The Advice Shop & Welfare Reform Mark Upward Advice Services Manager February 2015

Overview Strategic Planning The Impact of Welfare Reform so far Advice Services Universal Credit

Strategic Planning Objectives Prevention of hardship and inequality Meet crisis needs for housing, heat and food Support vulnerable individuals and families Partnership action to sustain Edinburgh’s social security WR Core Group – Strategic Plan Partners Forum Working Group

Forecast Impact of Welfare Reform £135 million loss per annum £400 loss per annum per working age adult 32% of loss - sick and disabled people (incapacity bens & DLA) 19% of loss – low paid workers - tax credits 18% of loss - Uprating Cap 14% of loss – families (child benefit) 11% of loss - Housing Benefit 1% of loss - Benefit Cap

Impact of Welfare Reform so far Bedroom Tax PIP Disputes process Benefits Cap Sanctions Bedroom Tax mostly mitigated by DHP but rent arrears have increased from just under £2m to over £5m since April 2013. PIP is replacing DLA gradually and so far it’s a mixed bag of outcomes – some very positive for clients, others less so as they migrate from DLA. Severe delays have plagued PIP but it appears the process has sped up now with medicals being arranged within 6 weeks of applications being submitted. Major change for advice agencies is introduction of Mandatory Considerations prior to any appeal request to resolve a disputed DWP decision. MRs mean that a swifter resolution can be obtained rather than the long wait for an appeal. However, it still requires substantial evidence to be gathered and a clear statement of why a decision was incorrect. This can be as time consuming as preparation for an appeal. Also, claimants need to claim JSA until their MR has been decided on – for many this is problematic. If the MR is unsuccessful it is still possible to take dispute to appeal. We are keen that the process is swift so client doesn’t have to wait 6-8 months for a decision. MR success rate is well over 50%. Benefits Cap has not had a major impact. People in temporary accommodation have been hit but this does not result in them losing accommodation, they may simply be moved to cheaper accommodation. Some private landlords have reduced their rents to help tenants. A few people are known to have moved but no reliable stats are available on this. Sanctions have had one of the worst impacts as non-compliance with jobseekers agreement and now the claimant commitment is met with anything from a 1 week to 156 week suspension of their benefits. These sanction decisions are always worth challenging through the MR process. Often we are finding that clients accept a short sanction which could have been easily overturned, but when sanctioned again for a longer period they can’t get it overturned and so face severe financial problems.

Advice Services 1 The Advice Shop Advice Line 0131 200 2360 249 High Street Drop-ins Outreach Detail AS services – debt and welfare rights – Advice Line, 249 High Street, drop-ins, outreach Welfare rights in all 5 CAB Debt advice in Pilton, Gorgie and Dundas Street CAB Debt outreach in CAN, prison, Gilmerton Community Centre and Leith Neighbourhood office Welfare rights outreach in Oxgangs Neighbourhood Centre and Willow Project as well as embedded with Throughcare and Aftercare

Advice Services 2 CAB / CHAI / Granton Information Centre Housing Associations Support Providers CEC fund advice from CAB, CHAI and GIC. Provision by CAB – 30 outlets, GPs, RSLs, and now RIE and WG hospitals CHAI have base at 555 Gorgie Road, a strong presence in Wester Hailes and in Captains Road neighbourhood office Most housing associations now have their own welfare rights and debt advice staff or at least a CAB advisor linked to them. There are also support providers who have welfare rights advisors too e.g. Action Group, Cyrenians

Universal Credit Launch in Edinburgh 9th March 2015 Combines 6 key benefits: Jobseeker’s Allowance Housing Benefit Working Tax Credit Child Tax Credit Employment and Support Allowance Income Support plus Social Fund budgeting loan Support Services in development Hot topic of the moment

249 High Street, Edinburgh EH1 1YJ The Advice Shop 0131 200 2360 advice.shop@edinburgh.gov.uk 249 High Street, Edinburgh EH1 1YJ