Written evidence submitted by Law Centre
(NI)
INTRODUCTION
Government plans to reform the complexity of the
Housing Benefit system are a welcome development, however, several
of the measures outlined in the Budget June 2010 give cause for
concern. The Department has delineated specific targets with little
evidence explaining how these targets will be met and implemented.
We have made some general comments in response to our concerns
and thereafter restrict our comments to the following areas of
concern:
- The Northern Irish Context.
- Local Housing Allowance.
- Incentives to Work and Access to Low Paid Work.
- Levels of Rent.
- Shortfalls in Rent.
- Community Cohesion.
- Disabled people, Carers and Specialist Housing.
- Older people, Large Families and Overcrowding.
NORTHERN IRELAND
CONTEXT
According to NIHE figures £462.9 million was
paid out in Housing Benefit to public and private sector tenants
in 2009 and the total number of claimants was 137,675.[268]
As Northern Ireland is not referred to in the Department's
proposals, it seems fair to assume that the circumstances in Northern
Ireland have not informed these proposals. Housing Benefit arrangements
in Northern Ireland differ significantly from those in Great Britain.
There is no equivalent to Rent Officers; instead all arrangements
are made by the Northern Ireland Housing Executive (NIHE). LHA
is also administered differently in Northern Ireland, with the
continuation of direct benefit payments to landlords in approximately
25% of cases.[269]
In addition, Northern Ireland presents particular
circumstances with regards to welfare and arrangements to move
people into employment. In Northern Ireland, the approach to social
security, training and employment programmes is divided into two
government departments: the Department for Social Development
is responsible for social security benefits whereas the Department
for Employment and Learning is responsible for training and employment
programmes. This is in contrast to GB, where both areas are handled
through the Department for Work and Pensions. Moreover, the programmes
operated by DEL are significantly different with the Steps to
Work programme being implemented rather than the current Job Guarantee
Fund and other arrangements being applied in Britain.
KEY ISSUES
Local Housing Allowance
The LHA scheme came into force in April 2008 in Northern
Ireland and there has not yet been a formal assessment of the
scheme. However, a provisional assessment by the Housing Rights
Service (a local advice agency) of the LHA scheme illustrated
that the scheme is working well. In a briefing session to the
Northern Ireland Assembly Social Development Committee, the Housing
Rights Service advised that the overall experience of LHA has
generally been positive, particularly in light of the Northern
Ireland Executive's decision not to introduce direct payments
to tenants.[270]
The lack of a firm evidential basis for the change, combined with
positive indications of the operation of the current system in
Northern Ireland militates against the introduction of some of
the proposals in Northern Ireland.
Incentives to work and access to low paid work.
In order to address this topic, we think it necessary
to make reference to the additional measures announced in the
Emergency Budget. We are gravely concerned by Budget 2010 plans
to reduce the initial award of the benefit by 10%, in April 2013,
to those claimants who have been receiving Jobseeker's Allowance
in excess of 12 months. There is risk that such a development
will undermine the core purpose of housing benefit, of access
to affordable housing and of preserving residual income. Groups
adversely affected by this development may include those removed
from ESA and Incapacity Benefit, under revised medical assessment
that may have health conditions or disabilities and be at a disadvantage
in the labour market. Statistics currently available illustrate
that 66% of claimants for ESA are being found fit for work and
therefore eligible to apply for Jobseekers Allowance if they satisfy
entitlement.[271]
Consideration should also be given to the capacity
of the employment market in the current economic climate. The
Northern Irish unemployment rate April-June 2010 was estimated
at 6.6% while Northern Ireland's working age employment rate remained
well below the UK average (70.5%) and was the lowest of the twelve
UK regions.[272]
The government will need to closely monitor the employment market
to ensure that people who are genuinely seeking employment are
not penalised. We accept the value of encouraging people into
work, however, we oppose the introduction of such a measure that
utilises sanctions which is neither helpful nor beneficial. This
proposal appears to be predicated on the assumption that reduction
in Housing Benefit will motivate working age claimants to find
work. It is clear that even if every working age claimant was
so motivated there will still be significant numbers of long term
unemployed in Northern Ireland in 2013.
In light of these new measures, we believe there
is urgent need for the Government to define the purpose and objective
of Housing Benefit. It appears that there is conflict emerging
between providing a benefit to assist low income families' cost
of rented accommodation and a direct work incentive. We consider
the primary focus of Housing Benefit to provide access to good
quality housing to low income families.
Levels of Rent
Law Centre (NI) believes that those in receipt of
LHA should have the opportunity to make choices about their housing
and have the opportunity "to shop around", similar to
others. Indeed, LHA was introduced to promote choice. Linking
it to the Consumer Price Index will result in shortfalls of actual
rent and permitted rent under LHA following indexation increases.
This could restrict choice and discourage private landlords from
letting to Housing Benefit claimants as the provision of the benefit
becomes more uncertain.
The amalgamation of the reduction to an LHA rate
of the 30th percentile and a total cap on LHA rates for bedroom
sizes presents future problems of overcrowding and homelessness.
This is likely to impact disproportionately on families. In addition,
housing benefit cap rates in the private rented sector may have
a knock on effect in the social rented sector as private rented
accommodation becomes harder to access for those on low incomes
and the demand for social housing increases. In Northern Ireland
waiting lists have increased to 38,923 applicants in 2008.[273]
We are concerned by the Department's acknowledgement
that Housing Benefit customers may struggle to find suitable accommodation
as the overall number of affordable properties available will
be curtailed and that at best only a third of properties will
remain affordable. In practise, much of the bottom third of accommodation
may not be available or may entail some problems of access as
moving accommodation has both financial costs and other costs,
for example , moving children from school. Further concerns centre
on the standard of housing accommodation that will be available
as a result. We believe that everyone should have access to decent,
safe and affordable housing. Despite the quality of housing stock
improving in Northern Ireland, in recent years 2.4% of houses
have been classified as unfit.[274]
We are concerned that claimants will have to compromise standard
of accommodation in lieu of affordability.
We do not agree with the withdrawal of the £15
weekly excess provision currently payable within the Local Housing
Allowance Rules. Anecdotal evidence suggests this provision acts
to supplement residual income and guards against fuel poverty.
Fuel poverty in Northern Ireland has risen by 11% between 2006
and 2008 and is almost three times that of England.[275]
Cold houses adversely impact on child welfare, including the ability
of children to study and to achieve positive educational outcomes.
A report by Save the Children explained the effects of fuel poverty
on young children to include, increased hospital admissions for
children, respiratory problems for children and increased anti-social
behaviour among adolescents.[276]
The Department for Social Development issued the Strategy "Ending
Fuel Poverty—A Strategy for Northern Ireland" in 2004
which had the objective of eradicating fuel poverty in vulnerable
households by 2010 and in households by 2016. The Department's
more recent references to alleviating fuel poverty rather than
eradicating it, may be seen as a recognition of the severity of
fuel poverty. Measures which could further expose vulnerable households
to the risk of increased fuel poverty are unwelcome.
Shortfalls in Rent
We believe that the combined effect of these cuts
will lead to a sharp rise in rent arrears, evictions and cases
of homelessness. Those worst hit by these reductions will be vulnerable
and low income households. We are concerned by the timescales
outlined within the consultation document with conversion scheduled
to begin from April 2011. We are also concerned that the budget
measures do not contain transitional procedures or safeguards
when they come into operation from April 2011. As taking effect
from the original date of the claim, some applicants many face
these changes immediately or others at various dates throughout
the first year of functioning. Consideration must be given as
to whether the proposed changes will have the effect of discriminating
unfairly on those affected at the start of the process. In addition,
the cuts are being staged next year so in effect, tenants will
have to adjust to cuts in benefit in both April 2011 and October
2011.
It is important to understand that not everyone affected
by these recommendations will be in a position to relocate immediately
or review their rent. Flexibility will enable smoother implementation
of these budget initiatives by way of access to information and
protection measures. The Discretionary Housing Payment may act
as a protection measure, however, we note that the total budget
determined for GB in 2011-12 is £30 million and we are concerned
as to how long this pool of funding will last and what additional
safeguards will be in place should it run out. We would welcome
further clarification on this matter.
Furthermore, the Law Centre is concerned that these
proposals will result in tenants being unable to meet their legal
obligations as specified in their tenancy agreements and early
revocation of such agreements. This could undermine the position
and rights offered to both tenant and landlord by tenancy agreements
or contracts in such circumstances
As a devolved matter, homelessness polices and strategies
vary throughout the UK. In Northern Ireland the Homelessness Strategy
is administered by the Northern Ireland Housing Executive and
has been committed to tackling poverty since its publication in
2002. Each devolved administration will have to monitor closely
for the impact of these measures on the level of homelessness
locally.
Community Cohesion
The Secretary of State for Work and Pensions, Ian
Duncan Smith has stated that "Over the years, our housing
system has ghettoised poverty, creating broken estates where worklessness,
dependency, family breakdown and addiction are endemic".[277]
We, therefore, continue to believe it is impossible to separate
Housing Benefit from housing and social development policy in
general. The provision of Housing Benefit and Local Housing Allowance
are increasingly significant features in addressing socio-economic
disadvantage.
Studies have shown that new build social housing
can improve the social environment and improved community cohesion
can lead to reduction in crime and other anti-social behaviour.[278]
New social housing schemes play an important role in the Shared
Future initiatives in Northern Ireland as demonstrated in studies
into the logistics of mixed community housing schemes conducted
in Loughbrickland, County Down and Ballynafeigh, South Belfast.[279]
We would welcome discussion of the need for increased funding
for new social housing construction in tandem with the reform
of the Housing Benefit system.
In effect, unless there is significant expenditure
on new social housing and subsidy to keep social housing rents
below market levels reliance will be solely on the private rented
sector and Housing Benefit where the choice will be to pay market
rent levels or relocate. "Having to move to a poorer area,
or being unable to move out of one, is the geographical reality
of social exclusion"[280].
We reiterate the Building and Social Housing Foundation's response
to the budget measures highlighting the potential shift in population,
stating "In the longer term, concerns will centre on the
potential for the creation of Parisian -style banlieues, areas
on the outskirts of the city with concentrations of deprivation,
while the city centre becomes exclusively for the very well off',
thus highlighting the ghettoisation of poverty[281].
Disabled people, carers and specialist housing
We welcome the decision to include an additional
bedroom within the size criteria used to assess Housing Benefit
claims where a disabled person or a resident with a long term
condition has a proven need for overnight care and this is provided
by a non resident carer. At present grave inconsistencies exist
where the cost can be covered by social services or the residents
themselves. We would welcome further clarification as to what
criteria will establish "proven need for overnight care".
We note, however, that there are particular limitations to this
measure and we are concerned that LHA claimants will not benefit
from this measure if they already meet the four bedroom cap. We,
therefore, recommend that this anomaly be remedied.
We further note this clause applies only to the claimant
and their spouse or partner. We would welcome the inclusion of
other household family members that have an established need for
care to allow for children or siblings to benefit from this measure.
We are disappointed that the need of single parents
who have shared custody of children has not been addressed which
would allow for an extra bedroom to help parents who care for
a non-resident child. We believe that where there is established
custody, benefit entitlement should be granted to the parent to
support the family unit.
Older people, large families and overcrowding
We are concerned that the four bedroom cap will disproportionately
impact on black and minority ethnic families where larger multi
generational households are more common. Furthermore, we note
the lack of research and of evidence about the likely impact of
these proposals on ethnic minority groups. We are concerned that
the impact assessment fails to assess the potentially discriminatory
nature of this measure. We recommend that consideration be given
to allowing local authority the discretion to award additional
housing benefits for larger households where it deems fit. In
addition, Northern Ireland has larger family compositions and
household numbers which mean these proposals will have a particular
impact.
As mentioned above the impact of these measures has
the potential to disproportionately affect low income families.
We are concerned about the general impact this will have on children
and child poverty especially in relation to the deliverability
of the Child Poverty Act 2010 and the associated child poverty
strategies. We would welcome further investigation into this matter.
Additional Budget 2010 proposals intend to increase
non-dependant deductions. Non-dependant deductions constitute
a deterrent for young people to stay at home. We disagree with
the proposals to increase the value of these deductions which
could cause significant reduction in housing benefit to some households.
This includes households overseen by older people and pensioners,
many of whose non-dependants do not make financial compensation
for the loss in benefit through deductions. The single room rate
is often so low that suitable accommodation is very difficult
to find while data illustrates that the shared room rate does
not meet the cost of the accommodation which often forces young
people to remain at home. DWP research found that 87% of all Single
Room Rate claimants faced a shortfall, averaging £35.14 per
week.[282]
Many larger social houses are often under-occupied,
because parents continue to live in the family home after their
children have moved out. Whilst we oppose sanctions to force people
to move, more could be done to provide incentives and encourage
tenants to move to more suitable accommodation. Freeing up larger
family homes in this way could similarly help tackle overcrowding
problems. We think innovative positive incentives are a far preferable
way forward than the proposal to make Housing Benefit entitlement
to reflect family size in the social rented sector from 2013.
The proposals in this area are bereft of detail. Nonetheless,
the reality is that many working age household in the social rented
sector have limited flexibility. In addition, much household accommodation
reflects the particular needs, for example, around students returning
home, providing care for other family members on an intermittent
respite basis. None of this appears to be given any proper forethought.
CONCLUSION
Law Centre (NI) welcomes the opportunity to provide
evidence to the Committee. We trust you will find our comments
helpful. If there is any further way in which we could contribute
to this process we would welcome the opportunity to do so.
10 September 2010
268 NIHE website www.nihe.gov.uk accessed September
2010. Back
269
Email statistic from Northern Ireland Housing Executive. Copy
held on record at Law Centre (NI), Policy Unit. Received 30/07/09. Back
270
Housing Rights Service evidence to the Social Development Committee
on 11 December 2008 at http://www.niassembly.gov.uk/social/2007mandate/minutes/2008/081211.htm. Back
271 The
Employment and Support Allowance (Limited Capability for Work
and Limited Capability for Work-Related Activity) Amendment Regulations
2011 Explanatory Memorandum for SSAC page 10. Back
272
Department of Trade and Investment NI Monthly Labour Market Report
August 2010 Page 1. Back
273
NIHE website www.nihe.gov.uk accessed September 2010. Back
274
NIHE 2009 House Condition Survey -Preliminary Findings http://www.nihe.gov.uk/2009_house_condition_survey_preliminary_findings_feb_2010.pdf. Back
275
Home Energy Conservation Report 2008. Back
276
Professor Christine Liddell The Impact of Fuel Poverty on Child
Poverty (Save the Children, Dec 2008). Back
277
Ian Duncan Smith., Preface Housing Poverty From Social
Breakdown to Social Mobility The Centre for Social Justice. Back
278
Mike Smyth and Dr. Mark Bailey., Addressing the Economic Downturn:
The case for increased investment in Social Housing,University
of Ulster, June 2009. Back
279
Ibid. Back
280
Danny Dorling., Poverty, Journal of the Child Poverty Action Group
Issue 136, page 11. Back
281
Housing Benefit and the Emergency Budget of June 2010 Building
and Social Housing Foundation, page 9. Back
282
Harvey J and Houston D, Research into the single room rent restrictions,
DWP, 2005 Back
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