The purge of under-occupying tenants
Most people will agree with the view that it is time for our welfare system to be reformed. Indeed this view is shared by all political parties. However, the test of good government should be the due consideration that our representatives make when considering the fairness and compassion of those affected by legislation.
The Welfare Reform Bill states that tenants in the registered social housing sector who under-occupy their homes as from April 2013 and who are under pensionable age, will see their housing benefit reduced by 13% if under-occupying by 1 bedroom, and up to 23% for 2 bedrooms. This policy approach marks the beginning of a convergence of how private rented sector welfare claimants are treated under, for example, the single person room rate which is widely regarded as grossly unfair. This could have the effect of tenants either having to meet the additional cost of an average of £12 per week out of their meagre disposable incomes, or face increasing indebtedness and possible eviction.
Ironically, the measure has been introduced to address the overcrowding problem we face in the UK. The Department of Works and Pensions (DWP) state that overcrowding is on average 10%, rising to 15% in some areas. In Wales, the figures are similar. However, what they don’t convey is that under-occupation, estimated to be around similar figures, occurs in the main in dwellings occupied by pensioners, yet these are excluded from the welfare reform measures. While we are not advocating pensioners should be included, it seems clear from the policy approach, that they could be at some point in the future and the measure, as currently drafted, unfairly penalises a specific profile of the population disproportionately.
In a recent round of ATTAIN focus group sessions organised by the WTF in the north, south west and south east of Wales, more than 98% of tenants opposed the measure, calling for the government to radically re-think its approach. Among their concerns are how the measures will impact on:
- people with disabilities
- parents who have access orders but do not live permanently with their children
- women living in temporary accommodation due to domestic violence
- the commendable efforts of landlords to address indebtedness among the poorest in society
Many of the tenants affected will be hit by multiple financial pressures, such as other welfare changes, income support cuts, rent and service charge increases and the ever escalating cost of utilities. There are also real concerns among landlords about the increased liability being placed on their awareness of the occupants of a dwelling they rent, possibly making them liable for the recovery of overpayments by the DWP.
In the event that lobbying for a different approach fails, tenants are recommending that:
- we need to ensure that benefits are not reduced if no reasonable offer of alternative accommodation has been made to the under-occupier
- a national compensation scheme be introduced to encourage people to downsize
- an ‘existing customers first’ approach to allocations is introduced, putting a priority on existing tenants to have access to new homes that become available, and
- independent arbitration be introduced to prevent potential abuses of incentives and disputes concerning under-occupation definitions
The plethora of changes means that the welfare system is becoming more confusing for even the highly experienced welfare advisor let alone the legitimate claimant. We are therefore advocating that a national charter be introduced which sets out the obligations of the DWP and the many private companies that will be set up to implement the governments welfare reforms in the future.
If you are a tenant and these and other issues perplex you, then you should be engaging with us when we come together at our September conference for our national conversation with you. Be there – if you want your voice heard on these matters.
Destination Unknown
14-15 September 2011
This conference asks the question – What is happening to our social housing?
The focus of the event will be to create an understanding of what is happening now and what may be happening in the future to social housing in Wales, to take forward tenant led recommendations to our Make the Difference –Shape the Change initiative, so that we can influence the policy movers and shakers!
The Welsh Tenants Federation is raffling their £2000 prime ‘sponsor for the year’ package for just £100!
We are putting everyone on a level playing field
Whether your organisation is a large landlord or a small tenant group this unique opportunity to receive national prominence is not to be missed.
For just £100, you can have the potential to reach 1000s of people at over 20 events during the year, your logo on our website and emails, plus a prime feature in our annual report.