Digital exclusion - a tackling poverty issue

Having internet access within the home is fast becoming a necessity, not a luxury. The divide between those that are with broadband and those that are without because they cannot afford it is creating a social divide. Digital exclusion is therefore a tackling poverty issue.

Twenty per cent of social housing tenants who are not online cite that it is because they cannot afford home broadband. This equates to over 40,000 tenants across Wales who cannot afford to use the internet and take advantage of:

• Saving money through purchasing products/services online
• Searching and applying for jobs 
• Accessing online education and information services 
• Improved, fast communication with family and friends 
• Accessing online public services, including health services and remote monitoring
  

Having online access also leads to improved wellbeing and mental health, especially for the elderly. A study at the Phoenix Centre found that internet use leads to around a 20% reduction in depression classification and, compared with the digitally excluded, internet users feel less lonely and their personal wellbeing is enhanced.

Having access to the internet can mean the difference between work and unemployment, inclusion and exclusion, and happiness and depression.

Helping tenants to get online involves supporting them with developing online skills, helping them to realise the benefits of using the internet, and enabling them to have access to the internet. Community hubs currently provide a fantastic resource to up-skill the community through online training courses and some also provide free internet access. However, not everyone is able to access these facilities, especially those isolated or housebound. Of those that are online, 84% prefer to access the internet within their own home.

‘Fighting Poverty’ is about tackling the root causes of deprivation and enabling those in poverty to have the same opportunities as others. It is one of our five key aims in our CHC Corporate Plan and we therefore support our members to impact positively on the economic, environmental and social circumstances of tenants, leaseholders and communities. Our Your Benefits are Changing campaign and Moneyline Cymru service have done just that, and we are now looking to further support our members to raise the benchmark and help tenants to get online in the comfort of their own home.

To find out more about the work we are involved with on digital inclusion, contact Hayley MacNamara on hayley-macnamara@chcymru.org.uk .


Hayley MacNamara
Regeneration Officer

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.