1. Department for Work and Pensions 1 Welfare Reforms Allan Clifford Welfare Reforms Manager

2. Department for Work and Pensions 2 Welfare Reforms: Welfare Reforms Act. Housing Benefit Reforms Social Fund Benefit Cap Personal Independence Payment Universal Credit

3. Department for Work and Pensions 3 Welfare Reforms Act. Introduces the most fundamental reforms to the social security system for 60 years. Aims for a simpler, fairer benefits system & to ensure work pays

4. Department for Work and Pensions 4 Housing Benefit Reforms April 2013. Social Sector Tenants: Who have more bedrooms than they are entitled to under the new size criteria rules have a percentage deduction applied to their eligible rent

5. Department for Work and Pensions 5 Housing Benefit Reforms – April 2013 What do the changes mean ? A fixed percentage of Housing Benefit (full rent) cut if under accommodated. Set at 14% for one extra bedroom & 25% for two or more bedrooms One bedroom is allowed for: Each adult couple. Any other adult aged 16 or over Any two children of same sex under 16. Any two children under 10 (regardless of sex) Any other child. Exceptions for: Disabled tenant- overnight care Severely disabled child. Foster Child. Non Dependant- Armed Forces Priority – Where home has significant adaptations.

6. Department for Work and Pensions 6 Social Fund From 1st April 2013 – Community Care Grants and Crisis loans for general living expenses were abolished. Funding was transferred to devolved administration in Scotland and be known as Scottish Welfare Fund From October 2013 – Budgeting loans will be replaced by budgeting advances and be paid as part of Universal Credit ( In UC Pathfinder areas this commenced in April 2013 ) Regulated Social Fund: Funeral Payments, Sure start maternity grant, Cold weather payments will continue with Universal Credit as The qualifying benefit.

7. Department for Work and Pensions 7 Benefit Cap Limits benefit payments to a household to no more than average household earnings – equivalent to a gross salary of £35,000. Cap excludes one-off payments and non-cash benefits. Exemptions for households include recipients of Disability Living Allowance, Attendance Allowance or Industrial Injuries Disability Benefit. War widows / widowers and those in ESA Support Group also exempt. Housing benefit paid to households in supported exempt accommodation is being disregarded for the Benefit Cap. Those entitled to Working Tax Credit exempt. Roll-out startted in April 2013 in four Local Authority areas with full national roll-out by the end of September 2013. DWP has contacted individual claimants likely to be affected offering support to find work. An online calculator is available at www.gov.uk/benefit-capwww.gov.uk/benefit-cap

8. Department for Work and Pensions 8 Example of impact of Benefit Cap. Couple and 7 children. Couple receive: JSA £111.45 Child Tax credit : £354.59 Child Benefit : £100.70 Rent: £100.00 Total Weekly amount: £666.74 From roll out of Benefit Cap:: Total amount received £566.74 Rental Costs will not be paid From roll out of Universal Credit: Income will be reduced to £500.

9. Department for Work and Pensions 9 Personal Independence Payment Disability Living Allowance will be replaced by Personal Independence Payment Eligibility Components – Daily Living - Mobility Rates - Standard - Enhanced Assessment Criteria.

10. Department for Work and Pensions 10 What is the Personal Independence Payment Assessment? The PIP assessment considers people as individuals, focussing on the impact their condition(s) has on their daily lives and over a range of different activities The PIP assessment is carried out by health professionals who consider evidence provided by the claimant, along with any further evidence they think is needed against a set of assessment criteria Most people will be asked to a face-to-face consultation with a health professional as part of the assessment process Claimants will be encouraged to take somebody with them to the consultation Face-to-face consultations may not be necessary for everyone – for example, those who are terminally ill may not have to have them Home visits will be available when necessary The health professional will send a report to the DWP following the assessment, for the DWP Case Manager to make a decision.

11. Department for Work and Pensions 11 Components, eligibility and the assessment criteria PIP will be made up of two components – daily living and mobility Each can be paid at standard rate, or enhanced rate for those with the greatest needs The PIP assessment criteria will consider the individuals ability to carry out a range of everyday activities Individuals will receive a point score for each activity, depending on how well they can carry them out and the help they need to do them The total scores for each component determine whether a component is payable, and if so, whether at the standard or enhanced rate Enhanced Standard Enhanced Standard Not Entitled MobilityDaily Living Daily Living Components (activities 1-10) Standard rate = 8 points Enhanced rate = 12 points Mobility Components (activities 11-12) Standard rate = 8 points Enhanced rate = 12 points Activity 1. Preparing food 2. Taking Nutrition 3. Managing therapy or monitoring a health condition 4. Washing and bathing 5. Managing toilet needs or incontinence 6. Dressing and undressing 7. Communicating verbally 8. Reading and understanding signs, symbols and words 9. Engaging with other people face to face 10 Making budgeting decisions Standard 0 - 8 0 - 10 0 - 8 0 - 12 0 - 8 0 - 6 Activity 11.Planning and following a journey 12 Moving around Standard 0 - 12 12 points 8 points

12. Department for Work and Pensions 12 How is Personal Independence Payment claimed? Making a claim Claimants (or those supporting them) phone DWP to make a claim to PIP. Paper claims won’t normally be used, and online claims will not be available before 2014. DWP will send claimants a form where they can explain how their disability affects them. Special Rules claims will be dealt with more quickly 2 Assessment Claim details, form and supporting evidence are passed to the health professional. Most people will be asked to attend a face to face consultation The health professional reviews the claim against a set of clear descriptors to assess the challenges faced by the individual. 4 Thinking about claiming Information about PIP will be available from a range of sources, including online, via leaflets and through support organisations. Existing DLA claimants will be contacted individually to ask if they want to claim PIP. 1 How your disability affects you Claimant completes the ‘How your disability affects you’ form to explain how their condition affects their daily life, both on good and bad days and over a range of activities. Supporting evidence can be sent with this form, which they return to DWP by post. 3 Decision A DWP Case Manager will use all the information in the claim form, from the health professional and anything else that has been provided. They will make a reasoned decision on entitlement, including the level and length of award. 5

13. Department for Work and Pensions 13 When will it change? Personal Independence Payment is being introduced in stages: February 2013: DWP sent general info about PIP to all existing DLA claimants in their DLA uprating letters. April 2013: New claims will be taken including from people living in Cheshire Cumbria Merseyside, North West England, and North East England 10 th June 2013: New Claims National roll out Oct 2013: Reassessment- change in condition / end of fixed period of DLA. Oct 2015: Reassessment of existing DLA claimants between 16 and 64 year old

14. Department for Work and Pensions 14 Universal Credit- Why do we need Universal Credit? we are simplifying a complex system of multiple benefits: –the current system has over 10,000 pages of guidance for advisors –it is expensive to administer we are making work pay: –more help for low income working families –claimants will keep more of what they earn –improving incentives to increase hours of work –simplified system will make moving to work feel less ‘risky’

15. Department for Work and Pensions 15 Payments are paid to different adults in a household and for various periods Universal Credit is a single monthly payment to each household (Though we will retain the ability to pay more frequently or to split payment in exceptional circumstances) Conditionality: some benefit claimants are capable of working but have no obligations to look for work Universal Credit will personalise conditions according to people’s capability and circumstances Work incentives can be very low, benefits are reduced to take account of earnings but different benefits have different rules Universal Credit will ensure that work pays. Financial support will be reduced at a consistent and predictable rate and people will generally keep a higher proportion of their earnings The welfare system has more than 30 benefits each with their own rules and criteria Universal Credit provides a new single system means-tested support for working-age people who are in or out of work How is Universal Credit different? Current System Universal Credit

16. Department for Work and Pensions 16 Universal Credit – When will it change? APRIL 2013 OCT 2013 APRIL 2014 2017 Pathfinder Go-Live New claims from unemployed claimants start New claims from in-work claimants start Managed migrations start Managed migration activity completed

17. Department for Work and Pensions 17 Contact Allan Clifford Welfare Reforms Manager Allan.clifford@jobcentreplus.gsi.gov.uk 01475 494021