The changing living standards of low income households and their ability to pay
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- Welfare reforms have negatively impacted low-income households, leaving the average working-age household £41.45 per week worse off. Rising costs of living and the benefits freeze have been major drivers. - National and local initiatives aim to help support vulnerable consumers, but data sharing and proactive outreach efforts could be expanded. Initiatives partnering local councils and utilities companies have shown success. - Policy in Practice's data analytics software allows identification of households most in need of support and eligible for assistance programs to increase their ability to pay bills. The software empowers advisors to provide holistic support.
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The changing living standards of low income households and their ability to pay
- 1. Policy in Practice Deven Ghelani The changing living standards of low income households and their ability to pay
- 2. Agenda • About Policy in Practice • The impact of welfare reforms on low income households • National and local initiatives to help support vulnerable consumers • Identifying and supporting vulnerable consumers www.policyinpractice.co.uk
- 4. We make the welfare system simple to understand, so that people can make the decisions that are right for them
- 5. About Policy in Practice Policy national impact impact Analytics local impact Software individual impact www.policyinpractice.co.uk
- 6. Working age households are hit hardest at £41.45 per week The main drivers are: • the benefits freeze, losing £33.54 per week on average • rising rents and living costs (2.4%) • combined impact of multiple reforms hitting the same family People are going to be worse off www.policyinpractice.co.uk
- 7. Universal Credit and other changes Budget changes to Universal Credit improve the situation • Ending 7-day wait • Two week HB run-on • Twelve month advance payment • 63% taper & Living Wage But losses are not fully mitigated through the National Living Wage, Personal Tax Allowance, or Discretionary Payments Utilities are a lower priority payment under Universal Credit www.policyinpractice.co.uk
- 8. www.policyinpractice.co.uk www.policyinpractice.co.uk National and local initiatives to support vulnerable households
- 9. The safeguarding tariff: Data sharing proposals between the Department for Work and Pensions (DWP) and licensed gas and electricity suppliers PIPs recommendations • Include local councils • Allow for proactive take-up campaigns • Offer holistic support when you speak with customers BEIS Consultation on data-matching www.policyinpractice.co.uk
- 10. Cambridge councils partnership with South Staffs water Connected to DHPs: £55k to 210 people Removed the income threshold. Great partnership Partner with local authorities www.policyinpractice.co.uk
- 11. • 36,443 low income families Proactively target support www.policyinpractice.co.uk
- 12. • 36,443 low income families • 217 families with children, with a disability who are in arrears Proactively target support www.policyinpractice.co.uk
- 13. • 36,443 low income families • 217 families with children, with a disability who are in arrears • Drilldown to get a single view or support, arrears and barriers to work Proactively target support www.policyinpractice.co.uk
- 14. • 36,443 low income families • 217 families with children, with a disability who are in arrears • Drilldown to get a single view or support, arrears and barriers to work • Link into a financial support tool Proactively target support www.policyinpractice.co.uk
- 15. We help people on the frontline • Access our calculator through GOV.UK • Link in your own regional support tariffs • Empower your advisors to offer holistic support • Link into the Single Financial Statement www.policyinpractice.co.uk
- 16. Supporting vulnerable households • Universal Credit is rolling out, and rolling out fast • The ‘real’ impact due to rising rents and benefit freeze is significant, impacting ability to pay • Local data allows identification of households most in need of support, and eligible • You can work proactively with councils today • Your own vulnerability teams can check eligibility and increase take-up of other support, making is more likely customers will be able to pay their bills www.policyinpractice.co.uk
- 17. Winner: Credit & Collections Technology Awards 2017, Affordability Assessment Solution Engage as early as possible in the collection process: • Before high fees and charges are incurred • It’s more cost effective to support people in poverty prior to enforcement action • Because more people will be can’t pays, ineffective enforcement action drains resources • Creditors will recover more if people feel supported by agents • Positions the enforcement agent as a partner for the local authority client and their residents • Ethically, it is the right thing to do Policy in Practice’s Benefit and Budgeting calculator helps Phoenix understand their customer’s financial circumstances and develop an achievable management plan www.policyinpractice.co.uk
- 18. Data analytics helps strategic resource planning Cambridge City Council has commissioned Policy in Practice to help model the migration of customers from housing benefit onto Universal Credit, and the implications for the council. 1. Natural migration onto Universal Credit 2. Managed migration onto Universal Credit 3. Interpreting the implications for the council Data analysis of the migration informs strategic resource planning of the department as well as understanding the impact on customers
- 19. Would you like to know how many Londoners are eligible for a Warm Home Discount? www.policyinpractice.co.uk
- 20. Questions for you, please come and find me Utility companies face a similar challenge to local authorities administering discretionary support … 1. How does the data matching scheme work for you now? 2. How do you currently target support and determine vulnerability? 3. Do your advisor teams provide holistic support? www.policyinpractice.co.uk
- 21. www.policyinpractice.co.uk Thank you Deven Ghelani deven@policyinpractice.co.uk 07863 560677 hello@policyinpractice.co.uk 0330 088 9242 www.policyinpractice.co.uk
Editor's Notes
- Identifying and supporting vulnerable households. And FIC. And UC. FIC says that vulnerability is a key issue that can be tackled through data. - pat them.on the back, you are providing data into CRAs / Some, letting them access mainstream credit. We are exploring how we do the same with benefits data. Fuel poverty / low income tariff / warm home discount. Who puts theirs hands up vs who needs it? Cambridge - Cambridge water / passport to DHP applicants. Show DHP targeting. Worked with utility companies on the past to design xyz, but want to coordinate and make sure support gets to those that need it most. You need SHBE data to identify and target. Where this isn't possible, v3! So advisors are prompted - struggle to spend.
- £48.10 per month under legacy. 25% or personal allowance (if in work) 15% if out of work, but shared with other attachments, now a lower priority to rent.
- Using Benefits data to identify households eligible for the safeguarding tariff. This is already happening – key points from the consultation response.
- Naomi and Cambridge water PIC