1. Welfare Reform David Gray Welfare Rights Manager Peter McCann
Head of Revenues and Benefits and Customer Services

2. Overview of presentation
1) Welfare agenda Dave
2) Changes from April Peter
3) Longer term changes Dave

3. Welfare Reform Act 2012 Royal Assent 8/3/12
Biggest Change to welfare system in 60 years
Stated intentions of Government
– Make work pay
- Protect the vulnerable
- Fair to tax payers
- Fair to benefit claimants

4. Expenditure savings

5. Measures Universal Credit Housing Benefit Reform
Abolition of Council Tax Benefit
Personal Independence Payments (PIP)
Employment Support Allowance
Enhanced benefit sanctions

6. 1. Bedroom Tax 2. Discretionary Support Scheme 3
1. Bedroom Tax 2. Discretionary Support Scheme 3. Council Tax Reduction Scheme 4. Discretionary Housing Payments 5. Benefits Cap 6. Council Tax Empty Property Charge
Introduction

7. Bedroom Tax

8. Bedroom Tax One bedroom calculated for each of the following:
A single claimant or every adult couple
Any single adult aged 16 or over
Any two children under age 10
Any two children of the same sex aged up to 15
Any other child (other than a foster child or child whose main residence is elsewhere)
A non-resident overnight carer

9. Housing Benefit – Bedroom Tax
Housing Benefit is reduced by making a reduction to eligible rent
14% one room (2,000)
25% two rooms (600)
2,600 households affected
Total Housing Benefit reduction is £1.8m

10. Housing Benefit – Bedroom Tax
Exemptions:
Temporary accommodation
Supported accommodation
Claimant or partner qualifies for state pension credit
Protections:
Recent bereavement – 12 months
New claim – 13 weeks

11. What is Halton BC doing? Supplied lists to RSLs of households affected
December Council wrote to claimants informing of under occupancy
Number of bedrooms & household composition
Amount of Housing Benefit reduction
Claimants requested to inform HBC if household composition is incorrect
Over night care cases identified
Disabled adaptations identified

12. Non Dependants
Where are they?

13. Discretionary Support Scheme

14. From April 2013 the Discretionary Social Fund will end
From April Halton Council has a new scheme which may or may not be able to help you
Not a like for like replacement

15. Background
As a result of the Welfare Reform Bill, the national Discretionary Social Fund, currently administered by DWP, will be disbanded from April 2013
Crisis Loans for general living expenses and Community Care Grants will be replaced by new local assistance schemes to be administered by Local Authorities
Expected that the grant to LAs will be based on the equivalent social fund spend (£178m) But Halton £100k down on 2011/2012!
Will be non-ring fenced
No new statutory duties to provide local scheme

16. Locally designed & administered provision
Changes to the Social Fund Scheme from April 2013
Regulated scheme
Sure Start Maternity Grants
Funeral Payments
Cold Weather Payments
Winter Fuel Payments
Discretionary scheme
Budgeting Loans
Crisis Loans
-Alignment Payment
-General living expenses
Community Care Grants
Remains with DWP
Locally designed & administered provision

17. Awards 2011/12

18. No cash
Freephone number
List of considerations reduced
Online applications for support in community

19. Key Message
Discretionary Social Fund now no longer exists
Halton Council may be able to help you

20. Council Tax Support Scheme (Abolition of Council Tax Benefit from April 2013)

21. Current Position
Expenditure: Housing Benefit £52m Council Tax Benefit £11m Caseload: Housing Benefit ,014 Council Tax Benefit ,305

22. Current Council Tax Benefit Scheme
Council Tax Benefit caseload & expenditure
Caseload
CTB Expenditure
Pensioners:
Passported
4,338
£3.45m
Non passported
2,085
£1.24m
6,423
£4.69m
Working Age:
6,435
£4.94m
2,447
£1.48m
8,882
£6.42m
Total
15,305
£11.11m

23. Current Position Demand led
Funding- Councils are reimbursed 100% of the full amount of Council Tax Benefit paid out correctly
From April 2013 Council Tax Benefit will be abolished and replaced by a locally designed scheme

24. A Local Scheme - BUT….. New local scheme should: But:
Protect pensioners ( 41% of Halton’s benefit caseload are pensioners)
Take into account vulnerable groups – responsibilities regarding child poverty, the disabled, homelessness and equalities
Incentivise people to work
But:
There will be a 10% reduction in funding (equates to £1.4m in Halton)
The pensioner protection increases the burden to around 18% for working age claimants
Any expenditure above the cash specific sum must be met pound for pound by LA
The more people protected the higher the burden

25. The Scheme
Reduction in non pensioner benefit of a % amount to be deducted at the end of the calculation
The % amount to be determined by Members each year once the grant details have been received
For 2013/2014 it will be 21.55%

26. The Scheme The % reduction ensures that the cut is shared equally
Retaining present system ensures the in-built protection for various groups is maintained
Small sums will be billed ( poll tax)
Average between £2 & £4 per week
People billed for the first time

27. General Issues Increased cost of recovery
Small amounts soon become big
Difficulty in gauging future demand & subsequent financial impact
3 schemes will be operating
Confusion
Have written to 9,000 households at the start of the year

28. Key Message Don’t ignore the Council Tax Bill
Get in touch with the Council

29. Benefits Cap

30. Benefit Cap
As part of the Welfare Reform Bill, a cap on the maximum amount working- age households can claim in benefits will be introduced from April 2013 (now summer 2013)
This is to prevent claimants receiving more income from benefits than the average wage paid to those who are working.
The cap is set at £26k per annum (£500 per week for households with children or £350 per week for single claimants without children).
Some benefits are excluded such as Working Tax Credits and Disability Living Allowance.
Department for Work and Pensions (DWP) have written to all households that they think may be affected.
DWP have identified 104 households in Halton that may be effected (have incomes of between £26k and £46k).
DWP have wrongly identified some clients as being effected.

31. Benefit Cap
Until the implementation of Universal Credit, the cap will be applied to Housing Benefit
Owner Occupiers will not be effected until transfer to Universal Credit
Claimants likely to see it as a reduction in Housing Benefit rather than a reduction in overall benefits
Have written to 100 people

32. Discretionary Housing Payments

33. Discretionary Housing Payments
Amount increased from £87k to £282k
Bedroom Tax alone is £1.8m shortfall
Publicity states that this will be the safeguard!

34. Council Tax

35. Council Tax
Changes to charges for Empty Properties
Change to charges for Second Homes
Everyone currently receiving exemptions have been notified

36. Final Message
Impact on individuals - Social Fund/Bedroom Tax/ CTRS – which do I pay?
Impact on Halton’s wider community- (less money in economy)
Collection issues for Council/RSLs
Confusion & uncertainties for everyone as Government amends legislation
‘It won’t affect me’ syndrome - £100m reinforces this
Capacity issues of Council as its all in one area
Get in touch

37. Current System Reformed System
Income related JSA
Income related ESA
Income Support (inc SMI)
Working Tax Credits
Child Tax Credits
Housing Benefit
Universal Credit
Disability Living Allowance
Personal Independence Payment
Pension Credit, Child Benefit, Carer’s Allowance (will remain)
Council Tax Benefit ( to be replaced)
Contributory JSA and ESA ( now has 52 week limit)

38. Universal Credit Single means tested benefit Payable in or out of work
Initially for new claimants- stock transfer to follow
Oct 2013 for new claims, April 2014 to start transfer ( by Oct 2017)
Transitional Protection
Pilots being undertaken
Digital agenda

39. Universal Credit

40. Universal Credit – Risks/Impacts
Universal Credit will be paid directly to the customer.
Customer will need a bank account. (preferably one that will accept Direct Debits for rent payments.)
Will be paid monthly in arrears and to one person if part of a couple.
As yet still no definition of ‘vulnerable’ for payment to go to landlord.
Potential substantial risk for increase in rent arrears
DWP have said they will be putting measures in place if this has an adverse effect on the family –don’t know what yet?

41. Personal Independence Payment (PIP).
Replaces DLA for new claimants of working age from April 2013
-10,600 benefit claimants in Halton on DLA
Points based
Many currently entitled to DLA would not get PIP
Intention is to save money
Disproportionate effect on Halton
North West pilot

42. PIP

43. Wider Reforms Tax Credits Eligibility criteria made harsher
Employment Support Allowance
Existing Incapacity claimants to be assessed against harder criteria for ESA.
Substantial proportion move onto Job Seekers Allowance
Child Benefit Reform
Restrictions for Higher Rate Taxpayers

44. The Biggest Impacts The Benefit Cap Summer 2013
Council Tax
Reduction Scheme April 2013
DLA/PIP
April 2013
Universal Credit –October
Incapacity Benefits migrating to ESA
Non Dependant Deductions increased from
The Bedroom Tax - Under occupation April 2013
Introduction
5 Welfare Reforms happening in 2013 (4 in April)
Emphasis on Under occupancy – explanation on the next slide.

45. Summary of Welfare Reform
A lot covered very briefly and very complex
Deserves more detail
Full detail of changes not yet available
Intentions – saving money
- less generous to benefit claimants
Help available through Welfare Rights Service (tel: )