Feeling the pain. How residents in Salford are suffering under the government s welfare reforms

Transcription

1 Feeling the pain How residents in Salford are suffering under the government s welfare reforms

2 Contents Introduction - 3 Overall Effect - 4 The Bedroom Tax - 5 Why telling people to move home isn t a workable solution - 9 Discretionary Housing Payments - 11 Salford Discretionary Support Scheme - 13 Council service cuts in Salford - 14 Since April 2013 the government s welfare cuts have hit the residents of Salford hard. After several months, we can provide an accurate picture of the far-reaching impact of the government s cuts to welfare in Salford. Residents have been hit with multiple changes to their benefits income, with families being doubly or trebly affected by the government s new system. These cuts all come at a time when the government has chosen to give Salford City Council even less money to help those most affected. Salford City Council is also now having to deal with a further reduction in government funding that was earmarked to help those least able to pay their council tax bill. The government has stopped the 553,000 transitional grant funding to Salford, which means the least financially resilient residents face a higher council tax bill from April A 45 per cent decrease in the government s social fund budget, now administered by the council as the Salford Discretionary Support Scheme, also left the city council faced with the agonising choice about which local residents can be helped - and who can not. In Salford the government s controversial Bedroom Tax has had the most serious impact on local people. Salford simply does not have enough single bedroom homes available to house residents who need to downsize to avoid paying this extra tax. Now the most vulnerable in Salford are being affected by the government s changes to welfare. The council will do its best in these negative circumstances to protect the most vulnerable in our city. Key data in Salford Average loss in benefits income per household is per cent of working age households in Salford are losing benefits income 65 per cent of tenants now deemed by the government to be underoccupying are now in arrears A third of applications for Discretionary Housing Payments (DHP) have had to be declined due to lack of funding from the government. 80 per cent of applications for Discretionary Housing Payments were by tenants affected by the Bedroom Tax. 45 per cent government cut in social fund to Salford, now administered as the Salford Discretionary Support Scheme. Salford has a current housing waiting list of more than 11,000, with 7,000 needing a one bedroom property. 2 3

3 Overall effect The Bedroom Tax The most vulnerable people in Salford have been hit by the government s huge benefit cuts that came into effect on 1 April Salford people are losing money whilst being asked to contribute even more towards their council tax. The recent Local Government Association report Full impact of welfare reform revealed confirmed that Salford families are losing on average 1,600 a year in benefits. Average overall loss per Salford household ,207 working age households in Salford 43,221 working age households in Salford, which are claiming a benefit The Bedroom Tax has already led to many residents to fall behind on their social housing rent payments. Registered Social Landlords have seen a steep rise in arrears amongst those now deemed to be under occupying, with an estimated shortfall of 1.2m within the 12 months from April 2013 to March 2014 because of the government s controversial Bedroom Tax. Shortfall in rent of 1.2m in the first year Before the Bedroom Tax, in March 2013, 34 per cent of tenants under occupying were in arrears. Percentage of tenants under occupying who are now in arrears Number of Salford households losing benefits income - 43,221 More than half of all working age households in Salford are losing benefits income because of the government s welfare cuts. After the Bedroom Tax in October 2013, 65 per cent of tenants under occupying were in arrears. 34 % 65 % Before the Bedroom Tax - After the Bedroom Tax - March 2013 July 2013 March 2013 October

4 The government s Bedroom Tax has affected a wide range of Salford residents Single people One or two children households Couples where children have left home In Salford the average amount households are losing in a year because of the Bedroom Tax is 726 Nationally the number of people affected is 522,905 } Number of people affected by the Bedroom Tax Ages of tenants affected by bedroom tax Most people affected so far are between 40 and 59 years old } % 8 % 13 % 25 % 19 % } In Salford the number of people affected is 4,

5 Nationally, households are expected to lose 394m a year Cost of the Bedroom Tax} In Salford, households are expected to lose 3.3m a year Why telling people to move home isn t working in Salford In Salford more than 11,000 people are on the housing waiting list. More than 7,000 (63 per cent) of these residents need a one bedroom property. 3 years is the amount of time it would take to re-house everyone in Salford affected by the Bedroom Tax, given current turnover rates. 11,489 7,226 (63 % ) People on housing waiting list - 11,489 Percentage of people on Salford housing waiting list needing a one bedroom property 8 9

6 Social housing tenants in Salford are not able to move to smaller properties in the city, because there are not enough one-bedroomed homes available. This is the current social housing market in Salford. 1,129 9,180 11,701 8,796 1 bedroom properties 2 bedroom properties 3 bedroom properties 4 bedroom properties 28 % 37 % 30 % 3 % Total 30,878 }homes Discretionary Housing Payments 33 % One of the measures Salford City Council has been using to assist people is the Discretionary Housing Payments Scheme. There has been an unprecedented demand for this. But the council is having to refuse nearly 33 per cent of applications because of lack of available funding. Salford has so far spent 313,768 of the 679,000 Discretionary Housing Payment fund trying to help local people. The demand for this fund is steadily increasing. 46 % 72 5 bedroom properties <1 % 10 11

7 Discretionary Housing Payments cont. The government has given Salford 679,000 for Discretionary Housing Payments (DHP) to lessen the impacts of the government s welfare cuts on local families. In six months Salford received 2,307 applications for DHP. Of these, 80 per cent were from residents struggling to pay the Bedroom Tax. Salford has so far given 313,768 (46%) of the 679,000 DHP fund. 80 % struggling to pay Bedroom Tax per week the average amount awarded in Discretionary Housing Payments 2,307 applications received for DHP in Salford 67 % of awards have been made 33 % of requests have been declined Salford Discretionary Support Scheme Salford has received 45 per cent less from the former government social fund budget, now administered by the council as the Salford Discretionary Support Scheme. 800 By June we had received almost 800 applications for assistance from the Salford Discretionary Support Scheme. } Number of applications made to Salford Discretionary Support Scheme June September 2013 June 2013 October

8 Council service cuts in Salford Salford has cut almost 97 million from council services since 2010 because of lack of government funding. Current... 12m 39m 24m 22m 97m total cuts Future... 25m 26m 24m l 172m total cuts Over the next three years we face another 75 million being slashed from council services by the government. People in Salford are being hit twice, first by cuts to services they rely on, then by cuts to their living standards

9 If you need this document translated, please contact us on the number below. This document can be provided in large print, audio, electronic and Braille formats. Please telephone Where to get help and advice Salford City Council Welfare rights and Debt Advice Service There is also more information on the government benefit changes in Salford on the council s website