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Welfare Reform Impacts. Sam Lister, Policy & Practice Officer, CIH. Aims: understand better. The breadth of the reforms Why they have taken place Scale of impacts Future reforms: universal credit How might we better approach campaigning. Welfare & public expenditure.

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welfare reform impacts

Welfare Reform Impacts

Sam Lister, Policy & Practice Officer, CIH

aims understand better
Aims: understand better
  • The breadth of the reforms
  • Why they have taken place
  • Scale of impacts
  • Future reforms: universal credit
  • How might we better approach campaigning
public services expenditure
Public services & expenditure
  • UK government expenditure on social security
    • How much is spent annually (£ million)
    • What are the three biggest items of expenditure
    • How much does it save from bedroom tax (£ million)
  • What do we spend on each of these
    • Health
    • Education
    • Police
    • Housing (non HB)
welfare reform awareness
Welfare reform awareness
  • How many reforms can you identify (2010)
  • Who do you think has been worst affected by welfare reform
    • Numbers (largest group)
    • By loss (amount of benefit lost)
benefit cap in the south east
Benefit cap in the South East

Household benefit cap: impact on 3 child families in London and the south east.

pip and consequential
PIP and consequential
  • Similar structure to DLA (care, mobility)
  • Two rates of care, two rates of mobility
  • In effect the end of the lower care rate
  • Tougher ESA style medical test with points threshold
  • Regular reviews and fixed term awards
  • 500,000 taken off projected caseload by 2015/16
  • Loss of disability and/or severe disability premium
  • No severe disability premium in universal credit
  • Losses from £21 to £110+ per week for single
housing support welfare cuts
Housing support welfare cuts

Impact Assessment Annual Policy Costings 2014/15* (£ million)

  • Social sector size criteria 500
  • Non dependent deductions 340
  • Household benefits cap 265
  • Local housing allowance (30th percentile and CPI indexation)880
  • LHA shared room rate extension 215
  • Disability living allowance to personal independence payment 1240
  • Time limiting contributory ESA 1180
  • Tax credits (2010)1225
  • Tax credits (2011) 1630
universal credit main features
Universal credit main features
  • Better off in-work
  • Keep more as you earn more
  • Smoother transition between in and out of work
  • Single combined benefit
  • Payment to tenant
  • Centralised administration
current benefits tax credits
Current benefits & tax credits

Couple, two children, one earner, rent £75.00, council tax £23.00

universal credit1
Universal credit

Couple, two children, one earner, rent £75.00, council tax £23.00

current uc compared
Current & UC compared

Couple, two children, one earner

universal credit main features1
Universal credit main features
  • Better off in-work
  • Keep more as you earn more
  • Smoother transition between in and out of work
  • Single combined benefit
  • Payment to tenant
  • Centralised administration
tenant payment
Tenant payment
  • How do you view it / what will be the impact
    • Increased rent arrears?
    • Difficulty managing money?
  • Any positives?
    • Public perceptions?
    • Landlord tenant relationship?
some things to think about
Some things to think about
  • The numbers are mind blowing
  • The bedroom tax is one element only
  • Does it matter to us if private tenants lose out
  • Some of the decisions raise difficult questions does it help our cause if we ignore them
  • Wider public perceptions are important – because we are public too
  • What matters is how much support people receive not how it is paid
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