Planning for Direct Payments UC Review

Planning for Direct Payments & UC

Review Today l Some of our findings from the Direct Payment Demonstration Project l The outcome of the independent evaluation and practical changes being undertaken by DCH in preparation for UC l The practical steps DCH are taking to prepare for UC

Direct Payment Management Information – after 18 months l Across the different areas, levels of payments by tenants varied from 91% to 99% - an average rent collection rate of 95%. l Key issue Ø The vast majority of tenants paid their rent Ø Rent arrears accumulated initially – stabilised thereafter Ø “Part payment” of rent rather than “non – payment” more common. Ø The exercise has demonstrated the need for revisions to traditional working and communication practices l In the case of DCH Ø Cumulative rent collection – 96. 25% Ø 81% of rental paid following month (£ 188, 000)

Rent Arrears - National

Trends and Patterns l Period leading up to and immediately following initial introduction of direct payments – critical to success. l Stability after – 8/9 months l “Part payment” – rather than “Non payment” most common reason for arrears l Household characteristics & Payment methods – a factor in payment

Communications l 19% of DCH tenants have significant literacy and numeracy difficulties l Traditional and established methods of communication were simply shown not to work l Tenant support has been hugely resource intensive and it will be a challenge to replicated in long term.

Knowing our Customers l Tenant profiling Ø Demographics, household composition / issues and vulnerability Ø Financial, digital inclusion and capability. Ø Support requirements and Ø Communication preferences.

Advice and Assistance l Much more early intervention - “Triage Arrangements” – at commencement of tenancies and in the event of payment failure. l Landlords need to be able to identify rent non – payment and act promptly on requests for aid or assistance. l Developing combinations of in – house and specialist external partnerships / expertise

Inter Agency Working & Data Sharing l Tenants tend not to recognise referral or signposting to external agencies as support resulting in high drop out rates. We need to rebadge “support” l Landlords, JC+ and support agencies – need clarity of role and function and the establishment of new relationships l Data – sharing will be key to future success – “but we don’t need to know everything”

Preparing to meet the challenges of Direct Payments and Welfare Reform …………… Key issues highlighted in evaluation reports

Key lessons from DPDP l Start preparing for the introduction of UC as early as possible. l It is difficult to forecast who will manage on Direct Payments and who will not. “There are no neat categories of good or bad payers” l The importance of knowing your tenants. l Making support available

Key lessons from DPDP l The period leading up to and first few rent payments following direct payment are absolutely critical. l Delivering Direct Payments is hugely resource intensive and additional resources need to be allocated to arrears collection identification and recovery. l Review the suitability of IT / rent accounting systems.

Key lessons from DPDP l Landlords need to be better at assessing the benefits and impacts of interventions l Cultural and organisational changes are required l There is some evidence from the DPDP that it changed customer behaviour.

What we’re doing in Edinburgh l Council, RSL’s Jobcentre+ joint planning group. l Sharing and updating information consistently and promptly. Developing a communication strategy l Joint training and shadowing l Establish a common template for tenancy validation. l e – learning modules for all staff.

And at DCH l Establishing clear responsibilities for dealing with UC claimants. l Refining support, triage and debt identification / recovery processes. l Advising and educating, tenants groups and other stakeholders. l Taking the fear out of the change

I’m happy to answer any questions graeme. russell@dunedincanmore. org. uk