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Issues for disabled people in the welfare reform bill

Issues for disabled people in the welfare reform bill. Sue Royston. Summary. Main issues in the bill Universal Credit Support for disabled adults Support for disabled children Housing costs Conditionality and sanctions Council tax not included Personal Independence Payment

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Issues for disabled people in the welfare reform bill

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  1. Issues for disabled people in the welfare reform bill Sue Royston

  2. Summary • Main issues in the bill • Universal Credit • Support for disabled adults • Support for disabled children • Housing costs • Conditionality and sanctions • Council tax not included • Personal Independence Payment • ESA(contribution based) time limiting • Benefit cap

  3. Universal Credit • Not working • Maximum personal allowance (for household) • Includes • earning replacement amount • Housing costs (LHA rate) • Amount for children • May have WR or support or carer addition • Working • Maximum personal allowance reduced by £6.50 for every £10 earned

  4. At its simplest • Single adult paying rent (& LHA) of £100 • Unemployed • £65 (approxJSA rate) + £100 (housing costs) • UC of £165 • Earning £10 • UC reduced by 65%of £10 = £6.50 • UC = £158.50 + earnings of £10 = £168.50 • Earning £100 • UC reduced by 65%of £100 = £65 • UC = £100 + earnings of £100 = £200

  5. Support for disabled people • Gateway to all extra support for disabled people is WCA • Work related or support component • If working • WR (or support) component plus disability disregard • Disability disregard £26.50 more than single adult – worth £17

  6. Disabled children Now • Children on DLA get £55 dis el of CTC • Children on HR care get £55 + £21 severe dis el (£76) Under UC • Children on DLA get £27 dis addition • Children on HR care (and those with severe sight impairment) get £77 higher dis el

  7. Personal Independence Payment • Driven by 20% reduction in spending • No equivalent of lower rate care – this will save 8% so more cuts • Assessment method – face to face assessments • Qualifying time changed from 3months to 6months • Reduction in numbers eligible for disability benefits

  8. ESA(CB) time limiting • ESA(CB) limited to 1 yr for WRAG • Starts April 2013 – some will lose benefit immediately • Concerns round exceptional circumstances rule • Concerns around those with deteriorating conditions

  9. Other measures in bill which will affect disabled people • Housing element • Under-occupancy • Shared room rate up to 35yrs old • Conditionality and sanctions • Much tougher • Civil penalties -£50 for ‘negligence’ • Benefit cap • DLA or PIP excluded

  10. Summary of what is changing? • UC • No severe disability premium in UC • No equivalent of disability element of WTC if fit for work • Support for all disabled children halved • Not money saving – all money going into support group • PIP • No equivalent of lower rate care • Qualifying time 6 months • ESA (CB) – time limited to 1yr for those in WRAG • Other – HB changes, conditionality, benefit cap

  11. How will these changes affect people?

  12. Someone in support group and eligible for SDP • Someone in support group and eligible for SDP will be worse off • £169 now • likely to get just £114 until savings allow increase • Even when raised will still only have £144

  13. What will be the effect on disabled people who are working • Someone found fit for work but on mid rate care eg registered blind • Someone paying rent & earning £100 have £190 disposable income in present system less than £100 in UC • PIP may be lower than DLA.

  14. Someone found fit for work on lower rate care • eg someone with MS • Someone paying rent and earning £100 have £144 in the present system plus £20 DLA less than £100 in UC – same as someone without impairment • Unlikely to get PIP • LAs and other orgs use DLA as a proxy for other support eg travel and leisure passes • Will lose recognition of disability anywhere in system

  15. Disabled children • £27 reduction in support for most disabled children • Includes children with Downs syndrome, profoundly deaf etc

  16. Impact of PIP qualifying time and ESA time limiting • Dramatic and unpredictable drop in income - sudden illness or disability • Wait 6mths not 3mths • Someone who has been recently diagnosed with cancer faces a large drop in income at a time when they face increasing expenses – frequent cause of debt – now will wait 6 months for PIP. • No SDP • ESA(CB) will stop after a year in WRAG

  17. Key amendments • Severe disability premium addition • Disability addition for children • Under occupancy rule • Council tax benefit • ESA(CB) time limiting • PIP qualifying time • Benefit cap • Civil penalties

  18. Evidence we need • Evidence about importance of the SDP • Extra costs of working for disabled people • Problems coping with drop in income if need prolonged period off work • Non recognition of mental health condition of learning difficulties when imposing sanctions

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