including housing benefit, child tax credit, income support, job seekers allowance and child benefit • Not affected if a member of the household qualifies for working tax credit or receives a selection of other benefits including DLA and PIP • Where income from benefit is above the cap then the individuals Housing Benefit will be restricted until the total income is at the cap level. • In some cases due to level of income, families will lose all their HB, in these cases they will continue to receive 0.50p towards their housing costs to allow the customer to claim for DHP.

12. Benefit Cap impact • 59 Hackney Homes properties currently affected • Loss in HB between £0.80 - £213.84 • Mainly mainly large families (5 children +) affected • Solutions: • Targeted approach by Welfare Reform Officers referral to Rent shortfall team and DHP applications • Employment with Working Tax Credit award affords an exemption

13. Universal Credit • Replaces • Income Support, JSA IB, ESA IR, Child Tax Credit, Working Tax Credit and Housing Benefit with one benefit • Paid monthly • Direct to nominated person in household • Digital • Online customer accounts, award notifications, emails • Limited telephone support and face to face • Limitations • Less allowances, no 2 homes, 1 month backdating • Hackney Homes have approximately 15,500 tenants claiming Housing Benefit • Benefits and Housing Needs Service paid £71+m per year in Housing Benefit to Hackney Homes rent accounts (2012/13)

14. Universal Credit impact and timeframe • Hackney Homes have approximately 15,500 tenants claiming Housing Benefit • Benefits and Housing Needs Service paid £71+m per year in Housing Benefit to Hackney Homes rent accounts (2012/13) • Timeframe • Payment Direct pilot in Southwark June 2012 • Lewisham UC face to face pilot Autumn 2012 • Pathfinder with the boroughs of Tameside, Oldham, Wigan and Warrington April / July 2013 • New claims small scale Oct 2013, full capacity April 2014

15. Universal Credit cont… • Extra support • Exceptions • Split payments • More frequently – fortnightly • Payment direct to landlords – 2 month arrears automatic switch over as part of Ashton-under-Lynepathfinder • Budgeting and Support • Financial Products • Migration – reclaim not transfer

16. ANY QUESTIONS? Paul Hayward Head of Income Services paul.hayward@hackneyhomes.org.uk 0208 356 2993

17. Managers Briefing Fuel Poverty 23rd May 2013 Curtis Taylor Head Of Estate Renewal Hackney Homes

18. Fuel Poverty defined • Updated by Hill’s Review, the need to spend over 10% of household income on fuel costs. • More than one in ten households were in fuel poverty in Hackney in 2010 • Leabridge Ward:14% of households are in fuel poverty

19. What can be done about it? Hills recommends 3 Government interventions: • Tackle Energy prices • Improve thermal efficiency through insulation & subsidies • Deliver direct income support to poor households

20. What can Hackney Homes do about it? - Tackle Energy Prices • Sell cheap heat and hot water to our tenants and leaseholders • Council’s Energy Management Unit bulk buys gas at a discount. District Heating allows the Council to pass on savings to residents. • Hackney Homes manages 60 gas fired District Heating systems • Hackney Homes manages 26 blocks with electric heating where heating bills outstrip residents’ ability to pay • Generate electricity with combined heat and power and use income from sale of electricity to subsidise maintenance costs • Generate cheap electricity with PVs • Encourage switching of tariffs

21. What can Hackney Homes do about it? - Improve thermal efficiency through insulation & subsidies • Insulate: 7000 cavity walls and lofts in 2012 and 2013 paid for by energy companies. 14 left to do. • Insulate: 8 blocks over clad. 120 blocks requiring solid wall insulation • Lever in ECO subsidy from energy companies • Improve thermal efficiency of homes receiving Decent Homes and Planned Maintenance works

22. What can Hackney Homes do about it? - Deliver direct income support to poor households • Get trained • Be able to identify fuel debt • Rent arrears • Illness • Large property • Elderly • Old or Inefficient heating • Language difficulties • Key meter • Give advice and know what agencies to refer people to. • Promote behaviour change e.g. Get residents to switch off appliances and turn down thermostats.

23. Useful contacts and information • London Borough of Hackney Energy Advice Line 0800 281 768 • SHINE http://www.hackney.gov.uk/shine.htm • Citizens Advice Bureau www.citizensadvice.co.uk • National Energy Action 0191 2615677 www.nea.org.uk • Hackney Homes Revenues & Benefits Advice Line 020 8356 3399 • Energy companies • www.energysavingtrust.org.uk

24. Right to Buy – Effect of Changes in Legislation Judith Morrison 5th June 2013

25. Who has the Right to Buy? • Right to Buy gives eligible people who live in council properties in England the right to buy their home at a discount. • The scheme is open to people who are secure tenants of a local council and who have spent at least 5 years as a public sector tenant.

26. Hackney Council – Current Position • Tenants - 23000 • Leasehold - 7400 and growing • Freehold - 1500

27. Changes in legislation • Increased discount • 1 April 2012 £16,000 • 2 April 2012 £75,000 • 25 March 2013 £100,000 • Qualifying period to be reduced from 5 to 3 years

28. Level of Applications • Since April 2012 we have received 561 RTB applications Year Applications • 2011/12 119 • 2012/13 464 • 2013/14 87 to date

29. Withdrawals • Since April 2012 30 applications have been withdrawn. The most common reasons for withdrawals are: - • About 65% cannot get a mortgage • About 35% didn’t respond after receiving the offer notice

30. Denials • Since April 2012 66 applications have been denied. The most common reasons for denials are: - • About 72% are “due to the property not being the tenant’s principal home. • About 12% is due to bad credit where they have either CCJs or have defaulted on loans without settling • About 6 % of cases have been referred to Estate Safety for matters of possible fraud to be fully investigated.

31. 2012/13Key Performance Outcomes Alex Jarosy

32. As at the end of 2012/13, about 78% of our Business Critical Indicators are either above or within 10% of the target. Key areas performing well are as follows:- Strengths outweighing weaknesses and significant improvements from the previous year

33. Key challenges for the year ahead Areas needing attention next year Value of rent arrears ended last year at £4.53 million. There are significant challenges next year from bedroom tax and universal credit. Estate Cleaning satisfaction (59.64%) Satisfaction of new tenants with the condition of the property (55.47%). Repairs Contact Centre Calls Answered (83.42%). Whilst this has improved from last year, it is key indicator and for May 2013, performance is at 98%. Stage 2 complaints upheld as a proportion of closed stage 2 complaints ( 69.27%). Critical here is the training associated with improvements for stage 1 responses.

34. Rent Arrears & Collection? • Value of rent arrears has increased (due to a reduction in cash and HB payments) although current year’s figures do show improvements • Rent collection is also down at (98.79%) compared to (99.55%) in 11/12 • Key actions for the new year • Increased personal contact including evening work • Joint partnership working with the council to improve Housing Benefit income

35. ASB Satisfaction & Tenancy Audit Satisfaction has exceeded the target for both case handling (59.76%) and complaint outcome (57.14%). Recovered 62 properties as part of the antifraud initiative Issued 344 actions against perpetrators (including warning letters and evictions) 22 court enforcement actions (including injunctions and possession orders) 23 cases referred to third party agencies such as to the Mediation Service

36. Empty property Management: Performance on empty property management shows that on average Hackney Homes re-lets properties 2 days outside of the target with an outturn of 34 days against a target of 32 days. Joint measure with the Council Keys issues impacting on performance include: Council carrying out more obtrusive verification of housing waiting list applicants This has meant increased delays within the CBL process likely to impact on the void turnaround times new voids team within Hackney Homes is just completing its initial training and it is envisaged that the new team will achieve better results in the new year

37. Leasehold & RTB Service Charge: Service charge collection has increased substantially. As at the end of 12/13 we have collected £9.07 M against a target of £8.90 Since introduction of Gov’t changes to the RTB scheme the number of RTB applications has increased from 116 in 11/12 to 462 in 12/13 – an increase of 300%.

38. Building Maintenance & Repairs • Strong performance on the number of properties with a valid Gas Safety Certificate (99.53%) compared to 11/12 figure of (95.11%) • Repair appointments made and kept show that (95.21%) of all appointments have been kept as agreed with tenants. • (83.42%) of calls to the Repairs Contact Centre during the 2012/13 year have been answered compared to only (79.95%) in 2011/12. • Development of e-form system ,which allows repairs details to be recorded and allocated during system down periods. Resultant improvements include: • Repeat calls from residents have been reduced • increase in the percentage of calls answered from residents

39. Asset Management ( Decent Homes) The Decent Homes Programme has exceeded the target of 171 homes made decent for 2012/13 by achieving a total of 335 homes made decent. Levels of non decency has therefore been reduced from 27.45% 25.55% Once the end of year accounts have been finalised we expecting the Decent homes performances to improve even further For the coming years, there do remain significant challenges for Hackney Homes, given the significant cuts in the capital programme which may influence our ability to complete the whole programme by 14/15.

40. Estate Environment Performance on both cleaning and grounds maintenance inspection scores continues to be high, with the inspections for cleaning hitting a pass rate of (98.59%) and for Grounds Maintenance achieving (97.90%). Tenant satisfaction with ground maintenance (70.74%) is also exceeding its target (70%) However, tenant satisfaction with Estate Cleaning has declined to 59.64 % To further explore the lower than expected satisfaction levels for the cleaning service we have set up a focus group meeting with residents in June 2013.

41. Corporate Indicators: Payment of invoice, there has been a significant improvement this year. The 2012/13 outturn is (96.45%) compared with the 2011/12 figure of (94.14%). Staff sickness has ended the year with an outturn of (7.05) days absence per employee, which is significantly within the corporate target of (9.90) days - representing a significant improvement from 11/12. However performances on the following areas is below target: Stage 1 complaints – outturn (87.78%) against a target of (91%) Against this however, the average response time is within target at 13 days. Members enquiry responses (82.82%) against a target of (90%) It is anticipated that across the organisation, there will be improvements as a result of the training in complaints handling techniques recently delivered.