Policy developments in other parts of the UK
UK
The rise of in-work poverty
The extent of in-work povery in the UK is laid bare in a new report from the Joseph Rowntree Foundation.
The annual Monitoring Poverty report, written by the New Policy Institute, highlights the dynamic nature of poverty caused in the main by people moving in and out of jobs and an underemployed workforce.
The report found that:
- 6.1 million people are in working households in poverty. Excluding pensioners, that is higher than the 5.1 million people in workless households in poverty
- 6.5 million people are now underemployed – lacking the paid work they want
- the number of working families receiving working tax credits to top up wages had risen by 50% since 2003 to 3.3 million
- 4.4 million jobs pay less than £7 an hour.
Many people are also moving in and out of work and in and out of poverty:
- almost five million people have claimed job seekers\’ allowance at least once in the last two years, around one in six of economically active people
- 42% of claims for JSA were made within six months of their last claim
- while 18% of people are in low income at any one time, 33% had experienced at least one period of low income in a four-year period.
Changes to the benefit system will result in lower incomes for some of the most vulnerable in society and the report shows that a large number of families will be hit by a combination of different cuts.
Scotland
Removal of the priority need test
All people in Scotland facing homelessness through no fault of their own will have a right to settled accommodation from the end of 2012.
The Scottish Parliament approved the Homelessness (Abolition of Priority Need Test) (Scotland) Order 2012 in a move that is estimated to give around 3,000 more people the right to settled accommodation.
This means that all councils across Scotland will have to provide settled accommodation to anyone who is unintentionally homelessness. Currently that right only applies to certain groups identified as being in priority need, such as families with dependent children.
England
Discharge of homelessness duty
A new law allowing English local authorities to discharge their homelessness duty with the offer of a suitable home in the private rented sector came into force in November.
Councils will be able to discharge their duty provided that the private rented accommodation meets guidance on its physical condition and safety and its location minimises any disruption to employment, education and caring responsibilities and considers the impact in terms of transport, amenities and medical issues.
The Westminster government argues that the change will help councils fulfil their duty to those in need of homelessness help without the extra expense of long-term temporary accommodation and that the safeguards will protect homeless families.
Northern Ireland
Welfare reform negotiations
Social security minister Nelson McCausland revealed in October that he has negotiated changes to the way the Universal Credit will operate in Northern Ireland with Westminster work and pensions minister Lord Freud.
The changes mean that unlike in the rest of the UK the housing cost element of universal credit will continue to be paid direct to landlords rather than the customer. Meanwhile, payment may be split between two parties in the household and made twice a month rather than once.
The Universal Credit will now be introduced in Northern Ireland from April 2014, six months after the rest of the UK.
Publications
10 to look out for
1 – Together for mental health delivery plan – a strategy for mental health and wellbeing in Wales – Welsh Government, October 2012
http://wales.gov.uk/topics/health/publications/health/strategies/strategy/?lang=en
2 – Housing our Ageing Population: Plan for Implementation (HAPPI2) report –
All Party Parliamentary Group on Housing and Care for Older People, November 2012
http://www.housinglin.org.uk/Topics/type/resource/?cid=8650
3 – Planning Policy Wales (Edition 5) – Welsh Government, November 2012
http://wales.gov.uk/topics/planning/policy/ppw/?lang=en
4 – Acceptable cost guidance/on cost for use with SHG-funded housing in Wales – Welsh Government, November 2012
http://wales.gov.uk/topics/housingandcommunity/housing/publications/acceptablecost2012/?lang=en
5 – Housing for people with a learning disability – Mencap, December 2012
http://www.mencap.org.uk/housingreport
6 – The Long Downturn – Chartered Institute of Public Finance & Accountancy, October 2011
http://www.cipfa.org/Policy-and-Guidance/Reports/The-Long-Downturn
7 – Building the Homes and Communities Britain Needs –
Future Homes Commission, Royal Institute of British Architects, October 2012
http://www.architecture.com/HomeWise/FutureHomesCommission/FutureHomesCommission.aspx
8 – Homeless Bound – National Housing Federation, November 2012
http://www.housing.org.uk/publications/find_a_publication/general/homeless_bound.aspx
9 – Let\’s Get Building – the case for local authority investment in rented homes to help drive economic growth – National Federation of ALMOs, November 2012
http://www.almos.org.uk/news_docs.php?subtypeid=24
10 – Poor homes, poor health – to heat or to eat? Private sector tenant choices in 2012 – Pro-Housing Alliance, November 2012
http://www.prohousingalliance.com/2012/11/new-report-poor-homes-poor-health-to-heat-or-to-eat-private-sector-tenant-choices-in-2012/
Welsh Government
Communities First clusters
Local government minister Carl Sergeant has announced the first 12 clusters of the Welsh Government\’s Communities First programme. The groups of areas represent nearly a quarter of the programme to tackle poverty and will receive £19 million up to March 2015.
The 12 clusters include four in Caerphilly, four in Cardiff, one in Gwynedd, one in the Vale of Glamorgan and two in Flintshire.
The aim is to create a community-focussed tackling poverty programme that aims to support the most vulnerable people in deprived areas. Overall, there will be 52 areas eligible for inclusion in the programme and it is expected that it will be substantially in place by early 2013.
The changes to the Communities First programme follow a major consultation in 2011 and take into account recommendations from the Welsh Audit Offce and public accounts committee.
Mortgage guarantee scheme
The Welsh Government has revealed details of a mortgage guarantee scheme for new homes that will be introduced in Spring 2013. The scheme will run for three and a half years in partnership with housebuilders. It will be available to all buyers in areas of housing pressure and first-time buyers across Wales to support the purchase of up to 3,000 new build homes with a value of up to £250,000.
As in the NewBuy scheme in England, the Welsh Government and housebuilders will act as guarantors so that buyers can secure high loan to value mortgages that would otherwise not be available to them. Buyers will contribute a 5% deposit. The Welsh Government is supporting the scheme with a £27 million guarantee and it could enable an investment in housing of up to £500 million over a three year period.
Community grant scheme
A new community initiative grant scheme of £1.5 million will support housing and regeneration in Wales over the next three years. The fund will complement the Welsh Government\’s vision for regeneration set out in the Vibrant and Viable Places framework and will offer support through a competitive bidding process for applications that will deliver its agenda. It will support:
- delivery of community benefit through housing and regeneration capital investment
- innovation, especially in the development new housing models and funding options
- the exchange of ideas, experience and lessons that can contribute to successful delivery
- training and development
The deadline for applications for projects starting in April 2013 was 10 December 2012 and decisions were provided by 31 December 2012.
Draft Budget
The Welsh Government published its draft Budget for Growth and Jobs in October.
The spending plans include an extra £175 million capital to support the delivery of key Welsh infrastructure. This will create or support more than 3,000 jobs over the next two years.
Available at http://wales.gov.uk
Consultation papers
A number of Welsh Government consultation papers will of interest to WHQ readers:
- Framework For Action On Independent Living – Responses by December 20 2012
- Green paper consultation on proposals to improve services in Wales to better meet the needs of children and young people who are at risk of entering, or are already in, the youth justice system – Responses by December 11 2012
- The Strategy For Older People In Wales (phase 3) 2013-2023 – Responses by January 17 2013
- Vibrant And Viable Places – regeneration framework – Responses by 14 January 2013
- White Paper consultation on legislation to end violence against women and domestic abuse (Wales) – Responses by February 22 2013
Welsh Government consultation papers are online at http://wales.gov.uk
Wales
Silk Commission calls for tax and borrowing devolution…
An independent commission has recommended the devolution of tax and borrowing powers to Wales.
The Commission on Devolution in Wales proposes that Wales should get its own tax and borrowing system for the first time in a system that should be implemented step by step to build experience and balance risks to the Welsh and UK budgets.
The National Assembly for Wales would be empowered to take decisions on smaller yielding taxes like landfill tax and stamp duty land tax while the Government would have increased power to introduce levies reflecting Welsh priorities.
Responsibility for income tax would be shared between Cardiff Bay and Westminster with the Welsh Government able to vary rates within the UK structure. Any income tax devolution would be subject to a referendum.
The report also recommends new powers to borrow to support increased investment in infrastructure and fund current spending subject to prudent limits agreed with the Treasury.
Commission chair Paul Silk said: \’What we are recommending is significant and historic. It will give Wales its own tax and borrowing system for the first time. The Commission is delighted to present our agreed report to the UK Government and we hope for speedy implementation.\’
The Silk Commission report is available at http://commissionondevolutioninwales.independent.gov.uk
… as CHC calls for transfer of welfare powers
Wales should seek devolved power over welfare reform. That is the call from Community Housing Cymru in anticipation of the second stage of the Silk Commission.
It said that with welfare reform changes looming including the introduction of the Universal Credit and the removal of direct payment of housing benefit to landlords Wales should seek to take devolution further.
Chief executive Nick Bennett said: \’We need to go above and beyond the Scottish model of Reserved Powers. In Northern Ireland, welfare reform is devolved. As a result tenants in Housing Executive, housing association and private rented homes in Northern Ireland will be able to continue to have housing costs paid directly to their landlord when Universal Credit is introduced.\’
Payment of Universal Credit can also be twice a month and split between two parties in the household in Northern Ireland, easing the number of potential problems in the rest of the UK, where payment is monthly and to one person.
Nick Bennett went on: \’We believe there will be a rise in the use of high interest doorstep lenders and loan sharks as people come to terms with the cuts – many of whom are already struggling to make ends meet. If we had parity with Northern Ireland on welfare reform it would also mean that we wouldn\’t see the 1% increase in the cost of private borrowing, as suggested by the Council of Mortgage Lenders.\’
Welfare changes campaign
Community Housing Cymru has launched Your Benefits Are Changing, a campaign and website aimed at raising awareness of an issue it says could see 40,000 Welsh households lose up to a quarter of their housing benefit.
The under-occupation penalty or bedroom tax starts for social housing tenants in April 2013. Tenants could lose 14% of their housing benefit if they have one spare bedroom and 25% if they have two or more.
And that\’s just one of a number of changes in 2013, including the start of the introduction of the Universal Credit.
CHC is urging anyone who thinks they might be affected to get advice.
Claire Griffiths, member of CHC\’s tenant\’s participation panel, said many people currently thought they would avoid the impact of these changes. She said: \’I\’ve spoken to people with two children in a three-bedroom house who think they will be ok, I don\’t think they realise that their children have to share up to 16 if they\’re the same sex.\’
CHC is also worried about the knock-on effects of the changes including increased pressure on homelessness services, more people going into debt and increased rent arrears.
More information is available at www.yourbenefitsarechanging.co.uk
Hour\’s Pay appeal
A slum dweller making bricks to support a Homeless International project in Mumbai, India
Homeless International has launched its annual Hour\’s Pay appeal and is inviting supporters to consider the huge boost that small actions can make to the lives of people living in some of the world\’s most challenging conditions.
The UK charity dedicated to supporting the urban poor in developing countries says over 63,000 people have been directly helped by previous appeals and 2012 efforts will assist a further 6,000 families to secure the land and resources necessary to build homes where they can thrive and help other members of their community.
More information is available at www.homeless-international.org
Sleep Out Cardiff raises almost £30,000
Llamau has broken its fundraising target for its Sleep Out in Cardiff thanks to support from Welsh businesses.
The homelessness charity said the total raised by businesses, councillors and residents was £24,592.40 and that it expects the total will reach almost £30,000 including Gift Aid.
Some 66 people for Welsh businesses, councillors and residents took part and the money will go directly towards supporting homeless young people in South Wales this winter.
The event was sponsored by CPS Homes and took part at the International Sports Stadium, which was provided free by Cardiff Council. Business including Savills, Taylor Wimpey and The Shaw Trust took part.
Llamau chief executive Frances Beecher said: \’We are so proud of the way that Welsh businesses, councils and individuals have rallied around to support Llamau by taking part in the Sleep Out, and also by donating their time and services to ensure the event is a success. Not only has it raised an amazing amount of money, it has raised the issue of youth homelessness and given a glimpse of what it\’s like to have to sleep out without the security and protection of a home.\’
Newport launches training programme
More than 40 academy and apprentice trainees came together with NCH board members and councillor Deborah Davies to mark the occasion.
Newport City Homes (NCH) has launched a training programme for young and unemployed people in the city.
The academy scheme offers paid work experience placements to school leavers and other unemployed people who have little or no qualifications and are experiencing difficulty in finding a job.
The apprentice scheme offers apprenticeships to people wishing to learn a trade to assist them in obtaining employment in a construction environment and the opportunity to gain a nationally recognised qualification with wide-ranging and valuable work experience in their chosen field.
Councillor Deborah Davies, Newport city council\’s cabinet member for skills and work, said: \’This is an excellent initiative from Newport City Homes which will provide much-needed work and training opportunities.\’
Tuning in to housing
Tony Reynolds, a negotiator for CanDo Lettings, presents the weekly Housing Matters show on Radio Cardiff.
The two Cardiff-based social enterprises teamed up when they recognised that housing is an issue that affects everyone and that a radio show dedicated to housing would be an excellent way of connecting with the local community.
The show goes out every Monday between 4pm and 5pm and features a new guest each week to help address listeners\’ queries, concerns and issues about housing.
Website launch
A group of former homeless young people in Flintshire have launched a social media website to help others facing similar experiences.
The site www.thehomenet.org.uk was launched at The Quay Project, a supported living scheme managed by Clwyd Alyn housing association in Greenfield.
It started when Jamie Nuttall, a tenant from the Quay Project, wanted to use his IT skills and his knowledge of being homeless to help others who are homeless or in danger of losing their home.
Project worker Ben Morris explained: \’With the assistance of funding from Clwyd Crimebeat, other tenants and staff at the Quay Project then worked as a team to turn the idea into a reality.\’