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New money for Universal Credit represents an opportunity for fresh thinking
Extra cash for the government’s flagship welfare reform announced this week gives a chance to address challenges in its implementation, argues Vinny Roche
The extra £1bn announced this week to support the roll-out of Universal Credit has been broadly welcomed.
Indeed, the policy’s founder, Iain Duncan Smith, has said that the package of measures announced by the Chancellor in the Budget – which also included increasing work allowances by £1,000 from 2019 – has “saved” Universal Credit.
Whether the funding will go far enough, and why it hasn’t come sooner is perhaps a debate for another day.
The message from Philip Hammond is that Universal Credit is here to stay. We now have an opportunity to address some of the challenges around its implementation.
“It will be key that the new funding is allocated to supporting the most vulnerable feeling the biggest impact of Universal Credit.”
New resources and support for people making the transition is both needed and welcome.
All housing providers operating on the frontline will be aware of the impact that the policy is having on their tenants.
It will be key that the new funding is allocated to supporting the most vulnerable feeling the biggest impact of Universal Credit.
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In Oldham, we currently have 2,500 customers on full service Universal Credit with a further 3,000 set to make the switch.
For some, the policy works. When it does there’s little need for intervention from their landlord.
But what we have greater visibility of is where Universal Credit isn’t working. Our customers are reporting that they are not coping well with the policy and it is causing hardship.
“Where Universal Credit isn’t working, we see rising arrears and increased use of foodbanks.”
Other landlords will know that there are plenty of these cases.
Where Universal Credit isn’t working, we see rising arrears and increased use of foodbanks.
For the majority of our customers it takes about five months following the switch to full service Universal Credit to adjust and establish regular rental payment patterns.
That is a long time to wake up each morning wondering how you are going to pay the rent.
We’ve found that those who have made the transition well tend to be robust individuals and households. They often have family or natural support networks around them and have limited barriers to work.
For those with more complex needs and chaotic lifestyles, the story has been different.
These customers tell us that they are struggling with the complexities of Universal Credit.
“For the majority of our customers it takes about five months following the switch to full service Universal Credit to adjust and establish regular rental payment patterns.”
Their challenges vary, but can include mental health issues or substance abuse among other things.
Austerity and cuts to welfare and local authority funding have exacerbated the issue. Funding to the services that support these people have been cut.
Their lives are often finely balanced – and worries around their rent or income upset that balance.
These customers and the people who support them report to us missed appointments with GPs, being unable to access their online portal and being unable to complete applications.
Ultimately, this leads to sanctions and a loss in income.
It causes a chain reaction that makes other challenges almost impossible to deal with.
The majority say they don’t feel able to cope with the system – and go on to prove themselves right.
There is a narrative that says these people should be able to cope but we know that this is not the case and we cannot abandon these people.
There are systems in place to catch these people, but customers are reporting that this safety net does not kick in early enough.
“There is a narrative that says these people should be able to cope but we know that this is not the case and we cannot abandon these people.”
This is the sharp end of the policy. And these are the heart-breaking stories we see played out in the media.
We have an opportunity for fresh thinking around how we support these people and how quickly we intervene.
We look forward to hearing the detail of how that funding will be spent later in the year.
Vinny Roche, chief executive, First Choice Homes Oldham
Autumn Budget 2018 - full coverage
All our Autumn Budget 2018 coverage in one place:
The Autumn Budget lacked the ambition we need Philip Hammond’s Budget fell short for housing, writes Melanie Rees
There were no big fireworks but the Budget offers an opportunity to deliver The Budget leaves associations facing a choice and we must now deliver, argues David Montague
Names of new housing association strategic partnerships revealed Homes England has released the names of the eight housing associations that have just signed strategic partnerships with the government.
Budget a missed opportunity on housing, says NHF Reaction to the Autumn Budget from several organisations, including the National Housing Federation
Budget small print reveals significant announcements for housing Housing policies contained in the Autumn Budget and background documents published yesterday will have a large impact, if they actually go ahead, writes Jules Birch
Hammond’s extra Universal Credit cash is welcome – but we need homelessness specialists in Job Centres too The Autumn Budget must not become a missed opportunity to put in place measures to prevent homelessness, argues Ruth Jacob of Crisis
Hammond announces extra funding for Universal Credit: Philip Hammond has announced plans to pump more money into Universal Credit in the Autumn Budget today.
Help to Buy equity loan scheme extended to 2023 for first time buyers:The Help to Buy equity loan scheme will be extended two years to 2023 for first time buyers only, with new price caps set for each English region.
Housing Live - the Autumn Budget 2018 as it happened: Live-blogging from Jules Birch reveals how the Autumn Budget unfolded and what it means for housing
OBR: scrapping council borrowing cap will deliver only 9,000 new homes: Scrapping the borrowing cap will deliver only 9,000 new homes over the next five years, the Office for Budget Responsibility (OBR) has said.
Letwin: builders of large sites must accept more ’diversity’ of tenure: Builders should be required to accept suggested levels of affordable housing for large sites in order to receive government support, including Help to Buy, a major review of housebuilding has concluded.
Chancellor announces strategic partnerships with nine housing associations: Nine housing associations have signed new strategic partnerships with the government to deliver over 13,000 homes, Philip Hammond has announced.
Stamp duty scrapped for buyers of shared ownership homes worth up to £500,000: Stamp duty will be scrapped for first-time buyers of homes for shared ownership, the chancellor has announced.
Autumn Budget 2018 - the key housing policies at-a-glance
- £1bn to help fund the implementation of Universal Credit over the next five years
- £500m in Housing Infrastructure Fund to unlock a further 650,000 homes
- The next wave of strategic partnerships with nine housing associations, which will deliver 13,000 homes
- British business bank guarantees for SME house builders
- ‘Simplification’ of process to convert commercial properties to new homes
- Providing funding to empower 500 neighbourhoods to allocate homes to local people in perpetuity
- Help to Buy equity loan scheme extended by two years to 2023 and limited to first-time buyers
- Retrospective inclusion of first-time buyers of shared ownership in stamp duty relief
