Richard Gass Chair of Rights Advice Scotland 22 nd June 2011 EDINBURGH

Emergency Budget June Billion in Welfare Savings (a further £7 Billion in Spending Review) Benefits to be increased by Consumer Price Index (CPI) and not Retail Price Index (RPI) from April2011 Objective Medical Assessment for DLA

Benefit Uprating  The Consumer Price Index (CPI) will be used instead of the Retail Price Index for the uprating of benefits and tax credits from April 2011 (paragraph 2.32) UPDATE: Benefits were uprated for 2011 with CPI 3.1% (RPI was at 4.6%)

Amount of DLA Lost by uprating with CPI rather than RPI DLA All Ages Current Annual Total CPI Increase 3.1% RPI Increase 4.6% Annual Difference 1.5% Glasgow £218.1 million£6.76 m£10.03 m£3.27 Million Aberdeen City £37.3 million£1.16 m£1.72 m£0.56 Million Aberdeenshire £40 million£1.24 m£1.84 m£0.60 Million Stirling £19.4 million£0.6 m£0.89 m£0.29 Million Renfrewshire £50.3 million£1.56 m£2.31 m£0.75 Million N Lanarkshire £110.5 million£3.42 m£5.08 m£1.66 Million D & G £40.5 million£1.25 m£1.86 m£0.61 Million Scotland £1,341.9 Million£41.60 m£ m£ Million DWP Data August 2010

CPI Impact in Glasgow Benefit Uprated by CPI* Number of claimants Average weekly claim Annual impact per claimant Total impact on Glasgow JSA23,980£62.39£48.66£1,166,968 DLA56,600£72.41£56.68£3,196,757 Income Support39,190£88.14£68.75£2,694,281 Attendance Allowance19,740£62.23£48.54£958,168 ESA9,890£69.80£54.44£538,451 Incapacity Benefit38,660£50.45£47.32£1,829,391 Severe Disablement Allowance3,480£73.75£57.53£200,187 Carers Allowance8,050£53.89£42.03£338,375 Widows Benefit620£75.21£58.66£36, Bereavement Benefit580£93£72.54£42,073 DWP Claimant data May 2010 Total£11.7 Million

Proposed DLA Changes Objective Medical Save 20% of current expenditure Personal Independence Payment Removal of Mobility in Residential Care Only 2 rates for ‘Daily Living’ Doubt over passporting to other benefits Payable over age 65?

DLA Weekly Expenditure DLA CARE Higher Rate Middle Rate Lower Rate DLA MOB Higher Rate Lower Rate Glasgow £1,008,882£1,012,882£285,197£1,491,013£396,813 Aberdeen City £156,366£178,772£51,923£262,709£68,220 Aberdeenshire £182,784£176,382£49,459£301,592£58,176 Stirling £95,676£80,304£21,603£149,550£26,530 Renfrewshire £236,334£213,188£65,756£373,875£79,590 N Lanarkshire £537,642£453,144£133,597£856,921£144,020 D & G £192,066£174,948£50,028£307,076£54,955 Scotland £6,314,616£5,832,078£1,707,774£9,838,396£2,113,683 All Ages Total DLA payments in Scotland £25 Million/ week

DLA Weekly Expenditure DLA CARE Higher Rate Middle Rate Lower Rate DLA MOB Higher Rate Lower Rate Glasgow £564,774£618,532£193,858£724,819£310,590 Aberdeen City £88,536£112,330£36,952£147,057£50,596 Aberdeenshire £99,246£99,424£32,973£163,508£39,795 Stirling £240,618£223,704£67,462£71,784£20,087 Renfrewshire £127,806£122,846£43,206£176,469£60,071 N Lanarkshire £269,892£250,950£82,243£391,821£106,309 D & G £99,246£101,336£32,215£157,027£38,279 Scotland £3,430,770£3,476,494£1,144,011£4,954,093£1,578,724 Working Age Only Total DLA payments to working age claimants in Scotland £14.5 Million/w

Potential DLA Loss (20%) All Age Groups DLA All Ages Weekly Total Annual Total 20% Annual Glasgow £4.194 million£218.1 million£43.6 million Aberdeen City £0.717 million£37.3 million£7.5 million Aberdeenshire £0.769 million£40 million£8.0 million Stirling £0.374 million£19.4 million£3.9 million Renfrewshire £0.968 million£50.3 million£10.1 million N Lanarkshire £2.125 million£110.5 million£22.1 million D & G £0.779 million£40.5 million£8.1 million Scotland Million£1,341.9 Million £268 Million

Potential DLA Loss (20%) Working Age Only DLA Working Age Weekly Total Annual Total 20% Annual Glasgow £2.413 million£125.5 million£25.1 million Aberdeen City £0.435 million£22.6 million£4.5 million Aberdeenshire £0.435 million£22.6 million£4.5 million Stirling £0.203 million£10.6 million£2.1 million Renfrewshire £0.530 million£27.6 million£5.5 million N Lanarkshire £1.101 million£57.2 million£11.4 million D & G £0.428 million£22.3 million£4.5 million Scotland 14,484 Million£753,168 Million £150 Million

Reduction in Benefit Loss of Income to Claimants Loss of Income to Local Economy Consequential loss of Jobs Greater demand for council services

Fraser of Allander Institute Reports for Glasgow City Council in 2001 and 2003 An increase in benefits increases spending in the local economy and creates jobs £11Million created 258 Jobs in Scotland of which 180 would be in Glasgow A cut would have the reverse effect.

Personal Independence Payment Consultation Closed on 18 th Feb 2011 From 2013 for all DLA claimants 2 components –Mobility – 2 Rates Replacing walking with mobilising –Daily Living – 2 Rates Take greater consideration of potential aids

The period condition conditions be satisfied 6 months prior to claiming and to be likely to continue for a period of at least 6 months. Terminal illness ( same definition as for DLA) automatically receive the daily living component enhanced rate and will not have to satisfy the period condition for the mobility component. Age Restriction Concern that PIP will not be paid once someone reaches the age of 65 or pensionable age, whichever is the higher.

Example 1 Mother age 50 living in a rented house with her son age 30. Mother is partially sighted and is in receipt of DLA lower rate care & lower Mobility, she also gets Jobseekers Allowance Son works full time, wage = £250 per week Mother is the tenant, house rent is £100 per week. The full rent met through Housing Benefit.

Current Financial Position Mother (weekly)Son (weekly) DLA Lower Rate Care £19.55 DLA Lower Mobility £19.55 Jobseekers Allowance £96.35 Includes a disability premium Housing Benefit £100 Wages £ gross What if the mother was to lose her entitlement to care/daily living

Mother loses DLA MotherSon DLA Care £19.55 DLA Lower Mob £19.55 JSA £96.35 Housing Benefit £100 Wages £ gross MotherSon DLA Care £nil DLA Lower Mob £18.95 JSA £96.35 Housing Benefit £100 Less Non Dep deduction of £48.45 Also Non Dep on Council tax £5.70 Wages £ gross Loss to weekly income £73.70 (Note that Non dep deductions rose by 27% taking out another £11.30on HB and Council Tax Benefit.

Non Dependent Deductions Pre April 2011 Aged 25+ JSA £ 7.40 Gross wages below £120 £ 7.40 £120 – £ £ £178 – £ £ £231 – £ £ £306 – £ £ £382 and above £ After April 2011 Aged 25+ on JSA £ 9.40 Gross wages below £122 £ 9.40 £122 – £ £ £180 – £ £ £234 – £ £ £310 – £ £ £387 and above £ The above are weekly deductions from Housing Benefit. Other deductions apply to Council Tax Benefit.

Example 2 Father age 50 living in rented accommodation with daughter age 30. Father is partially sighted and is in receipt of DLA middle rate care, and also ESA Daughter is registered blind and also gets DLA Middle rate Care and Low Mobility and also ESA. Father is the tenant and the rent is £100 per week. The full rent met through Housing Benefit.

Income prior to PIP re-assessment FatherDaughter DLA Care £49.30 ESA £ including –Work related activity component –Severe Disability Premium Housing Benefit £100 Max Council Tax Benefit DLA Care £49.30 DLA Mob £19.55 ESA £ including –Work related activity component –Severe Disability Premium On assessment for PIP father loses entitlement and daughter keeps her entitlement

Loss of Father’s DLA Loss of Father’s DLA, Loss of his SDP Loss of Daughters SDP Exposure to Non Dependent deductions FatherDaughter DLA Care £nil (-£49.30) ESA £91.45 (-£55.30) Housing Benefit £90.80 (-£9.20) Council Tax Benefit (-£2.85) DLA Care £49.30 (no change) DLA Mob £19.55 (no change) ESA £91.40 (-£55.30) Weekly loss to household = £ Note Daughters Income is affected by loss of Fathers DLA Father loses £ Daughter loses £55.30

Options ? If the daughter was to move out she could restore her SDP and her father would then not have non dependent deductions from his Housing Benefit This could save £67.35 that would otherwise be lost. ** FatherDaughter DLA Care £nil (-£49.30) ESA £91.45 (-£55.30) Housing Benefit £90.80 (-£9.20) Council Tax Benefit (-£2.85) DLA Care £49.30 (no change) DLA Mob £19.55 (no change) ESA £91.40 (-£55.30)

Even if they maintain entitlement to DLA/PIP Will benefit rates be the same? No guarantees that the passporting that currently exist continues Will there be an equivalent of Severe Disability Premium in new Universal credit

ICB Claimants (In thousands) Aberdeen City 8.63 East Dunbartonshire 2.98 Aberdeenshire 6.64 East Lothian 3.54 Angus 4.03 East Renfrewshire 2.55 Argyll and Bute 3.19 Edinburgh, City of Clackmannanshire 2.74 Eilean Siar 1.02 Dumfries and Galloway 5.99 Falkirk 6.99 Dundee City 8.76 Fife East Ayrshire 6.41 Glasgow City Source DWP as at November 2009 Working Age Claimants

ICB Claimants (In thousands) Highland 8.43 Renfrewshire 8.9 Inverclyde 5.51 Scottish Borders 3.74 Midlothian 3.34 Shetland Islands 0.61 Moray 2.83 South Ayrshire 5.09 North Ayrshire 7.32 South Lanarkshire North Lanarkshire Stirling 3.2 Orkney Islands 0.58 West Dunbartonshire 5.62 Perth and Kinross 4.42 West Lothian 7.73 Scotland total ICB count 243,030

** Benefit Loss (In millions per year) Aberdeen City 4.82 East Dunbartonshire 1.66 Aberdeenshire 3.71 East Lothian 1.98 Angus 2.25 East Renfrewshire 1.42 Argyll and Bute 1.78 Edinburgh, City of Clackmannanshire 1.53 Eilean Siar 0.57 Dumfries and Galloway 3.35 Falkirk 3.91 Dundee City 4.89 Fife 8.82 East Ayrshire 3.58 Glasgow City Assuming that 23% of people fail and 30% of those come off benefit

** Benefit Loss (In millions per year) Highland 4.71 Renfrewshire 4.97 Inverclyde 3.08 Scottish Borders 2.08 Midlothian 1.87 Shetland Islands 0.34 Moray 1.58 South Ayrshire 2.84 North Ayrshire 4.09 South Lanarkshire 8.63 North Lanarkshire Stirling 1.79 Orkney Islands 0.32 West Dunbartonshire 3.14 Perth and Kinross 2.47 West Lothian 4.32 Assuming that 23% of people fail and 30% of those come off benefit altogether Scotland Total loss £ Million

IB Migration other factors Aberdeen Pilot showed a 29% failure rate New tougher ESA assessment being introduced as such failure rate will rise. Now intending to end entitlement to contribution based ESA after 12 months.

Questions for Government How real are projected savings How it will fill the £18billion black hole in the UK economy left by changes to welfare. How it will protect the quality of life of people currently on disability benefits. How it will ensure that local authorities and the third sector can continue to provide lifeline services

END

DLA Care Component (Caseload thousands) All Ages Higher RateMiddle RateLower RateNil Rate Glasgow Aberdeen City Aberdeenshire Stirling Renfrewshire N Lanarkshire D & G Scotland

DLA Care Component (Caseload thousands) Working Age Higher RateMiddle RateLower RateNil Rate Glasgow Aberdeen City Aberdeenshire Stirling Renfrewshire N Lanarkshire D & G Scotland

DLA Mobility Component (Caseload thousands) All Ages Higher RateLower RateNil Rate Glasgow Aberdeen City Aberdeenshire Stirling Renfrewshire N Lanarkshire D & G Scotland

DLA Mobility Component (Caseload thousands) Working Age Higher RateLower RateNil Rate Glasgow Aberdeen City Aberdeenshire Stirling Renfrewshire N Lanarkshire D & G Scotland

Unemployment Unemployment figures Feb 2011

Glasgow LHA rates Rates from 1st March to 31st March 2011: Size Criteria Weekly room rate Shared accommodation£ Bedroom£ Bedrooms£ Bedrooms£ Bedrooms£ Bedrooms£346.15

DLA Care Component (Expenditure) DLA CARE Higher RateMiddle Rate Lower Rate Weekly Total Annual Total 20% Annual Glasgow £1,008,882.00£1,012,882.00£285,197.50£2,306,961.50£119,961,998.00£23,992, Aberdeen City £156,366.00£178,772.00£51,923.00£387,061.00£20,127,172.00£4,025, Aberdeenshire £182,784.00£176,382.00£49,459.50£408,625.50£21,248,526.00£4,249, Stirling £95,676.00£80,304.00£21,603.00£197,583.00£10,274,316.00£2,054, Renfrewshire £236,334.00£213,188.00£65,756.50£515,278.50£26,794,482.00£5,358, N Lanarkshire £537,642.00£453,144.00£133,597.50£1,124,383.50£58,467,942.00£11,693, D & G £192,066.00£174,948.00£50,028.00£417,042.00£21,686,184.00£4,337,236.80

DLA Mobility Component (Expenditure) DLA CARE Higher Rate Lower Rate Weekly Total Annual Total 20% Annual Glasgow £1,491,013.50£396,813.00£1,887,826.50£98,166,978.00£19,633, Aberdeen City £262,709.50£68,220.00£330,929.50£17,208,334.00£3,441, Aberdeenshire £301,592.50£58,176.50£359,769.00£18,707,988.00£3,741, Stirling £149,550.00£26,530.00£176,080.00£9,156,160.00£1,831, Renfrewshire £373,875.00£79,590.00£453,465.00£23,580,180.00£4,716, N Lanarkshire £856,921.50£144,020.00£1,000,941.50£52,048,958.00£10,409, D & G £307,076.00£54,955.00£362,031.00£18,825,612.00£3,765,122.40

Potential DLA Loss to Glasgow Disability Living Allowance (DLA): GLASGOW August 2010 all ages Weekly Annual 20% Loss Mobility Component £1,887,826£98,166,978£19,633,395 Care Component £2,306,961£119,961,998£23,992,399 Total yearly DLA loss £43.62 Million

Potential DLA Loss to Scotland Disability Living Allowance (DLA): Scotland August 2010 all ages Weekly Annual 20% Loss Mobility Component £11,952,079.00£621,508,108.00£124,301, Care Component £13,854,468.00£720,432,336.00£144,086, Total yearly DLA loss £268 Million

CPI v RPI Example JOBSEEKER'S ALLOWANCE (JSA): APRIL JSA Weekly RISE WITH CPI RISE WITH RPI WEEKLY CHANGE ANNUAL CHANGE AGE £51.85 £53.46 £54.24 £0.78£40.56 AGE 25+ £65.45 £67.48 £68.46 £0.98£50.96 CPI 3.1% RPI 4.6% September 2010.

Impact to Glasgow JOBSEEKER'S ALLOWANCE (JSA): AGE AGE 25+ TOTAL No of Claimants in Glasgow (May 2010) 6,38017,520 23,900 Yearly loss per person £ £50.96 Total yearly JSA loss to Glasgow £258, £892, £1.15 Million

Impact to Scotland JOBSEEKER'S ALLOWANCE (JSA): AGE AGE 25+ TOTAL No of Claimants in Scotland (May 2010) 36,95091, ,370 Yearly loss per person £ £50.96 Total yearly JSA loss to Scotland £1.50 Million £4.63 Million £6.13 Million