Transcript Welfare Reform Bill 2011

Council for the Homeless NI
Welfare Reform
Information Session
Council for the Homeless NI
Today's Session
• Rationale for Reform
• Welfare Reform Agenda
• Welfare Reform Bill
• Welfare Reform Regulations
- Housing Benefit
Council for the Homeless NI
Today's Session- cont’d
• Wider Changes
• Timetable for Reform
• Mitigating actions
Council for the Homeless NI
Governments Rationale for Reform
Making Work Pay
• Consider current system to have failed
• Overly complicated
• Too expensive
• Does not encourage people into employment
• Open to fraud
Council for the Homeless NI
Agenda for Reform
• Simplified, Streamlined Welfare System
• Reduce Bill for Welfare Benefits by 20%
• Encourage and incentivise people to work
– Ensure those not working , no better off than working
households
– Break the cycle of Welfare Dependency
Increased Sanctions attached to all elements of Welfare
Reform
Council for the Homeless NI
Welfare Reform Bill
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Benefits being abolished
• Income support
• Income based jobseeker’s allowance
• Income related employment and support allowance
• Housing benefit
• Child tax credit
• Working tax credit
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Universal Credit
• Introduced October 2013
• One benefit payment to be paid in or out of work
• Payment to one member in a household
• New work related activity requirements
• Stronger sanctions
• Real time IT system
• Payments may change to monthly in arrears
Council for the Homeless NI
Personal Independence Payment
• Replaces disability living allowance
• 2 components: mobility and daily living with 2 rates for
each component
• Assessment by way of medical examination
• Initially only for working age claimants
• Entitlement to PIP part of gateway for carers allowance
• Plans to introduce a habitual residence test instead of
ordinary residence test (DLA)
Council for the Homeless NI
Regulations
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Housing Benefit
2011
• LHA – capping, change to 30th percentile
• Ending of excess payment award
• Increase in rate of non-dependant deductions
These applied to new claims from April 2011. Changes
were delayed for existing claimants for 9 months after
the 1st anniversary date of their claim after April 2011.
Change started from January 2012
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2012
• Age range for Shared Accommodation Rate (SAR)
extended to 35
• Capping of LHA for existing claimants
• LHA at 30 percentile for existing claimants
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2013
April
• Reduction in HB award for under-occupation in social
rented sector
• Overall cap on benefits received
• Increase in LHA rate limited by rate of Consumer Price
Index
October
• Introduction of Universal Credit
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2014-2017
• Phased transfer of existing HB caseload to Universal
Credit
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Supported Housing HB Reform
• Grouping of different ‘types’ of supported housing with different
payment rates : flat rate/geographical rate
• Identifying types of additional activities and pricing these
• Intensive housing management costs to be separated from HB and
administered by local authorities under personalisation agenda
• Housing benefit to be paid via Universal Credit
• Tied to personalisation agenda
Council for the Homeless NI
Potential Impacts
• Increased competition & demand for housing
• Remove/Limit housing choice
• Prevent move on & impede progress
• Financial impact on housing providers due to a number
of changes: direct payments, communal areas, intensive
housing management
• Rent Shortfalls - Debt/ Arrears
• Loss of Accommodation/Homelessness
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WIDER CHANGES
Council for the Homeless NI
Other key elements
• Income support for lone parents
• Contributory ESA limited to one year
• ESA in youth to be abolished
• Benefit cap to be introduced – problematic for disabled
people
• Social Fund community care grants, budgeting loans and
crisis loans abolished from 2013
• Childcare gaps
• Passport benefits
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Procedural Issues
• Changes to right of appeal
• Overpayment recovery
• Benefit penalties and fraud
• Immigration status and entitlement
• Access to welfare advice
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TIMETABLE FOR REFORM
Council for the Homeless NI
NI Welfare Reform Bill
• Due 2012. Welfare Reform Bill GB received Royal
Assent 14.03.12
• Possible Accelerated passage
• Social Fund
• Lack of a work programme
• Childcare
• Forecasted longer recession recovery
Council for the Homeless NI
Timetable cont’d
April 2013
•
DLA replaced by PIP
•
Mobility provisions for people in residential care to be reviewed
•
HB entitlement to reflect family size
•
LHA to be uprated in line with CPI
•
Benefit cap £500 p/w for couple/lone parent. £350 p/w for single people
(does not apply to those on DLA, working tax credit & war pensions)
October 2013
•
UC introduced
•
Community care grants and crisis loans abolished
Council for the Homeless NI
Mitigating Actions
• Support financial capability
• Promote realistic housing options
• Develop relationships with local employment services
• Develop relationships with local PRS landlords
• Lobby MLAs for changes to HA regs to allow better use
of existing stock
• Respond positively to the Housing Strategy for NI
consultation when available