Walsall's biggest social landlord eyes bigger credit union take-up

Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Local Government

Walsall-based social landlord whg says it’s working with its local credit union to support tenants hit by the Government’s welfare reforms.

The 19,000-home landlord is urging tenants to sign up to direct debits for rental payments ahead of Universal Credit which will see tenants paid their housing benefit directly.

Around 15% of its tenants are signed up to conventional direct debits with banks, but it’s working to ensure tenants sign up to the local credit union Walsave, which offers jam jar accounts - providing separate ‘pots’ for savings and benefits.

According to the landlord, not only does it safeguard the housing benefit to the landlord, but it helps tenants to save.

Rob Hughes, head of housing at whg, said: “We are looking to talk to customers about establishing accounts with credit unions. In terms of benefits to customers they can set up a direct debit that offers less risk than a traditional bank as they don’t, for example, charge you if the money is not in the account.”

One of the criticisms of mainstream banks is that they don’t promote or offer basic bank accounts to customers.

However, Hughes says credit unions will “99 times out of 100 give you one.”

Mark Causer, welfare reform specialist at whg, said the group would look to introduce a direct debit preference in future tenancy agreements.

He said: “We’re also looking to establish financial mentors to support tenants at the start of their new tenancy.

“We’ve given a lot of support to the credit union when it was strarting and that’s grown over a number of years.”

The group is also looking to support its 3,300 tenants affected by the under-occupation penalties, which come in next April.

Mr Causer said that around two thirds of those are under-occupying by one bedroom.

He estimates the group faces a shortfall of £2.5m a year as a result of the under-occupation rules.

Through the West Midlands Making Best Use of Stock partnership – a collaboration between seven of the largest West Midlands local authorities and nine of the largest social housing providers – it is aiming to support tenants looking to downsize.