The Government is considering plans to trigger a surge in
employment among social renters in a move that could save the
taxpayer up to £3 billion.
The proposal, put forward by the Centre for Social Justice (CSJ),
would see housing associations incentivised to help their
residents off benefits and into work.
Households living in social housing are four times more likely to
be workless than those living in private housing, the CSJ report
has found. Often this is due to a lack of skills training
suitably tailored to the needs of the individuals and suitable
work placements.
Housing associations, with their established personal
relationships with tenants, are best placed to support
individuals facing barriers to work, the report argues.
Housing associations stand to gain significantly from an upturn
in employed tenants. In areas where housing associations help
their tenants back into work, rent arrears fall by up to 75 per
cent.
Despite the prospect of receiving more reliable rent payments,
only 40 per cent of housing associations offer skills training
and organise work placements. The CSJ would like to see this rise
much higher.
The potential saving to the taxpayer of moving jobseekers in
social housing into work is estimated at £3 billion.
The plan is the first of a set of CSJ proposals presented to the
Government to tackle a range of housing problems suffered by
society’s most disadvantaged.
Andy Cook, chief executive of the CSJ, commented: “This scheme is
a win for everyone. The housing associations get their rents paid
on time. The taxpayer saves thousands of pounds – millions of
pounds in the long term. And most importantly for us, people are
helped out of poverty and back into work.
“The fact that so many social renters are out of work is a great
social injustice. Children in workless households are five times
more likely to be living in poverty than children in working
families. They are almost twice as likely as children in working
families to fail at every stage of their education.
“At the moment housing associations are incentivised to boost
supply, which is absolutely right, but they have the potential to
be the catalysts for change too.
“The vast majority of those currently unemployed want to take
control of their own lives. They want the sense of purpose and
responsibility and the workplace community a job provides.
“People in work are mentally and physically healthier and well as
wealthier. It’s the Government’s duty to build on their strong
record for employment by supporting more of the most deprived
back into work.”
A spokesperson for the DWP commented: “Across our national
network of jobcentres work is taking place with Housing
Associations to support people into employment.
“We welcome the encouragement of this initiative, and will
continue to work with housing partners to help people overcome
the employment barriers they face so they get the same
opportunity as others to fulfil their potential.”
Many housing associations already offer skills training, work
clubs and debt advice, the CSJ report found. They also arrange
apprenticeships and work placements for tenants with local
companies, including retailers, construction and catering firms.
In a case cited by the report, Inspired To Achieve, part of
Yarlington Housing Group based in Somerset, has helped 800 people
back into work in three years, saving the taxpayer almost £10,000
(£9,800) per welfare claimant as well as giving a £4 million
boost to the local economy.
The Centre for Social Justice would like to see more housing
associations follow their lead. The think tank says boosting
employment should be added to housing associations’ list of
objectives.
The CSJ also urges housing associations to collaborate better
with job centres. At the moment, under a third (27 per cent)
coordinate with local job centre staff. The think tank would also
like to see them bid for government contracts tendered as part of
the Work and Health Programme.
