Slide 1 Neighbourhoods Directorate Service Improvement Team Budget Update February 2011 Service Improvement Team Benefits Service

Slide 2 Neighbourhoods Directorate Service Improvement Team Immediate Reform April 2011 LHA rate to be set at 30% percentile as opposed median of rent levels for each property in each BRMA Removal of £15 LHA excess. Introduction of 4 bedroom LHA upper limit. LHA rates capped at £250, £290, £340 and £400 per week for 1, 2, 3, and 4 bed rates accordingly. Amend size criteria to include a live in carer. DHP grant increased by £10 million. Non Dependant deductions will start to be increased to uprated 2001 rates. Increased ability to pay landlords direct.

Slide 3 Neighbourhoods Directorate Service Improvement Team April 2011 – effects 30 th percentile calculation Effective for all new claims, and anniversary date plus 9 months for most existing claimants. Reduction from 1 in 2 properties to 3 in 10 PRS available LHA claims affected Average loss is £7.02 per week. Weekly difference - illustrated in next slide.

Slide 4 Neighbourhoods Directorate Service Improvement Team 30 th Percentile Comparison February 2011

Slide 5 Neighbourhoods Directorate Service Improvement Team April 2011 – effects Removal of £15 cap Effective for all new claims and anniversary date, for existing claimants. 2,893 affected Average loss is £9.58 LHA will still match the contractual rent – although for standard cases less ability to pay shortfall.

Slide 6 Neighbourhoods Directorate Service Improvement Team April 2011 – affects 4 bed cap Effective for all new claims and anniversary date, plus 9 months for most existing claimants. 65 cases currently above 4 bed rate. 41 cases affected by restriction. Average weekly restriction is £81.20 per week. 1, 2, 3 and 4 bed LHA caps No cases in Bristol affected.

Slide 7 Neighbourhoods Directorate Service Improvement Team Transitional Protection For existing claimants for up to 9 months. Will apply from 1 st April 2011 when; first anniversary date arrives, or room need for the dwelling goes up and the new rate of LHA is less than the existing one. Will not apply to existing claimants from 1 st April 2011 when; there is a change of address, or room need goes down. It will continue to the earliest of; 9 months ending, or there is a change of address, or room need goes up or down.

Slide 8 Neighbourhoods Directorate Service Improvement Team April 2011 – affects Extra Room for Carers Effective from 1 st April Additional room need for a carer(s) over existing LHA room need rules.  That room has been designated for that use, and  Claimant partner in receipt of DLA (care) middle or high, or Attendance Allowance, or  A specific need has been identified for that purpose. 63 cases potentially identified. DHP grant increase £143k to £207k.

Slide 9 Neighbourhoods Directorate Service Improvement Team April 2011 – affects Increase of ND deductions to 2001 rates 2073 people affected. Charges increase from 23 – 27%. Highest charge increases from £47.75 to £60.60 per week for HB. Examples on next slide.

Slide 10 Neighbourhoods Directorate Service Improvement Team Non Dependant Rates – 2011/12

Slide 11 Neighbourhoods Directorate Service Improvement Team April 2011 – affects Increased ability to pay landlords direct Known as the ‘bribe’ incentive to encourage the landlords to reduce rent in return for rent direct payments. Not a return to rent direct payment on request. Paid as long as rent direct ‘secures and maintains’ tenancy.

Slide 12 Neighbourhoods Directorate Service Improvement Team HB/CTB Medium Term Reform April 2012 Single Room rent increased from 25 to cases affected Protection? DHP grant increased nationally from £20 to £60m Fines for those who fail to report changes - £50

Slide 13 Neighbourhoods Directorate Service Improvement Team Medium Term Reform April 2013 LHA rates increased by CPI and not local rental values. Size criteria rules for working age socially rented sector housing. HB entitlement levels will be reduced to 90% after 12 months for those receiving Job Seekers Allowance. Beginning of Universal Credit scheme (including Housing Benefit and WTC, CTC, IS, JSA (ib) and ESA(ir)). End of Council Tax Benefit – to be replaced by localised rebate scheme, plus 10% less funding?

Slide 14 Neighbourhoods Directorate Service Improvement Team Medium Term Reform Other - April 2013 Overall benefits cap of £500 per week (excluding some benefits). A new Fraud Investigations Service will start to cover all aspects of benefit fraud (including HB/CTB).

Slide 15 Neighbourhoods Directorate Service Improvement Team Actions going forward Forecasting those cases affected and when. Draft letters being prepared to send to claimants in advance of changes. Website updated with changes from April Benefits, Housing Solution and Private Rented Team meeting monthly. Attending stakeholder events – landlord forums, advice agencies/worker events, BCC staff, claimant groups, etc Leaflet to be finalised.

Slide 16 Neighbourhoods Directorate Service Improvement Team Any Questions?