impact of welfare reform on housing association tenants ... · 12-045846-01 nhf welfare reform...

Impact of welfare reform

on housing association

tenants – baseline report

For the National Housing Federation

April 2013

Legal notice

© 2013 Ipsos MORI – all rights reserved. The contents of this report constitute the sole and exclusive property of Ipsos MORI. Ipsos MORI retains all right, title and interest, including without limitation copyright, in or to any Ipsos MORI trademarks, technologies, methodologies, products, analyses, software and know-how included or arising out of this report or used in connection with the preparation of this report. No license under any copyright is hereby granted or implied.

Contents

Introduction .................................................................................... 3

Acknowledgements .................................................................................... 3

Publication of data ...................................................................................... 4

Executive Summary ....................................................................... 5

1. Landlord perceptions of the impact on tenants ................... 8

Internal transfers ........................................................................................ 8

Evictions ................................................................................................... 10

Anticipated impact on tenants arising from individual elements of welfare reform

................................................................................................................. 14

Concluding comments .............................................................................. 19

2. Case study interviews with tenants ..................................... 21

Key themes from case study interviews ................................................... 21

Case Study 1: Lone-parent with two sons - one with disability ................ 25

Case Study 2: Unemployed, married man with no children ...................... 28

Case Study 3: Unemployed man with son who visits sometimes ............. 30

Case Study 4: Unemployed, married woman with seven children............ 33

Case Study 5: Employed, lone-parent with one child ............................... 34

Case Study 6: Woman living in property with spare rooms ...................... 37

Case Study 7: Couple living in adapted property with spare rooms ......... 39

Case Study 8: Self-employed, single-woman, previously homeless ........ 42

Concluding comments .............................................................................. 45

Appendix 1: Technical information about the online survey ... 46

Appendix 2: Qualitative case study research methodology ..... 47

Appendix 3: Depth-interview discussion guide ......................... 50

12-045846-01 NHF Welfare Reform Tenant Research 2

Introduction


Introduction

The Welfare Reform Act 2012 heralded the introduction of some of the most significant changes to the administration and distribution of benefits in recent times and the National Housing Federation has commissioned Ipsos MORI and the Cambridge Centre for Housing and Planning Research (CCHPR) to assess how these changes impact housing associations and tenants across England.

With the introduction of the size criteria measures (also known as the ‘bedroom tax’) and roll out of the household benefit cap starting in four London Boroughs from April 2013, this report is the third in a series of reports1 exploring the potential impacts across the sector prior to implementation.

This report specifically considers some of the potential impacts on tenants using data collected as part of the initial baseline survey of housing associations (conducted online in November 2012) together with a series of in-depth interviews with tenants likely to be affected by the reforms. In particular the report seeks to identify these tenants’ initial perceptions of the reforms as well as better understand how they think they will be impacted and the measures they are taking to prepare for the introduction of the reforms. Over the course of the next year we aim to return to some of these participants to determine how, if at all, the welfare reforms have affected them post implementation.

The report presents details from a series of case study interviews specifically targeted with tenants who are variously likely to be affected by welfare reform measures and incorporating a range of vulnerabilities and circumstances. As such the data presented here does not aim to be representative of the wider tenant population nor can they be used to make generalisations about all tenants. They do however provide a more nuanced understanding and explanation of the behaviour and attitudes of individuals in the face of changes brought about from the various welfare reform measures.

The principal objectives of the interviews are to explore the following:

How well informed tenants are about the impending welfare reforms

How tenants envisage the reforms will impact on them and their households

What action, if any, tenants are taking in preparation for the welfare reforms

How, if at all, the reforms will influence tenants’ spending priorities

What support tenants feel they will need from housing associations to help them

Acknowledgements

Ipsos MORI would like to thank all the organisations and tenants who participated in the follow-up research and for members of the project team at the National Housing Federation for their input and assistance at this stage of the project as well as Peter Williams and Anna Clarke from the Cambridge Centre for Housing and Planning.

1 The first report set the context and presented baseline data from a survey of housing associations

and the second provides further evidence on the organisational impacts for associations based on a series of in-depth discussions with a selection of case study associations (see reports here: www.housing.org.uk/policy/welfare_reform/monitoring_the_impact.aspx)

http://www.housing.org.uk/policy/welfare_reform/monitoring_the_impact.aspx


Publication of data

As the National Housing Federation has engaged Ipsos MORI and CCHPR to undertake an objective programme of research, it is important to protect the interests of all organisations by ensuring that it is accurately reflected in any press release or publication of findings. As part of our standard Terms and Conditions of Contract, the publication of the findings of this research is, therefore, subject to advance approval of Ipsos MORI. Such approval will only be refused on the grounds of inaccuracy or misrepresentation.

© Ipsos MORI 12-045846-01


Executive Summary

Growing demand for smaller homes

The Government suggests that a key objective of the size criteria is to encourage social tenants affected by it to downsize to avoid Housing Benefit cuts. There is a concern among both associations and tenants that sufficient alternative accommodation will not be available. Among associations responding to the survey, the average number of tenants transferring per 1,000 is 56 per year

Of those associations that expect to be significantly affected by the size criteria, 80% believe they are likely to see an increase in the number of existing tenants requesting a transfer to smaller property and a similar proportion (79%) expect to see demand for smaller property from new applicants to increase

In contrast, very few associations believe this increasing demand for smaller stock will be alleviated by outflow to the private rented sector. Just three in ten associations believe they are likely to see a rising number of tenants moving to the private rented sector following the introduction of the size criteria

Greater pressure on the social sector expected

Associations believe the social rented sector is likely to be placed under even greater

pressure as those unable to meet their needs in the private sector turn to the social rented sector for a solution

The biggest anticipated impact from the introduction of the household benefit cap is a growth in demand for housing association properties from private sector tenants who may need to move to accommodation charging lower rents. Nearly half (49%) of all associations anticipate such growing demand is likely and this is most pronounced among associations operating in London (57%) where private market rents have risen rapidly in recent years

More than a quarter of associations (27%) believe the introduction of the household benefit cap will result in a rise in family separation

Concerns about rising evictions

Housing associations expect that some tenants will be unable to keep up with their

rent following welfare reform leading to an increase in the number of evictions for rent arrears

Among all associations responding to the survey, the average number of evictions of housing benefit claimants due to arrears per 1,000 working-age tenants is 19 per year, prior to the introduction of welfare reforms. Associations expect the introduction of direct payment of benefit to tenants under Universal Credit and the introduction of the size criteria to be the biggest contributors to a rise in the number of evictions due to arrears. Three quarters of associations (75%) anticipate a rise in the number of evictions following the introduction of the size criteria

Even more (77%) expect an increase in evictions following the introduction of direct payments of benefits to tenants under Universal Credit

Fewer than half of associations (47%) anticipate evictions rising following the introduction of the household benefit cap


Tenants reveal their experiences and concerns

In-depth interviews with a targeted group of eight tenants likely to be affected by the

welfare reform measures found those aware of the reforms were anxious and uneasy about what is going to happen

For those affected by the size criteria, this is driven, in large part, by financial concerns. Money is already tight and the possibility of having to find more each month to cover a reduction in housing benefits is a source of concern for them.

Some tenants felt the additional responsibility they will face for rent payment when they receive their benefits directly under Universal Credit would be stressful to manage

Interviewed tenants estimated that welfare reforms will reduce their benefit income by between £10 and £38 per week. For some this reduction will result in their weekly outgoing expenditure exceeding their income

Most reported that they had little room for manoeuvre in their budgets and that finding the extra money would be a struggle. For those in work, increasing working hours was seen as problematic for many, either because of their care commitments of the type of work they do. Most are now considering what, if anything, they can cut back on in their household expenditure in order to meet any increased costs

Rent remains a priority, but heating, food and non-essential cut backs are all being considered.


Landlord perceptions of the

impact on tenants


1. Landlord perceptions of the impact on

tenants

The baseline survey of housing associations2 collected a wealth of perception data on the anticipated impacts of welfare reform measures both for their organisation and their tenants. The report begins with further analysis of organisations’ initial perceptions of how key welfare reform measures are likely to have particular impacts on their tenants. The chapter begins with baseline data on key impact metrics such as internal transfers and evictions before considering the anticipated effects of individual welfare reform measures on tenant related aspects, including demand for smaller properties, transfers within and away from the sector and family separation.

Internal transfers

Transfers of council or housing association tenants to other homes within the social sector represented 34.5% of all social sector lettings in 2011-12. The number of social tenants transferring to other homes within the sector over the same period was 83,418.3

One of the explicit and intended consequences from the introduction of the size criteria is to improve the efficiency of occupied social rented stock so that Government definitions of household size requirements and the size of the home are more closely matched. The choices for existing tenants affected include remaining in their current home and making up any difference from reduced housing benefit payments or move to a property with fewer bedrooms. The capability of existing tenants to exercise this latter choice will, in large part, be dependent upon the availability of suitable stock to move in to. The number of internal transfers made by landlords is one important indicator of the potential capability of tenants to be able to exercise that choice.

The first baseline report found that even prior to the introduction of size criteria more than two in five (43%) associations reported they had seen an increase in requests for a transfer from under-occupying households during a six-month period in 2012.

The actual number of tenants transferring is very closely related to the size of the landlord with the highest number of tenant transfers seen among the largest associations. To compare transfer activity across the sector the number of stated internal transfers has been standardised per 1,000 working age general needs tenants on housing benefit (also collected in the survey). Among all associations responding to the survey the average number of tenants transferring in 2011-12 was 56 per 1,000.

Standardised internal transfer rates are notably higher among those associations operating in the East Midlands, South West and London as well as among smaller associations, those operating in non-rural areas and those predominantly dealing with single tenancies. This pattern is likely, in large part, to reflect higher turnover rates among these particular types of association with greater movement providing more potential for internal transfers. As welfare reforms progress it will be important to monitor changes in this metric to assess the impacts on mobility within the sector.

2 The first results from the survey were published as: Impact of welfare reform on housing

associations – 2012 Baseline report, January 2013

3 NHF Housing Figures based on CORE returns for general needs. Figures cover both local

authorities and housing associations.


Chart 1.1: Average number of tenants transferring during the 2011-12 financial year per 1,000 working age general needs tenants on benefit by region

Chart 1.2: Average number of tenants transferring during the 2011-12 financial year per 1,000 working age general needs tenants on benefit by other sub-groups

1

Average number of tenants transferring during 2011/12 per

1,000 general needs working age tenants on benefit by region

68

43

92

79

34

8191

129

29

Yorkshire & Humberside

West MidlandsSouth WestSouth EastNorth WestNorth EastLondonEast MidlandsEast of England

Fieldwork dates: 21 September – 5 November 2012 Base: All valid responses (145)

Note: Associations were asked to provide the overall number of internal transfers and how this disaggregates

by region. As associations can operate across multiple regions the regional average will be different than the

overall sector average

56 transfers per

1,000 tenants

Q In total, how many internal transfers within your stock were made during the 2011/12 financial

year?

Sector average

(Transfers/ 1,000 tenants)

2

Average number of tenants transferring during 2011/12 per 1,000

general needs working age tenants on benefit by other sub-groups

5742

106

6048

4055

45

27

95


56 transfers per

1,000 tenants

Q In total, how many internal transfers within your stock were made during the 2011/12 financial

year?

Sector average

(Transfers/ 1,000 tenants)


Evictions

Previous analysis of survey results4 has highlighted that the majority (84%) of associations believe that rent arrears will increase as a direct result of welfare changes and case study landlord interviews5 reveal that associations are concerned that a significant minority of tenants on housing benefit will build up arrears as they deal with changes including reduced benefit payments and managing rent payments themselves under Universal Credit.

Associations were asked to indicate the current extent of evictions of housing benefit claimants due to arrears as well as their perceptions of the likelihood that evictions would increase following introduction of the main welfare reform components.

Numerically the average number of evictions made per association between 2011 and 2012 is small (12). As with transfers, the number of evictions is closely related to the size of the association with the highest number of evictions seen among the associations with the largest number of homes. To more easily compare eviction levels across the sector the number of evictions has been standardised per 1,000 working age general needs tenants on housing benefit. Among all associations responding to the survey, the average number of evictions per 1,000 tenants is 19 per year. Less than one in five responding associations (17%) indicated they had made no evictions due to arrears in 2011/12. Just five percent of associations have an eviction rate of 20 or more per 1,000 general needs working age tenants on housing benefit.

Chart 1.3: Number of evictions of housing benefit claimants due to arrears 2011-12 per 1,000 general needs working age tenants on benefit

4 Impact of welfare reform on housing associations – 2012 Baseline report, Ipsos MORI & CCHPR,

January 2013

5 Intended and unintended consequences? A case study survey of housing associations and welfare

reforms, CCHPR, March 2013

3

Q In total, how many evictions of housing benefit claimants due to arrears were there during the

2011/12 financial year?

17%

18%

17%7%

5%

35%

None

Don’t know

Fieldwork dates: 21 September – 5 November 2012

Under 5 evictions per 1,000

Average/ 1,000

19

5 – 9.9 evictions per 1,00010 – 19.9 evictions per 1,000

Base: All valid responses (232), average excludes ‘Don’t know’ responses (150)

20+ evictions per 1,000

Number of evictions of housing benefit claimants due to arrears 2011-12

per 1,000 general needs working age tenants on benefit


Anticipated impact on evictions from welfare reform measures

Associations were also asked to indicate the extent to which evictions due to arrears are likely to rise following introduction of the various welfare reform measures. Associations expect the introduction of direct payment of benefit to tenants under Universal Credit and the introduction of the size criteria to have the biggest impact on evictions. Three quarters or more of associations anticipate a rise in the number of evictions to be likely following introduction of direct payments (77%) and the size criteria (75%). In contrast fewer than half of associations (47%) anticipate evictions rising following introduction of the household benefit cap. This likely reflects the lower incidence of tenants affected by this component of the reforms.

Chart 1.4: Anticipated impact on evictions due to arrears from welfare reform measures

Earlier analysis has shown that eviction rates are higher among those operating in London as well as smaller associations. Perhaps because of the relatively higher eviction rates, both these groups are less likely to anticipate the introduction of the size criteria and direct payment of benefit to tenants to result in rising eviction levels due to arrears. Among smaller associations too, this may also reflect the disproportionately higher amount of supported housing schemes which will be less affected by the measures. Associations that offer predominantly family tenancies – who are more likely to occupy larger homes – are more likely than those offering predominantly single tenancies to anticipate evictions due to arrears rising following introduction of the size criteria measure.

4

Q How likely, if at all, do you think the following are to occur because of the

introduction of the size criteria/ household benefit cap/ direct payment to tenants?

- A rise in the number of evictions due to arrears

Anticipated impact on evictions from welfare reform measures

Base: All valid responses (210)

51

34

16

26

41

31

11

17

37

6

6

13

7

3

3

Direct payment of benefit to tenants

Size criteria

Household benefit cap

Very likely Fairly likely Not very likely Not at all likely Don't know


% very/

fairly likely

77%

75%

47%


Chart 1.5: Anticipated impact on evictions due to arrears from the shift to direct payment to tenants by region

Chart 1.6: Anticipated impact on evictions due to arrears from the shift to direct payment to tenants by other sub-groups

5

77% 23%

Likely Not likely/ Don't know

Potential impact on evictions from the introduction of

direct payment of benefit to tenants by region

8877

83

69717263

8676




77% likely

Q How likely, if at all, do you think the following are to occur because of the shift to

direct payment to tenants? – A rise in the number of evictions due to arrears

Sector average

(% likely)

6

77% 23%


Potential impact on evictions from the introduction of direct

payment of benefit to tenants by other sub-groups

69

9470

708683

1009089

55


77% likely

Q How likely, if at all, do you think the following are to occur because of the shift to

direct payment to tenants? – A rise in the number of evictions due to arrears

Sector average

(% likely)


Chart 1.7: Anticipated impact on evictions due to arrears from the introduction of the size criteria by region

Chart 1.8: Anticipated impact on evictions due to arrears from the introduction of the size criteria by other sub-groups

7

75% 25%



the size criteria by region

9586

81

69737368

8878




75% likely


introduction of the size criteria? – A rise in the number of evictions due to arrears

Sector average

(% likely)

8

75% 25%



the size criteria by sub-groups

7588

48

698182

918385

51


75% likely


introduction of the size criteria? – A rise in the number of evictions due to arrears

Sector average

(% likely)


Anticipated impact on tenants arising from individual elements of welfare reform

Earlier analysis of baseline data has indicated that most housing associations believe their organisations will be affected, either a great deal or a fair amount, by the introduction of direct payments to tenants (81%) and, to a lesser extent, by the introduction of size criteria measures(61%). In contrast, only a minority of associations (27%) believe their organisations will be significantly affected by the introduction of the household benefit cap. In the remainder of this section consideration is given to the anticipated impacts on tenants from the introduction of these individual welfare reform measures.

Size criteria

More than three in five associations believe their tenants will be significantly affected by the introduction of the size criteria and, of these, 80% believe they are likely to see an increase in the number of existing tenants requesting a transfer to smaller property.

A very similar proportion (79%) also expect to see demand for smaller property from applicants more widely to increase. In combination with the anticipated rise in internal transfer requests for smaller property, one potential concern is increasing pressure on one and two bedroom stock and, potentially, more restricted access to such property for new applicants.

Further, very few associations believe this increasing pressure on smaller stock will be alleviated by outflow to the private rented sector. Just three in ten associations believe they are likely to see a rising number of tenants moving to the private rented sector following introduction of the size criteria.

Chart 1.9: Anticipated impact on tenants from the introduction of the size criteria

9


introduction of the size criteria?

Housing association perceptions of impacts on tenants from the

introduction of the size criteria


41

37

4

39

42

26

12

11

46

7

8

20

1

2

4

An increase in the number of existing tenants requesting a transfer to a smaller social sector home

An increase in demand from applicants for smaller property

An increase in the number of tenants moving to the private rented sector



% very/

fairly likely

80%

79%

30%


Further analysis of survey results suggest that the extent of these impacts on tenants will be felt differently across the sector. For example, associations that predominantly offer family tenancies are most likely to anticipate increased pressure for smaller property, either from transfers or new applicants. Those associations operating in London and the South East are least likely to anticipate rising demand for smaller property or increased outflow to the private rented sector following introduction of the size criteria – likely reflecting the rapid rise in private market rents seen in these parts of the country in recent years.

Chart 1.10: Anticipated impact on tenants from the introduction of the size criteria by region

Chart 1.11: Anticipated impact on tenants from the introduction of the size criteria by other sub-groups

10

80% 20%


Potential impact on tenants of the introduction of the

size criteria by region

9383

95

7584

100

74

9995





introduction of the size criteria? – An increase in the number of existing tenants

requesting a transfer to a smaller social sector home

Sector average

(% likely)

80% likely

11

80% 20%



size criteria by other sub-groups

8893

27

7189

1009195

80

54



introduction of the size criteria? – An increase in the number of existing tenants

requesting a transfer to a smaller social sector home

80% likely

Sector average

(% likely)


Household benefit cap

Analysis by the Department for Work and Pensions6 indicates that a relatively small number of social housing tenants (25,760) will be affected by the introduction of the household benefit cap which is also reflected in associations’ views of the anticipated impacts.

Likely reflecting the small numerical incidence, the introduction of the household benefit cap is seen to be less of a driver of mobility within the sector than introduction of the size criteria. Just three in ten associations anticipate an increase in the number of existing tenants requesting a transfer following introduction of this measure, compared to 80% from introduction of the size criteria.

Similarly, associations are also less likely to anticipate increases in demand for smaller property. Around a third (34%) of associations anticipate increasing demand for smaller property following introduction of the household benefit cap compared to 79% following introduction of the size criteria. This in part is likely to reflect the lower numerical incidence of tenants affected by the cap but may also reflect a view that larger families affected by the cap will seek alternative strategies rather than moving to a property where they will be overcrowded. This is something we will return to as the introduction of welfare reform measure progress.

Chart 1.12: Anticipated impact on tenants from the introduction of the household benefit cap

The biggest anticipated impact from the introduction of the household benefit cap is a growth in demand from people currently living in the private rented sector. Nearly half (49%) of all

6 DWP (2011a) Equality impact assessment: Income-related benefits: change to the non-dependant deduction

rates

12


benefit/welfare cap?

Housing association perceptions of impacts on tenants from the

introduction of the household benefit cap


14

11

9

4

35

23

21

23

31

39

43

35

12

25

25

21

9

3

2

17

An increase in demand for housing from people living in the private rented sector

An increase in demand from existing tenants for smaller property

An increase in the number if existing tenants requesting a transfer

An increase in family seperation



% very/

fairly likely

49%

34%

27%

30%


associations anticipate this is likely and is most pronounced among associations operating in London (57%) where private market rents have risen rapidly in recent years.

It is also noticeable from survey responses that whilst nearly half of all associations anticipate increased demand from the private rented sector, just 30% believe it is likely that those tenants affected by the size criteria will seek a private sector solution. This suggests, prior to introduction of welfare reform measures, that associations are anticipating the sector to be placed under even greater pressure as some affected private rented sector tenants turn to the social rented sector for a solution. Again this is an issue we shall return to as welfare reform changes progress.

Chart 1.13: Anticipated impact on tenants from the introduction of the household benefit cap by region

13


household benefit cap by region

4942

42

5145

34

575049




49 % likely

Q How likely, if at all, do you think the following are to occur because of the benefit/

welfare cap? – An increase in demand for housing from people living in the private

rented sector

49% 51%


Sector average

(% likely)


Chart 1.14: Anticipated impact on tenants from the introduction of the household benefit cap by other sub-groups

Of the potential impacts identified, associations are least likely to believe the introduction of the household benefit cap will result in a rise in family separation (27%). Again it is those associations operating in London who are most likely to anticipate this arising with three in ten anticipating increased family separation, whereas no associations in the North East believe this is likely.

Chart 1.15: Anticipated impact on tenants from the introduction of the household benefit cap by region

14


household benefit cap by other sub-groups

4555

49

51

40

52565052

41


49% likely


welfare cap? – An increase in demand for housing from people living in the private

rented sector

49% 51%


Sector average

(% likely)

15


household benefit cap by region

25

20

27

27

20

0

3028

20




27% likely


welfare cap? – An increase in family separation

27% 73%


Sector average

(% likely)


Chart 1.16: Anticipated impact on tenants from the introduction of the household benefit cap by other sub-groups

Concluding comments

It is clear from the data that housing associations expect the imminent introduction of the size criteria to increase demand for smaller homes both from existing tenants and new applicants. The capability to process transfer requests as efficiently as possible will be important to meet the anticipated increase in demand and facilitate some tenants’ preferences to down-size. This in large part will depend on the existing availability and suitability of their stock, a concern highlighted by tenants in the following chapter.

Few associations expect the private rented sector to be able to alleviate this increased pressure for smaller accommodation but do expect the introduction of the household benefit cap to result in greater demand from those currently in the private rented sector. Increasing pressure on the housing association sector may be one of the unintended consequences of the reforms and will be an area of attention as the implementation of welfare reform progresses.

Data also suggests that current levels of evictions due to arrears are relatively low but that the introduction of both the size criteria, and particularly direct payment to tenants, is expected to exacerbate this (three quarters or more of associations think evictions will increase as a result of these measures). Strategies to mitigate the detrimental effects of rising evictions to both tenants and landlords will be an important priority for associations in the short to medium term.

16


household benefit cap by other sub-groups

24

3529

29

2222

333736

18


27% likely


welfare cap? – An increase in family separation

27% 73%


Sector average

(% likely)


Case study interviews with

tenants


2. Case study interviews with tenants

The qualitative case study element of the research provides detailed insight into how tenants perceive, understand and are preparing for, the welfare reforms. Over the course of the next year we aim to return to some of these participants to determine how, if at all, the welfare reforms have affected them post implementation.

It is important to stress at the outset that the case study interviews have been purposively selected to cover groups of tenants that are considered most likely to be affected by the reforms. As such the data presented here does not aim to be representative of the wider tenant population nor can they be used to make generalisations about all tenants. They do however provide a more nuanced understanding and explanation of the behaviour and attitudes of individuals in the face of changes brought about from the various welfare reform measures.

Participants for the interviews were recruited by Ipsos MORI using a combination of contact details provided by case study landlords and free-find recruitment techniques. All participants recruited met the following standard set of criteria:

General needs tenants of a housing association;

Of working-age;

Claiming Housing Benefit; and

Tenants/claimants, rather than just non-dependents living in the property

A total of eight in-depth interviews have been conducted with tenants who are variously likely to be affected by welfare reform measures, incorporating a range of vulnerabilities and circumstances. To ensure a diversity of experiences is covered, one case study interview was conducted with a tenant with no special requirements. Further details about the selection of case study participants can be found in Appendix A2 of this document.

As part of the interview, participants were pre-tasked with a financial diary outlining weekly income and outgoings. This was a valuable tool to aid discussion around the likely financial impacts of the reforms. It should also be remembered that the findings represent what participants expect will happen rather than what will necessarily happen.

Before providing further details from each case study interview we summarise some of the key commonalities in attitudes and behaviours emerging from the research.

Key themes from case study interviews

Awareness of welfare reforms

Although the baseline survey of housing associations indicated a majority of associations (57%) felt their tenants know hardly anything or nothing at all about the benefit changes, among these depth-interview participants awareness levels varied. Some participants had heard of the impending changes, either directly from contact initiated by their landlord (letters and in some cases personal visits) or through the media. Others, however, had very little awareness. Furthermore, even when participants are mindful of the reforms, they are not always certain about all the details and exactly how they are likely to be affected.


Attitudes towards reforms

Participants who are aware of the reforms express a sense of anxiety and unease about what is going to happen. For those affected by the size criteria this, in, large part was driven by financial concerns. For most, money is already tight and the possibility of having to find more each month to cover the reduction in housing benefit payments is distressing for them. Concern around the introduction of direct payment of benefits to tenants is more variable. Those confident about managing their money are less concerned by this, while others feel the additional responsibility for rent payment will lead to further stress and anxiety.

Preparations for reforms

Those aware of the reforms and who believe they will be affected, especially by the imminent introduction of the size criteria, have been considering what they can do to manage. Pre-emptive actions can be differentiated between those that have been instigated and those that are being considered.

Most participants have sought out further information about the reforms, either speaking to their landlord, council or other support organisations (like the Citizens Advice Bureau) to better understand what this will mean for them and what their options are. Most have started to think about their expenditure more. One participant likely to be affected by the size criteria has already registered with a home-swap agency. Other actions mentioned as under consideration include looking for work, taking in a lodger, moving abroad and transferring to cheaper accommodation. These are commented on further below.

Financial impacts

Participants estimate that welfare reforms will reduce their benefit income by between £10 and £38 per week. For some this reduction will result in their weekly outgoing expenditure exceeding their income. Generally, most reported that they had little room for manoeuvre in their budgets and that finding the extra money would be a struggle. For those in work, increasing working hours was seen as problematic, sometimes because of their care commitments. Most participants are now considering what, if anything, they can cut back on in order to meet any increased costs.

Prioritising finances

In terms of which outgoings take priority, for all participants, rent is a priority. Participants feel that keeping their roof above their head is very important. Most participants mention they are considering cutting back expenditure on heating and food costs. Reducing spending on non-essential items (including swimming lessons for children, and charitable donations) are also being seriously considered by many.

Importance of online access

Some participants discuss how they have considered getting rid of their internet access at home in order to meet additional costs, following reforms. However, this is not a favoured option for several reasons: parents are asked by schools to provide online access for children to carry out homework; one participant is aware that he would need internet access when Universal Credit comes into effect; others require internet access for their work. Furthermore, some participants learnt about welfare reforms using online sources.


Other responses to welfare reforms

Most participants affected by size criteria were against taking a lodger. This was largely because participants felt it would be intrusive and would prefer not to have a stranger in their home.

Some participants would consider down-sizing to a smaller, cheaper home but identify both practical and emotional barriers. Participants mention their concerns about how they could cover the costs of moving, in terms of paying for hired help and a van. No tenants included in this research reported having been offered any financial incentives to move, or assistance with meeting the financial costs associated with moving, by their housing associations.

A further concern about down-sizing was the perceived lack of available suitable property. For example, one tenant had conducted a property search for one-bedroom homes in his borough and found that there were very few. Another required an adapted property, but his housing association had not been able to find one. Participants were reluctant to move from the areas they currently lived in, since they felt settled and had family, friends and neighbours who they were keen to remain in close proximity to.

What housing associations can do

The baseline report published in January 2013, focusing on the impact of welfare reform on housing associations, found that housing associations were facing the challenges head on.7 More than nine in ten (95%) had begun to look at the risks and opportunities. Of these, the vast majority said they were taking action with many embedding welfare reform into their business planning and strategy development. Associations were planning to spend an average of around £50,000 each in 2013 to prepare for the impact of welfare reform, ranging from less than £10,000 on average for the smallest associations and rising to nearly £200,000 on average for the largest. It was anticipated that this spending would nearly double in 2014. Associations were increasing support for tenants as well as increasing resources to manage the anticipated increase in arrears. For example, over three quarters (76%) were providing extra money advice, two thirds (66%) were undertaking customer analysis to identify and target under-occupiers with help, and 61% were providing extra assistance to housing applicants.

A key way in which participants would like housing associations to assist them is financially. Some have had discussions about Discretionary Housing Payment and one has discussed moving costs (in terms of hiring a van and men to help). However, when asked about other forms of support, participants feel that housing associations could provide more advice and clear information about exactly what the reforms will mean for them and what they can do to cope. Participants would like assistance in finding a suitable property in the area they currently live in (although of course, this may not be available).

Several mention the need for more personal advice, specific to their individual circumstances. Participants tend to suggest that associations should focus their efforts on the target group they belonged to (for example, the tenant living in an adapted property felt the disabled needed more support, and a tenant living alone felt that single working people should have more advice and support).

7 The first publication, Impact of welfare reform on housing associations – 2012 baseline report, set

the context and presented baseline data from a survey of housing associations: www.housing.org.uk/policy/welfare_reform/monitoring_the_impact.aspx



Overall, participants tend not to think that their contact with their landlord will change much as a result of the reforms, although some participants had recently increased their contact to ask about certain reforms, especially the size criteria.

Fuller details from each case study interview are presented below. Please note we have used pseudonyms to protect the anonymity of participants.


Case Study 1: Lone-parent with two sons - one with disability

Tenant possibly going to be affected by the size criteria, with a son with a physical disability,

Berkshire

Current situation

Angela is a 32-year-old lone-parent, living in a three-bedroom terrace house with her two sons. Her youngest son is nine years old and her eldest is eleven and suffers from cystic fibrosis. Angela works for four hours a week during term time as a play therapist for a charity. She is only paid for the hours she actually works, meaning there is no pay during holidays or if she is off sick. She has a current account, which she actively uses.

State support and awareness of reforms

Angela currently receives Council Tax Benefit, Carer’s Allowance, Child Tax Credit, Child Benefit, Income Support and Disability Living Allowance (DLA). Angela is aware of several welfare reforms, although feels that these have not been well advertised and has found out about them through looking up information herself. Regarding the size criteria, she is highly aware of this because she is worried about the impact this will have on her household. At the time of being interviewed, she understood that the size criteria would mean that her two sons would be expected to share a bedroom and that, therefore, she would be deemed to have a spare room. According to the Department for Work and Pensions, when a claimant says that their children are unable to share a bedroom, it will be the responsibility of Local Authorities to determine whether this is the case. It is not clear what will happen if Angela is transferred onto Universal Credit. Therefore, it remains uncertain as to whether Angela’s children will be expected to share a room.

Angela is adamant that it would be inappropriate for her younger son to share with her eldest son, due to the latter’s high medical needs. He requires medical assistance at home which Angela is trained to administer and this sometimes needs to be given during the night. Angela feels it would be detrimental to her younger son to be woken up, particularly as he needs to sleep well to concentrate at school. If they shared a room, she questions where the youngest son could go to carry out his homework in peace. Angela has been actively trying to find out if she will be exempt from size criteria. She has spoken to her housing association, which is looking into the possibility of Discretionary Housing Payment, but this has yet to be decided. She has also spoken to nine different medical professionals and three charities who have all agreed that her eldest son needs a room of his own. Regarding size criteria, Angela says:

“This is where the Government go wrong…if you give a mother that’s got seven

children my house, why should I give this up because that lady decided to have

seven children she can’t afford to have…they’re rewarding work-shy people because

they’ll get this house…but I’m deemed to be under-occupying but I’m not, my

bedrooms are all used…and I’m being penalised, I’ve got to get out…it’s very

frustrating”

Angela feels that the size criteria places pressure on housing associations and councils to move people, but this is more difficult in reality than in theory, because:


“There is not enough housing stock to accommodate the amount of people they need

to move out”

Angela is also aware of changes to Council Tax Benefit, although she is unclear about exactly how much this will change by for her household. She expects that she will have to pay a percentage of her Council Tax, but when she tried to determine exactly how much, by contacting her housing association, she was unable to get a definite answer from them. It is important to note, however, that Council Tax is administered by local authorities and not housing associations. Angela feels that there is not enough information available to tenants regarding this welfare reform and that although she is trying to prepare, it is very difficult without adequate information. She says:

“I believe that we’ve got to pay a percentage of Council Tax but again, that hasn’t

been publicised…people…haven’t been made aware of this so that they can get

themselves ready…I did ring [the housing association, but]…at the moment

they…haven’t got a formal answer as to how much money we’ve got to pay…people

will be trying to do what they’re meant to do but then you’ve got a brick wall

constantly…”

She is also aware of the Benefit Cap (although she says this will not affect her) and Direct Payments, which she has been approached about by her housing association. Angela has also heard about the change from Disability Living Allowance to Personal Independence Payment (PIP), which she expects will affect her household in a few years’ time, when her eldest son is sixteen. Angela is also aware of Universal Credit and that this will affect her household, but she is not concerned about the change as she feels she is good at managing her money and it will not be a problem for her to manage a monthly sum.

Impact of reforms

Angela is very worried about what will happen is she is not granted Discretionary Housing Payment. Money is currently tight, with about £55 left over each week. If Angela were to have to make up the short-fall in her rent, she thinks she would only be left with about £17 per week. She is concerned about what she could cut back on in order to pay the additional rent. Her son’s school asks parents to sign a form saying that they will provide internet access at home as this is necessary for homework, so she wants to keep this. Angela’s eldest son’s condition means that he needs to follow a high-calorie diet, consuming about 5000 calories per day with the inclusion of particular food-stuffs. Therefore, cutting back on food shopping is problematic. Angela needs to spend money on her car insurance and diesel as her eldest son needs to be driven to a hospital which is a long way from home, to receive specialist treatment. She has considered getting rid of her mobile phone, but she is worried about what would happen if her eldest son’s school needed to contact her when she was not at home. Overall, she is unsure how she will manage, but she is certain that she cannot move into a smaller property because of her son’s condition.

Working more is not an option for Angela because of her eldest son’s demanding medical condition. She explains that she would be happy to work more hours, but does not know who she could find to look after her son. In addition to cystic fibrosis, her son also suffers from emotional and behaviour problems; Angela has been told in the past by carers that they cannot handle looking after him. Angela feels that she saves the Government money by covering so much of her son’s care at home, rather than taking him into hospital. For


example, she administers intravenous antibiotics to him at home, and believes that a carer would need to be paid a large amount to look after him. She also says the Government could not provide a carer who could take on the required level of responsibility to not only look after her son, but to provide the specialist medical intervention that he requires. She says she was not brought up to take benefits and would rather not have to, but feels she does not have a choice. She feels that, given her current situation, she is not financially better off for working the few hours per week that she currently works, in comparison to claiming benefits. However, she is keen to carry out some form of paid work and so continues to do it. She sums up her current situation by saying:

“I’m trapped living a life I do not want to lead…I’m being penalised for something that

I didn’t ask for [son’s illness]”

Contact with housing association

Angela generally only contacts her housing association if she requires a repair. However, as already mentioned, she has spoken to them recently regarding her concerns about the size criteria. She feels the housing association could do more to address the issue of the lack of housing stock in the area, because people may not necessarily be able to move, even if they want to. The shortage of suitable alternative accommodation into which under-occupying households may be able to downsize is an issue that housing associations have themselves raised as a concern.


Case Study 2: Unemployed, married man with no children

Under-occupying, childless, older couple still of working age, Merseyside

Current situation

Bob is a 51-year-old man living in a three-bedroom house with his wife. The house was passed down through his wife’s family and she has lived there since her childhood. They do not have any children. Bob and his wife are both unemployed and Bob suffers with poor mobility due to osteoarthritis and does not believe he is fit enough to work. He was formerly a carer for his father and prior to that, had a number of low paid positions. His wife was last in paid employment about five years ago and since then has been involved in voluntary work and in studying for a college course. She was unwell for a period of time but is now looking for paid work once again. Bob says his wife is not looking for any particular type of employment and is open to finding any sort of work, but has not been successful so far.


In addition to Housing Benefit, Bob currently receives Employment Support Allowance. His wife receives Income Support and they also receive Council Tax Benefit. He is very aware of the welfare reforms and follows changes on the BBC parliament website, from which he also receives updates by email and he has also heard about reforms by watching the television. He believes that there will be cuts to Council Tax Benefit and that this will probably affect him personally, although he is not certain. He has heard about the Benefit Cap, the change from Disability Living Allowance to PIP and Universal Credit. Bob’s Housing Benefit is paid to him direct, following his housing association approaching him about this. He feels this makes little difference to him whether his rent is paid directly to his landlord or to him. He was keen to pay cash, however, rather than to set up a Direct Debit for his rent, because that would eliminate the risk of any computer errors or delays. The challenge for Bob, he feels, will be changes related to the size criteria, as he has two rooms spare (although he notes that one of the rooms is very small).

Impact of reforms

As a result of the size criteria, Bob will need to pay an increased shortfall in his rent of about £24 per week. He considers this to be difficult as money is already tight, and he feels that, at present, the household has no money spare. He also thinks that the cost of living will rise, meaning that with the introduction of the size criteria, his outgoings will exceed his income. He says that keeping a roof over his head is a priority and so the rent must always be paid. In order to make ends meet, the household will cut back on gas, electricity and food. They are already keeping a close eye on expenditure and being careful to put money aside in case they need to pay for something unexpectedly, such as if the washing machine breaks. As Bob explains about his current spending:

“…And that’s being very careful, you know, walking into one shop and seeing it’s one

pound fifty and then walking in another shop and it’s only a pound in there…we pay

in five pounds a week into a savings club and that is very handy because you can

take out, in case of an emergency and we also put five pounds to save for household

items and clothes so we try to save ten pounds a week…”


Bob also says that they do not drink or smoke and that they do not go out much, so there is little else to cut back on. Regarding heating, he says that they are already using it sparingly, and making efforts to economise:

“…You know the cold snap after Christmas? We had to be very, very, very careful,

i.e. extra layer of clothes on in the house and just one radiator on. We’re not the sort

of people who would just go “oh to heck with it, we’ve got money today, let tomorrow

look after itself””

Bob says that ideally, they would downsize, but he has looked into the properties in the local area and there are only two or three one-bedroom properties available, so it seems unlikely to him that they would be able to stay in their local area. He does not want to have to move from the local area as they feel settled there, having lived there for so long. Bob is also worried about how he could cover the costs of moving because they have no spare money or savings. The money they put aside each week is used to buy items that they need. Bob says:

“I do agree with under-occupation in principle. What I don’t agree with is the way it’s

being thought out…for instance….I’m in no physical state to do this on my own. I’d

have to get a removal thing which on average costs about £500. Where am I going

to wish for £500 from? There there’s the social issues, knowing your neighbours

you’ve grown up with, then there’s the emotional things about being in the house

forty years…you could get moved to a place where there’s say…undesirable

people…”

Bob expresses his frustration with his current situation; he would like to be in paid work, but his health is not good enough to work. The support he receives from the State is not enough for him and his wife to afford many opportunities to socialise and their lives involve being at home most of the time and being very careful with money; they must think carefully before they buy any new items, such as clothes. The only non-essential item he considers his household to have is the internet, which he considers to be an outlet for them both (for access to news and information). He also notes that he will need this when the reforms come into full force because things will need to be handled online.


In general, Bob gets in touch with his housing association about two to three times per month (unless he requires a repair) and he tends to email them. He considers them to have been very good and does not feel that his contact with them will change as a result of the welfare reforms.


Case Study 3: Unemployed man with son who visits sometimes

Under-occupying parent with spare bedroom available for children to stay sometimes,

general needs, working age tenant, Somerset

Current situation

Charlie is a 45-year-old unemployed male, living alone in a two bedroom flat. He has a 14 year-old son who visits him at weekends and stays in the spare room. Charlie lives close-by to his son and ex-partner and he gets on well with his neighbours.


Charlie receives Income Support and Disability Living Allowance. He is aware of the size criteria, but had only learned about it recently. He had received a letter from his housing association, which was followed up by a visit from a member of staff. He had also received a letter about Discretionary Housing Payment, which he is planning to follow-up. Charlie feels that the size criteria are unfair for people in his position, because he has a son who needs somewhere to stay when he visits. He points out that he would not stay there otherwise, given that the property “could be used by a mother and child”. He is very keen that his son should have his own room at the age of 14. Charlie says that the size criteria changes made him feel very stressed:

“Because I’ve got a spare room…I’ve got to pay for that like ten, eleven pound a

week. That really has spun my head because I don’t know how I’m going to cope.

I’m struggling at the minute…gas and electric and stuff like that.”

Charlie had some awareness of Direct Payments. At the moment, his housing benefit is paid to the landlord and he did not understand why this was changing because he feels that the current system is far more straightforward. He was concerned that the change would cause him stress and anxiety because he does not have a good memory and gets muddled. He says:

“I’ve done a lot of damage with drink and drugs and...I’ve got a really terribly memory

most of the time…so I struggle paying my water bills, never mind that they’re going to

send me the rent…”

Impact of reforms

Charlie reports that he currently receives about £160 per week in benefits. He is not working and his outgoings exceed his income. If he needs to find the extra money to make up the shortfall in his rent as a result of the size criteria, the only area he feels he can cut back on is his food shopping, which is already something that he is careful not to spend much on. This currently costs him between £25-30 per week, so he feels there is not very much room for him to reduce his spending in this area. Charlie explains how he does not have enough money to buy the clothes that he needs at the moment:


“Do you know what…I haven’t brought myself clothes in years, I can’t afford it. I can’t

afford ten pounds on a pair of jeans. My shoes are busted at the minute and [I’ve]

got to save up and buy myself a pair of boots - forty quid…I’m really, really

struggling”

Charlie feels that the advice he has received about the size criteria has not been very helpful as he has simply been told by his housing association that he would have less money, but has not been given any advice about how to cope with this. He mentions that he is not well-educated and finds it difficult to do things like filling in forms. He feels as though the Government is targeting people on benefits because it thinks they are avoiding work, which he explains in the following way:

“It seems like they’re picking on people on benefits, which is great strategy from the

Government…looking on benefit scroungers and all that…that’s not nice to

hear…people start to look down on you…I’m trying to give it a go..but with my health

and that it restricts me from doing certain things…”

Charlie feels that looking for paid work is not possible at the moment. He is a recovering alcoholic and drug addict, with a number of long-term health problems including depression, problems with his lungs, breathing and knees. Charlie says he feels that he has let himself and his son down with his alcoholism, but that this was not something he could quickly rectify. He previously worked as a builder, but could not manage physical labour now. He also suffers with anxiety and stress, explaining that he often finds life difficult, forgets things and struggles to cope with change. Furthermore, he has a criminal record and few qualifications. Charlie feels that even if he could find a job, he would be on the minimum wage and he has heard that people on such a low income really struggle, so he questions whether he would actually be better off financially for working. Nevertheless, he plans to look for work in the future, although he thinks he may need to go to a nearby city to find it. He does not feel well enough to return to work at the present time, however.

Charlie has mixed views about the possibility of moving, in order to avoid having to pay extra rental costs. On the one hand, he would like to remain where he currently lives so that his son could come and stay in a room of his own and also because he has friends in the area:

“It’s a lovely flat…my next door neighbours have got a set of keys in case anything

happens to me…my son likes coming down to visit so he’s got his own bedroom...my

son wants me to be near his school because he wants to come and stay a couple of

nights so he can go to school from mine”

On the other hand, if he were to move closer to where his son and ex-partner currently live, then he could still see them and if he found a large one-bedroom place to live, it may not be so difficult for his son to stay. With this in mind, he has registered for a mutual transfer. However, he is not confident that one will become available soon because it will involve finding a property in a location that he wants, at a suitable price and also finding somebody who is happy to move to his property. A further issue for Charlie was finding the money to cover moving costs.


Charlie reflected on the possibility of getting a lodger. He was not entirely averse to the idea because it would generate more income. However, he felt he would need some advice about managing this and he would still have the problem of not having a room for his son to stay in when he visits him.


Charlie would like to have received more information and advice regarding his options from his housing association, in light of the possibility of his Housing Benefit being reduced due to the size criteria. Ideally, he would have liked to have discussed options with his housing association, to help him assess the drawbacks and benefits of possible ways of moving forward.


Case Study 4: Unemployed, married woman with seven children

Larger family (nine people in household), Staffordshire

Current situation

Sonya is a 41-year old married woman, living in a seven-bedroom, semi-detached house with her husband and seven children. They have lived in the house since 2010. There are six daughters, aged two, eleven, fourteen, seventeen, nineteen, twenty and also one son aged thirteen. Two daughters are partially sighted. Sonya and her husband are both unemployed, although Sonya was formally a receptionist, working full time.


Sonya receives Disability Living Allowance for two of her children, Carer’s Allowance, Child Benefit, Child Tax Credit and Council Tax Benefit. She has two bank accounts; the first is a current account and the other is, as she describes it, an “easy account”, which is used for direct debits and withdrawing cash. She only uses one of her accounts for receiving benefits. She carries out online banking and has access to the internet at home and on her mobile, which she uses to check statements and make purchases online. The household is currently trying to save some money to pay for the wedding of one of the daughters.

Impact of reforms

Sonya has little awareness about welfare reforms. More specifically, she is unaware of the Benefit Cap and has heard only a little about the size criteria, mentioning that she thought children under 16 might be affected. However, she did not know the details and did not know whether this would have an impact on her household. In reality, it seems most likely that the household will not be affected by the size criteria or the Benefit Cap; two children in her household are, presumably, already sharing a room as there are not enough bedrooms for one per child. Furthermore, the household is likely to be exempt from the Benefit Cap, given that two children receive Disability Living Allowance.

Regarding being paid housing benefit direct, Sonya said she had previously been given a choice and decided not to opt for the change. She has a vague idea that there may be some changes to her rent if one of her elder daughters starts working, but is unsure of the specifics.

Sonya did not expect to see any significant changes to her financial situation. She estimates that each of the benefits she receives will increase by about a pound by April 2013, but does not envisage any increase in her outgoings. Therefore, she was not planning to make any changes and was not making any preparations. Sonya had no desire to take in a lodger because it is a family home. Regarding this, she says:

“I wouldn’t feel comfortable. It’s a home environment, family and taking on

somebody else, it’s a lot of pressure to take on and deal with.”


Sonya rarely contacts her housing association and tends to be in touch only if she requires a repair. She does not use any other services provided by them, although does read the leaflets and newsletters that they send. She feels that the housing association should focus on tenants who look after their properties and keep them in good condition, as she feels she does.


Case Study 5: Employed, lone-parent with one child

Employed (part-time) and living in London

Current situation

Emily is 39-year-old lone parent, living in a two-bedroom flat in a new build block, with her nine-year-old son. She has lived there for the past 13 years and grew up living in accommodation from the same housing association. She is self-employed and works 28 hours a week in an administrative role. She is only paid for the hours that she actually works, meaning she goes unpaid if she is sick. She sometimes works from home but for the most part, goes to her place of work using public transport. Emily has a current account with a building society and access to the internet at home. She uses the internet to check her finances, receives text alerts and keeps a spreadsheet of her expenditure using Microsoft Money.


Emily currently receives Working Tax Credits, Child Tax Credits, Child Benefit and partial Council Tax Benefit. She is aware of changes to Housing Benefit, which she heard about in the media. She is concerned that because of this, her income may decrease as of April 2013, but has not had any information to this effect. Emily has also heard that there may be cuts to Council Tax Benefit, but her local council has contacted residents to say that it is trying to fight this, which she found to be a “comforting message”. However, according to Emily’s local council website, the council has decided that the most appropriate way of introducing Council Tax Support is to reduce the amount of money that everyone receives, by over eight percent. In addition, it will remove discounts and exemptions for empty properties and second homes.

Emily is also aware of Universal Credit and feels that if this is going to be implemented, there should be a one-stop information source for advice services and queries about benefits. At the moment, she says it is difficult to get answers to questions. For example, she tried contacting the Citizen’s Advice Bureau about Universal Credit, but there was a very long wait for an appointment, so she could not resolve her query quickly. She says that it is hard to know who to turn to and that the whole system needs to be simplified, with a central place that people can call into to speak with somebody. Emily has also heard of the introduction of Personal Independence Payment (PIP), although it is not relevant to her. Overall, it concerns her that she has tended to hear about welfare reforms through the media rather than directly from the Government, as she wonders whether the reporting is sensationalised and making things seem more dramatic than they really are. She feels worried about the changes, saying:

“The system as we know it is going to completely change and it’s all supposed to

happen from April and I feel completely unprepared because I don’t know what’s

going to happen and…it’s really unnerving…to me because I’m self-employed and

I’m a single parent and I don’t know what on earth’s going on…and it just doesn’t

seem like the information’s out there at the moment…break downs, figures, what’s it

going to mean on the ground level..?”


Impact of reforms

Overall, Emily says she feels a sense of confusion and fear. She says she is “trying to do all the right things”, but sometimes questions whether there is really any point in her working as she may not be much better off, following the welfare reforms. She would like to have a clearer idea of how the welfare reforms will impact on her, particularly regarding changes to Housing Benefit and Council Tax. Emily explains how the welfare reforms make her feel in the following terms:

“…It makes me feel very anxious. It’s making me lose sleep…I feel like this

Government’s kind of pushing me out of the country and I have these intentions

because I want to…move forwards in life but it’s feeling increasingly impossible here

and it just feels like there’s no opportunity left…it feels exhausting.”

She does not expect that there will be an increase in the benefits she receives, yet she expects the cost of living to rise, with increases in bills such as gas and electricity. Money is tight for her household currently, with very little left over. She mentions that last Christmas was difficult to pay for. Emily would like to have a clearer idea about how, if at all, her financial situation is going to change, in light of welfare reforms. If it became necessary for her to make cuts, then she feels this would have to be to food shopping, meaning that they would need to eat cheaper food. This is a worry for her as she feels that nutrition is important in raising a healthy child. Emily says:

“My priorities? We’ll end up having to eat worse food…and that I really dread…just

having cheap meat but you don’t know what’s in it…and …not getting enough fruit

and veg. and things like that, they concern me because my responsibility is to bring

up a healthy child that’s going to be a healthy, strong adult…”

Emily’s household has already been very careful about putting the heating on and has been “layering up”. Emily has also considered stopping her son’s swimming lessons and the house insurance. She is concerned burglaries may increase with the welfare reforms and that if she was burgled and did not have any insurance, she would be in trouble. As things stand, Emily does not have the money to go out regularly. She feels that if money gets any tighter, it might be worth looking to move abroad.

Emily has considered moving to another property within her housing association but thinks she would not be able to find another two bedroom property with lower rent. She is concerned about increasing her working hours as she wants to juggle her working life with being there for her son. She grew up in a single-parent household where she was a “latchkey” child and feels this was to her detriment, so she believes that if she is not there for her son, he may get into trouble. She feels that if she could work from home more though, that would be one way round this, but it is not certain that she could. She feels that it is right that people should work, but she does question whether it is really working out for the better to carry on in employment. She feels confused about how she will be affected by the welfare reforms and thinks that if her Housing Benefit, Council Tax Benefit and Working Tax Credits are reduced, she might be better off by not working. She sums this up in the following way:


“There’s also a side of me that wants to help the Government… that’s why I went

back to work…Housing Benefit, I think they’ll probably drop that by…if it’s £20 then I

would be teetering on the edge of actually having to say “actually, the figures don’t

work out anymore, it’s not worth me working”…so yeah…Council Tax and Working

Tax Credits, I really hope they don’t cut [them] because that’s the only way it’s…even

worth going to work…”


Emily feels that her housing association could be more understanding of its tenants’ situation and provide more advice. She finds the changes confusing, even though she has a degree and wonders how perplexing it must be for some other people who did not receive this level of education.


Case Study 6: Woman living in property with spare rooms

General needs, working age, on housing benefit, in adapted/accessible property, North

Humberside

Current situation

Freda is a sixty-year-old woman who lives alone in a three-bedroom terraced property. She has lived there for 24 years and is currently housebound, following a recent operation and some medical problems with her hands. She last worked in about 1994, when she was a welder working full time and carrying out regular hours.


Freda is currently receiving Incapacity Benefit, Disability Living Allowance (at the lower-rate care component and the higher-rate mobility component) and Council Tax Benefit. She expects to also start receiving a pension in June 2014.

Freda has some awareness of welfare reforms and in particular, is concerned about the size criteria because she thinks this is going to affect her. She found out about this through some literature sent to her by her housing association and knows that it will come into effect in April 2013. A member of staff from her housing association spoke to her and Freda’s understanding of the conversation was that Discretionary Housing Payment would be available for some tenants and that she would be allowed this until June 2014.

Freda has a Post Office (P.O) account with a P.O card, which allows her to withdraw money but not to deposit it. She keeps receipts and has a meter for her gas and electricity.

Impact of reforms

Freda is concerned about how she will manage when the Discretionary Housing Payment deceases or stops because money is currently tight and she believes she will need to pay an extra £17.50 per week, if she does not receive Discretionary Housing Payment. She thinks it is going to be a struggle. However, in fact, if Freda continues to receive Discretionary Housing Benefit until June 2014, by the time it ceases, she will no longer be of working age and so will not be affected by the size criteria.

Freda feels that the most important outgoings to cover each week are the rent, heating and food. In order to help with paying the rent shortfall, she thinks she may stop donating to The People’s Dispensary for Sick Animals (PDSA) which currently helps with the costs of keeping her pet dog. She makes a voluntary donation of £5 per week at the moment because her dog requires medication, but this is an area she feels she could cut back on. Her outgoings also include paying a friend to clean her house weekly, since she is not well enough to carry this out herself, along with giving petrol money to people for driving her to hospital appointments. She expects that her friend would still continue to help her, even if she did not continue paying her about £45 each week. As she explains:

“It’s going to be really difficult…like my friend, I pay her for doing things; I’ll have to

cut that down...I think she would do it anyway, she’s that sort of woman.”


Freda is not willing to stop providing petrol money to those who drive her around because she is conscious that they will then be out of pocket. At the current time, Freda has about £45 left over each week, whereas she expects that with the introduction of the size criteria, this will drop to less than £20. Although she considers heating to be important, this is something she also considers cutting back on to meet the shortfall in the rent. As already mentioned, however, it is possible that if Freda receives Discretionary Housing Payment, she will be protected against the effects of the size criteria. The research reflects her understanding of how she expects to be affected by the welfare reforms.

Despite Freda’s worries about how she will manage financially, she does not want to move. Having lived in her home for well over two decades, she has a network around her, including friends and relatives who help her with housework, travel and shopping, which is important to her given her mobility difficulties. She describes the area as “peaceful” and “nice” and she likes having the spare rooms for when her daughter and her three grand-daughters (aged 8, 11 and 15) come and stay. She feels that in a smaller home, there would not be the room for them to stay over. Importantly, Freda believes there are no suitable properties in her local area and so if she did move, she would need to go to an entirely new area where she would not know people. She is also concerned about the cost of moving to a new home. As Freda explains:

“I like it here…when my daughter and the kids come here there’s enough room, but

not only that…it would cost me more to move and decorate and to get things done as

I want it…I’ve got all my friends here, people who are doing stuff for me here, if I

moved, I wouldn’t get that. I get more help here”.


In terms of Freda’s contact with her housing association, this tends to take place three or four times a year over the phone (which is convenient for her due to her mobility issues). This tends to be regarding repairs, although sometimes it is regarding a query about benefits.

She generally has positive experiences because she finds the housing association provides “straight-forward” responses, although she does ring the Head Office rather than the local office as this has proven to be more helpful. In terms of the support she would like to see from her housing association, she feels that they could provide more help with finding alternative properties to offer their tenants affected by the size criteria, within the local area. She also feels that the tenant types they should focus on are older families.


Case Study 7: Couple living in adapted property with spare rooms

Disabled person, working age, on housing benefit, in adapted/accessible property, North

Humberside

Current situation

Gareth lives with his 59-year-old wife. She has a number of health problems (suffering from arthritis, angina and having previously had strokes) and Gareth acts as her full-time carer. They have lived in their four-bedroom-house for 20 years and have four grown-up children and some grandchildren. They have a current account which they use and they also have a credit card, which they find is useful because they accumulate points with it that they can use for other shopping. They also use price comparison sites.


Gareth’s household receives Carer’s Allowance, Income Support, Disability Living Allowance and Council Tax Benefit. Gareth is aware of the size criteria and is very concerned about the impact this will have on his household, given that they have spare bedrooms and will struggle financially to pay the shortfall in the rent. He received a letter from his housing association and also from his local council about this reform. Gareth is also familiar with changes to Disability Living Allowance from 2013. His understanding is that his wife will need to be re-assessed in 2016. He learnt about this from Mobility magazine. Gareth also thinks that following the reforms, he will need to contribute towards his Council Tax, which he thinks will be about £2 per week.

Impact of reforms

The size criteria are a source of concern for Gareth. He and his wife have discussed how they are going to manage and it has caused arguments between them as they were unsure how they could afford to pay the shortfall in the rent. Gareth says:

“It’s been stressful already. [The housing association] first wrote to us last July and

to be honest with you, in the first six or seven weeks…we had more rows then than

we have…in twenty odd years of marriage…and it almost got to a stage where we

were probably going to leave each other for it…it was doing our heads in…”

At present, the household has about £12 left over each week, whereas if they need to find the additional £20 per week for the rent shortfall, they will be spending close to £10 per week more than they have coming in. Gareth considers his household’s finances on a weekly basis and has already been thinking about what they could cut back on to pay the rent shortfall. The first thought is stopping paying for satellite television. However, as Gareth’s wife is at home most of the time and cannot easily leave the house, this is her main form of entertainment. There are craft channels that she watches and uses for ideas for things that she can make, which is helping with her recovery from the strokes. The household does not go out very much and they feel that satellite television is something that Gareth’s wife would really miss. Otherwise, they would need to cut back on fuel or possibly get rid of the house insurance. Gareth thinks it would be difficult for him to find paid employment, given that he is his wife’s full-time carer. Although it might be possible for him to go to work while somebody else cares for his wife, it could be difficult as she requires variable levels of care and sometimes needs help around the clock.


Overall, the couple feel it would be best for them to move into a smaller property as a result of the size criteria. However, they have had problems finding a suitable property. They contacted their housing association, who said they would look to find them a new home. They came up with a possibility but said that the couple would need to be ready to move the following week. The couple said they could not pack up their entire house in that time, so the housing association asked if they would be ready to move elsewhere in a couple of months’ time. The couple agreed to this and packed up their belongings into boxes. However, they have still not been offered another property and this was months ago. The difficulty appears to be in finding a home that can be adapted to meet Gareth’s wife’s needs, since she requires a stairlift, ramp and walk-in shower.

A further concern for Gareth is where his household will find the money to move. He is unable to move everything on his own and his wife cannot help because of her disability. He investigated the possibility of hiring a van with removal men, but the quote of £210 was more than they could afford. He is now very worried about how they can afford to down-size, even if the housing association can find an adapted property. He explains that he spoke to his HA about what he should do to meet the costs and they advised approaching other family members or taking out a loan:

“We mentioned it to them [the housing association] but I think their hands are

probably tied as well because obviously, we’re not the only ones. The last

conversation…I had…I said… “What’s happening about the moving costs because

we haven’t got the money?”…first of all [the person from the housing association]

said “can’t your family help?” [I replied] “No, they’ve all got bills of their own”.

Secondly, she said “Well can’t you get a loan”? Well, if I could afford to get a loan,

then surely I could afford not to move in the first place…if I can afford to pay a loan

back, I can afford to pay the rent…”

He also wonders, in terms of the larger picture, how much money it will cost housing associations to adapt properties and whether they are really saving money by moving people from adapted properties into new properties that will require all the extra work.

The couple are wary about taking in a lodger and Gareth feels this would upset his wife. He also believes that he wouldn’t be allowed to take one in as it would interfere with his income support.


Gareth generally contacts his housing association about three or four times a year, but has been in touch more recently because of the size criteria and looking into the possibility of downsizing. He feels that the housing association is generally quite helpful but they do not keep him informed enough. At the moment, they are living in a home with their belongings in boxes, unsure if and when they will be required to move and if they do, how they can pay the costs of moving.


He would like the housing association to be more proactive and to provide more assistance with downsizing and moving. He says:

“If [the housing association] had come and said “We need your house, there’s a

shortage of four bedroom houses…can we downsize you…and we’ll [cover] moving

costs?”, we’d have said “yes, fair enough, let’s do it”… It’s totally down to us, which is

another thing that we’re stressing out about…”

Gareth feels his housing association should focus its attention on vulnerable tenants, such as the elderly and disabled. Overall though, he does not think that his contact with his housing association will change as a result of the welfare reforms.


Case Study 8: Self-employed, single-woman, previously homeless

Vulnerable tenant; mental health issues and previously homeless, London

Current situation

Helen is a 32-year-old woman living in a one-bedroom flat. She has lived in the new-build property since 2008. She has been self-employed since November 2012, having started her own business as a freelance beauty therapist. She is currently focussing on marketing work for her new business, including launching her website. She has mental health problems and because of this, feels she is well-suited to being self-employed as it would be difficult for her to hold down an ordinary job. Helen was once homeless for nearly two years, until she was offered help by a mental health support worker who helped her to find her current home.


Helen is aware of changes to Council Tax benefit, having received a letter about it and heard about it in the news. This is something that is worrying her and she is concerned about the timings of this change, as it will take place in April, yet she does not expect her business to pick up until May. Regarding the Council Tax, Helen says:

“I received a letter saying that I’m going to have to pay 17% I think it was towards my

Council Tax Benefit…I haven’t sat down and really worked it out, but I’m guessing

that it’s going to be at least another £10 or something a week, at least and yeah, it is

worrying…It’s OK once the business starts taking off then it will be fine, I’ll be able to

pay the full rent, but until then it is definitely a worry on your mind…”

Helen is also aware of the size criteria, which she considers to be part of wider inequalities in terms of what tenants are expected to pay for their properties. She notes that she has to pay more rent than some other tenants with larger homes, because hers is newer. She does not feel this is fair. However, she did feel optimistic that the size criteria may free up housing stock to allow her to move to somewhere cheaper:

“I mean the good thing is that there’s people now, because of this bedroom tax they

want to move. So I reckon that, I believe what’s going to happen is if I do get moved

it will be to a two bedroom and I’ll have to pay for the extra bedroom”

Impact of reforms

Helen finds living in her current flat to be expensive because of the service charge and as a result of the rent rising since she first moved there. She has, therefore, looked into the possibility of getting a transfer to a cheaper housing association property, but has found that other people are also reluctant to move to her flat because of the high costs. As a result, she feels that new-build-homes are very expensive to live in if you are claiming benefits and that there needs to be more social housing that is affordable.


“The whole point of [living in a] housing association [property] for me is to be able to

work and pay my rent because it’s a lower rent than the market. But that’s not

happening anymore because of the new builds. If you get an old property it’s

cheaper but no one will swap with me because my rent is so high”

Helen has a credit card debt of £120, resulting from setting up her business, along with a £300 Social Fund Loan, which she is unsure whether or not she will have to pay back. She has no savings. Helen says that her key priority each month, in terms of things to pay off, is rent, having been homeless in the past. She says:

“I’d rather go without food than rent”

However, her future finances are uncertain. Her service charges for her home are likely to rise and she knows she will need to pay more Council Tax from April. She is also unsure as to how well her business will do in the coming months and how many new clients she will be able to attract. She is currently paying off a credit card bill, and is depending entirely on her business taking off in the next few months in order to afford her increased outgoings. She has considered making savings on food and finding ways to reduce her utility bills to meet her outgoings from April, although she feels it will be difficult to cut back because these outgoings are expensive. She says:

“I suppose food is roughly about £50 a week, at least and the food bills are going up.

It’s ridiculous. I spent £50 the other day and it was nothing, it was like four days’

worth of food, milk and bread and… I just couldn’t believe it. It’s just getting so bad

now, it’s really pretty scary actually…when you think about [it].”

Helen is reluctant to get rid of the internet to save on costs as this is something she needs to establish her business. More generally, she does not have a clear plan as to how she will manage when the changes come in, but is trying to be optimistic about the situation:

“I’m a little bit worried to be honest…but I don’t know, I believe in fate and stuff and I

believe that everything…is going to be fine…something will pop up.”

Regarding direct payments, Helen feels that when the changes came about she will still ensure rent is a top priority. However, she is concerned about whether she will be able to manage her finances well, especially in the months immediately following the move to the new system.

“I’m not going to forget about...rent being paid…but as far as the other stuff is

concerned like...yeah I’m bound to muck up one way or another on something that

I’ve forgotten about, a direct debit and end up having £20 to eat on for a week or

whatever”


Helen would like to stay in London since her family is close by. She would not consider moving to the private rented sector because she was previously very unhappy living in private rented accommodation, and feels that homes in the private rented sector are very poorly-kept and in unsafe areas.

“I’ve been there, I’ve done it and it’s horrible because you literally cannot relax. You

can’t do anything, it’s not your home, it’s never your home. I would rather try and buy

somewhere than ever go back into private housing, it’s just horrific”.

She feels she might consider moving out of London if she had a family, and also hopes she can find a partner who might help her manage her household costs.


In terms of help from her housing association, Helen would like to receive a “courtesy call” to help her feel more at ease about her current situation. She feels she would benefit from using a helpline to find out information. She has heard that her local council offers advice on managing finances and this is something that interests her. She feels there should be more information and support targeted at single people because at the moment, most information provided by her housing association seems to be targeted at older people and families.


Concluding comments

It is evident from the depth-interviews that there remain some major uncertainties about how welfare reform measures will impact on tenants which in turn is leading to stress and anxiety. The most immediate concerns are financial and most of the interviewed tenants have sought further information from their landlord and started to monitor their expenditure more closely.

The anticipated reduction in benefit from the introduction of the size criteria is expected to place even greater strain on already tight household budgets, and many see reduced spending on heating and food as an option. Despite housing association concerns about rising eviction levels brought about by the reforms, encouragingly, the tenants interviewed say paying the rent is their main priority. Nevertheless, the tenant interviews suggest that even if people prioritise paying their rent, they may well not have enough income left to cover their other outgoings.

Concerns around the introduction of direct payment of benefit to tenants are more variable and strongly influenced by how capable respondents feel about managing their money. Advice and support to develop the financial capability of tenants should be a clear priority for landlords to help mitigate concerns arising from this component of the reforms.

It is also evident that some interviewed tenants are considering down-sizing but highlight some common and well known barriers. Critical is the availability of suitable property in the right locations but even the cost of moving can be a disincentive for some. Ensuring transfer requests are handled efficiently and provision of further advice and guidance on moving are two key areas where tenants say their landlord can help. Personal advice and guidance specific to their individual circumstances is another priority the tenants interviewed say is key to assisting them in managing the transition.

With the first of the reform measures about to be introduced, the research suggests that while much has been done by both associations and tenants, there remains much to do. Over the coming months we will revisit these issues in a variety of post-implementation research activities.


Appendix 1: Technical information about

the online survey

In Autumn 2012, all Federation member housing associations in England were invited by Ipsos MORI to complete an online survey about the likely impacts of the Government’s welfare reforms both on their organisations and their tenants.

A total of 781 organisations were invited to complete the survey with invitations sent to Chief Executives on 21st September 2012. In addition to a link to the survey, the invitation also included a printable version of the questionnaire in anticipation that some responses would require the input of particular business areas within each organisation. To meet the requirements of the Data Protection Act, the introduction to the survey stated the purpose for which the data was being collected and the confidentiality assured to respondents.

The fieldwork period lasted for six weeks and during this time four reminders were issued to those organisations that had either not started or had not submitted their survey responses.

Fieldwork closed on 5th November 2012 and, in total, 229 responses were received. A further three responses were received after the submission deadline (completed in hardcopy format) which were also included within the final dataset.

A total of 232 organisations submitted a completed questionnaire, which after taking account of non-effective email addresses (a total of 44 email addresses were invalid, of which 15 were corrected), gives an adjusted response rate of 31%.

Table A1.1: Online survey response rate

Sample Response

1. Total email invites 781

2. Non-effective email address 44

3. Rectified email addresses 15

4. Completed responses 232

Adjusted response rate (4/ (1-(2-3)) 31%

Survey data has been weighted to the national profile of general needs stock owned and managed by region using the latest Statistical Data Return for 2012 and has also been weighted by size of organisation to account for the under-representation of smaller (less than 500 stock) housing associations in the survey.

Further technical details about the survey can be found in the baseline report8.

Read first baseline report here: www.housing.org.uk/policy/welfare_reform/monitoring_the_impact.aspx



Appendix 2: Qualitative case study

research methodology

The qualitative case study element of the pre-implementation research aims to provide detailed insight into how tenants perceive and understand the welfare reforms and their responses to the changes, focusing on the lives of tenants likely to be affected.

Qualitative sampling is designed to identify those participants whom it is most important to research in depth; it does not aim to be representative, rather “reflect the diversity within the group or population under study rather than aspiring to recruit a representative sample.”9 It therefore follows that the qualitative sampling for this research is purposive; and has been designed to capture a broad range of circumstances among tenants who are likely to be affected by the various welfare reform measures.

Eight tenants were recruited, mainly via the provision of names from landlords, but also using recruiters to free-find. All tenants met the following criteria:

General needs tenants of a housing association;

Of working-age;

Claiming Housing Benefit; and

Tenants/claimants, rather than just non-dependents living in the property

Further details of the eight case studies are summarised in the table that follows:

9 Barbour, (2001) Checklists for improving rigour in qualitative research, p58


Case

study

Details Rationale for inclusion

1 Under-occupying with somebody in the

household with a physical disability

Likely to be affected by size

criteria

2 Under-occupying couple with no children Likely to be affected by size

criteria

3 Under-occupying parent with spare bedroom

available for children to stay sometimes

Likely to be affected by size

criteria

4 Larger family (minimum of 6 people) Likely to be affected by the

Benefit Cap

5 General needs, employed with bank account To determine impact on one

tenant with no special

requirements

6 Unemployed, with or without bank account To see impact on person out of

work

7 Disabled person in adapted/accessible

property

To understand if requirement

for an adapted property has an

impact

8 Vulnerable tenant (e.g. learning

disability/mental health issues/previously

homeless)

To determine how a tenant with

special requirements will be

affected

The interviews took place between February and March 2013, and were conducted by telephone. Tenants were sent a ‘financial diary’ in advance of the interview, which was used as stimulus in the interview to explore the participants’ income and expenditure currently and how this might compare to expected income and expenditure from April 2013. All the interviews were conducted with tenants in England, covering a spread of regions and lasted around one hour.

When discussing welfare reforms, we first gauged participants’ spontaneous awareness and understanding of the reforms. We then prompted them by asking whether they had heard of each of the following, if they had not already mentioned them:

The Size Criteria

Council Tax Benefit

Benefit Cap

Direct Payments

Change from Disability Living Allowance to Personal Independents Payment (PIP)

Universal Credit


We did not explain what these reforms entailed and, as such, the research findings represent what participants expect will happen, rather than what will necessarily happen. Analysis of the findings was conducted throughout the fieldwork period through the writing of detailed field notes for all interviews and in regular face-to-face analysis sessions with the interviewers. All interviews were recorded and a proportion of them were transcribed.


Appendix 3: Depth-interview discussion

guide

1. Background and context of the research The Welfare Reform Act will bring in a number of changes which are likely to affect tenants in the social sector

size criteria for the calculation of housing benefit;

a cap on benefits claimed in a single household;

a single monthly payment paid through Universal Credit from April 2013 and

direct payments of housing benefit to claimants.

These reforms are likely to have financial impacts on housing associations and tenants which could, in turn, result in those affected having to adopt coping strategies with the potential for unforeseen and unintended consequences. The NHF has commissioned this research to contribute to practical advice and support to members and to bring the impact of the reforms to others’ attention. This overall research programme is focused on understanding the impact of these changes on the social rented sector, on both housing associations and tenants, to give ‘voice’ to the sector, its experiences and concerns. This qualitative element of the stage one research aims to establish baseline data and to understand pre-emptive behaviour change before the reforms come into force. This will be a precursor to monitoring impact after April 2013, up to March 2014. Overall, it aims to generate individual stories and narratives in response to the research questions.

2. Research scope and objectives:

The aim of the qualitative research study is to provide insight into individual tenant experiences, both for an initial ‘baseline’, but also in describing change over time in response to the reforms. The key objectives for the depth interviews with tenants in this wave of research are as follows:

To explore how well informed tenants are about the impending welfare reforms and whether they need further information or support to help them manage;

To understand what action, if any, tenants are taking in preparation for the welfare reforms;

To provide a detailed understanding of tenants’ current circumstances in respects which are relevant for the forthcoming welfare changes:

o To explore the circumstances of tenants’ families too in respect of potential impacts

To generate individual stories and narratives to provide further detail and real life accounts, to go alongside the findings generated by the quantitative aspects of the research; and

To determine what support tenants need from their Housing Associations to help them cope with the changes.

The second, later wave of fieldwork will explore how tenants’ circumstances have changed as a result of welfare reforms. We will aim to return to at least some of the same respondents at a later date, when the reforms have come into place, to determine whether there has been an impact and if so, to what extent and to what level of severity.


3. Checklist for moderators

Ensure you have telephoned the respondent in advance of the interview to o verify the screener details and ensure the participant meets the required criteria o ensure they understand that we will be sending them their task for the interviews

(the financial diary) in advance o confirm the time of the interview

We will provide you with information about the participant before the interview. Please review this and ensure you have tailored the interview to reflect the welfare changes which are most likely to affect the claimant.

The incentive for the interview is £20, which we will send as a cheque to participants after the interview.

4. Structure of the discussion

Notes Guide Sections Guide Timings

1. Introductions and background

Sets the scene, reassures participant about the interview, confidentiality. Discusses the living arrangements and general work/ life circumstances of the participant.

10 mins

2. Awareness and responses to the welfare reforms

Explores the participant’s level of knowledge and awareness of the welfare reforms, investigates their views of the changes and how they feel their household will be affected, if at all

10 mins

3. Potential financial impacts of welfare reforms

Conduct a simple budgeting exercise with the participant to understand how, if at all, the welfare reforms will impact on their finances. This will be followed by discussion about how, if at all, this will affect their day-to-day life

15 mins

4. Wider anticipated effect of the welfare reforms

Explores how the welfare reforms will impact on individuals and their families; areas of life that will change (e.g, leisure activities), trade-offs that households will need to make, in terms of what they can afford to buy, alterations that tenant envisages needing to make (e.g., budgeting differently or opening a bank account)

10 mins

5. Relationship and interaction with HA

Explores how often tenant interacts with HAs, the services they use, the nature of the support they receive, the relationship they have with HAs and their expectations of HAs in light of the welfare reforms. Examines what support tenants would like to receive from their HA, along with what they feel should be the priorities for HAs

10 mins

6. Conclusion and final thoughts

Final reflections on the discussion. Approach about their willingness to share their story with the NHF

5 mins

We use several conventions to explain to you how this guide will be used, described below.


Timings Questions Notes and

Prompts

5 mins

Underlined = Title: This provides a heading for a

sub-section

Bold = Question or read out statement: Questions that will be asked to the participant if relevant. Not all questions are asked during fieldwork based on the moderator’s view of progress.

Bullet = prompt: Prompts are not questions – they are there to provide guidance to the moderator if required.

This area is used to summarise what we are discussing, provides informative notes, and some key prompts for the moderator

How long it takes

Typically, the researcher will ask questions and use the prompts to guide where necessary. Not all questions or prompts will necessarily be used in an interview

The impact of welfare reform on housing association tenants – Baseline Report – April 2013

53

This work was carried out in accordance with the requirements of the international quality standard for Market Research,

ISO 20252:2006.

© 2013 Ipsos MORI.

Timing 1. Introductions and background Notes and prompts to

moderator

10 mins - Thank participant for taking part

- Introduce self, Ipsos MORI

- Explain that the research concerns welfare reforms

- Confidentiality: reassure that all responses are anonymous and that information about individuals will not be passed on to anyone, including back to the NHF or any Government Department, unless they have provided consent to participate in publicity

- Explain outline of the research

- Role of Ipsos MORI – independent research organisation, gather all opinions: all opinions valid.

- Remind that there are no right or wrong answers. Commissioned by the NHF to conduct the research.

- Reassure that a claim for any current or future Housing Benefit claim will not be affected in any way.

- Get permission to digitally record – transcribe for quotes, no detailed attribution

Eligibility check

Can I just check that you are currently a Housing Association (HA) tenant? Which HA are you with? REFER TO TENANT’S HA BY NAME THROUGHOUT Can I also check that you are receiving housing benefit? Are you the tenant or claimant, rather than just living in the property? Do you mind if I check your age too? Personal background I’d like to start by learning a little about you.

- Can you just tell me a bit about you and your household? PROBE: Who they live with, how long they have lived there, number of adults in household, whether they have

The aim of this section is to find out who the tenant is and identify any potential areas for later enquiry around their financial, work, or housing status, and around the wellbeing of their family.

All participants must be HA tenants or working age, claiming housing benefit and must be the actual tenant/claimant, rather than just a non-dependent living in the property Try to gain overview of participant’s current living circumstances


54


ISO 20252:2006.

© 2013 Ipsos MORI.

children? How old are they? What type of property do you live in?

- A house? A flat? Could you tell me about a typical day for you at the moment? How do you spend your time? Are you working at the moment?

- What kind of work do you do? - How many hours do you work?

IF NOT WORKING: When were you last in work? Are you looking for work? PROBE: Who do they work for, how many hours do they work, regularity of hours and income,

I understand that you receive Housing Benefit at the moment. Can you tell me about any other support from the government that you receive at the moment? Or any that you received in the recent past and may not be claiming now? Or any support you may receive in the future?

Timing 2. Awareness and responses to the welfare reforms

Notes and Prompts

10 mins I’d now like to speak to you about welfare reforms.

Have you heard anything about the forthcoming changes to housing benefit? What have you heard? Do you know of any changes that would affect you or others?

GAIN SPONTANEOUS RESPONSES, AND FOR EACH REFORM MENTIONED BY THE PARTICIPANT, ASK:

- Is this something that you think will affect you personally? In what way?

IF NOT ALREADY MENTIONED, ASK:

Have you heard anything about size criteria (also sometimes called ‘bedroom tax’)?

- What have you heard about this? - Where did you hear about it?

The aim of this section is to explore the participant’s level of knowledge and awareness of the reforms and how they feel their household will be affected, if at all Please note closely what participants do and do not know about the welfare reforms to establish any gaps in their knowledge

Take care to go through list and explore whether the changes will affect the participant’s household.


55


ISO 20252:2006.

© 2013 Ipsos MORI.

How useful was it? - Do you expect this change will

affect you? - What are your thoughts about

this change?

IF EXPECT TO BE AFFECTED BY THE BEDROOM TAX ASK:

Do you currently pay your rent yourself to your Housing Authority?

IF SO

- How? Have you been encouraged to do anything in particular, to ensure that your rent is paid? By who? What have you been encouraged to do? Direct Debit? Cash payments?

REPEAT THE ABOVE QUESTIONS FOR THE FOLLOWING REFORMS, IF NOT ALREADY MENTIONED:

- Council Tax Benefit - Benefit Cap - Direct Payments (of housing benefit

to social tenants rather than landlords)

- Change from Disability Living Allowance to Personal Independence Payment (PIP)

- Universal Credit

How, if at all, will your household be affected financially by the welfare reforms?

- By how much money every week or month?

If participant is unaware of reforms, move on without explaining. We are interested in the current circumstances and understanding.

Timing 3. Potential financial impacts of welfare reforms

Notes and Prompts

10 mins I would now like to move on to talk about your finances in more detail, if that is OK. You have already seen the Financial Diary that we sent you in advance of this interview. I would like to talk through this with you now. WORK THROUGH THE SHEET, RECORDING AS MUCH DETAIL AS POSSIBLE. TRY TO GET AS ACCURATE FIGURES AS POSSIBLE FOR INCOME (INCLUDING BENEFITS) CURRENTLY AND WHAT

In this section we are trying to determine how, if at all, the welfare reforms are going to impact on the participant’s financial situation. Try to determine the cumulative impact, if tenants are hit by a combination of reforms. Ascertain how high a priority paying rent is.

Try to determine if there is a cumulative impact; is the tenant


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THEY WILL RECEIVE FOLLOWING THE INTRODUCTION OF REFORMS IN APRIL 2013, IF THEY ARE AWARE OF REFORMS. IF THE PARTICIPANT IS NOT AWARE OF ANY FINANCIAL IMPACT FROM THE WELFARE CHANGES, COMPLETE FOR CURRENT INCOME COLUMN ONLY. May I ask if you have any outstanding debts, which will also be coming out? Any arrears (such as for rent or council tax), loans, credit cards, hire purchase agreements, catalogue purchases, doorstep lending? IF PARTICIPANT REPORTS BEING AFFECTED BY THE CHANGES, WORK WITH THE PARTICIPANT TO DETERMINE HOW MUCH THE PARTICIPANT IS LEFT WITH EACH WEEK CURRENTLY AND WHAT THEY WILL BE LEFT WITH AFTER THE REFORMS Looking at your outgoings, what are your priorities – e.g., the things you consider to be most important to pay for every week/month?

- Reasons? - What impact does paying interest

have on which things become your priority?

- Any pressure you feel to pay for certain things before others?

Overall, how are you feeling about your financial situation?

- How concerned are you, if at all, about your financial situation?

Do you feel confident that you will be able to manage when the changes come in?

- What measures, if any, are you planning to make when the changes come in?

Would you talk me through how you manage your money?

- Do you keep any records?

hit by a combination of reductions in support?

Try to gain a sense of how organised the participant is, regarding their finances

Listen out for where rent sits in list of priorities


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- How often do you review your finances?

Do you have a bank account?

- If not, reasons?

IF HAVE AN ACCOUNT

What kind of account do you have?

- Post Office Card Account? Credit Union? Basic, budgeting or current bank account?

Do you use your bank account?

- If not using, reasons?

How do you keep track of your finances?

- Do you check statements? Paper format or online?

Do you have access to the internet?

Where?

- Home? Work? Public facility such as library?

In what way do you have access?

- Computer/laptop? Mobile? Other device?

How, if at all, do you use the internet to manage your finances?

- Paying bills? Online banking? Price comparison sites?

Do you have any savings?

- How often do you save money? - What are you saving this money for?

What changes, if any, are you currently making or planning to make?

- What will you spend less money on? Why?

- How do you feel about this? - What impact, if any, will this have on

you? Your children (if relevant)? Any other household members?

- Do you expect to take any money out of your savings (if relevant)?

How do you think your priorities might change, it at all?

- Regarding what you feel is most important to pay for every week/month?

Try to gauge how priorities may or may not change and where rent sits in terms of the hierarchy of things that need to be paid for


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Timing 4. Wider effects of the welfare reforms Notes and Prompts

15 mins

Given the future changes to housing benefit, have you had any plans to look for somewhere else to live?

- Would you look for somewhere else to live if your housing benefit fell?

- Have you already considered looking for somewhere more affordable?

- What are your reasons? - Where would you move to? The

same HA? Private Rented Sector? Other?

- Were you offered any incentives to downsize by your Housing Association, such as a grant or other payments to cover costs?

- Would it be possible to find somewhere for less money?

Have you considered any other ways of coping with the changes to housing benefit?

SPONTANEOUS COMMENTS FIRST. IF NOT MENTIONED, PROBE:

- Have you considered changing what you spend money on? Do you think you might need to borrow money? Is so from whom/where?

- IF RELEVANT: Will you need to open a bank account?

- Will you seek advice? If so, who/where from? What will you seek advice on?

How likely are you to take a lodger?

- Why? Why not? If you could keep the money you got from a lodger, without it affecting your benefits, would that make you more likely to consider it? Reasons?

Would you look for (more) paid work to make up for any reduction in housing

In this section we aim to explore how the welfare reforms will impact on the tenant (having ascertained how, if at all, their financial situation will change in the previous section)

Listen out for any trade-offs the participant envisages making, such as between leisure activities and necessities Ensure understand which changes the participant has made, if any, and which the participant intends to make


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benefit? - Reasons - How easy of difficult - Barriers - Potential impact for childcare, if

relevant

Timing 5. Relationship and interaction with HA Notes and Prompts

10 mins

How often do you get in contact with your Housing Association (HA)?

- When do you come into contact with them?

- How do you contact them? - Which services do you use? Any

advice services (e.g., employment/work advice, household budgeting advice or advice regarding energy efficiency, dealing with mental health issues)? After school clubs for children?

- How helpful do you find them?

How, if at all, do you think your contact with your HA will change, as a result of the welfare reforms?

- What, if anything, do you think will change?

- What, if anything, do you think will need to change?

Given the reforms, what kind of support would you like to receive from your HA, if any?

GAIN SPONTANEOUS COMMENTS BEFORE PROBING ON:

- Provision of helpline? - Information online? - Face-to-face contact with a contact

at HA? - Advice about managing finances,

opening a bank account or advice about moving?

What do you feel should be the priorities of HAs, given the changes to housing benefit and welfare?

- Reasons? - Particular tenant types they should

focus on? - How do these priorities compare to

In this section we aim to explore how tenants interact with HAs, the services they use, the nature of the support they receive, the relationship they have with HAs and their expectations of HAs in light of the welfare reforms. Also aims to explore what support tenants would like to receive from their HA, along with what they feel their priorities should be.


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the current HA priorities?

Timings

6. Conclusion and final thoughts Notes and Prompts

5 mins

Thinking about everything we have discussed today

- What would you say are main ways

in which the welfare reform will impact on you?

- And what do you think your Housing Association can best do to support you given the changes?

Is there anything else you would like to add? Thank you very much for taking part in this important piece of research. The National Housing Federation (The NHF), who commissioned this research, is interested in hearing the stories of tenants like you. They would like to use such stories for campaign and media work. If they were interested in speaking with you, would you be happy to go ahead with this? There is no pressure to do so and it is entirely optional. NOTE WHETHER PARTICIPANT CONSENTS TO THIS AND THANK THEM Re-iterate that all responses will be treated and stored in the strictest confidence. Confirm the address to send the £20 incentive to.

Explain that Ipsos MORI may contact the tenant again at a later date, to ask if they would be willing to take part in a further interview concerning the same topic area. Would you be happy for us to contact you in the future as part of this research? It is continuing until April 2014, so it is possible that we may contact you to ask if you would like to take part in further research during that time. NOTE WHETHER PARTICIPANT CONSENTS TO THIS AND THANK THEM

impact of welfare reform on housing association tenants ... · 12-045846-01 nhf welfare reform...

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