Clare Way reports on the approach taken by NPT Homes to what the government calls the removal of the spare room subsidy
The bedroom tax has been the most widely publicised of the welfare reform changes implemented to date. At the end of february, 1,540 (18 per cent) tenants of npt Homes were affected, a reduction of 360 cases since its inception in April 2013 including 168 covered by the pre-1996 loophole.
A training programme developed and delivered by the NPT Homes financial inclusion team to frontline officers has enabled contact and support to be offered to all tenants affected by the bedroom tax. This is facilitated by a weekly list produced by the housing benefit department detailing tenants who are newly affected.
The financial pressure experienced by tenants is profound: approximately 23 per cent of NPT Homes tenants affected by the bedroom tax have fallen into arrears or have increased arrears as a direct result of the bedroom tax deductions being applied. Increasing arrears figures together with the looming prospect of universal credit have re-opened the debate about the merit of ‘specialist’ versus ‘generic’ working arrangements across landlord organisations. NPT Homes will shortly begin a review of the arrears recovery process with a view to making an evidenced-based decision on this.
The pre-1996 loopholein the bedroom tax regulations has been a welcome, albeit temporary, reprieve for landlords and tenants alike. This has meant that any tenant continually resident in a property since 1996 and in receipt of housing benefit for the whole period is exempt from the bedroom tax. Some 168 NPT tenants meet these criteria, all of whom have seen the reinstatement of their full benefit entitlement and a refund to their rent account of any deductions that were made in error.
The Department for Work and Pensions closed the ‘loophole’ from March 3, subjecting the 168 tenants to the bedroom tax once again. This is a highly confusing scenario to all but the most experienced of benefits advisors! The danger is that those tenants who had been paying receive a refund and through ignorance fail to start payment once again. Communication with these tenants will therefore be a priority over the coming weeks and months.
Tenants who under-occupy their property and do not qualify for exemption from bedroom tax deductions by falling into an ‘exempt’ category are able to apply for discretionary housing payment (DHPs). DHPs may be awarded, in addition to any welfare benefits, when a local authority considers that a claimant requires further assistance towards housing costs. Some 18 per cent of our tenants affected by the bedroom tax have secured assistance through this route. Others are set to gain as a result of the £1.3 million of additional funding that the Welsh Government has made available for use during the 2013/14 financial year. Neath Port Talbot housing benefit department has received an allocation totalling £67,197. NPT Homes is proactively contacting tenants who, following a budgeting appraisal, have been unable to meet the shortfall between their rent and housing benefit.
The duration of an award for DHP is assessed on a case-by-case basis. In the main tenants living in Neath Port Talbot who fall within a priority category have received a 12-month award while hardship cases have made up the majority of six-month awards. Budgeting advice and, where appropriate, assistance to register for alternative accommodation has been provided to tenants subject to an award of DHP. However, one year on some tenants have been unable to secure a change in their circumstances and we are working closely with the housing benefit department to determine a simplified process for repeat applications.
Partnership working arrangements, specifically those that have been developed with the local housing benefit department, have proven to be the key to reducing the impact and minimising the risk that the bedroom tax has had on NPT Homes. This position will continue into future years as we prepare for the introduction of universal credit.
Clare Way is head of specialist services at NPT Homes