Welfare reform: From planning to implementation getting your arrears Right. 23 rd January Bristol

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1 CHAIR S REPORT Introductory paragraph of approximately words covering the key issues the sector is facing in relation to the topic of this event and three key messages you d like delegates to take away from the event. SESSION HIGHLIGHTS This section outlines the programme, including highlights from each session. Speaker Organisation Topic Sharon Wheeler Making Best Use of Stock Advisor Chartered Institute of Housing Rent arrears and the impact on housing providers Jenny Spoor Head of Neighbourhoods Lee Steele Head of Operations - Housing & Income Lee Steele Head of Operations - Housing & Income Donna McCarthy Partner Kate Hanks Member Services Manager Sharon Collard Senior Research Fellow Green Square Group Orbit Group Orbit Group Offering solutions What can be learnt from the direct payment pilots Using tenant reward schemes to reduce rent arrears Welfare Reform Devonshire Solicitors What can housing providers learn from commercial debt collectors? Bristol Credit Union Working with your local credit union to help tenants pay their rent. Bristol University Financial Capability Tools helping tenants to manage their own money SESSION 1: Rent Arrears and the Impact on Housing Providers Speaker: Sharon Wheeler Presentation on the impact that rent arrears has on the business of housing providers. Explored how the risks are set to increase with the introduction of the Welfare Reform Act. Provided an overview of key areas housing providers need to be aware of and highlighted ways in which they can plan ahead to meet business strategies. Importance of rent No rent no business Impact of tenancy fraud Impact of under occupation Impact of universal credit Interesting Questions This presentation did not generate any questions from the audience.

2 SESSION 2: Offering Solutions What can be Learnt from the Direct Payment Pilots Speaker: Jenny Spoor This session offered feedback from Green Square Group who took part in the direct payment pilot. An overview of the pilot was provided. Recommendations of what housing providers can do to reduce rent arrears and how to put customers at ease with the new UC system was communicated. Preparation is key. Hugely resource intensive collaborative approach required. It required changes to procedures to ensure fit for purpose. Change of organisational and customer culture is key. Interesting Facts: Our Customers are much more capable than we give them credit for Christmas arrears increased but not significantly No increase in bounced DD s Specialist recovery teams preferred over generic teams Smaller patch sizes per officer Know your residents What changes does your organisation need to make? Keep it simple Review policy and procedures Support residents to get online Communicate the need for residents to have basic bank accounts Offer a wide range of payment options Q: This is resource intensive - concerns that this was a pilot, how does this work moving forward? A: Used the Welfare Reform Tool from the CIH website. Also made lots of assumptions as there were a lot of unknowns. Q: Is there a danger that the pilot project will give the wrong projection? A: No we used external agencies. Q: How did you get over the issue of those residents who couldn t open bank accounts? A: Used the Credit Unions and Jam Jar accounts. Formed relationships with banks. Q: Did pre-tenancy work have an impact on void times? A: A slight impact on void times but this was expected. Q: Do you think that the demonstration project is NOT a true reflection on the impact that UC will bring? A: No this project was not about UC it was about testing direct payments.

3 SESSION 3: Using Tenant Reward Schemes to Reduce Rent Arrears Speaker: Lee Steele This presentation explored the practical ways in which the required behaviour in people can be encouraged through reward by use of the Nudge Theory. Orbit has significantly improved rent arrears through incentivising positive behaviours. Details of the launch Qualifying criteria for the scheme Feedback of results of evaluation Positive change of culture What are the internal benefits The future plans Customer satisfaction What the customers told us Q: How much does it actually cost? A: Total costs 200, per annum (cost per property 10 euros). Q: How do you manage queries from customers who debate the balances of accounts? A: We have trained our call centre staff and the Reward Scheme Manger sits with the rent arrears team. Q: How do you manage the customers who frequently stop & start HB? A: Strict view taken by OHE if in breach no matter what the reason we will not award points. Continuous clear messages delivered to the customers that HB is there choice of MOP and their responsibility. Q: Does a NOSP issued on ASB exclude the customer from the scheme? A: Yes - excludes them until the NOSP expires. Q: Has the scheme helped with love level estate management issues? A: We have not yet marketed this.

4 SESSION 4: Welfare Reform Speaker: Lee Steele Highlights of Session and Debate This presentation provided a high level overview of how Orbit Group is approaching the challenges that Welfare Reform will bring. A Partnership wide action plan has been developed and fundamental business principles agreed. This involves ensuring we communicate with our staff and customers, develop an under-occupation strategy, ensure we research and gather intelligence, develop a digital inclusion strategy, review our service delivery models and develop a risk map. Protect our income Sustain tenancies Customers knowledge is power! Educating staff Leading and influencing in the field Reinforcing our messages Helping our customers Information to Follow.

5 SESSION 5: What can Housing Providers Learn from Commercial Debt Collectors? Speaker: Donna McCarthy The session shared techniques used by debt collectors in the commercial environment. It also explored how these techniques can be adapted for use in social housing to help reduce rent arrears. Threat to effective recovery Outcomes/impact of Welfare Reform Effect on rent possession Attitude of the courts Ground 8 What can we learn about commercial debt recovery Q: Intentionality if we have engaged and helped our customers find alternative accommodation as they have been identified as under occupying but the customer has failed to engage or move would this been deemed reasonable grounds for a PO if their account was in arrears? A: Possession order should be granted as this would be deemed as reasonable efforts by the landlord. Q: What lead has the Justice Department taken on this? A: None, we do not believe they are prepared. Amendments do need to be made to the pre-action protocol. Q: How should we deal with the topic moving customers with arrears? A: Suggest it is written into the new tenancy that pervious arrears are included and if not paid will seek possession Ground 12. (Assured Tenancies) Q: What about the use of D.R.O s? A: These have reduced as new test cases are advising customers to maintain rent payments of current rent and something from the arrears.

6 SESSION 6: Working with your Local Credit Union to Help Tenants Pay their Rent Speaker: Kate Hanks Highlights of Session and Debate With arrival of direct payment as part of universal credit means housing providers will be facing competition for payments from door step lenders. The session shared practical ways in which providers can work with their local credit union to promote financial inclusion and encourage financial responsibility amongst tenants, preventing debt and improving rent arrears. Rent direct Accounts Jam jar Accounts What can housing providers do? General awareness raising Q: Will universal Credit send the whole payment to the credit unions? A: Yes SESSION 7: Financial Capability Tools Helping Tenants to Manage their Own Money Speaker: Sharon Collard Highlights of Session and Debate Helping tenants to improve their money management skills can help with on time rent payments in the future. This session explored what tools are available to help tenants and how they can be used effectively to change tenants spending patterns. Use financial capability tools Overview of the Brancab project Q: Our customers can have some poor level of literacy any ideas or tips on how this could be overcome? A: Speak to Dave flexible in the use of the materials and adapting them to the customer capabilities. FURTHER INFORMATION Use this section for links to other resources delegates might find useful, such as CIH briefings, training courses, related events, publications, reports, consultancy services or good practice tools covering the same topics.