Welfare Reform Briefing

Jim Burns, Jobcentre Plus, West of Scotland District Welfare Reform Update

Department for Work and Pensions 3 Welfare Reform Act Benefits Service Delivery Employment support Topics to cover.

Department for Work and Pensions 4 Introduces the most fundamental reforms to the social security system for 60 years. Aims for a simpler, fairer benefits system & to ensure work pays Universal Credit Personal Independence Payment ESA time-limiting Benefits cap Social Fund changes Welfare Reform Act - overview

Department for Work and Pensions 5 Will replace a range of working age benefits with a single payment that provides both in-work and out-of-work support Designed to ensure that work will always pay Expect Universal Credit to begin in 2013, with existing claims transferred to the new system by the end of 2017 Tougher sanctions regime will be introduced ahead of Universal Credit Aspects of the Social Fund will be incorporated within Universal Credit while others will be delivered by Local Authorities in England and devolved administrations in Scotland and Wales Universal Credit - overview

Department for Work and Pensions 6 Preparatory tests this year. Expect Universal Credit to begin in – begin moving those existing claimants with most to gain from being on UC & 2017 – transfer existing claims to UC. Migration based on local authority boundary. Universal Credit - timetable

Department for Work and Pensions 7 Incapacity Benefit Reassessment Employment and Support Allowance (ESA) introduced in Oct 2008 for new claims Change from Personal Capability Assessment to Work Capability Assessment Existing IB claimants to be assessed for ESA Process to be completed by May 2014

Department for Work and Pensions 8 DWP is committed to continuously improving the Work Capability Assessment (WCA) to ensure that it is fair and effective Professor Malcolm Harrington is currently undertaking his third independent review of the WCA System All recommendations from the November 2010 review implemented. Second review reported November All recommendations have been accepted, including:  Monitoring the impact of the year one recommendations and identifying further opportunities for improvement  Improving descriptors for mental health and other fluctuating conditions  Regular monitoring of DWP and Atos staff performance to ensure consistency in assessments and decisions.  More details on DWP Website. Work Capability Assessment improvements

Department for Work and Pensions 9 12 month limit for contribution-based ESA in the work related activity group. Support Group not affected. Makes ESA more consistent with JSA which has 6 month limit on contribution-based entitlement. About 60% of those claiming ESA end claim within a year. Estimate 60% of those affected by time-limiting will be eligible for income- related ESA – rest can claim on credits-only basis to maintain NI record and access Work Programme. Estimate 90% of those affected by change to ESA Youth will be able to claim income-related ESA. ESA changes – from 30 th April 2012

Department for Work and Pensions 10 Helping disabled people live full, active & independent lives. An introduction to Personal Independence Payment.

Department for Work and Pensions 11 What is changing?  Personal Independence Payment will replace Disability Living Allowance (DLA) for people of working age from April 2013 Retains the key features of DLA - non means tested and non taxable payable both in and out of work More objective assessment process Awards will be based on the: - individual circumstances of the person claiming - impact of their disability / health condition - extent to which they are able to live independently and participate in society

Department for Work and Pensions 12 Why is it changing? DLA has been in place for almost 20 year largely unchanged Personal Independence Payment will better reflect today’s understanding of disability which has changed a lot in 2 decades DLA was: –Unsustainable in the long term –Complex and confusing –Used little independent evidence –Had no systematic review to make sure an award still met the claimants needs

Department for Work and Pensions 13 When will it change? Personal Independence Payment is being introduced in stages: April 2013: Initially take a few thousand new claims in areas including Merseyside, North West England, Cumbria, Cheshire and North East England –During this period new claimants in all other parts of the country will continue to claim Disability Living Allowance as now June 2013: We plan to take new claims from all claimants in all parts of the country Oct 2013: Oct 2013: Start to reassess cases that are approaching the end of a fixed period award or who report a change on their needs. We will also start to reassess cases with an indefinite award - around 10k per month, chosen by random selection. Jan 2014: Full national reassessment likely to begin March 2016: All current DLA claimants of working age will have been contacted about claiming Personal Independence Payment

Department for Work and Pensions 14 What is PIP made up of? Personal Independence Payment is made up of: a Daily Living component a Mobility component Awards will be made up of one or both of these components. Each component will have two rates: standard enhanced The amount for each rate is still to be decided.

Department for Work and Pensions 15 Benefit cap Limits benefit payments to a household to no more than average household earnings – currently equivalent to a gross salary of £35,000. Cap excludes one-off payments and non-cash benefits. Exemptions for households including recipients of Disability Living Allowance, Attendance Allowance or Constant Attendance Allowance. War widows/widowers and those in ESA Support Group also exempt. Those entitled to Working Tax Credit exempt. Effective from April 2013 – already contacting individual claimants in those households likely to be affected offering support to find work.

Department for Work and Pensions 16 Extending jobseeking support to more lone parents. Lone parents with a youngest child aged five or over no longer entitled to Income Support if they are claiming solely on the grounds of being a lone parent Applied to new and repeat claims from 21 st May 2012 Introduced in stages for existing lone parents, up to 20 th August 2012 Work Focused support also available for those on Income Support. Lone Parents

Department for Work and Pensions 17 Greater focus on diagnosing customers’ individual needs More flexibility and responsibility for Jobcentre advisers Increased flexibility for local managers Raised expectations of customer commitment to finding work Extending range of digital services Clear focus on getting customers off benefits and into jobs New sanctions regime to be introduced Jobcentre Plus support

Department for Work and Pensions 18 Exercise – Welfare Reforms How will these reforms impact on your customers? How will you support them? What further support do you need?

Department for Work and Pensions 19 Feedback

Department for Work and Pensions 20 Sources of Information Department for Work and Pensions Touchbase e-zine (for DWP stakeholders)Touchbase e-zine Directgov the official UK Government WebsiteDirectgov Skills Development Scotland for advice on careers, training, modern apprenticeships etcSkills Development Scotland Jim Burns contact details Telephone