SFHA Adds Voice to COSLA Concerns on Welfare Reform

The Scottish Federation of Housing Associations (SFHA) has added its voice to comments made today (Wednesday 9th November) by COSLA, (Convention of Scottish Local Authorities) warning that the UK Government's proposed welfare reforms could cost councils £50m (1).

The SFHA has been warning of the risks to housing associations, co-operatives and tenants of the Housing Benefit changes for the past year, through our
Housing Benefits campaign.

The Federation shares many of COSLA's concerns about the damage the proposed Welfare Reform Bill will inflict.

SFHA Policy & Strategy Manager David Ogilvie said:

"COSLA are absolutely right to highlight the potentially disastrous financial impact of the proposed changes to Housing Benefit, on tenants and social landlords alike, and we share many of their concerns.

"Independent research, commissioned this year by the SFHA, showed that one in five tenants in Scotland is set to lose money as a result of the reforms (2). There will also be a knock-on effect on the income of housing associations and co-operatives, who manage almost half of Scotland's affordable housing.

"We especially share COSLA's worry that ending the option for tenants to have their Housing Benefit paid directly to their landlords will harm the ability of tenants on low incomes to budget, increase rent arrears, and threaten the financial stability of social landlords.

"Currently 96% of tenants have their Housing Benefit paid directly to their landlord, so it seems odd that a pro-consumer choice government has determined that this section of society should be denied their consumer rights."

David Ogilvie concluded:

"We call on the UK Government to make some key changes to this Bill, which will not affect the Government's intention to reform the welfare system, but which will make the new Universal Credit much fairer and more workable than what's currently on the table."

The SFHA is recommending a number of changes before the Bill becomes law.

• Our opposition to the under-occupation penalty. This will penalise tenants who live in a property judged to be too big - even if there is no suitable alternative.

• Our call for tenants to keep the right to choose to have their Housing Benefit paid directly to the landlord - this helps tenants to budget and prevents them getting into arrears.

• Our opposition to any break in the link between the housing costs subsidy and actual rents - in other words, the subsidy should be linked to fluctuations in rents.

• Our concerns about the operation of the overall benefits cap in relation to housing costs.

• Our concern about the new provision (introduced at Commons Report Stage) regarding deduction of Housing Benefit overpayments from earnings.

ends

For further information, contact Claire Munro on t: 0141 567 6224 m: 07771926778 or e: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Visit our website at www.sfha.co.uk

NOTES:

1) COSLA: Councils 'could lose £50m benefits'
http://breakingnews.heraldscotland.com/breaking-news/?mode=article&site=hs&id=N0541591320799429681A

2) SFHA Welfare Reform Impact Assessment Report July 2011 http://www.sfha.co.uk/component/option,com_docman/Itemid,37/gid,1345/task,doc_download/

3) The SFHA was established in 1975 and has around 170 members providing affordable housing and wider community services in Scotland, as well as a further 200 commercial members. The SFHA is owned by its membership and exists to support the work of housing associations and co-operatives in Scotland by providing services, advice and good practice guidance.

4) The SFHA is the voice of the principal builders and managers of new affordable housing for rent in Scotland. Housing Associations own and manage around 40% of the country's affordable rented housing stock, over a quarter of a million homes across Scotland.

5) Housing associations and co-operatives are not-for-profit bodies regulated by the Scottish Housing Regulator.

 

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