Transcript (PPT, Unknown) - Huntingdonshire Matters

Welfare Reforms
An overview of the benefits
affected and potential impact
Setting the Scene
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Benefits Cap – September 2013
Restrictions to Tax Credits
Housing Benefit restrictions – on going
Changes to sickness benefits
Disability Living Allowance – Personal
Independence Payments
• Localisation – Council Tax Help – April 2013
• Localisation – Social Fund – April 2013
• Universal Credit – starts 2013/2014
Private Sector rent restriction
• Local Housing Allowance (LHA) is used to
set the amount of rent used for Housing
Benefit
• Levels set for different sizes of property by
location
• Rules set the size of the property allowed
for each household depending on size
Changes to LHA
• LHA rates are set at 30% of average rents
charged rather than 50%
• Maximum 4 bedroom rate regardless of
family size
• Shared accommodation rate increased for
single people from 25 to 35 years of age
• LHA rates will be increased each April
based on inflation (not location/market
forces)
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Amount
Amount of
of Rent
Rent
Rent charges
Average Eligible Rent
220
200
180
160
140
Shared
1 Room
120
100
2 Rooms
3 Rooms
80
60
4 Rooms
Month
Households where homelessness
prevented
450
400
350
300
250
Number of households helped
to successfully prevent their
homelessness
200
150
100
50
0
2005/ 06
2006/ 07
2007/ 08
2008/ 09
2009/ 10
2010/ 11
2011/ 12
Households presenting as homeless
compared to statutory acceptances
400
350
300
Number of households presenting as
homeless
250
200
Number of households accepted as
statutorily homeless
150
100
50
2011/ 12
2010/ 11
2009/ 10
2008/ 09
2007/ 08
2006/ 07
2005/ 06
2004/ 05
2003/ 04
2002/ 03
2001/ 02
2000/ 01
1999/ 2000
0
Social Housing Size Restrictions
• People in housing association properties
have their rent treated as eligible for
benefit in full
• From April 2013 for working age
claimants size related criteria will apply
• That is people under the qualifying
pension age for women
• Approximately 1000 housing association
tenants living in Huntingdonshire will be
affected
Who needs a bedroom?
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A couple
A person who is aged 16 or over
Two children (under 16) of the same sex
Two children who are under 10
Any other child (not a foster child or one
whose main home is elsewhere)
• A carer or group of carers who provide
overnight care to a disabled person
Social Housing Size Restrictions
• People who ‘under occupy’ could lose
benefit
• Reduction will be 14% for one room, 25%
for more than one room on the rent figure
used to work out benefit entitlement
• These rules will not affect people in
‘exempt’ supported accommodation
• No 4 bedroom maximum rate
• No shared accommodation rate
Who will be affected?
• Couples whose children have left
home
• Divorced or separated families
• Foster carers
• Families who have a child who is
looked after by LA
• All others with a spare bedroom
Social Housing Size Restrictions
• HDC has given a list of households
affected to each housing association
• HDC and the housing associations have
written to people affected
• It is important that people think about how
they are going to deal with this change
and talk to their landlord and the HB Team
What does the Government
suggest?
• Move to more appropriate accommodation
• Take in a boarder or lodger
• Ask non dependant family members to
contribute more
• Start work or increase hours of work
• Apply for a Discretionary Housing
Payment
Discretionary Housing Payments
• ‘Top up’ where Housing Benefit does not
meet full housing costs
• Administered at HDC by the Benefits
Team
• Discretionary – no entitlement
• Increased DHP budget for 2013/14 (Up
from £56k in 2012/13 to £170k in 2013/14)
Benefit Cap
• Postponed from April to September 2013
• Out of work benefits to be capped so that people
out of work should not have more income than
people in work
• Cap will be £500 per week for couples/families
• And £350 per week for single people
• Benefit received above that level will be
removed from Housing Benefit
• The cap does not apply if someone in the
household gets Disability Living Allowance or
Working Tax Credit
Tax Credit Changes
• Cuts were made to Tax Credits in April
2012
• Most couples with children now need to
work at least 24 hours per week
(previously 16) to get Working Tax Credit
• Families used to get some Child Tax
Credit until taxable income was over
£40,000
Sickness Benefits
• The new sickness benefit, Employment and
Support Allowance was introduced in 2008
• People on Incapacity Benefit, Severe
Disablement Allowance & Income Support as
sick are being reassessed for the new benefit
• If accepted as ‘sick’ will transfer onto ESA
• If not accepted (after challenge), they may have
to claim Jobseekers Allowance – look for work
• Transfer runs until April 2014
Employment and Support Allowance
• The test is the ‘Work Capability
Assessment’
• Points based system for deciding
‘sickness’
• Many people have a medical assessment
• Carried out by ATOS healthcare
• Lots of people have been told they are fit
for work
• Large increase in appeals
Disability Living Allowance
• From 2013 Disability Living Allowance will
be phased out for working age adults
• To be replaced by a new benefit –
Personal Independence Payment
• The intention is to reduce the budget for
disability benefits by 20%
• Applies to 16 – 64 year olds
• Medical examination required
Localisation of Council Tax Support
• The national Council Tax Benefit scheme is
being abolished from April 2013
• District councils must devise their own scheme
within certain parameters:
– Funding cut by about 10%
– Pensioners must not be affected by any
change
– Must consider the impact on vulnerable
people
– Can look to make the savings from elsewhere
Localisation of Council Tax Support
• Main principles of scheme at HDC:
– Most working age people will have their
Council Tax Support based on 80% of their
Council Tax liability
– Families with children under 5 – 85%
– Severely disabled people and families with
disabled children – 100%
• Just under 5000 working age people
currently claim help towards their Council
Tax in Huntingdonshire
Impact of Council Tax Support
Localisation of Social Fund
• National Social Fund has been
administered by the DWP
• Community Care Grants and Crisis Loans
to go
• To be replaced by local authority schemes
– county councils
• Reduced funding from Government
• Not ring fenced
• Councils will announce schemes soon
Universal Credit
• Replaces seven means tested benefits
• Income Support, income based JSA and income
based ESA
• Child Tax Credit and Working Tax Credit
• Housing Benefit
• Housing costs in Income Support/ESA/JSA
Universal Credit
• Expected to be phased in between 2013
and 2017
• Major change in benefits law
• Will rely on large IT systems – linked to
Income Tax records
• Claims will be ‘digital by default’
• Housing Benefit will gradually transfer
away from HDC to Department for Work
and Pensions from 2014