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HOMELESSNESS
AN ACTION PLAN FOR PREVENTION AND EFFECTIVE RESPONSE
REPORT FROM THE HOMELESSNESS TASK FORCE TO SCOTTISH MINISTERS
BENEFITS
Benefits policy issues
- The benefits system has an important part to play in helping people through
the crisis of homelessness. Benefit matters are reserved and therefore outwith
the scope of the Scottish Parliament and Executive. We have however had useful
discussions with representatives of the DWP. We welcome the UK Government’s
efforts to improve the tax and benefits system overall and to increase benefits
take-up rates. We also welcome the Government’s recognition that reform
of certain benefits — particularly housing benefit - is
necessary. We are encouraged by the Government’s drive to deliver more
responsive and personalised services through the creation of the new DWP,
Jobcentre Plus and new social policy roles for the Inland Revenue. However,
we are concerned about the effects of various aspects of the benefits system
on homeless people in Scotland, particularly young people. There is a general
need for more information about the operation of the benefits system in Scotland
and for research into the impact of benefits policy on homeless people in
Scotland. We recommend that the Scottish Executive should pursue this with
DWP. We also recommend that the following specific points should be pursued
with the UK Government:-
(i) Young people We have noted the explanations provided by
the DWP for the different (and lower) benefit rates for young people. We also
appreciate that current policy emphasises getting people into work as the
main route out of poverty, and that increasing benefit rates for those out
of work does not necessarily sit easily with that policy objective. Nevertheless,
we propose that DWP should be asked to review the adequacy of welfare benefits
payable to 16-24 year olds generally and to young homeless people specifically
(who are often the most vulnerable) with a view to examining whether their
particular needs are adequately met.
(ii) Social Fund We have found that the Social Fund does not always
meet the needs of homeless people, either because their needs are outside
the scope of the fund, or because they are caught by priority setting within
a cash-limited budget. We have three main concerns.
First, we believe that the circumstances in which community care grants
can be made are not sufficiently understood or appreciated. We propose that
DWP should be asked to pursue ways of making agencies involved in helping
homeless people more aware of the full scope of community care grant provision.
Secondly, we are concerned that current procedures for community care grants
mean that people can only apply for a grant once they have a home address.
This can prevent people moving in to accommodation at the start date of
a new tenancy. This in turn can delay the start of housing benefit and lead
to a build up of rent arrears, with a consequent threat of eviction. We
propose that DWP should be asked to consider making an adjustment to the
regulations to permit applications for community care grants to be made
prior to the offer of a tenancy. This would help to ensure that funds are
available to eligible applicants at the point their new tenancy commences.
Thirdly, we are concerned that delays in making severe hardship payments —
particularly in the case of young people — result in people being
forced to take out crisis loans to live on. Every effort should be made
to eliminate delays in making severe hardship payments.
We propose that DWP should be asked to review whether the overall provision
through the Social Fund is helping vulnerable and homeless people in the
best way. This review should consider making homeless people, and people
resettling from temporary into permanent accommodation, a priority for funding.
(iii) Housing benefit — rent limitations in the private rented
sector We understand that the arrangements for limiting the amount of
rent payable are designed to prevent the benefits system from funding unreasonably
high rents or over-large accommodation. We have also noted that the single
room rent definition has recently been broadened to include shared accommodation
with a shared living room. This is welcome but may not be enough. We therefore
recommend that the Scottish Executive should play a full part in monitoring
the operation of the broader definition and should provide evidence to DWP
of any problems that persist, both in the single room rent arrangements and
in the wider measures in place to restrict rents.
(iv) Non-dependant deductions We have heard evidence that the deduction
applied to benefit claimants with non-dependants can increase the risk of
homelessness. If the non-dependant’s income is sufficient, the amount
deducted can be higher than the rent due. Three problems arise. First, where
young people already have an uneasy relationship with other family members,
the application of a financial penalty in the form of a non-dependant deduction
can result in the young person being forced to leave the family home. Secondly,
non-dependant deductions often result in housing benefit administration problems.
This can lead to arrears and potential eviction. Thirdly, within the verification
framework, where a claimant cannot immediately provide details of non-dependants’
income, the relevant standard says that the highest deduction should be made.
We propose that DWP should be asked to review non-dependant deductions in
the light of these comments.
Housing benefit administration
-
A joint study by the Accounts Commission and Scottish Homes ‘Managing
Rent Arrears — getting the balance right’ (June 2000) indicated
that local authority performance on processing housing benefit claims had
deteriorated since local government reorganisation in the mid 1990s and
that the performance of different local authorities in administering housing
benefit varied widely. We are also concerned that the administration of
housing benefit by Finance Departments of local authorities, without adequate
connection to Housing and Social Work Departments, may have led to a service
which is insensitive to the needs of homeless people and which runs counter
to best housing management practice in helping to sustain tenancies. It
is clear that the difficulties surrounding housing benefit administration
are creating significant problems in Scotland for tenants and their landlords.
Delays in housing benefit payments are causing hardship, anxiety, the threat
of eviction for claimants and, in worst cases, are actually creating homelessness.
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We recognise that improving housing benefit administration is a key priority
for DWP and that reforms are under consideration. We welcome the continuing
improvements which are being made. We also welcome the development of the
Performance Framework, a set of national standards for the secure and effective
delivery of housing benefit, and the expected launch of the standards package
during 2002. We commend the joint DWP/local authority Help Team initiative
currently supporting East Ayrshire in improving its housing benefit services.
However, we consider it imperative that action should be taken to improve
further the administration and delivery of housing benefit, to reinforce
these measures. We believe that it is crucial that housing benefit is recognised
as an important part of wider anti-poverty strategies, and that DWP promotes
and facilitates effective administration by local authorities.
-
We therefore recommend that local authorities’ homelessness strategies
should incorporate standards for dealing with housing benefit claims and
targets for improvements. Local authorities’ performance in delivering
these standards and targets should be monitored by Communities Scotland,
in collaboration with Audit Scotland, DWP and the Benefits Fraud Inspectorate.
When housing stock is transferred from a local authority to a registered
social landlord, care should be taken to ensure that this does not have
any adverse effect on housing benefit administration.
Administration of other benefits
-
The creation of the new organisation Jobcentre Plus provides an opportunity
to improve the administration and delivery of social security benefits.
There is a need for more pro-active benefits outreach — preferably
delivered in partnership with voluntary sector homelessness agencies —
and for clear service priorities for at risk/homeless groups. This requires
to be addressed in the design of the new service.
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