Overview of Welfare Reform and UC Rollout GWSF Annual Conference November 25th, 2016

Areas of overview UC in work allowances – came in April 2016 Benefit cap – came in November 2016 Further cuts April 2017 Full service rollout – due to be in all Job Centre+ offices by September 2018, migration of legacy claimants complete by March 2022. LHA cap – to be introduced in April 2019 for both general needs and supported housing.

UC Work Allowances ABOLISHED Before April 2016 After April 2016   Before April 2016 After April 2016 WITHOUT HOUSING COSTS WITH HOUSING COSTS Single NO DEPENDENT £111 ABOLISHED WITH DEPENDENT £734 £263 £397 £192 WITH DISABILITY £647 Couple £536 £222 ONE OR BOTH WITH DISABILITY Neither responsible for a child or qualifying young person Responsible for a child or qualifying young person One or both have limited capability for work

The Benefit Cap Reduction in Benefit cap from £26,000 to £20,000 for couples now being implemented. Reduction to £13,400 for single people without dependents. Sheffield Hallam report to Social Security Committee: estimated 11,000 households, many of which will comprise families with 2 children or more.

Included in Benefit Cap Bereavement Allowance (BA) Child Benefit (ChB) Child Tax Credit (CTC) ESA (contribution-based and income-related) except where the support component has been awarded Housing Benefit (HB) Incapacity Benefit (IB)

Included in Benefit Cap Income Support (IS) Jobseeker’s Allowance (JSA) (contribution-based and income-based) Maternity Allowance (MA) Severe Disablement Allowance (SDA) Widow’s Pension, Widowed Mother’s Allowance, and Widowed Parent’s Allowance.

Excluded from Benefit Cap Working Tax Credit (WTC) (a claim for WTC must be made) Disability Living Allowance (DLA) Personal Independence Payment (PIP) Attendance Allowance (AA) Industrial Injuries Benefits (IIB) ESA, if paid with the support component Armed Forces Compensation Scheme Payments (AFCS)

Excluded from Benefit Cap Armed Forces Independence Payment (AFIP) War Pensions Scheme Payments (WPS) (including War Widow’s/Widower’s pension and War Disablement Pension) Carer’s Allowance (CA) (including the equivalent claimants in Universal Credit) Guardian’s Allowance (GA)

Benefit Cap Example Mr and Mrs David Tenant have 3 children and live in a 3 bedroom home: weekly rent £86.35 Mr Tenant is on ESA. The Tenants’ income is £360 per week, before housing costs taken into account. The £20,000 Benefit Cap equates to £384.62 per week. Maximum housing benefit award £24.62

The Tenants’ problem Shortfall between rent and housing benefit: £61.73 per week By end of financial year, arrears will be around £1,235, if tenants unable to make up shortfall. If rents were to go up by 1.5% in 2017/18, to £87.65, weekly shortfall will be £63.03 = £3277 per annum.

April 2017 measures Removal of benefit entitlement for 18-21 year olds Child element in Tax Credit and UC limited to two children Removal of Housing Benefit Family Premium, Family Element in tax credits and first child premium in Universal Credit. Parents to prepare for work when youngest 2, look for work when 3.

Universal Credit Live service rolled out across UK by April 2016 Although online application, any change of circumstance etc. had to be advised by phone or visit to Job Centre+ Full service began rollout in March 2016, due to complete for new claimants by September 2018 (Glasgow). Migration of legacy claims to UC 2019-2022

Live vs. Full Live throughout Scotland Gateway criteria – singles seeking work – more straightforward cases Around 35% of claimants have housing costs Full in limited number of Job Centres (5 so far) No gateway criteria – all new working age claims - expected to handle claims from what would have been the six legacy benefits Around 65% of claimants have housing costs

Live vs. Full Live Service Full Service Use implicit consent No implicit consent – claimant has to be present with adviser Service Centres have housing teams Service centres do not have housing teams: all case managers to manage all UC claims, with a specialist within the team ‘Live’ Service centres have escalation route where threat of eviction: email, phone, Partnership Manager No established escalation route, expectation that claimants online account will self-serve. ‘Live’ service UC claims can be kept open up to six months after a claimant has found work and moved out of UC UC claim closed as soon as claimant earning in excess of UC, though work may be zero hours or seasonal.

The LHA Cap – General Needs Comes into force April 2019. Affects any general needs tenancy created after April 1st, 2016 who is on Housing Benefit; (Transitional protection if migrated to UC). Also affects ANY tenancy where tenant on Universal credit. In particular, single tenants younger than 35, without dependents only get the shared accommodation rate.

LHA Cap (continued) If tenant (pre April 2016) still on Housing Benefit in April 2019, will be exempt from the cap but: DWP migrating legacy benefits for working age claimants from July 2019 to March 2022 - will be transitional protection. But if moved from HB to UC between now and April 2019 no transitional protection.

LHA Cap Example: Jane Doe lives in a one bedroom flat in Glasgow: weekly rent at moment £74.04 (2016/17), rising to £76.28 in 2018/19 (1.5% rent increase in 2017/18 and 2018/19) LHA shared accommodation rate for Glasgow £68.28 Shortfall £8.00 per week, £416 per year.

LHA Cap – Supported Housing All supported housing core rent and service charges subject to LHA cap Intention to meet care and support costs from funding which will be devolved to Scottish Government (no overall reduction in expenditure) Consultation published 21/11/2016 on funding support.