Welfare Reform Welfare Reform The biggest challenge to housingThe biggest challenge to housing

Brendan Sarsfield

Group Chief Executive

Family Mosaic

Family MosaicFamily Mosaic

23,000 Homes

1,000 New Homes per annum

Large Supported Housing Service

London & Essex focus

80% of new tenants on benefits

50% of all tenants on benefits

Housing PolicyHousing Policy

Higher Rents / Less Grant

Less Security

More Homes needed especially larger ones

Welfare PolicyWelfare Policy

Lower Cost

Personal Responsibility

Challenge Dependency Culture

Welfare ReformWelfare Reform

£26k Benefit Cap

Universal Credit

Non-dependent charges

Under-occupation penalties (but not for pensioners)

Moving people off Incapacity Benefits

Mirror, Signal, ManoeuvreMirror, Signal, Manoeuvre

Independent Research from Resident Perspective

Looked at 50 lettings in November 2010

Calculated Affordable Rent and affect on Resident & Family Mosaic

Also looked at 60% Market Rent

80% Weekly Market Rent80% Weekly Market Rent

One Bed= £163

Two Bed = £210

Three Bed = £256

Four Bed = £374

Average = £239

Current = £96

Mirror, Signal, ManoeuvreMirror, Signal, ManoeuvreResidents MessagesResidents Messages

Neither 60% or 80% market rent are affordable to most of our tenants

Can work outside London and in some low value areas in London

Creates a significant poverty trap and major disincentives to work

Mirror, Signal, ManoeuvreMirror, Signal, ManoeuvreFamily Mosaic Messages Family Mosaic Messages

Family Mosaic increases income

But more dependent on benefit income

Quickly uses up capacity to borrow

Mirror, Signal, ManoeuvreMirror, Signal, ManoeuvreGovernment MessagesGovernment Messages

Housing Benefit bill increases

Works against Welfare Reform goals

The Benefit Cap stops larger homes being provided

Where will homeless live in London?

Not sustainable

Family Mosaic Response Family Mosaic Response DevelopmentDevelopment

Retain focus on existing client groups

Still develop but smaller programme; and

Lower rents

Family Mosaic Response Family Mosaic Response ManagementManagement

Better data collection

More Front Line Staff

Publicity for Changes

Borough Liaison

Probationary Tenancies

Housing PolicyHousing Policy

Affordable Rent Model was response to cuts not a strategic move

Housing Policy evolving – Hand up not Hand out

Housing Organisations need to review social purpose

FAMILY MOSAICFAMILY MOSAIC

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