Housing associations anticipate a substantial impact from the introduction of welfare reforms

According to a recent baseline survey, more than 80% of housing associations anticipate that the introduction of direct payments to tenants will affect their organisation a great deal or a fair amount. The introduction of the size criteria is anticipated to have a significant impact for more than 60% of associations. The perceived extent of the impacts have been sufficient to prompt many associations to develop strategies and allocate additional resources to manage change. More than nine in ten associations have begun to look at the risks and opportunities and a majority of these say they are taking action to embed welfare reform into their business planning and strategy development. Other findings:

• More than half of associations (57%) believe that their tenants know hardly anything or nothing at all about the benefit changes.
• 84% of associations believe that rent arrears will increase as a direct result of welfare changes.
• Some 64% of associations are confident that increased arrears arising from welfare reform will not affect their ability to meet loan covenants, but one in five (22%) say the changes will make it harder.
• 10% of associations involved in the Affordable Homes Programme believe that, in particular, the introduction of direct payments to tenants will make it a great deal harder to meet their delivery commitments.

Downloads

• Download the basline report (PDF)
• Download the survey topline (PDF)

Technical note

The survey forms part of a wider programme of research to assess the impacts of welfare reform across the housing association sector until March 2014. The survey was conducted online and took place before the Autumn Statement. Results are based on 232 responses from housing associations completed between 21 September - 5 November 2012. Data has been weighted to the known profile of housing association general needs stock across England and by size of association.