delivering promises, improving lives Direct Payments: News so Far Kevin Dodd Wakefield and District Housing

delivering promises, improving lives

Direct Payments: News so Far

Kevin DoddWakefield and District Housing


Where is Wakefield?


For tenants to have the choice!

Why did WDH want to be involved in the

Demonstration Project?


What we are trying to understand?

• Evaluate the impact on claimants

• Test and further develop the trigger points

for making payments to landlords

• Evaluate the best / most effective forms of

support to help individuals to pay their rent

• Develop a definition of vulnerable groups


Thoughts!


Cognitive DissonanceThe Conversation!

• Governments View - people are rational beings

• Housing View - change a person’s beliefs to change their behaviour

• Governments View - reframing - help to re-examine beliefs and develop healthier ways of viewing the situation


ECONOMY


T T T+ 3 T+ =


Tick


Blue Red Green Yellow Black Orange Pink Violet Blue Black Red Orange Pink Green Yellow

Blue Red Green Blue Red Black Orange Pink Violet

Orange Green Pink Yellow Green Orange Blue Red Black Blue Orange Pink Green Blue

Red Black

The Stroop Effect


WDH’s Income Profile

• £49m – Pensioners

• £67m – Working Age Tenants

- £27m – Low Income Household

- £40m – Housing Benefit

• £116m – Annual Rent


Impact of Universal Credit

• £40m – Housing Benefit

• £3m – Under Occupancy

• £27m – Low Income

£70m – At Risk


=

Reduced Income

Universal Credit Equation

Arrears Cost of Collection

Bank Charges

Cost of Admin

Cost of Cash Flow

x 20,000

+ + + +

+ Bedroom Tax

Viability=


The Project• 2,034 tenants considered

for direct payment

• 5 phases of tenants entering into project

• 290 deemed vulnerable

• Started on 25 June 2012

• Average age – 28 years

• Average tenancy – 7 years

• 96% had bank accounts


Project Implementation

• 1,153 provided bank accounts

• 119 budgeting support

• 75 bank account support

• 29 owed 8 weeks rent


The Project• Over 1,000 tenants have received

Direct Payments

• None initially assessed as in need of high level support

• Over 50% use Direct Debit for all or some part of payments

• Approximately 20% have internet access


Story So Far…..!

• Payments £250k a month

• 50% of tenants are making partial payment

• 199 tenants have reverted back - no evictions

• Admin costs £250+ tenant

• Debt £180 per tenant

• Good news!


Case Studies

- £3,300 - £800

+ £100 £0


The Sting…bedroom tax +!

• - £5.7k bedroom tax

• 378 tenants affected

• 30% under occupying by one bedrooms

• 300 declared as having a disability

• - £4k Local Tax Support


Current Tenant Residential Arrears

£3,000,000

£3,500,000

£4,000,000

£4,500,000

£5,000,000

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2011/12 2012/13 2013/14

£0

£500,000

£1,000,000

£1,500,000

£2,000,000

£2,500,000

£3,000,000

£3,500,000

£4,000,000

£4,500,000

£5,000,000


Projected Debt?

Current Tenant Residential ArrearsBased on trends since 2010/11

£0

£500,000

£1,000,000

£1,500,000

£2,000,000

£2,500,000

£3,000,000

£3,500,000

£4,000,000

£4,500,000

£5,000,000


2011/12 2012/13 2013/14


Responsibilities!

Cleared

utility bills

Banks

paid debt

s

Had a

bereavem

ent

Cash machine limited withdrawal

Bought

school

unifor

ms

Didn’t know

money had gone

into account

Bought

chocolate

Paid

doorste

p lender

Paid

Vet

bills


How To Make It Work!

• Intensive support• Increase ongoing advice• Segmentation• Always expect the unexpected• Communication!


Barriers to Success

‘E-literacy’


What Should Success Look Like?

• Local Partnerships

• Dot.com shops

• Use other peoples’ experiences

• Reduce household expenditure

• Realign services to eat the elephant!

• Plan for the future!


Income vs

Expenditure

The Game Plan!

Documents

delivering promises, improving lives Direct Payments: News so Far Kevin Dodd Wakefield and District Housing