Making money go further
The challenges faced by social housing tenants in the UK are multifaceted. Amid continued government cuts to welfare, households across the country have been affected by the cap to benefits introduced in November 2016, the ‘bedroom tax’ – a cut in housing benefit where a household is deemed to have a spare bedroom – and inconsistent employment terms, to name but a few issues.
Despite these financial pressures, research by Clarion Housing Group, the country’s biggest provider of social housing, found that residents – while still very concerned about money – are managing their finances well. Fewer people said they run out of money before the end of the month, compared with the group’s study the previous year.
Almost half ( 47%) of the 2,000 residents surveyed are worried about money, with no statistically significant differences between those who are working and those who are not. Respondents with children living at home are more likely to worry about their finances ( 55%) than those without ( 43%), while those with a long-standing health issue or disability are more likely to be concerned ( 52%) than those without ( 43%).
The proportion of residents who usually have money left over at the end of the month has decreased, from 27% in 2016 to 25% in 2017, while the number of people who only have enough left for the essentials has increased from 25% to 31%. Despite this, the number of people who tend to run out of money before the end of the week or month has declined, from 23% to 19%, and fewer residents are unable to afford some luxuries as well as essentials ( 18% in 2016; 15% in 2017 ). This suggests people are becoming adept at managing their money in often challenging circumstances.
Kathy Ellis, research and customer insight manager at Clarion Housing Group, says: “Given the lack of movement on employment rates among Clarion residents, and the increasingly constrained benefit landscape, this would suggest residents are budgeting carefully and are managing to do more with less.”
There has been no increase in the number of residents turning to quick-cash loans or cash converters, remaining at 5% in 2016 and 2017.
While it is the case that households are getting by on less money, they are, however, especially vulnerable to any fluctuation in income or to unexpected events – a washing machine breaking down, for instance. Despite the 5% reduction in the number of people who said they have gone without food to save money, this situation still applies for 14% of residents.
Nonetheless, the research found that the majority of respondents feel in control of what happens in their lives ( 83%). This sense of control, particularly over finances, is shown by the finding that more than a third ( 38%) have switched energy provider, with 19% stating they have done so in the past year. This figure compares well with national, quarterly domestic energy switching statistics from the Department for Business, Energy and Industrial Strategy, which show 16% of UK households switched electricity provider – and 15% switched gas supplier – in 2016. It highlights that low-income households are taking action to manage their bills – despite preconceptions that social housing tenants, particularly those on benefits, are passive when it comes to financial awareness.
“In social housing, we’ve historically been quite paternalistic towards our residents,” says Ellis, who explains that the focus has now shifted from doing lots to educate residents, towards helping them to increase their income.
“We need to get residents better-paid jobs and access to training, and make sure they are getting the benefits they are entitled to,” she adds. “The findings from the research have shifted the focus of our community investment programme and the key messaging from our arrears team.”
For example, the company’s customer services team wanted to increase the number of residents paying their rent by direct debit (DD). The business case for DD payments made sense, and follow-up research explored the reasons why regular payers were not making the switch. It found that residents were budgeting on a daily basis, and preferred to pay their rent using small, frequent payments, rather than one large monthly one.
Ellis adds: “If people are not paying their rent, let’s not assume it’s because they just don’t want to – let’s assume that maybe they need support. It’s [about] shifting the way the business approaches this customer group.”

We hope you enjoyed this article.
Research Live is published by MRS.
The Market Research Society (MRS) exists to promote and protect the research sector, showcasing how research delivers impact for businesses and government.
Members of MRS enjoy many benefits including tailoured policy guidance, discounts on training and conferences, and access to member-only content.
For example, there's an archive of winning case studies from over a decade of MRS Awards.
Find out more about the benefits of joining MRS here.
0 Comments