Impact of welfare reform on housing associations

Early effects and responses by housing associations to the introduction of welfare reforms

According to the latest Ipsos survey of housing associations for the National Housing Federation, nearly three in five (58%) say they have been significantly affected by the introduction of the size criteria. The pattern of impact is however variable, with those operating in the north of England most likely to say they have been significantly affected.

At the time of the survey associations estimate that nearly one in five of their working age tenants in receipt of Housing Benefit are affected by the size criteria, and on average, more than a quarter (29%) have fallen into arrears since its introduction on 1st April 2013. Over half (53%) report increased difficulty in rent collection because of the size criteria.

The reported proportion of tenancies affected by the size criteria fell by an average of nearly 10% between April 2013 and the time of the survey. Just under half (45%) of all those who have ceased to be affected since April 2013 have downsized by either a transfer or mutual exchange.

Housing associations have responded to the introduction of the size criteria in a number of ways:

• Housing associations with tenants affected by the size criteria expect to spend, on average, an additional £109,000 per association on improving rent collection, providing welfare advice, financial inclusion and employment and skills support to tenants.
• There is no evidence of large-scale reclassification of stock; just two percent of associations reported re-classifying a significant number of properties to a smaller number of bedrooms.
• Only 14% of associations developing new homes under the Affordable Homes Programme say the introduction of the size criteria is making it harder for them to deliver commitments, although three in ten say it will make it harder to deliver new homes after 2015.

The early impacts of the Benefit Cap have been far less wide-reaching across the sector but awareness levels (96%) and stated levels of preparedness (82%) around the move towards Universal Credit are high. The biggest concern for associations with the move to Universal Credit is with the capability of their tenants to cope with monthly budgeting.

The survey forms part of an ongoing programme of research to assess the impacts of welfare reform across the sector. The survey was conducted online and is based on 183 responses completed between 30 September-5 November 2013. Survey respondents account for 66% of the general needs rented stock owned or managed by Federation members. Data has been weighted to the known profile of housing association general needs stock across England and by size of association.

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

Technical note

•  A total of 720 housing associations operating in England were invited to complete an online survey with invitations sent to Chief Executives on 30th September 2013.
• The fieldwork period lasted for six weeks and during this time four reminders were issued to those that had either not started or had not submitted their survey responses.
• Survey results are based on all surveys completed and returned between 30 September and 5 November 2013.
• A total of 183 organisations submitted a completed questionnaire, which after taking account of non-effective email addresses (a total of 32 email addresses were invalid, of which 26 were corrected), gives an adjusted response rate of 26%.
• The sample of housing associations completing the survey accounts for 66% of the general needs stock nationally. Survey data has been weighted to the national profile of general needs stock by region and by size of association.
• An * indicates a score less than 0.5%, but greater than zero. Where percentages do not add up to 100 this is due to computer rounding or multiple responses.
• Responses are excluded from the analysis where a respondent has failed to provide an answer (i.e. left blank or indicated 'Don't know') which means base sizes can vary for each piece of analysis. It is also important to note that where estimates rely on a combination of two or more figures missing data for either of these variables can result in discrepancies between average numerical estimates and average percentage estimates