1. ‘Skivers and strivers’ How new benefit rules hit them both Alastair Cameron Chief Executive, Scottish Churches Housing Action

2. Benefits reform 2013 and beyond Social security is not devolved – it’s the responsibility of the Westminster coalition New rules introduced on 1 April are one stage in a major reform of system I’ll outline key changes relating to housing – there are others, particularly employment and disability measures, not covered here Based on incentives – but behind those, lie threats

3. From the Directgov website The Coalition Government has identified two key problems with the current system:  work incentives are poor, and  the system is too complex. “We are reforming the system to help people to move into and progress in work, while supporting the most vulnerable”. “Reforming the benefit system aims to make it fairer, more affordable and better able to tackle poverty, worklessness and welfare dependency. We are committed to overhaul the benefit system to promote work and personal responsibility.” The incentive…

4. The threat… The incentive mechanism is to make benefits less attractive. Housing benefit changes are designed “to bring working age tenants in the social sector in line with the private rented sector”.

5. Key changes affecting homelessness Housing benefit  Raising age of shared room rate  Non-dependant deductions  Under-occupation General  Benefits cap  Direct payments under Universal Credit

6. Shared room rate Limits the amount paid to a claimant who is single to the cost of a room in a shared house – not an independent tenancy Previously applied to under-25s; this lower age limit now applies to under-35s

7. Non-dependant deductions A dependant is someone who is part of the claimant’s household – usually children under 16 A non-dependant is someone who lives in the house who isn’t dependent on the claimant – usually children of the family who are 16 or over Deductions are applied where there is a non- dependant in the house - 6 levels ranging from £9.40 pw to £60.60 pw The non-dependant him or herself is not entitled to Housing Benefit

8. Under-occupation (aka ‘the bedroom tax’) Payment will be limited to one bedroom per couple or individual in the household Same-sex children under 16 count as sharing Children under 10 regardless of sex count as sharing. 14% of HB deducted for one ‘extra’ bedroom; 25% for two Applies to people of working age only, from April 2013

9. Benefits cap ‘People should not get more in benefit payments than the average wage paid to people in work’ From April 2013, no claimant will receive more than:  Single person: £350 a week  Couple, with or without children, and single parent: £500 a week ‘The benefit cap will encourage people to look for work and help to promote fairness between those in work and those getting benefits’

10. Universal Credit  available to people who are in work and on a low income, as well as to those who are out of work  operated online  responsive, as people on low incomes move in and out of work, they’ll get ongoing support  still paid on first starting a new job  one monthly payment, paid into a bank account  support with housing costs will go direct to the claimant as part of their monthly payment.’ ‘The main differences between Universal Credit and the current welfare system are:

11. Direct payment Landlords’ concerns  Loss of a tenant’s right to choose  Increased level of arrears and debt for tenants  Increased costs for landlords, eg more staff, arrears recovery &c From Oct 2013 for new claimants, existing claimants ‘migrate’ to new system by 2017

12. Context Major changes, done on cost-neutral basis – if some gain, others must lose Ignore realities of housing – eg smallest properties in highest demand Ignore realities of family life – eg separated parents needing a room for visiting kids; adult children leaving family home and then returning Background emphasis on benefit fraud, setting ‘claimants’ against ‘hard-working families’ – ‘skivers’ vs ‘strivers’ Objectives of simplicity and fairness overwhelmed by complexity of real lives

13. Comment More of those affected by bedroom tax are working than not working Little evidence of common stereotypes – fewer than 4% misuse drink or drugs; researchers could not find any families with ‘3 generations of worklessness’ Fraud is less than 1% of benefits total – more is saved by benefits not claimed than lost through fraud; tax evasion much higher No easy life on benefits Major cost of ‘soaring’ social welfare bill goes on pensioners, who are untouched by these changes

14. How can I help? Bedroom tax and other changes are happening now Universal credit will be phased in – starting with new claimants from October 2013 1.Help claimants – Make online access available. Point people to good advice, eg www.benefitsawareness.org.uk, local CAB which will also help with appeals, reviews &c: www.cas.org.ukwww.benefitsawareness.org.uk www.cas.org.uk 2.Gather stories - www.tellmystory.org.ukwww.tellmystory.org.uk 3.Keep up to date – www.scvo.org.uk/policy- campaigning/welfare-reformwww.scvo.org.uk/policy- campaigning/welfare-reform 4.Keep up pressure for change!

15. Background Report from joint churches: The lies we tell ourselves: ending comfortable myths about poverty www.jointpublicissues.org.uk/truthandliesaboutpoverty/ This presentation available at: www.churches-housing.org/our-vision/ Contact me: Alastair Cameron, alastair@churches-housing.org 0131 477 4500 or 07900 044577