Housing Benefit and Under 25’s

In a speech later today, the Prime Minister will say that he is considering removing housing benefit from those under-25s.  This appears to be one of the most ill-thought through, headline grabbing policy announcements that I can recall.

There are some questions that demand answers:

• How can parents be obliged to take their adult children back into the home, and what happens to those young people where they can’t ‘go home’?
• What protection will there be for children and young people who have left their family home to avoid abuse and domestic violence?
• What happens in those cases where the parents have “done the right thing” by moving to smaller houses once their children have move out and there is now no spare room?
• What happens if there is no room in the parent’s home for other reasons, such as second families with children?

I have to ask why David Cameron is bringing this proposal forward now?  We are already witnessing the most profound changes to the benefit system in my lifetime.  If this is such a pressing issue, why was it not identified and enacted when all the other changes were introduced?

The BBC’s political correspondent, Vicki Young, has suggested that Mr Cameron’s speech will be seen as an attempt to reconnect with disgruntled Tory backbenchers.  I don’t know if that is true, but if there is even a hint of reality in her analysis, it ill becomes a Prime Minister to risk a huge rise in youth homelessness for internal party expediency.

This isn’t the pressing problem it is being made out to be. Those under 35 living in the private rented sector are entitled to just £77 housing benefit per week. Just 6% of those under 25 living in the private rented sector currently receive housing benefit.

92% of new claims for housing benefit are from those in work.  They are already “doing the right thing” but this measure will hit young people already in jobs.

The consequence of this proposal will be an increase in overcrowding, homelessness, begging, crime, and prostitution.

Government plans to limit the level of donations will harm charities, big and small

Today’s Daily Mail reports that 800 charities are “furious” that a measure in the Chancellor’s budget “will lose them millions as wealthy donors are branded tax dodgers”. The Chancellor announced plans to limit tax relief on donations from donors giving more than £50,000 to charitable causes in a year.

800 charities? Make that 801.

BHT doesn’t have many large donors but our most generous benefactors will be caught by this new measure.  This individual supports many local, national and international charities.

Downing Street said many are giving money to bogus charities, some of them abroad, to claim income tax relief and wipe out their liabilities. However, the sledgehammer being used to crack this nut should not be necessary if legislation introduced last year is effective. The Charity Commission dismisses the Government’s claim that there is a widespread problem with the wealthy funnelling cash to bogus charities. It says that it has never had any contact with the Treasury over this issue.

If there is an issue with tax avoidance by people using bogus charities that ultimately benefit themselves, then there are measures available to deal with this issue. Rather than introducing a measure that will harm charities, the government would be better advised to strengthen the powers of the Charity Commission and resource that regulator adequately to investigate such bogus charities.

BHT Intern Programme providing our clients with real work experience and a gateway to jobs

My daughter is coming to the end of her gap year before she starts at university in September. During this time she has packed in a great deal: voluntary work, internships, and even standing in the local elections. (Fortunately she wasn’t elected so her university studies are not going to be disrupted!).

I am not a pushy parent with sharp elbows. Everything she achieved this year has been through her own efforts. Of course she has had some advantages that others don’t have, knowing local members of parliament, having become familiarity with institutions of power, and so on.

As a proud father, I was reflecting on what she has achieved this year when the thought crossed my mind, “how do BHT’s clients get such opportunities and openings?”.

I am only too aware of the difficulties facing former homeless people, when, having addressed issues surrounding their homelessness, they attempt to move on with their lives and secure training or employment. Lack of a reference, work place experience, self confidence and skills are just some of the obstacles facing them. These obstacles are compounded by current unemployment levels, with many better qualified/more experienced people out of work and looking for jobs.

So we came up with an idea for a BHT Intern Programme that will give former homeless men and women the opportunity to address these issues and provides a spring board from which they can move on to further training and employment. We are developing this programme using feedback from client consultation groups, and we have drawn on experience gained through an earlier project involving work placements for our clients.

Under the programme, Interns will be given a six month placement in one of BHT’s services, with a dedicated mentor from the existing staff team. Interns will receive varied on-the-job training, focussing on building confidence and self esteem, explaining workplace processes, computer and internet training and skills specific to the placement. They will also be supported to undertake further training within BHT and at local colleges.

We believe that the Intern Programme, which we intend to deliver in Eastbourne and Hastings as well as in Brighton and Hove, will be a ‘win:win:win’ for clients, communities within which we work, and BHT itself.

The Civil Society, Charities and Intelligent Commissioning

With the arrival of the Civil Society, coupled with the most severe austerity measures from government in living memory, we are facing challenging yet interesting times. Charities are far from immune, and decisions taken now will be critical in our long-term survival, individually and as a sector.

Charities contribute massively to the local economy. Take Brighton Housing Trust, for example. We are one of the largest employers locally, employing 249 permanent members of staff and paying at least 50 others each month. Directly we are worth £10 million to the local economy. Indirectly our £10 million turnover is worth much more. We buy locally, we contract locally, our staff live and spend locally. Using the concept of a “local multiplier”, where a proportion of all expenditure is assumed to be spent locally, BHT’s ongoing contribution to the Brighton and Hove economy is worth at least £25 million.

But that is just the economic contribution. Nick Hurd, the Cabinet Office minister responsible for the Civil Society, speaking at a conference organised by the investment bank JP Morgan, said that the social value of a company’s work should be measured as well as the financial value. This is where charities ‘score’ very impressively. Again, using BHT as an example, we prevent around 2,500 households becoming homeless each year. We help those with addictions to alcohol and drugs become abstinent. We provide supported housing for vulnerable men and women and those with severe and enduring mental health problems. The social impact often is not seen, but the consequences would be evident every day if we weren’t here.

The future for charities is uncertain. I heard one prediction that half of all charities in Brighton with paid staff will either not be in existence in 3 years time or will be operating purely with volunteers. Others will flourish as they take advantage of opportunities provided through the Civil Society. But therein lies another challenge. Charities have traditionally had a ‘campaigning’ role, highlighting needs, and identifying and filling gaps not catered for by the public and private sectors. Cathy Come Home led to the creation of Shelter and its campaigning led to the Homeless Persons Act. The challenge for charities is to ensure we do not state the obvious or from the sidelines say “we told you so”. We have a role in providing a voice for those who may not otherwise be heard.

The term ‘Intelligent Commissioning’ will be heard more and more often. It is an approach to the planning and commissioning of services that is grounded in fact and in the experience of communities. Intelligent Commissioning gives me hope that constructive decisions will be made that will meet the needs of residents and boost the economy of the City.

Politicians debating the Big Society at BHT’s Question Time

What an amazing event.  Today, as part of Supported Housing Month, BHT hosted a special edition of Question Time with David Dimbleby in the Chair.  Well, actually, no.  It wasn’t Mr Dimbleby but yours truly chairing a panel made up of leading Brighton politicians – Cllr Maria Caulfield (the Conservative Cabinet Member for Housing), Cllr Christine Simpson (Labour’s spokesperson on Housing), and Cllr Bill Randall (the Convenor of the Green Group on the City Council).

Question Time at BHT with Cllr Maria Caulfield, Cllr Christine Simpson, Andy Winter and Cllr Bill Randall

The questions came from clients of various supported housing schemes across the City, with the majority from those of Support4Housing, a partnership between BHT and Southdown HA, which provides support to several hundred men and women in their own homes.  Our clients can be tenants of private  landlords, social (housing association or council) tenants, and owner occupiers. 

The questions this afternoon ranged from the complexity of the benefit system, the Big Society, housing benefit changes, the lack of affordable housing, choice in housing options, and whether the very rich should be taxed to pay for supported housing.  

Each panel member was asked to talk about good examples of supported housing they have visited.  Their answers included the Brighton YMCA supported housng scheme in Portslade, hight support schemes for older residents, and BHT’s Phase 1 and Recovery Projects.

We have had politicians visiting different projects, not least during the general election campaign, but this was our first attempt to put politicians in the firing line, answering questions that are important to our clients.  And it was a great success.  All three politicians took the occasion very seriously and were well received by the audience.  Feedback from clients was positive, so come the City Council elections in May 2011, we will arrange further meetings for politicians to meet their electorate.

Initial reaction to the Comprehensive Spending Review

Like many others, I have awaited George Osborne’s statement on the Comprehensive Spending Review with a great deal of trepidation.  This is my reaction to it, just two hours after the Chancellor sat down and before we have had chance to assess some of the detail.

The announcement that adult social care and the Personalisation agenda are to be protected is particularly welcomed, although I am disappointed that there are to be further cuts of, on average, £100 million each year for the next four years in the Supporting People budget .  This equates to an annual cut of 6.25%.  This is disappointing given that it comes on top of cuts of £200 million over the 6 years since 2004/05 and there is no fat left on the bone.  Supporting People services are aimed directly at the elderly, the frail and the poorest in the country.  However, I had feared that the cuts to the Supporting People programme were going to be greater, and it was good that the Chancellor specifically recognised this programme in his speech.  On the ground the reduction in funding may be greater given that Supporting People will no longer be ring-fenced, and councils are having their overall funding cut by 7.1%.

There could well be opportunities for organisations such as BHT as new ways of working are expected.  Local decisions on local policies and local delivery will allow charities and local councils to work together to meet the needs of communities.  Charities like BHT can bring innovation and good practice and we can help to change and improve the communities within which we work.

We welcome the recognition that house building is needed – 150,000 new homes over the next 4 years.  The government is looking seriously at how this can be funded through increased rents on new lettings.  However, we are concerned that social housing rents for new tenants will be 80% of the average market rent.  This will mean that these homes will not be affordable for the unemployed and low paid households with three or more children when a £26,000 cap on benefits payable to individual households is applied. 

The question has to be asked whether such households will be able to afford rents in high cost areas such as Brighton and Hove.  With the changes to housing benefit and benefit entitlement, I can foresee households with three or more children having to move out of Brighton, where they may have been born and brought up, to areas where they may have no connection, no family and no support, and where additional pressure will be put on local services such as schools and health services.  We support the calls that areas like Brighton and Hove should be exempt from these changes.

We are concerned about what cuts will be made to Legal Aid.  Details of these are to follow.  There will be consultation on how to reduce the budget by £350 million.  We hope that any cuts will not undermine our ability to provide advice and legal representation from our advice centres in Brighton, Eastbourne and Hastings.

Other details will emerge over the next few days.  For example, we have just heard that the restriction in housing benefit  for those under 25 to the cost of an average room in a shared house is to be extended to those under 35.

Please comment on your reaction to the CSR and how you think it will impact on our clients, on BHT itself, and on the communities within which we work.

The hopes and fears for the Comprehensive Spending Review

This week sees the announcement of the Comprehensive Spending Review, and I must admit that I await the detail with some trepidation.  BHT has long been aware that we, as a country, would be facing difficult times.  Indeed, at BHT we began preparing for this moment two years ago.  We examined our cost base, and made some very painful decisions regarding the salaries we pay.  We have made strenuous efforts to increase our income, and have made some bold steps in the direction of creating profitable social enterprises.

During this time, and in the months and years ahead, it is the ongoing support we receive from individuals, church and community groups that make the difference for many of our services.  As a result of your generosity and support, we are possibly better placed than many other charities to cope with even quite dramatic cuts.  We are determined to do what we can to safeguard the services we provide to vulnerable men and women. 

I take comfort from the pledge made by the Prime Minister in Downing Street shortly after the Coalition Government was formed.  David Cameron said: “I want to make sure that my government always looks after the elderly, the frail, the poorest in our country. We must take everyone through with us on some of the difficult decisions we have ahead.  Above all it will be a government that is built on some clear values. Values of freedom, values of fairness, and values of responsibility.”

BHT doesn’t provide any specific services to the elderly, but we do a lot with and for the frail and the poorest.  And the values of fairness and of responsibility run through our veins.

So, what do I hope and fear about Wednesday’s announcements?  I have three key issues I will be listening out for.

The first is housing benefit.  The changes in entitlement to housing benefit already announced remains a major cause for concern, but I hope that high rent areas like Brighton and Hove will receive some extra support to prevent the otherwise inevitable rise in homelessness.

Secondly, I hope that the value of fairness will ensure legal aid will still be there to prevent homelessness, tackle debt, and sort out welfare benefit problems.  This is specialist work and the social return on investment is enormous.  If these specialist services provided by the CAB, BHT and others are cut, we will see the consequences for many years to come.

Finally, I hope to see that the elderly, the frail and the poorest in our country will still be able to receive support through the very excellent services funded through the Supporting People programme.  This budget has already been significantly reduced in recent years.  There is little, if any more, to give.  I feel so strongly that the most vulnerable men and women in our society must continue to be supported to remain in their homes, to move to greater independence, and are supported into training, education and employment.

By Wednesday evening we will no longer have to speculate.

We mustn’t remove the ladder for the young unemployed

News that 1.4 million adults have never had a job is shocking.  Some 600,000 16 to 24 year olds (that’s 1 in 12) have never worked despite not being in education or training.

The Chancellor, George Osborne, has told MPs that the existing system of benefits was “wasting the live of millions of people”.  The benefits system may well be keeping some people in welfare dependency, but I think the problem is more complex, and the solution equally so.

Welfare benefits are almost certainly going to be cut following the Comprehensive Spending Review.  Any cuts must ensure that the most vulnerable are not left destitute, and David Cameron has given a assurance that they will be protected.

I hope that the Chancellor will invest in job training, work experience and jobs otherwise those figures of 1.4 million will certainly increase, and those young people who yet to be employed may never be. 

If he, or any of his Ministers or Members of Parlament, would like to see a scheme for young people that prepares young people for employment and work, they should visit BHT’s Finding Futures project in Hastings. Often those joining the project are not yet on the ladder for personal development and enhancemnt; many don’t even know that the ladder exists.

Young people need hope that there hopes and drerams are achievable.  I hope that George Osborne will remember this.

2 great stories about bus drivers: revenge against a ‘Jobs-worth’ and a gesture showing a little effort goes a long way

I heard a story yesterday evening, absolutely true, about an 86 year old man who tried to board a bus in Shoreham at 9.29am, one minute before he was eligible to use his pensioners pass, but the driver refused to let him board.  When the pensioner asked if could wait one minute, the driver refused.  The pensioner then said he would get the bus at the next stop by which time it would be 9.30am.  The ‘Jobs-worth’ driver said he would never make it and pulled away.

The pensioner, an amazingly fit 86 year old who jogs every day, then ran to the next stop and got there before the bus that had been caught at a set of traffic lights.  The driver was furious but could do nothing but let the pensioner on. 

There is nothing that annoys me more (actually there are a few things) than a Jobs-worth, who sticks to the narrow, letter of the law or job description or regulation when nothing would be harmed by showing a bit more compassion, humanity, understanding, flexibility.

Not all pensioners are as agile and fit as this one (I’ll ‘out’ him – he’s my dad).  I know it gave him a massive boost to his confidence.  I am also heartened by something my daughter witnessed on a bus at Churchill Square when an elderly lady boarded the wrong bus.  The driver took her by the hand, across the road, to the correct stop and made sure someone would guide her to the correct bus.

I’m not sure if this is what David Cameron means by the Big Society, but these two incidents compare mean-spirited and narrow-mindedness as opposed to someone with a big heart.  I know which example helps make society a better and happier place.