A call for action!

We have always maintained that the UK Government’s welfare reform programme will have devastating consequences for communities in Wales.

It therefore came as no surprise when a recent Wales Audit Office report published evidence stating that welfare reform is having an adverse and disproportionate effect in Wales. The report found that a greater proportion of Welsh social housing tenants have had their housing benefit reduced than elsewhere in the UK, with 51% of tenants reporting an increase in personal debt. This was backed by evidence from social landlords showing a £5.3m increase in rent arrears in the first six months of the removal of the spare room subsidy and the introduction of the benefit cap.

For some Welsh social housing tenants, the welfare changes will have created a level of hardship and a spiral of social and economic deprivation that will be hard, if not impossible, to break.

This is easier to understand in the context of:

·                     higher (on average) unemployment than anywhere in the UK

·                     a heavy reliance on the public sector as an employer

·                     households paying 5% more for electricity than the rest of UK 

·                     higher rates of digital exclusion than other UK regions - 39% of social housing tenants have no access to PC 

·                     a five-fold increase in the use of foodbanks over the last 2 years – 29.7% by people who had experienced welfare benefit delays

·                     a £4.1m cut in specialist advice services, despite increasing need 

In 2013, the Welsh Affairs Select Committee also published evidence highlighting how the spare room subsidy had been a “policy failure” in the Welsh Valleys where, effectively, a social housing tenant moving to a smaller property in the private rented sector would cost the tax payer more money.  

  

So what are social landlords doing?

60% of Welsh social landlords have reported an increase in management costs as they refocus their resources to manage welfare changes. Most landlords are also prioritising tenants affected by the spare room subsidy to move, more tenant profiling, providing low level money advice and budgeting services, and investing significant amounts of money in awareness raising, and have programmes in place to help tenants back into work. A rise in rent arrears and the increased costs of managing welfare changes still means, however, that Welsh housing associations and local authorities are struggling to find effective and sustainable solutions to the challenges they face.

These challenges will be exacerbated by direct payments and the roll out of Universal Credit unless action is taken now. We need more control over welfare and the flexibility to provide: 

·                     choice to tenants about payment options 

·                     more investment in specialist services such as Your Benefit Are Changing - a service that demonstrates high levels of success in mitigating the worst effects of welfare reform

·                     local solutions tailored to local needs  

CHC and others have been highlighting the negative impact of welfare reform on Wales for some time and we will continue to make the call for a fairer welfare system for Wales to prevent further deprivation. Prevention is always better, and definitely more cost effective, than cure.

Amanda Oliver
Head of Policy and Research

You can read the CHC Group’s response to the report here, and you can read the report itself here

Winter is coming...

Jon Snow knew much of the perils that lurked in the coming winter. With his battle-hardened peers in the Night’s Watch, he could see from the wall, and through forays beyond, the danger that made its home in the cold and ice. But, apart from a bad case of frostbite, what did Jon Snow and those around him suffer as a result of? Well, a lack of shared ownership of the problem, poor collaboration and, as the issues intensified, a failure to use dwindling resources in a different, more efficient way.

You wouldn’t find many of us looking pensively into the distance, muttering 'winter is coming' during August. But, let’s face it, he had the right idea. We should have a joint sense of urgency, readiness and understanding of the challenges unique to this time of year.

Outside the world of  'Game of Thrones', the statistics around fuel poverty and winter deaths are sobering. In 2012, 30% of households in Wales (386,000 households) were estimated to be in fuel poverty. This is the equivalent to 54,000 more households than in 2008. Rising fuel prices have largely been counteracted by the increases in income and energy efficiency savings in the housing stock, and this has led to the increase in the number of fuel poor households.

Fuel poverty is a significant cause of excess winter deaths and, in 2012/13, there were 1,900 excess winter deaths in Wales. This was a 32% fall from the previous winter, which had seen the highest number since 1999/2000, but still above the 10 year average. 89% of these deaths involved people aged 65 or over, with the highest rate amongst those over 85 who constituted nearly 60% of the total.

There is much being done in an attempt to reduce these figures. For example, Care & Repair Cymru works with older people across Wales to support them to live in warm, safe and secure homes. This work is continued throughout the year; however, it is particularly pertinent heading toward the winter months. This year, Care & Repair agencies are offering free winter warm packs, containing a blanket and hot water bottle. These packs help to promote Care & Repair agencies as a service to help older people prepare for and manage safely through the winter.

Housing associations are doing much to offset the impact of fuel poverty, including:

• Improving the energy efficiency of homes through the Welsh Housing Quality Standard and energy programmes such as Arbed
• Helping tenants maximise their income through projects such as the Your Benefits are Changing (YBAC) campaign. YBAC helps tenants to claim benefits they are entitled to. One area of success has been the identification of the Warm Home Discount - YBAC last year successfully assisted over 914 people to claim a rebate which equates to an annual sum of £127,960. 
• Helping to try to negate energy price increases through such actions as behavioural change for energy use. 

Across public services, the impacts of winter are likely to be felt more profoundly in the Welsh NHS. Winter preparedness is a key task for Health Boards, and a hot topic within the media and public sphere. But it’s important, particularly now in the context of prudent healthcare, that we all take responsibility as individuals and organisations to meeting the winter challenge.

In terms of working with housing associations:

• Creating capacity for step down accommodation in Extra Care and Sheltered Housing
• Placing housing professionals within hospital discharge teams to decrease delayed transfer of care
• Working with housing associations to facilitate and coordinate community activity during the winter months
• Partnering to ensure that advice and information is accessible in a range of community settings and media formats. 

Of course, this should all rightly go beyond what we plan as organisations and a mix of services. Last year, Public Health England called for 100,000 people to check on neighbours over the winter months.

We should be using this time to reignite our sense of community, decrease loneliness and isolation during months when these may be felt more profoundly and together contribute to managing the demand on GP or A&E service during these months. Everyone can help, from championing local services, clearing roads, communal snowman building, committing your long term future to the Night’s Watch – it’s the small gestures that will truly make a difference this Christmas. It could put a smile on someone’s face, it could save a life.

Matthew Kennedy
Policy Officer: Care, Support and Health

Your Big Book of Benefits

It was with mounting trepidation that I approached Llandrindod for the launch of Your Big Book of Benefits on 9 April. It was great to have the chance to explain myself and the book at CHC’s Welfare Reform Strategic Day and to witness Paul Langley’s shameless sales techniques, but thought I would explain a bit more about the book in this blog post.

Your Benefits are Changing is a way of acting together and I was delighted to join with the campaign to do something practical. The YBAC team liked our Big Book of Benefits and Mental Health for its practical toolkit content and friendly informal approach to give people the tools and knowledge to make a difference.

Your Big Book of Benefits is a broader, more comprehensive and more generic version of that same approach. Beneath its friendly cover – alternative suggestions included ‘Don’t Panic’ – there lurks 400 pages. BUT be not afraid – this is most definitely not a tome for the expert only.

Within it you will find full but simple explanations, practical page by page advice for filling in some of the trickier forms, sample completed forms, what to do next, Ten Top Tips, Benefits family trees (and I mean actual trees… well, pictures anyway) and case studies of a slightly mystical bent – Gandalf, Merlin and Hagrid all feature.

At the beginning you will find a useful overview of the system and the changes and a simple three step suggestion – with examples – as to how to navigate the complexities of an ever changing landscape of some 50 benefits.

This book is for the non expert with no prior knowledge assumed. It’s for housing officers and support workers, and tenants themselves. Of course, in this its first year, there may be the odd rough edge or something you feel could be better explained. If you have a comment, suggestion, spot an error, want to say what could be dropped or ought to be included, please let us know. There’s a feedback form in the back to make Your Big Book of Benefits truly yours.

And it’s not just a book! Dates will shortly be announced for a summer run of training days linked to (and using) Your Big Book. If you’ve read the book, why not see it live?

It’s been heavy going at times, with much cursing of Windows and Publisher 2013 in the wee small hours as .pdfs didn’t quite do their thing. However, though full of the ‘if only I had time to do this’ or ‘tweak that’ doubts of an anxious new parent, I allow myself some pleasure and small pride that it has got here.

I hope you and Your Big Book will be very happy together and that you can make a real difference in troubled times.

You can order your copy here. 

So long and good luck!


Tom Messere
Author of Your Big Book of Benefits

Hopkins v Hopkins... the debt debate

I watched the recent Channel 5 Debt Debate, shouting at the TV like so many others. Is the country full of irresponsible borrowers who are too ‘stupid’ to know what they’re doing and too ‘irresponsible’ to care? Katie Hopkins thinks so, but Kath Hopkins knows differently.

Debt is not just about reckless borrowing for PS4s and Christmas presents. It’s about life events that cause a drop in income; about struggling to pay rent, council tax, utility bills and food; about not being able to save because you have so little to live on and about lack of availability of advice services at an early enough stage to help prevent debt.


Here are the details of my last five clients... Are they the people portrayed on the debate?

Client 1 – Ill health meant this person could not work and had to claim benefits. He fell into mortgage arrears. His mortgage company said they would only accept interest only payments for six months, so now he has to pay £375 per month to cover the repayment part of his mortgage. He receives £303pm Employment Support Allowance. He hopes to be able to return to work but cannot afford to pay priorities at present from the £5.77 a week he has left.

Client 2 – Her husband suffered a stroke. He had been self-employed for many years, but is now unable to work. She has had to cease working in order to be his full time carer. They have mortgage and utility debt. They do also have non-priority debt, but have taken responsibility for it and have a payment plan via Step Change, but are still struggling to pay for essentials.

Client 3 - Worked solidly since leaving school until a mental health condition meant he was unable to continue working at age 47. He is managing to pay all of his priority bills but has catalogue debt and a very high oil bill as he is not on the mains gas supply. He tried to get advice, but had only heard of the Citizens Advice Bureau and, as his local office had closed, he thought there was nowhere else to  go.

Client 4 – Her husband was made redundant then, shortly after, found he had a critical illness. She needs to care for him full time so is unable to work. They have utility arrears only and are struggling to pay bills.

Client 5 – Separated from her husband, she is unable to work due to a disability. She applied for PIP in September, but is still waiting for a decision. Meanwhile she is surviving on £70 a week ESA. She only owes the council for dinner money as no-one told her she was eligible for free school meals.

Yes, Katie Hopkins, in an ideal world we would all work in well paid jobs. We would all save up for non-essential purchases. We would all insure against ill health and redundancy. However, I live in the real world and this just isn’t possible for most people who live here too. Wages are stretched too thin to be able to think about saving. Sickness and redundancy insurance are non-priorities and not available to the self employed.

Not all debt is due to reckless spending and irresponsible lending, it’s also caused by not having enough money to be able to manage day to day. Are people who work and borrow from the bank to buy a car so they can travel to work any better than the person who buys a sofa from Brighthouse? No, they are just the same. They are just luckier to have more options available to them.

Saving is even harder for those on benefits. How can you save when you have £70 per week to live on and are not able to find work or are not in a position to look for work due to ill health or caring responsibilities? How can you save when out of your £70 a week you have to pay £23 'bedroom tax', £10 gas, £10 electric, £10 water, £3.50 TV licence and £5 child support, leaving £8.50 for food, travel, phone and clothes?

What were your thoughts on the Debt Debate? Do you agree with Katie Hopkins or with Kath Hopkins?


Kath Hopkins
Money Advisor 

Intensifying our fight against poverty

As 2013 comes to an end, I’ve been reflecting on what the CHC Group and the sector have achieved in 2013. This is the time of year where those of us brought up as part of the Band Aid generation tend to think of those less fortunate. With increased austerity, and the impact of welfare reform and the introduction of the 'bedroom tax', concern for the less fortunate has been at the very forefront of our minds throughout the year.

We held a successful Annual Conference in November, with some clear messages from the Minister on the need to increase supply. So at the end of November I was delighted to attend the Housing Europe network in Denmark and to showcase the Welsh Housing Finance Grant as an example of EU Housing good practice, building 1,000 affordable homes without traditional capital subsidy or traditional bank lending. A real achievement in 2013.

At our Annual Conference, I was also deeply impressed by Sian Williams from Toynbee Hall and her messages about fighting poverty and financial inclusion. Financial education isn’t enough - there has to be access to affordable finance too.

The week after going to Denmark, I took a trip with the Four Feds to Northern Ireland and a tour of Derry and the Bogside to see some impressive housing projects, but also communities exploited by loan sharks. What hit home were the barriers local people encountered in accessing affordable credit, despite the maturity of the credit union movement in Ireland. This is why I’m so proud that members and CHC have worked so well together this year in extending Moneyline services to Merthyr, Swansea and Wrexham and helping so many people through the Your Benefits Are Changing campaign.

When we re-emerge in 2014, I want us to redouble our efforts in fighting poverty and extending social justice. As Sian from Toynbee Hall told us, 'We shouldn’t be worried about welfare reform – we should always have been angry about poverty' … our members are at the leading edge.

You can find out more about the CHC Group's activities over the last year in our Annual Review for 2013. 


Nick Bennett
Group Chief Executive

'Bedroom tax' will mean 1,000 fewer affordable homes. Devolve welfare to Wales!

The moral and ethical arguments against the ‘bedroom tax’ have always been weak. While ideology may lead you to divide between the ‘deserving’ and the ‘undeserving’ poor, ideology cannot deny the evidence, and it is ultimately evidence which should dictate government policy.

Since the ‘bedroom tax’ was introduced just over six months ago, we see a double whammy affecting the housing supply crisis. Arrears from the ‘bedroom tax’ have exceeded £1m and a rise in the number of void properties has meant that over 700 homes in the sector are empty. Just 3% of the 22,000 housing association tenants affected have been successfully downsized. We have always argued that there are simply not enough one and two bed properties to move people to. With an estimated 90,000 on social housing waiting lists, how can we justify a policy that sees Wales losing out on 1,000 affordable homes?

Of course, the effect on housing associations is only half the story. Tenants are already struggling to afford the basics, the use of food banks is increasing, energy companies are increasing their prices and we are seeing a surge in the use of high interest lenders and loan sharks. Some payday lenders are reported to be planning to treble their business on the back of so-called welfare 'reform’, people are being pushed further into poverty and the threat of losing their home is very real.

Landlords are faced with tough choices. We note what’s been happening around Wales with various protests, often the landlord getting the blame. Tenant groups and some politicians have campaigned for a ‘no bedroom tax evictions’ policy, but landlords can’t continue to subsidise the extra costs brought about by welfare reform which would impact on the potential reduction in services for other tenants who pay their rent.

This divisive measure threatens social justice and cohesion, turning tenant against tenant, tenant against landlord and vice versa. We need to stand back and realise that the only solution is to take power closer to the people.

As a sector we have been doing all we can to mitigate against the reforms. We’ve launched the ‘Your Benefits Are Changing’ campaign to raise awareness and have set up an advice line to provide free independent advice to those affected. We’ve also supported the expansion of Moneyline Cymru, a not for profit organisation set up and part funded by Welsh housing associations for people largely ignored by mainstream lenders. Moneyline Cymru branches have issued over 13,000 loans to the value of more than £6m since it was set up in 2009. Customers are also encouraged to open a savings account with nearly a third opting to do so, collectively saving a total of £900k.

Last week the Labour Party tabled a motion in the House of Commons to repel the ‘bedroom tax’, and the vote was lost by only 26 votes. So if robust statistical evidence which shows that this policy is failing is not enough for the UK Government to axe this pernicious policy, what can we do? The solution is for Welfare Reform to be devolved to Wales.

In an asymmetric union, we can now look to Northern Ireland and see them use their powers in welfare policy to do something different. They have legislated to stop the ‘bedroom tax’ affecting existing tenants. Like Wales, it is affected to a far greater degree than England and Scotland, but their devolution settlement has allowed them to protect the people of Northern Ireland from the policy, and also to adapt the upcoming changes to Universal Credit and Direct Payments to fit the needs of Northern Irish tenants. With the Silk Commission due to report on further powers for the Assembly in the New Year, what chance they listen to CHC’s recommendation that Wales is given parity with Northern Ireland on welfare powers?


Nick Bennett
Group Chief Executive, CHC Group


You can read the full press release on CHC's 'bedroom tax' research here.

Working with the Young Foundation's Accelerator Programme

 “Charity is injurious unless it helps the recipient to become independent of it.”

                                                                 John D Rockefeller

Is there an advice or support agency out there who doesn’t agree with this sentiment? It has long been acknowledged that an environment which fosters co-dependency is counter-productive, both for the service user and service provider, whose resources are invariably becoming ever scarcer.

This is mirrored in the relationship between service provider and funding organisation. Gone are the days when advice providers, or any third sector organisation for that matter, can expect indefinite hand-outs from funding bodies. Everyone is being asked to do more for less and with the increase in the number of social enterprises; the expectation is that most organisations will eventually be able to 'wash their own face'.  

This was the situation CHC’s money advice service, the Your Benefits are Changing (YBAC) team, found itself in as we moved far too quickly towards the end of the 3 year funding allocation we had received from the Big Lottery (Thanks BIG!). YBAC is an awareness raising campaign. We aim to raise awareness of changes impacting on the most vulnerable in our communities and offer practical, workable solutions and advice. The YBAC team has spoken to over 4,000 people at community events this year. 

Luckily for us, the Young Foundation happened to be in town and a couple of months ago we found out that, along with 8 other projects, we had been chosen to take part in the Young Foundation’s first Welsh Accelerator programme.  

Every couple of weeks, the projects meet up with experts brought in by the Young Foundation for an intensive two days. We are all at different stages of development but everyone seems to agree on one thing: we know our customers well.  

Nevertheless, the tools which have been bestowed upon us by the Young Foundation have allowed us to look at YBAC under the microscope and spot the gaps in our business plan. And access to people who make funding decisions in their daily work allowed us to ponder on some of those really difficult questions. 

We are just about to reach the half way mark in the process, at which point we can expect to hear news of which mentor we have been matched with.  This is particularly exciting for me as it is the bit I have been looking forward to the most.

But what does this mean for YBAC? It means that by January we will have a water-tight business plan with which to approach funders. It means that we will have skills and expertise at our disposal to develop our products which will make us more attractive to funders – funders who ultimately want to know that we have put measures in place to enable us to become a self-sustaining enterprise, and eventually independent of their charity.  

To date the YBAC team has:

• Advised 3,625 customers

• Helped 740 people in fuel poverty to claim £105,000 via the Warm Home Discount scheme

• Helped people manage over £1.2m of debt

• Identified over £1.3m of unclaimed welfare benefits

• Identified £1.6m of water debt, reducing annual billing for 360 people by over £100k per annum and giving 600 people the opportunity to write-off £800,000

• Identified 216 appropriate trust funds to help people find grants suitable for their need

If you would like to know more about the work Your Benefits are Changing is doing with the Young Foundation, contact clare-james@chcymru.org.uk


Clare James
Housing Services Policy Officer, CHC

Tackling the pay day lenders

Bethan Jenkins explains why she is introducing legislation in the Senedd tomorrow to help people facing bad debt...

It was around a year ago that I first wrote to Bridgend County Borough Council, asking it to block access to payday loan sites from its public library computers. I was told that this was nigh-on impossible to achieve – which was not encouraging, particularly since other local authorities such as Dundee have already done it.
Meanwhile, the present economic situation continues to push people on low incomes into debt they cannot afford from lenders who demand sky-high rates and use harassing methods to get their money back.

I become more and more concerned every time I hear of a constituent who has been through this process – especially when the reasons for going to a payday lender is to borrow for precious things, like children’s Christmas presents.

The extent of these problems is shown by the number of people with financial difficulties who are seeking help from Citizens Advice Cymru. Of those who approached it between April 2012 and March this year, 84 per cent had financial capability issues. Of these, 74 per cent continue to receive support.

How can people work and spend their income in the local economy if they are doomed to spend years repaying a company whose profits are most likely off-shored? Money management is likely to become a greater issue for those out of work as well, with the advent of Universal Credit and its switch to monthly payments. These will require a culture change for generations used to managing finances on a weekly basis.

Legislation I am proposing on the floor of the Senedd tomorrow will give people the tools to turn their lives around. Aimed at helping them to make more informed choices about their finances, my Financial Education and Inclusion Bill is divided into two areas:

• Promotion of financial education to help future generations manage their money.
• Providing greater powers for local authorities to promote financial inclusion – to help people with their current debt problems.

At the heart of the Bill is a statutory duty placed on local authorities to promote financial inclusion. Statutory duties have come in for a fair bit of criticism in recent times. It has been said that they achieve little and are too open to abuse. But you can argue that about pretty much any poorly written piece of legislation or regulation. Provided we have in place the means to measure outcomes, I believe this could encourage local authorities to think outside the box at a time when finances threaten successful service delivery.

Properly implemented, the proposals in the Bill will produce a greater co-ordination of services resulting in:

•  One-stop internet shops that can provide visitors with the help they need – the Bill prevents local authorities from charging for internet access.
• Promotion of the Money Advice Service’s excellent tools and resources.
• Local authorities collaborating to produce an awareness campaign for Money Made Clear and for Welsh credit unions.

The Bill’s proposals have been welcomed by a range of organisations, including Community Housing Cymru, Swansea Council, Consumer Futures, Action for Children, Age Cymru, and Shelter Cymru. Individuals who are supporting the Bill include the Welsh Financial Inclusion Champion, and Martin Lewis, creator of MoneySavingExpert, who has run a long and high profile campaign to have financial education included in the curriculum in England.

It is encouraging that the Welsh Government has already taken steps in this area, particularly in financial education. However, poverty Minister Jeff Cuthbert recently told the Western Mail that 'more needs to be done' on combatting payday lenders, while Education Minister Huw Lewis recently told me in the Senedd that there was 'room for improvement' in financial education.

If my colleagues give me leave to take my Financial Education and Inclusion Bill forward I am sure we will be able to improve its proposals. AMs from all four parties have spoken with great concern on this issue. If we work together I believe we can produce legislation that will bring significant improvements in people’s lives. Indeed, the Bill is a great example of what the Assembly was created to do – to move decision making closer to the people it affects and, in this instance, giving them a better life away from bad debt.
 

Bethan Jenkins AM 

You can read the relevant press release on CHC's website.