The housing benefits service is crucial to preventing homelessness. It is also crucial in helping new clients access the private rented sector - a poor benefits service will reduce local housing options both for the low waged and families who would prefer to find their own housing solutions.
As said earlier, 79% of tenants in the PRS are very or fairly satisfied with their housing, which compares favourably with the social sectors.
Specialist advisers and officials working in all English Regions confirm that the difficulty facing families and single people on low incomes seeking to rent or remain in the private sector is inversely proportional to the performance of housing benefit team.
The perception or reality of poor performance in benefits teams can be due to:
-
poor processes
-
poor technology
-
inadequate staffing
Examples include suspending claims because of an incomplete postcode on a previous address, having IT systems with significant periods of downtime or sending large payment cheques to landlords 2 weeks before the schedule of properties is sent out, making it difficult to reconcile rents.
Where housing benefit teams respond quickly to claims, there is usually a sustainable supply of good quality rental accommodation accessible for tenants in receipt of housing benefit in most boroughs. Effective pre tenancy determination and verification processes are also crucial.
Councils active in homelessness prevention in high rent areas such as Elmbridge, Reading and Brighton (an LHA pathfinder) report sustained success in helping households gain good quality settled and temporary housing solutions.
Colchester Benefits Team pride themselves on prompt turn-round of claims. They currently work at 22 days average. Where they fail to pay within 28 days, they apologise to the landlord or agent and pay £100 to reflect this.
Using Housing Benefits to prevent homelessness
Benefits teams delivering a prompt and responsive service to landlords and tenants on the day to day business of assessment and payment can influence successful homelessness prevention work.
Housing Benefits teams work to strict rules - where they suspect or have good reason for suspecting the claim they are paying is not justified; they must establish the claimant's circumstances. For example, where they get no reply from the claimant, they will suspend or end benefit. Homelessness is a likely consequence.
Where Housing Benefit services are involved in homelessness prevention as equal partners they can choose to act to help prevent homelessness. The Royal Borough of Kensington and Chelsea have had close working relationships with their benefits team in order to prevent homelessness for many years.
In other authorities, housing benefits teams expect homeless prevention teams to maximize benefits take-up for clients and minimize potential homelessness.
Barnet Council's Sanctuary Scheme to help victims of domestic violence remain in their home when they wish to do so, is backed up by the active involvement of HB services in cases where families cannot immediately return to their home and need interim accommodation. Housing benefits are able to pay rent on two properties where there is an intent to return.
Discretionary Housing Payments (DHP)
DHP is an invaluable source of support for families who need accommodation in areas where rents are high, or where it is considered that Rent Officer Service local reference rents may not reflect the true market rents for that particular area.
DHP can also be used to assist house holds with their housing costs.
DWP allocate a sum of money to each local authority to allow councils to help families and individuals find homes or remain in their home – without causing financial hardship. Each local authority receives a share of a national cash limited government contribution towards their DHP expenditure. Local authorities may exceed their contribution if they wish, but there is an upper expenditure limit of two and a half times their contribution. Any unspent portion of their contribution must be returned to DWP. The government contribution is currently distributed to authorities using a methodology which takes into account such factors as their discretionary spend for earlier years and their overall Housing Benefit/Council Tax Benefit expenditure.
It is a matter of record that most English authorities do not spend their entitlement of Discretionary Housing Payment. In the North West Region 9 out of 43 authorities spent their full entitlement in 2003-4. One authority returned £200,000 of this grant unspent. Even in London only 8 of the 33 Boroughs spent their full allocation. In total the other 25 boroughs returned over £950,000 of this grant unspent. If a council fails to spend its allocation it may face a reduced amount the following year.
Relatively small sums are needed to provide swift assistance to families and single people – often a few hundred pounds.
Case study- Elmbridge BC
Elmbridge has some of the most expensive rental prices in England. For them, DHP is an essential housing tool in providing affordable rental accommodation and in the prevention of homelessness. Elmbridge spends their full allocation of DHP grant.
The Rent Service uses a broad locality to decide average rents, which means that more expensive areas within that locality, like Elmbridge, can suffer from greater shortfall amounts per property than less expensive areas. Clients are then faced with having to pay the shortfall themselves, despite being on a low income.
As a result, Elmbridge Council has researched their own actual market levels, and will award DHP to these limits providing other relevant client criteria are met.
In cases where the rent exceeds even their own market levels, discretion is used as to the reasons why the property has been taken. If the property has been taken through lack of choice at the time, needing to move urgently etc., the Council can negotiate with the landlord on behalf of the client. This is either to compromise on the rental amount, or to end the tenancy early and help the client to secure more affordable rental accommodation.
In cases where the client needs to stay, awards above Elmbridge's own market levels are considered. Cases include clients with vulnerability issues, social support, disabled access, or very poor health - where moving would be detrimental to their physical or mental health.
Contact:
jbolton@elmbridge.gov.uk
Elmbridge, can suffer from greater shortfall amounts per property than less expensive areas. Clients are then faced with having to pay the shortfall themselves, despite being on a low income.
As a result, Elmbridge Council has researched their own actual market levels, and will award DHP to these limits providing other relevant client criteria are met.
In cases where the rent exceeds even their own market levels, discretion is used as to the reasons why the property has been taken. If the property has been taken through lack of choice at the time, needing to move urgently etc., the Council can negotiate with the landlord on behalf of the client. This is either to compromise on the rental amount, or to end the tenancy early and help the client to secure more affordable rental accommodation.
In cases where the client needs to stay, awards above Elmbridge's own market levels are considered. Cases include clients with vulnerability issues, social support, disabled access, or very poor health - where moving would be detrimental to their physical or mental health.
Contact:
jbolton@elmbridge.gov.uk