Welfare Reform

Growurown

Many of the people I work with in the community are telling me that they are getting seriously behind on their rent. They can't afford the 'bedroom tax' in the first place let alone the 'bedroom tax' plus rent arrears. The large local RSL's have a policy of not letting to people who owe them money until the arrears are paid off. If they are on benefits the likelihood of them paying off the arrears any time soon is virtually zero. They can only pay a few pounds a week so large arrears will take years to pay back. This is such an ill thought out policy.

Depth_Charge

Growurown wrote: »

Many of the people I work with in the community are telling me that they are getting seriously behind on their rent. They can't afford the 'bedroom tax' in the first place let alone the 'bedroom tax' plus rent arrears. The large local RSL's have a policy of not letting to people who owe them money until the arrears are paid off. If they are on benefits the likelihood of them paying off the arrears any time soon is virtually zero. They can only pay a few pounds a week so large arrears will take years to pay back. This is such an ill thought out policy.

Hi

Great point on the bedroom tax AND rent arrears.

Throw in any other debts including direct deductions from on going benefits and we are in nonsense maths calculations.

Debt Relief Orders are likely to rise but even these will not take away the deficit in some Financial Statements and the debt pressure will continue.

In my opinion, out of all the welfare reforms the bedroom tax stood out to be a crazy idea and this is proving to be the case.

Questions on this (BEDROOM TAX) -

Is it really working for purpose?

Is it cost effective, especially when you factor everything in?

Was it properly thought out?

Is it causing a rise in debt and misery?

I have the same answers for each question, can you guess what it is?

It is a mess

My take

Pee

I really think that the bedroom tax is a good thing, provided people are offered a smaller property within the same area. Otherwise it clearly won't work...

mrs_motivated

Depth_Charge wrote: »

Hi

Great point on the bedroom tax AND rent arrears.

Throw in any other debts including direct deductions from on going benefits and we are in nonsense maths calculations.

Debt Relief Orders are likely to rise but even these will not take away the deficit in some Financial Statements and the debt pressure will continue.

In my opinion, out of all the welfare reforms the bedroom tax stood out to be a crazy idea and this is proving to be the case.

Questions on this (BEDROOM TAX) -

Is it really working for purpose?

No, any Landlord will tell you that.

Is it cost effective, especially when you factor everything in?

No it's costing more to collect and increasing the HB bill

Was it properly thought out?

No

Is it causing a rise in debt and misery?

Yes, health are involved in housing strategy groups for this purpose trying to measure the impact on those who are managing to pay ie increased fuel poverty, balanced diet etc.

I have the same answers for each question, can you guess what it is?

It is a mess

My take

However, some LA's are now allowing moves with arrears, providing the arrears have occurred as a direct result of the bedroom tax (spare room subsidy)

Depth_Charge

mrs_motivated wrote: »

However, some LA's are now allowing moves with arrears, providing the arrears have occurred as a direct result of the bedroom tax (spare room subsidy)

Hi

Thanks for the response and answers:)

If this is happening then it is a plus, a very small plus in difficult situation given the big picture.

The problems will still continue for the others (the vast majority I would imagine) and these problems are real and now.

Also the lack of suitable alternative accommodation is a real issue I am afraid.

There just are not the places available which basically means the policy is flawed from the outset.

My views

mrs_motivated

I agree with you totally... I was at a meeting today and there're were at least 10 directors of different social landlords and we would all agree with you....it's a nightmare for so many reasons

Depth_Charge

mrs_motivated wrote: »

I agree with you totally... I was at a meeting today and there're were at least 10 directors of different social landlords and we would all agree with you....it's a nightmare for so many reasons

Hi

Interesting but definitely not a surprise.

I get the same message from just about whoever I speak to.

We are trying to keep people in their homes best we can, this includes back and forth to court with cases, adjournments, DHP applications etc.

The DHP looks to be temporary but is perhaps one way of stopping large scale possessions / evicts if this benefit just happens to be extended so to speak.

The irony here is that a number of housing officers I have known and dealt with at court for years are agreeing with us but basically their hands appear tied so to speak.

Basically everyone is going to the book but not sure where and how all this will end.

Meanwhile tenants are living under the constant uncertainty and threat of losing their homes.

Setting aside everything else I really don't think the BT was and is a good idea and that is the honest truth.

My opinions

boltneck123

Welfare reform, I feel is unavoidable and I feel it is necessary in order to ensure its survival in the future and then some. So that the most vulnerable are cared for and those able work.

My friend is disabled (he has cerebral palsy) and he often tells me his views on welfare reform and current political issues etc, it is quite opening to see that someone in his position is surprisingly positive about some aspects of it all.

He has a youtube channel, he has just started an opinion blog, it is early days though. If you want a link PM me and I will send it to you. I don't wont to be accused of spamming on here.

Something has to be done to make the system more sustainable.

Growurown

I agree some welfare reform is necessary. Universal Credit if it can be made to work would be an improvement on the current system where people keep telling me they can't work more than 16 hours a week because they are out of pocket. Work should always pay. The current system seems to actively discourage work because people are scared of being worse off.

The bedroom tax should be scrapped. It's not working and it will cost the tax payer more in the long run.

mrs_motivated

I would agree that with the last 2 posts, Welfare Reform is necessary and there are some positives to universal credit it they ever get the Real time IT system ready. However, many tenants will initially struggle with direct monthly payments, actually applying as a survey we recently did, showed that whilst 90 % of claimants do have internet access the majority of these had access to a smart phone ( no plans for an UC app). Also for those in work, if their employer is not on real time tax system, which many small business are not, folk will need to remember to submit monthly figures.

Initially it will be difficult with rent arrears expected to significantly increase, however, with support ( not sure who will provide this with the other cuts, but I expect the burden will fall on landlords)... Long term I believe there will be positives.

Bedroom tax, however, should be scrapped it's costing to much and increasing the HB bill, increasing voids and higher void costs, increasing staff bill to collect and deal with increased arrears and voids....not to mention the human cost.


Again my views