Revised Child Poverty Strategy for Wales

Revised Child Poverty Strategy for Wales

Community Housing Cymru Group response

About Us

The Community Housing Cymru Group (CHC Group) is the representative body for housing associations and community mutuals in Wales, which are all not-for profit organisations. Our members provide over 158,000 homes and related housing services across Wales. In 2013/14, our members directly employed 8,400 people and spent almost £2bn (directly and indirectly) in the economy, with 81% of this spend retained in Wales. Our members work closely with local government, third sector organisations and the Welsh Government to provide a range of services in communities across Wales.

Our objectives are to:

• Be the leading voice of the social housing sector.
• Promote the social housing sector in Wales.
• Promote the relief of financial hardship through the sector's provision of low cost social housing.
• Provide services, education, training, information, advice and support to members.
• Encourage and facilitate the provision, construction, improvement and management of low cost social housingby housing associations in Wales.

In 2010, CHC formed a group structure with Care & Repair Cymru and CREW Regeneration Wales in order to jointly champion not-for-profit housing, care and regeneration.

Housing associations do not just provide bricks and mortar. All of our members provide care and/or support in addition to their landlord role.

Welsh housing associations undertake huge amounts of preventative work via their own anti-poverty and financial inclusion and education programmes and initiatives to try to tackle this and break the cycle for future generations.

Housing associations work in partnership with local authorities, credit unions, advice agencies and the Your Benefits are Changing campaign to develop well-rounded, accessible services and address the needs of the whole household, rather than just the needs of the individual. This support is particularly important in light of impending direct payment of rent to the claimant, under Universal Credit and we envisage that child poverty will only increase, due to an increase in in-work poverty.

CHC works strategically with other partners on the Third Sector Anti-Poverty Taskforce to better coordinate projects and maximise on resources.

General Points

Child poverty in Wales must be addressed within the context of other social and economic issues, such as welfare reform, severe advice service cuts, high levels of debt and low levels of digital inclusion.

Anecdotal evidence from the sector suggests that contrary to the media image of the undeserving, unemployed benefit scrounger, there is a significant increase in in-work poverty; according to a Cuts Watch Cymru report, Wales on the Edge (Feb 2012), the proportion of those in low-paid work in Wales is higher than the UK average – and more than 1 in 10 households live in poverty.

The current trend for benefit sanctions and the claimant commitment for means tested benefits, will mean that many people will be forced to take up low-paid work and struggle with associated childcare costs. Evidence from the OECD shows that 26.6% of average family income is spent oncare for children which is significantly higher than in other countries.[1]

• In three years to 2011/12, 690,000 people (23%) were living in low-income households in Wales.
• 29% of people in ‘part-working’ families had low household incomes, but only 7% of those in ‘full-working’ families. For some, working more hours is part of the answer to in-work poverty.
• 23% of employees earning less than the UK ‘Living Wage’ had low household incomes, but only 3% of those earning more. As well as working more hours, higher pay is part of the answer to in-work poverty.[2]
• We are extremely concerned about the impact that the transition to UC and potential reduced income will have on the ability of people to sustain their tenancies.

In response to welfare reforms and the increase in in-work poverty, CHC developed the Your Benefits are Changing (YBAC) campaign, an awareness raising campaign which targets those who are on low incomes and are most vulnerable to financial fluctuations.

YBAC is only part of the offer. We are also working with members and other partners to develop the Family Employment Initiative, which targets the very hardest to reach and moves them into work. Awareness of benefiot changes is crucial if we are to tackle in-work poverty and move people into sustainable employment.

1. Do you agree with our proposal to maintain our ambition to eradicate child poverty by 2020?

We believe that the eradication of child poverty in Wales by 2020 is ambitious given thatsevere welfare reforms are pushing increased numbers of families into poverty. Since the social security budget is not devolved, there is little autonomy for Wales and no opportunity to try to tailor the diminished budget to Welsh need. The 1% increase in Child Benefit instead of an increase in line with inflation and the impact of the bedroom tax are only some of the reforms causing severe hardship for families who are already struggling on low incomes.

Additionally, massive Legal Aid cuts by the UK Government have resulted in an ever-diminishing budget for welfare benefit case work, meaning many families are facing appeals and tribunals alone and are often unaware of their legal rights or even their benefit entitlement in the first instance.

The Your Benefits are Changing campaign raises awareness and informs people about their entitlement and how to take further action. A large proportion of YBAC’s work focusses on advising people how to manage on a reduced budget, how to reverse benefit sanctions and how to access food banks. YBAC aims to provide information and signpost people into relevant existing services to prevent poverty.

1. Do you agree with our proposal to continue with our existing three strategic objectives for tackling child poverty?

We support the proposal to continue to reduce the number of families living in workless households and our members continue to work with Welsh Government on initiatives such as the Lift programme to this end.

The housing association sector makes a significant contribution to the reduction of numbers of families living in workless households. The sector is involved in facilitating training courses, providing employment support and work opportunities for tenants and the wider community. In 2013, housing associations across Wales spent an estimated total of approximately £5.7 million on training for staff and communities.

We support the proposal to continue to improve the skills of parents/carers and young people living in low income households, so that they can secure well-paid employment. Through employment and skills programmes, the sector strives to improve longer term economic and education outcomes for the poorest children by breaking the poverty cycle.

CHC is currently developing a skills and employment model that complements the ambitions, potential and strengths of the housing association sector. We have joined forces with the Coalfield Regeneration Trust and their Family Employment Initiative project and believe that, by bringing the two projects together, we provide a complete package and pathway for tenants and the wider community, from initial engagement through to sustainable job opportunities, an approach which has been welcomed by the Welsh European Funding Office.

The FEI will increase the number of people receiving training in Wales through supporting additional and more targeted interventions to break down the barriers that prevent those groups facing particular disadvantages in the workforce (including BME people, disabled people, older workers and part-time working women) to access services.

It will complement, enhance and extend the range of provision available through mainstream welfare to work provision. The project will engage those furthest away from the labour market and least able to access the activities and work-related interventions delivered under such programmes. Crucially, the project will explore individual barriers to work, such as transportation and childcare issues.

Our members also have a wealth of experience in increasing co-investment and investment in skills. Using the i2i Can Do Toolkit, housing associations utilise social clauses in their procurement contracts to achieve community benefits, such as jobs and training and promoting equality and diversity, at nil cost to the client.

Additionally, the sector endeavours to remove inequalities in health care by working with the NHS to support their prudent healthcare principles. Housing associations are already playing a vital role in working with communities to change health behaviours, support the management of chronic conditions at home and support people to negate the need for NHS treatment.

1. Are the policies and programmes underpinning our strategic objectives the right ones?

We support policies and programmes underpinning the strategic objectives; however, the effectiveness of anti-poverty programmes is dependent upon awareness levels of partners and stakeholders and also service users.

The appointment of a dedicated partnership manager to oversee the collaboration between Communities First, Families First and Flying Start programmes in each area has been welcomed and has allayed initial concerns around duplication of services to some degree. However, we have concerns that progress will diminish at the end of these fixed-term posts. We therefore urge Welsh Government to consider the continuation of funding for these posts.

Feedback from our members suggests that service users themselves are still unaware of the support available to them from Flying Start and Families First unless they are already engaged with Communities First services; more must be done to remedy this.

Furthermore, we have received feedback from schools which suggests that the number of Welsh medium nursery places available under Communities First does not match the number of primary school places in many areas across Wales. Consideration must be given to the Welsh language to ensure that such provision is available for both Welsh and English speaking families.

Many of our members work in partnership with Welsh Government programmes, for example, after much planning and partnership working between Charter Housing and Caerphilly County Borough Council, Flying Start is now up and running on and around the Fairview Estate with fully integrated service based at the newly refurbished Fairview House. From here a team of trained Flying Start childcare staff and Health Visitors operate a dedicated service in the community.

Many housing associations tackle poverty through many of their own initiatives. For example, the previously mentioned Your Benefits are Changing campaign, a CHC and housing association initiative, comprising an awareness-raising campaign and a phoneline which offers support and information. YBAC runs a Wales-wide communications campaign to coincide with the roll out of Universal Credit and via our phone line and outreach we can provide geographical consistency. YBAC targets the working poor by working with community-based partners, with a focus on rural communities. Last year the Your Benefits are Changing Budget Bus attended 14 community days held across Wales and 3 public events; Pride Cymru, Pontypool Carnival and Cardiff Hayes.

40% of those advised had children (a total of over 3,000 children). These households without exception were facing problems with welfare changes, debt and access to affordable credit.

In addition, the change to the Dwr Cymru affordability tariff (one of our partners) will mean many of the current 36,000 family households benefiting from the scheme will lose out as the scheme becomes dependent on income levels, they will see an annual bill double in cost compared to the current billing.

As Universal Credit is being rolled out, families are being included within the eligible claimant group. It is crucial that we prepare these households now, if we are to avoid a cycle of severe poverty which begins during the 6 week nil income waiting period.

In addition to frontline services, our members are able to deliver a range of Community Benefits through their contracts with suppliers, which they evidence through using the Value Wales Community Benefits Measurement Toolkit.

By working creatively, the sector can use opportunities to regenerate communities and create long term solutions which promote utilising social clauses, including targeted recruitment and training, as a core element of the commissioning and procurement process for WHQS related contracts. This ensures that there is a real possibility to develop skills and job opportunities for local people, which in turn can lead to improved outcomes for all involved in the WHQS process.

In 2014, of the completed Community Benefits Measurement Tools returned to Welsh Government, 52% came from the housing sector.

These outcomes play huge a role in tackling rising poverty and improving social mobility in communities by adding community benefit clauses to supplier contracts. For example, recruiting local people from disadvantaged groups boosts the local economy, addresses equality and diversity, and benefits contractors, who get a skilled and committed workforce.

Our members deliver the following types of Community Benefits through their contracts with suppliers:

• Workforce initiatives Workforce initiatives cover - targeted Recruitment &Training (TR&T) – including Retention and Training for the existing workforce. In 2013/2014, for every one full time person employed in the sector, one and a half other jobs are supported within the Welsh economy.
• Supply chain initiatives - targeting supply chain opportunities to smaller and more local suppliers. In 2013/2014, 81% of Welsh housing association spend was retained in Wales.
• Community initiatives - cash and in kind contributions from the supplier to local community projects
• Educational initiatives Work experience placements for school or college students, site visits or classroom work supported by the contractor
• Environmental initiatives - use of renewable energy, reduction in waste, recycling of materials and reduction in travel
• Equality and diversity -considering equality issues in procurement.

4. Are you content with the collaborative approach we set out for tackling child poverty in Wales?

We agree with the collaborative approach as laid out in the strategy. Our members work closely with local authorities, advice agencies, tenants, the wider community and other partners to ensure the best possible outcomes for households and communities. Many of our members lead on financial inclusion within their local authority, for example, Monmouthshire Housing Association have lead on financial inclusion within the local authority area since 2008.

However, feedback from members suggest that in many Local Authority areas, third sector partners are unaware of the work being undertaken by their local authority dedicated Anti-Poverty Champion and there is a general lack of partnership building with third sector services. We would like to see a more joined up and proactive approach taken to the promotion of this type of initiatives.

“OK Kids”, a Charter Housing Association initiative, is an example of a housing association leading the way in on collaboration, by delivering a positive parenting project within the Newport area. They have worked with over 21 organisations, including schools, the local authority and health visitors to help 128 families. 50% of the children demonstrated an increased willingness to engage and attend education and other opportunities and 90% of parents demonstrated an increase in self-esteem and communication skills.

5. Do you agree with the proposals we have set out under next steps?

We are in general agreement with the next steps outlined in the strategy, however, as we have already asserted, we feel that more emphasis must be focussed on addressing the needs of the whole household, particularly on the matter of unemployment.

We agree that EU funding should be used to target youth unemployment and training, however, in order to lift children out of poverty it is imperative that the needs of the whole household are addressed (as with the aforementioned Family Employment Initiative). Funding must, therefore, also target older age groups and those who have been out of work for long periods of time, if we are to truly tackle the root of child poverty in Wales.

We support the review of the formula used to distribute resources to health boards by Welsh Government to ensure allocation reflects need.

The supporting people programme in Wales means that housing associations are able to provide preventative services to a range of potentially vulnerable groups including family support.

However, with a cut of £10Million included in Welsh Government’s recent draft budget there is a very real danger that the flow of people both seeking and requiring NHS treatment will increase dramatically. It is worth highlighting that not only does the programme provide supported housing and floating support services but, as part of the package of support and a one to one service produce: