Welfare Reform Event

Norton Park, Edinburgh 4 December 2013

Welfare reform – biggest change in over 70 years

Beveridge Report (1942)   designed to deal with extreme social and economic conditions ‘

a time for revolutions, not for patching ’

Welfare reform - mythbusting

 41% of the entire welfare budget goes to unemployed people (3%)  27% of the welfare budget is claimed through fraud (0.7%)  48% of people on JSA claim for more than 1 year (28%)

(TUC Poll Jan 2013)

Colette Aitchison – Shelter Scotland Hubs Manager

SCOTWRAS - BACKGROUND

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Context • Mitigating the impact of welfare reform

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Aim • A 2 nd Tier service to improve the confidence and knowledge of the sector

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Partnership • Child Poverty Action Group in Scotland

SCOTWRAS - SERVICE

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Website – www.scotwras.org

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Email Advice – [email protected]

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Advice Line – 0344 515 1310 Mon-Fri 10am-3pm

SCOTWRAS - IMPACT

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Building Capacity • Improving the confidence and knowledge of the sector

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National Analysis & Report • National narrative on the effects of Welfare Reform

SCOTWRAS - TEAM

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Shaheena Din – Senior Housing and Partnership Advisor

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Angela Moore – Money Advisor

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Lisa Innes – Housing Advisor

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Tom Youll – Digital Writer

WEBSITE DEMO

Scottish Welfare Reform Advisory Service

Judith Paterson CPAG in Scotland Welfare Rights Co-ordinator

Scale of Child Poverty

0-10% 10-20% 20-30% 30-40% UK average 20.2% End Child Poverty campaign Feb 2013 www.endchildpoverty.org.uk

Effect of Child Poverty Health Education Childhood

What Can Be Done?

Advice and support so individuals and families can claim what they are entitled to and deal with benefit problems ‘I didn’t claim DLA before. I didn’t know it existed.’

Scottish Welfare Reform Advisory Service

Advice line for advisers and support staff

0141 552 0552

Monday to Thursday 10am to 4pm Friday 10am to 12 noon [email protected]

Case Studies

Jim’s ESA had stopped. He was appealing but had been paid nothing for two months. With information gained through the advice line, Jim’s adviser got the DWP to pay £560 arrears.

A family support worker emailed about Nina, aged 16, pregnant and struggling at college. We advised on what and when to claim to maximise entitlement. ‘

thank you for your very detailed response to my query. I visited my client yesterday and she found it extremely helpful.’

Benefit Issues

• Client short of money because of a benefit sanction • Client’s ESA has stopped. What should they do?

• Client can’t move into new home until they get basic household furnishings. What can they claim?

• Client’s disability living allowance award is due for renewal. Will they be affected by personal independence payment?

• Client’s benefit has stopped. Hasn’t paid the rent for 2 months and landlord threatening legal action.

Welfare reform – Universal Credit

     Universal Credit will merge 6 benefits into 1       Income-based JSA Income-related ESA Income Support Child Tax Credit Working Tax Credit Housing Benefit Paid once per month, not fortnightly or weekly Expected by the DWP that most claims will be online Single payment per household Housing payments will be paid to claimant, not landlord

Welfare reform – Universal Credit

    Currently in progress in Pathfinder areas  Ashton-under-Lyne, Wigan, Warrington, Oldham New Pathfinders started in October & November 2013  Shotton (Wales), Hammersmith, Rugby, Bath, Harrogate, Inverness Will only deal with new claimants who have simple claims - single people, with no children & no disabilities Understanding is that the IT system is still not fully up and-running

Welfare reform – Universal Credit

 A review of Pathfinder areas in North-West England found that 34% of the 901 Universal Credit claimants had to borrow money to get through the month (

Source: UC Pathfinder Claimants Survey (Wave 1) - 29 November 2013 )

 The same survey looked at online claims & found      13% of people reported that the website crashed 9% were confused by the online instructions 9% had difficulty finding the information required to complete the application 10% said it took too long 27% did not complete their application on the 1 st attempt

Welfare reform – Sanctions

Reasons for sanctions

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Not actively seeking work

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Failure to carry out a Jobseeker ’s Direction

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Refusing a job opportunity

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Failure to participate in training or employment programmes (e.g. Work Programme)

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Failure to participate in Mandatory Work Activity

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Failure to attend an advisory interview

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Voluntary leaving and misconduct

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Non-availability for work

Welfare reform – Sanctions

    A woman in Glasgow acting as a lone parent to her grandson had a week ’s holiday arranged for her and her child by the local authority social work department, but was then sanctioned for 4 weeks.

A young (formerly homeless) person working for Pizza Hut was required to attend a compulsory 4 hour unpaid training session, but was sanctioned for 1 week by the Jobcentre Another young (formerly homeless) person received a sanction of 4 weeks without JSA because he applied for 27 jobs over a 2 week period, instead of the 28 he was asked to do.

A 53 year old man was sanctioned three times in quick succession. He was sanctioned twice for being ill and missing a Jobcentre appointment. Next he was sanctioned for not applying for one job. "I was sure I had applied for it but I couldn't find evidence that I had.

”

Welfare reform – Sanctions

 Citizens Advice Scotland reported in April 2012, over 240 sanctions were being issued to claimants in Scotland every working day.

 In addition, figures from the DWP indicate that 1 in 6 of those people receiving sanctions were considered to have a disability.

 No. of sanctions from June 2012-June 2013 =

860,000

 No. of 3 year sanctions given in 8 months =

700

Welfare reform – Discretionary Housing Pyts

 DHPs are intended to top up your housing benefit in situations of hardship  Council decides if they think you are entitled to one  Paid to cover difference between rent and housing benefit, particularly if subject to the ‘Bedroom Tax’ or ‘Benefits Cap’   Have to make an application to the council So far £60,000 savings = £55,000 DHPs in Haringey

Welfare reform – Scottish Welfare Fund

 Payments are given at the discretion of the council  Do not necessarily have to be in receipt of benefits  Cannot be given a payment if subject to sanction, although assistance can be given in emergency, or to assist children  Currently Scottish Government has a consultation out until 7 February 2014 to create legislation for SWF – keen to decide how appeals should be decided as a priority.

Welfare reform – Personal Independence Payments

• Start of transfer from DLA to PIP for new claimants was in June 2013 • DLA claimants whose circumstances have changed started being transferred in October 2013 • April 2015 – all people on DLA to be contacted to apply for PIP

Welfare Reform and housing support

Yvette Burgess Unit Director, HSEU

Overview

• Supported housing • • In the short term – importance of definition of Supported Exempt Accommodation (SEA) In the longer term – devolved budget • Local Support Services Framework • Role of support workers

SEA - why is it important?

 The DWP decided to use SEA as a way of identifying supported housing when applying exemptions relating to aspects of welfare reform – most importantly the ‘bedroom tax’ ; the benefit cap and Universal Credit  The role of SEA in helping to quantify the current cost of supported housing with a view to setting a devolved budget

SEA – what is it?

• Resettlement place previously funded through a resettlement grant • Accommodation provided by an upper tier county council (not a local authority); a housing association; a registered charity; a voluntary organisation • Care, support or supervision must be provided by the accommodation provider ‘or a person acting on its behalf’ The Universal Credit Regulations 2013, Schedule , Part 1 http://www.legislation.gov.uk/ukdsi/2013/9780111531938/schedule/1

SEA – does it cover supported housing adequately?

 Survey in March 2013 raised concerns  13 organisations responded and 42% identified supported housing which might not meet SEA criteria  Greater focus on SEA since 1st April 2013 when the ‘bedroom tax’ was introduced  Some support providers have had to challenge initial decisions by LA Revenue and Benefits teams  Representation to Cosla

Looking ahead

 Devolved budget for additional housing related costs associated with supported housing before general roll out of UC  How will the DWP decide how much budget to devolve to Scotland?

 HB data  Scottish Government may survey LAs  Temporary accommodation – challenge of UC

Local Support Services Framework

 Published in February 2013 and updated in August 2013: https://www.gov.uk/government/publications/un iversal-credit-local-support-services-framework  Complex needs and support needed to make and manage UC claims  Written by a task force

Those who may require LSS

               Mental health Geographically isolated Multi Agency Public Protections Agreement (MAPPA) Prison leavers People with English language limitations Learning difficulties Severe debt issues or financially excluded Domestic violence Literacy / numeracy issues Entitled 16/17 year olds Physical and / or sensory disabilites Non EEA citizens including refugees Homeless Addiction Care leavers

What does LSSF envisage?

 Use of existing services  Provision of new services  Who will provide these services?

 Delivery Partnerships Approach – through an ‘Overarching Partnering Agreement between DWP and Cosla)  Idea of ‘single claimant journey’ from benefits to independence from benefits

Capacity

 DWP focus groups with voluntary sector and LAs  UC Pathfinders to test LSSF although generally not dealing with complex needs claimants

Results from focus groups

 More than half said they do not provide the services needed for LSSF  Less than a fifth said the do provide services in question – to varying levels  Not representative though – and huge variety in roles and services  Indications are that there is not the capacity hoped for initially by the DWP

Next steps

 DWP to decide how to factor in findings about capacity  Funding to be identified  Voluntary organisations to decide whether to get involved or to continue doing what they are already doing

Conclusion

 The way the benefits system deals with supported housing now is important for future as well as existing tenants & services  The DWP has expectations of ‘key workers’ in supporting the more vulnerable claimants to deal with Universal Credit but appears to be over estimating capacity – so we will need to examine their test plan carefully when it is launched shortly

Contact details

Yvette Burgess: [email protected]

Davina Adamson: [email protected]

Tel 0131 475 2676

Expert Working Group on Welfare Reform – consultation Lynn Williams

Welfare reform – White Paper proposals

• • • Removing housing benefit from universal credit and maintain direct payments Abolishing Universal Credit Abolishing the ‘Bedroom Tax’ • • Ensuring that benefits and tax credits increase at least in line with inflation Stopping the rollout of Personal Independence Payments (PIP) • Ensuring that from 6 April 2016, new pensioners will receive a Scottish single-tier pension, set at the rate of £160 per week – £1.10 a week higher than the rate currently expected for the UK • • Uprating the State Pension by the triple lock from 2016. This means that pensions increase by average earnings, CPI inflation, or 2.5 per cent – whichever of these is highest Equalising the earnings disregards for first and second earners.