Impact of the ‘Bedroom Tax’Wythenshawe Community

Housing Group

Steve LicenseExecutive Director of Housing

WCHG – Who we are!

Group Structure Combined stock 14000 homes Annual turnover £61m Neighbourhood based Not just a landlord

Not just about the Bedroom Tax

Non-dependent deductions - 2011 Size limits on homes (Bedroom Tax) -

2013 Benefit cap - 2013 Universal credit – 2013-2017! Nationally - £2.5b of savings Council Tax reform HB for under 25’s - a potential threat

or a kite flier (800 in Wythenshawe)

Its already tough out there!

Unemployment Real Incomes falling Food & Fuel Inflation

25% In fuel poverty IFS Report – Increase in ‘Absolute

Poverty’20% No bank account60% No insurance

Believe it or not the poor have been protected!

Payday Lending – 7745% interest

Scale of the Problem

Initially 3800 ‘Bedroom tax’ households

50 Benefit Capped families Today - 2900/30 100 people on JSA have 2 spare rooms Stock profile – 90% of houses are 3

bedroomed+ Costs to the Group (Sept 14)

Increased arrears £500kAdditional empty homes £420kAdditional staff £50k

Consequences

FamiliesDebtPovertyDomestic ViolenceChildren suffer

Business ImpactBusiness Plan Assumption (£1.5m)Increased collection costs (£200k)Demand (waiting list 2500)

What We’ve Done

Invested in extra staff Assisted in applying for DHP Amended our Allocations Policy Facilitating rehousing solutions Provide money advice, incentives

and financial assistance Used our ‘Real Opportunities’

employment initiative

Conclusion

Our experience of the ‘Bedroom Tax’ is:Cost WCHG £1m in first 6 monthsNot provided any significant work incentiveMost people don’t want to moveThose who do can’tRent arrears have increased