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Bolton Council Welfare Reform – Impact & Mitigation
Phil Rimmer – Head of Revenues and Benefits 18th November 2016
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Key factors impacting poverty
Welfare Reform Major reform programme – began 2008 but greatest impact from April 2013 Significant impact on working age customers and those in receipt of disability benefits – pensioners largely protected Many of the reforms directly impact on ability to afford housing Growth of easy access to finance & goods Pay day loans – high APR’s High street stores offering high interest weekly payments Aggressive marketing – no longer stigmatised Change in employment/economic climate Zero hour contracts Increase in low paid and part-time work Growth in working benefit claimants Potentially fuelled by benefit sanctioning?
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Welfare Reform – 2013 to 2016 LCTS Benefit Cap LWP ESA/PIP
Universal Credit Bedroom Tax
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Reform since April 2013 Bedroom Tax Benefit Cap Universal Credit
Affected approx. 3,500 residents Size criteria - % reduction on HB for under occupying Impacted social housing Over £2M per year Benefit Cap Original cap set at £26K for families Lower numbers affected – approximately 160 Over £500K per year Universal Credit 6 key benefits – IS, HB, Tax Credits (working & child), ESA, JSA Working age customers – 17,000 on HB in Bolton Direct payment to customer Local Council Tax Support Currently generous scheme in Bolton £3M reduction in funding - £370K passed on to customers ESA & PIP Replace Incapacity Benefit and Disability Living Allowance New criteria – large losses of weekly income More than 60% of decisions overturned at Tribunal
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Supported & Temporary Housing
New Welfare Reform – 2016 to 2018 LCTS (12.5%) Benefit Cap (£20K cap) Tax Credit Benefit Freeze HB Changes Supported & Temporary Housing LHA Maxima Universal Credit (Full Service)
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Welfare Reform – April 2016 & beyond
Detail Timeline Impact Benefits Cap £20K Parents/couples £13.4K single Nov 16 Over 500 HB customers, estimated annual losses in excess of £1.5M Universal Credit Reduction in work allowance threshold 18-21 Apr 16 Apr 17 Potential impact on work incentives /small numbers but high losses/ increased homelessness LCTS 12.5% top slice 17,000 working age, annual losses around £2.1M HB changes 1 month backdate limit, removal of family premium, temporary absence Loss of HB for potentially vulnerable customers, reduction in HB for families Tax Credit Reform Income disregard reduced to £2,500 800,000 customers nationally, high losses LHA Maxima LHA Cap in Social Sector Apr 18 Particular issue for single customers under 35 without children – shared LHA rate, rent unaffordable Benefits Freeze Working age benefits & LHA (4 years) High numbers affected, erosion of income Supported Housing/Temporary Homeless Accommodation Likely to be reduced funding to LA’s at a time of increased demand Apr 16? Reduction in this type of housing
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Customer impacts often complex
Housing Food Poverty Fuel Poverty Health & Wellbeing Education Employment Welfare Benefit Advice Debt & Money Advice
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Anti-Poverty Budget – 2013 to 2018
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Bolton’s Anti-Poverty Offer
Debt Advice Food Furniture Gas/Electric Loans Housing Benefit Local Council Tax Support FSM/School Clothing Visiting Team Appeals/Tribunals Money Skills Food Bank Support LWP Welfare Rights DHP & LCTSR Shop on the Square Credit Union
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Bolton’s Financial Inclusion Partnership
How do we make sure all customer needs are captured? Money Skills Food Banks Access Bolton Welfare Rights Housing Providers Shop on the Square Credit Union CAB Revs & Bens Age UK Public Health
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The Shop on the Square Central location
next to Game – previously Millets Furniture White goods Electrical Credit Union Age UK Referrals to LWP Referrals to Money Skills
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Local Welfare Provision
Online claim – Bolton Council Website Furniture White goods Gas Electric Travel Food Parcels Debt Advice & Loans
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Welfare Rights Advocacy through to Tribunal Hearings PIP
ESA Appeals/ Tribunals Welfare benefits advice
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Educating young people via Schools and Colleges
Money Skills Educating young people via Schools and Colleges Debt Advice Money Skills Fuel Poverty Education
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Additional help Visiting Team Discretionary Housing Payments
Home visiting service Elderly customers and customers in receipt of disability benefits Help completing claims for HB, LCTS, ESA, AA, PIP Discretionary Housing Payments £670K budget for 2016/17 Help with housing costs – shortfall between HB and rent Housing Benefit & Local Council Tax Support Help with rent and council tax Online claim process Education Benefits Free School Meals School Clothing grants
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Outcomes - Apr 2013 to Mar 2016 Welfare Rights Local Welfare Provision
On average 56% of appeals won at tribunal £69,375 of weekly gains £1,446M in lump sum awards Local Welfare Provision Community Awards - £1,998M Emergency Awards - £225,070 9,361 household items, 4,361 food parcels, 5,266 gas & electric awards Money Skills Service 1,206 referrals Over £3M debt managed £743,578 financial gains DHP £1.87M awarded On average 96% of budget spent over last 3 years Visiting Team £152,445 in weekly awards £1.9M in backdated & lump sum awards
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Some challenges for the future
Austerity Continued reductions in budgets Many council services providing support are not statutory Anti-Poverty funding ends after March 2018 Devolution Budgets may be devolved to GM rather than individual LA’s? Opportunity to work differently? Place Based Integration emerging theme? Digital Agenda Helping people to help themselves Greater access to services Opportunity to work closer across public sector? Better use of resources – additional advocacy for those that need it Risk of exclusion if we don’t get it right?
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