National Housing Federation: Impact of welfare reform on housing associations
This is the second in a series of reports for the National Housing Federation presenting data from surveys of housing associations to understand the extent and nature of impacts of key welfare reform measures.
As part of a programme of research to monitor the impacts of welfare reforms on behalf of the National Housing Federation, we are producing a series of reports presenting data from surveys of housing associations to understand the extent and nature of impacts of key welfare reform measures.
In this second report, nearly three in five associations surveyed (58%) say they have been significantly affected by the introduction of the size criteria. Housing 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. 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.
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 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. Technical information The latest 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.
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