Welfare Reform – Update June 2014 Jo Robinson – Revenues & Benefits Manager

What We Will Cover

• Recap on Welfare Reform changes and the impact on our residents • Additional help available • Universal Credit • Direct Payments • On-Line Claim Form • Community Engagement

Recap – What Were the Main Changes?

• Local Council Tax Support (LCTS) – All working age claimants to pay 20% of their Council Tax Liability from April 2013 – 6,047 working age claimants were affected by LCTS • Benefit Cap – Applies to all working age claimants who’s income from Benefits is above £500 per week for a couple or lone parent and £350 for a single person – 56 working age claimants were affected by the Benefit Cap

• Spare Room Subsidy – Applies to all working age claimants who rent from the Social Sector – Housing Benefit is reduced by 14% if over occupying by 1 room and 25% if over occupying by 2 or more rooms – 1,025 working age claimants were affected by the Spare Room Subsidy • Personal Independence Payments – All claimants between the age of 16 and 64 receiving Disability Living Allowance will have to reapply for Personal Independence Payments – Dealt with by DWP and is an on-going project until 2016 – More information at www.dwp.gov.uk/pip

The Impact of Welfare Reform Changes What we Thought:-

• • • • • • • • Less income for residents Inability to pay other bills Increase in demand for debt advice More rent and Council Tax for the council to collect Greater demand on homelessness and housing options Increased applications for Discretionary Housing Payments Likely to increase demand for smaller properties – may be difficult to meet Higher demand for social housing

The Impact of Welfare Reform Changes The Reality:-

• The highest demand for advice from BRANCAB is Benefits and Tax Credits advice (35%) followed by Debt advice (29%)

Statistics from BRANCAB for May 2014

The Impact of Welfare Reform Changes The Reality:-

• • • • • • Amount of Local Authority Rent Arrears has increased Amount of Council Tax collected for 2013/14 was 97.05% a reduction of 0.47% compared to 2012/13 Definite increase in demand for homeslessness since welfare reform changes were introduced – total of 119 applications processed from April 13 to Dec 13 Welfare reform changes have caused tenants to move due to affordability – 1998 people have registered on Homehunt since it was launched in June 2013 www.homehunt.co.uk

Allocations policy reviewed – new Band 1 Increase in Discretionary Housing Payment applications – received 286 applications in 2012/13, received 572 applications in 2013/14 Feedback from group on your reality of Welfare Reform?

Additional Help Available

• Discretionary Housing Payment (DHP) & Hardship Payment – Specific set of money set aside to help people who are struggling to pay their rent and/or Council Tax – Must be receiving Housing Benefit and/or Local Council Tax Support to be able to make a claim – Any DHP/Hardship Payment awarded is done so to support claimant whilst they look to change their circumstances i.e. we will pay the shortfall in housing benefit whilst claimant looks for smaller accommodation – ALL income and ALL outgoings are taken into account when deciding the application – Can apply by contacting the Benefits Team on 024 7637 6514 or visiting http://www.nuneatonandbedworth.gov.uk/downloads/download/43/housing _benefits – Please encourage your tenants to apply if they are struggling to meet their shortfall

Additional Help Available

• Rent In Advance – Same budget as DHP’s so limited – Usually for those who are homeless – Criteria: • Has not been on JSA for longer than 26 weeks (if so can apply to DWP) • Has found a property and a landlord • Has a National Insurance Number and contact details for themselves and the landlord • As with DHP’s must be entitled to Housing Benefit – Apply via Housing Options Team – Benefits Team make decision and consider applications as a priority

Additional Help Available

• Warwickshire Local Welfare Scheme (WLWS) – Administered by Warwickshire County Council (WCC) – Replaces the previous DWP Social Fund – WCC design their own scheme, split into two parts: • Immediate Need – Vouchers Issued for Foodbanks/supermarkets – Hot meal can be provided for those with a disability or mobility issue – Signposting to hot meal providers/soup kitchens for those who are homeless – Vouchers issued for heating (usually gas/electric) – Heaters provided in an emergency – Essential items such as oven, washing machine provided via Argos • Planned Need – Working with partners to provide signposting advice – Funding available for specific projects

Immediate Need: 0800 408 1448

Universal Credit

• Delays! Original Timetable was:-

• Now….

April 2014

Progressive roll out – expansion to Shotton taking new claims. Roll out of Claimant Commitment to all Jobcentres complete

Universal Credit Roll Out June 2014

Expansion of full UC to the rest of North West England

From Autumn 2014

Expansion of live service to take claims from families and once tested will expand to cover more of the North West England

February 2014

Progressive roll out – expansion to Bath & Harrogate taking new claims

Summer 2014

UC made available to new claims from couples in number of Jobcentres already delivering the full UC

2016 – 2017

Majority of the remaining legacy caseload moving to Universal Credit

Autumn 2014

Roll out of digital jobcentres will be complete

2016

UC will be fully available in each part of Britain during 2016, having closed down new claims to legacy benefits it replaced. All families claiming UC will receive childcare support up to 85% of actual costs

• Universal Credit Issues

– The Work & Pensions Select Committee has warned that it remains uncertain how Government will manage the housing costs element of UC without increased risks of Fraud and Error – Worrying uncertainty about the new UC IT system – Between April 2013 and 31 st March 2014 a total of 6,550 people have started on UC – only 1 in 10 have Housing Costs – Gender breakdown shows that the majority are males with a male to female ratio around 7:3 – Majority of new claims are for unemployed people aged under 25

Direct Payment Project

• • • • • • Full report can be found at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/ 265257/direct-payment-demo-figures-dec-2013.pdf

Total of 6 projects across the country Levels of payments by tenants on the project range from 89% to 97% Total level of rent charged is £27,943,948 with a 94% collection rate 4,719 tenants are paid direct, 1,647 were having payments direct but these have been ‘switched back’ to their landlord, 107 tenants have had direct payments restored Based on the projects, three levels of protection – Decisions about whether tenants should receive direct payments will be made in collaboration with social landlords – If arrears build up to the equivalent of 1 months rent the decision to make direct payments will be reviewed.

– If arrears build up to the equivalent of 2 months rent the claimant will have housing payments switched to the landlord • •

Future and What We Are Doing to Help

• On-Line Claim Form for Housing Benefit and/or Local Council Tax Support will be launched shortly. Can be completed using a PC, laptop or smart phone. Will automatically populate our back office systems so hoping to speed up the claiming process • ‘Act Now’ – Leaflets produced giving an overview of the changes and where to go for help and information • Community Engagement – Recently been out in the community at 4 events providing information on the benefit changes and promoting DHP’s/Hardship Fund. Evaluation of this will help to inform future community engagement events • Digital Inclusion – considering this as a Countywide group

Questions ?