1. WELFARE REFORM An update on the key changes and where to get local advice September 2014 Nick Hodgkinson, Bradford District Community Advice Network

2. The local advice context Every year, local BMDC funded advice services help more than 26,000 people deal with over 57,000 problems, giving free, independent, confidential and reliable advice: 64% benefits, tax credits, disability & carers allowances 11% debt and money problems (more debt advice is provided with non-BMDC funds) 3%-4% each for housing; immigration & asylum; employment rights; health & community care; consumer raise over £20m additional income for Bradford district residents and handle more than £25m of local debt

3. Welfare reform: updated headlines £18+ billion pa national spending cuts, all affecting people of working age (not pensioners), by 2017(?): cuts to social & private rented Housing Benefit – 2011/12 ‘localisation’ and cuts to Council Tax support – 2012 household ‘benefit cap’ and child benefits cuts – 2012/13 Disability Living Allowance replaced by PIP – 2013 & 2015 new benefit sanctions regime – 2012 ESA assessment and new appeal rules – 2012 & 2013 cuts to JSA and HB for EU/CEE communities – 2014 cut to DSP Community Care & Crisis Grant budget – 2015 Universal Credit – from 2016?

4. Housing Benefit and ‘Bedroom Tax’ at May 2014, 2,900 households had HB ‘bedroom tax’ cuts – 1,520 children live in those households average cut of £15 per week – over £3m overall HB ‘bedroom tax’ cut in Bradford District since 2013 50% of Incommunities tenants affected now in arrears ‘legal loophole’ meant BMDC, housing associations and advice agencies recovered £183,500 for tenants in 2014 Discretionary Housing Payments support many tenants increasing demand on private rented sector – over £8m overall HB cut in Bradford District since 2011

5. Help with Council Tax bills national Council Tax Benefit abolished & reduced budget devolved to councils for local schemes in Apr 2013 maximum rebate under BMDC scheme is 75% - 26,000 households on lowest incomes must pay 25% of CT bill court summonses for non-payment up from 25,800 in Apr-Dec 2012 to 44,500 in Apr-Dec 2013 external bailiffs not used for CTR recovery and recovery suspended if JSA sanction causes CT debt local arrangements and liaison between advisers and Revs & Bens to deal with problems sensitively

6. Household Benefit Cap Since summer 2013, if total means tested benefits plus most other benefits (excl DLA and working tax credits) is… more than £500pw for couples & lone parents, then benefit paid is capped at £500pw – by reducing HB in Bradford District ’cap’ only affects large families – at July 2014, 335 families ‘capped’, 60% private tenants 4-10 children per family – 1,680 children affected in total average HB cut £48pw – £16,250 total weekly HB cut Discretionary Housing Payments support many families

7. Disabled people and carers Personal Independence Payment (PIP) replaces Disability Living Allowance (DLA) for working age adults (16-65) – new test for daily living and mobility needs PIP replaced DLA for all new claims since June 2013 – claims assessed by Atos (lost contract to assess ESA) long delays in assessment – 5-6 months not uncommon approx 24,000 existing DLA awards in Bradford District will be re-assessed from Oct 2015 advisers will help clients understand the process, complete claim forms and, if needed, make appeals

8. People too ill to work and new appeal rules since 2011, Work Capability Assessment (WCA) assesses if people are ‘fit for work’ – nationally half of all ‘fit for work’ decisions appealed, 43% of appeals succeed, large area of work in local advice agencies new appeal rules from Oct 2013 create complexity for ESA clients – now have to ‘sign on’ for JSA while DWP ‘reconsider’ decision for some weeks before allowed to appeal against ‘fit for work’ decision and re-claim ESA advice agencies helping more people (inc with mental health problems) who don’t understand process and left with no income at all when ESA stops

9. Sanctions New JSA and ESA ‘stricter sanctions regime’, Oct 2012: sanctions if fail to satisfy Jobcentre ‘work related’ rules JSA sanctions last for 4, 12, 26 weeks (max 156 weeks); ESA ‘work related activity group’, sanctions last up to 4 weeks – low rate hardship payment may be possible JSA sanctions more than doubled locally from 2010 to 2014 – 17,775 imposed from Oct 2012 to Mar 2014 advice agencies help to apply for hardship payments, appeal against decisions and give food parcels

10. Central & East European communities: JSA and HB complex new benefit rules introduced during 2014 make it much more difficult for ‘migrant workers’ from EEA countries to qualify for JSA and HB since January, no JSA allowed for first 3 months in UK since April, many people who claimed JSA since Jan 2014 cannot get any HB since July, many JSA claims limited to 6 months and no entitlement to children’s benefits or tax credits advice agencies helping more destitute CEE families, with few options other than food parcels

11. Food poverty increasing use reported by local food banks both Trussell and Metropolitan issued more than twice as many food parcels in 2013 as 2012 and increase in demand continues during 2014 advice agencies use both these food banks and also report increasing need to issue food parcels report on small scale, qualitative research into who uses food banks and what ‘triggers’ them to need help is going to Welfare Reform Strategy Group soon

12. Discretionary Support Payments scheme DSP scheme administered by Revs & Bens since 2013 Community Care Grants help people live independently, pay for basic essentials – eg cooker, bed, fridge Crisis Awards give short term, low level emergency help national government abolishes DSP funding, Apr 2015 Revs & Bens developing options for next year, to be funded by current DSP scheme underspend potential for local loan scheme? Consultation soon

13. Universal Credit (UC): working age reforms Universal Credit replaces all means tested working age benefits/tax credits: single source of financial support, in or out of work, abolishes ‘16 hour pw’ work rule policy aims: ‘make work pay’ and ‘simplify the system’ people on UC, whether in work or out of work, required to seek work, more hours or higher pay or face sanctions UC combines all following into one monthly payment: income support, income based JSA, income related ESA, working tax credit, child tax credit, housing benefit

14. UC: local challenges and preparation do not know when UC will be rolled out to Bradford district – working assumption is 2016 local partnership groups in place – Welfare Reform Strategy Group and UC Local Support Service group key issues… advice and support to ‘navigate’ new system, ensure correct award and deal with debts access to PCs and IT skills & support to claim online – eg CHAS IT support ‘drop-in’ sessions money management skills to deal with monthly UC payments – eg Royds ‘money buddies’ project

15. How to find ‘self help’ information For people with access to the internet and skills & self confidence to use it… wealth of reliable information online independent national advice services plus local and national government departments direct links provided on: www.bradfordcan.org.uk

16. Where to get local advice Search for free, independent, confidential, impartial and quality assured local and national advice services: www.bradfordcan.org.uk Ring for ‘self help’ information and signposting to local and national advice services: 08442 451282