WELCOME How to mitigate the impact of Universal Credit on rent collection The webinar will begin at 10am Organised by:Sponsored by:

WELCOMEHow to mitigate the impact of Universal Credit on rent collectionThe webinar will begin at 10am

Organised by: Sponsored by:

Organised by: Sponsored by:Opening remarks from the ChairEmma Maier, Editor, Inside Housing

Organised by: Sponsored by:Sue Ramsden, Policy Leader (Welfare Reform), National Housing Federation

Sue Ramsden

Policy Leader

March 2015

Universal Credit

Federation’s work

Timetable

Nov 2014 UC extends to families in Warrington and Wirral (new claims).

End of 2014 UC live in all JCPs in NW and Hammersmith, Bath, Rugby, Harrogate, Inverness and Shotton.

Jan 2015 UC extends to families in all existing live sites.Tranche 1 – 26th Jan – Some areas in NW and Hammersmith, Bath, Rugby, Harrogate, Inverness and Shotton.Tranche 2 – 2nd March – remaining areas in NW.

Feb 2015 – March 2016

National roll out to all JCPs – new claims from single people without children.Tranche 1 (Feb – Apr 2015) 150 JCPs Tranche 2 (May – Jul 2015) 160 JCPs Tranche 3 (Sept – Nov 2015) 180 JCPsTranche 4 (Dec 2015 – Mar 2016) 110 JCPs

May 2016 – Dec 2017

National roll out to all new claims and claimants with change of circumstances

Jan 2018 – Dec 2019

Managed transfer of legacy benefit claims including housing benefit, JSA and IS

Universal Credit

Culture change

Single payment

Monthly payment

Direct to tenant

Online

Supporting work

Conditions and

sanctions

Assessment period

Housing element

Liable rent and eligible

service charges

MinusAny under-occupation deduction

Minus

any Housing Cost

Contribution (HCC) from

non-dependants

For social sector tenants the housing element will be:

Alternative payment arrangements: process

Need for APA/ budgeting support identified in the Job Centre

And/or landlord fills out APA form and send to:

Freepost Plus RTEU-LESU-EXTJ Universal Credit Post Handling Site B Wolverhampton WV99 1AJ

Same form can be used to apply for third party deductions.

• Use escalation process where needed

• Understand role of service centre and JCP work coaches

• Use information from data sharing

• What support is available locally?

• What information does tenant have to verify claim?

Third party deductions

• Applied for on APA form

• Rent arrears 10-20% of standard allowance

• No more than 3 deductions in total

• No more than 40% deducted in total

Priority list

Rent arrears 10%

Rent arrears 10%

Data sharing – name, address and date of claim from 16th Feb

Preparing for UC

• What do you need to know? Now and at different stages of roll out?

• Can you record/retrieve information needed from your management system?

• Sharing data – how, when and with whom?

Knowing your tenants

• Who needs training and in what? • Does your organisation have the right skills (digital inclusion,

financial inclusion, debt management)?• How do you make better use of staff resources? • Do you need to review staff structures? Do teams work together?

Can people access the right information and share information?

Working with Staff

Preparing for UC (2)

• What is your message? • Are your communications consistent internally and with JCP,

LA etc? General v targeted messaging?• Automated v driven by staff?

Communications

• How can you make sure that UC claim covers correct amount of rent/eligible service charge?

• How easy is it for tenants to pay rent? How will tenants and systems cope with monthly payments in a weekly rent regime?

• Do you need to adapt your IT or finance system?• Do you need to review your arrears procedure?

Rent collection

Preparing for UC (3)

• Who are your stakeholders?• How do you build good relationships?• Do you have means to share information and learning?• What about support to get people into work?

Building relationships with stakeholders

Resources

Learning from North West• Video: Housing association experiences• Reports: Universal Credit One Year In,

Early learning from the North West pathfinders• Tips: Preparing for Universal Credit

DWP (Universal Credit and rented housing) • Landlord support pack• Frequently asked questions• Service charge guidance• Rent arrears form

Contact

Sue Ramsden

National Housing Federation

020 7067 1080

[email protected]

Further information: www.housing.org.uk/welfare

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Organised by: Sponsored by:Vivian Davies, Director of Rent and Collection, Family Mosaic

25,000 Homes

London£240m Income

June 2012To

December 2013

Southwark

500 Tenants 1,500 Southwark

Demonstration Project

HB Direct

we can

Key Learnings

• Staff skills

• Transactions Costs

• Resource?– Technology/Data

• Preparation – Direct payment

• Did not know our customers

we can

Staff Skills

Customer Focus

Negotiating Skills

Call R

ecor

ding

Recruitm

ent

NB

Training

we can

Transaction Costs

Technology

Expected Payments

Focus on pace, low level

interventions

Texts – in advance as well as chasing

we can

Big Issue / Experian

Rent paid =

positive rating

Risk profiling

Rental Exchange

Preparation & Risk Management

Timetable to 2019

so

4 years

HB Direct

in line with DWP UC rollout

timetable

Preparation

Re-engage with

our customer

Organised by: Sponsored by:Graham Darby, Head of Customer Service North East, Home Group

Universal Credit – Mitigating the ImpactGraham Darby, Head of Customer Service North East

Introduction Home Group, a social enterprise and a charity with a turnover of over £325m, is one of the UK’s largest providers of high quality housing and supported housing services and products.

Home Group's role is to provide general needs housing, supported housing services, and home ownership options targeted towards helping some of society’s most vulnerable people take control of their own lives:

Home Group houses over 120,000 people a year, managing 55,000 homes in over 200 local authority areas in England, Scotland and Wales.

Each year this includes working with almost 30,000 vulnerable people through 500+ supported housing, justice and health services

Income Protection: Our Key Themes

Protect our Customers and Clients and we Protect Our Income

Predict Prevent

Manage

Recover

Predict

• A theme that provides focus for the business on our ability to predict financial vulnerability and therefore target support and intervention:

• Profiling of customer segmentation to incorporate better targeting of:• Direct Debit campaigns• Identification of customers already in financial distress• Early warning indicators of customers in danger of increased rent

arrears• Identification and prediction of where we’re likely to see increased

former and current tenant arrears.• Changes to allocations processes:

• I&E assessments• Align size criteria with under-occupancy charge criteria

Predict Prevent

Manage

Recover

Prevent

• A theme that provides the ability to intervene at the earliest possible stage to avoid arrears and ensure we offer best ways to pay on time:

• Collections Academy – core behavioural change programme• Paperless DD• Customer Service Partner roles – income maximisation• Manage Payments• Step Change debt advice partnership• Campaign to target colleagues and customers understanding

Predict Prevent

Manage

Recover

Manage

• A theme that provides the ability to ensure our arrears process is ready for UC

• Arrears process streamlining• Remove wasteful or repetitive processes

• Prioritisation modelling of arrears activity (80:20)• Reduce case stagnation• Increase accountability

• Call to Collect• Outbound dials – automation• Customer call back through immediate response• Text• Increased call volume to CSC• Reduces FTE demand vs traditional model

Predict Prevent

Manage

Recover

Recover

• Provides the ability to claw back and recover debts if the customer moves on:• Improved former tenant arrears processes – 2015• Switchback/Clawback processes – now “Rent

Arrears” processes

Predict Prevent

Manage

Recover

Key Points

• Fail to prepare, prepare to fail!• Collections Academy• Customer, Client and Colleague Campaign• Roll Out Support Pack for colleagues • Income Maximisation roles• Partnership with StepChange Debt Charity• Managing Your Money Packs including Budgeting & Bank Account

Information• Paperless Any day Direct Debit • Customer and Client Profiling• Call to Collect – outbound dialler and texts to reminder of payment due• Review of existing arrears process and reporting• Commercially caring approach

Organised by: Sponsored by:QUESTIONS &ANSWERS

Organised by: Sponsored by:Closing remarks from the ChairEmma Maier, Editor, Inside Housing

Organised by: Sponsored by:THANK YOUThe webinar is now closedA recording of the webinar and slides will be available to download from the IH website shortly