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Welfare Reform

Welfare Reform. The Story So Far. 2011 Child Benefit rate frozen for 3 years; Local Housing Allowance restricted to 4 bedroom rate. 2012 The age threshold of the shared accommodation rate of Local Housing Allowance is increased from 25 to 35;

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Welfare Reform

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  1. Welfare Reform

  2. The Story So Far 2011 • Child Benefit rate frozen for 3 years; • Local Housing Allowance restricted to 4 bedroom rate. 2012 • The age threshold of the shared accommodation rate of Local Housing Allowance is increased from 25 to 35; • Couples with children will now have to work 24 hours per week to qualify for Working Tax Credits; • Contributory Employment and Support Allowance time limited to 1 year

  3. Key Reforms: Under Occupation in the Social Rented Sector • As of April 2013 families will need one bedroom for each of the following: • A couple; • A person who is not a child; • Two children of the same sex; • Two children under the age of 10; • A carer providing overnight care. • This change will apply to those with a tenancy in the Social Rented Sector (including Local Authority tenants, and tenants of social housing and registered social landlords) • If one bedroom is under occupied then Housing Benefit will be reduced by 14% • If two or more bedrooms are under occupied then Housing Benefit will be reduced by 25% • This change will affect approximately 900 households in Darlington

  4. Key Reforms: Council Tax Benefit • Council Tax Benefit is currently available to those on a low income and provides support to pay Council Tax. • As of April 2013 Council Tax Benefit will be replaced by a localised Council Tax Support scheme with a 10% reduction in Government funding. • The localised service has been approved. Council Tax Support will only be paid to a maximum of 80% of a person’s Council Tax. • This change will affect approximately 7,000 households • People of pensionable age will be protected from this change

  5. Key Reforms: Social Fund • The Social Fund provides grants and loans to meet costs and needs that otherwise could not be met • Elements of the Social Fund will be abolished in April 2013 and replaced by a localised service provided by the Local Authority • The Council will provide the Crisis Loan and Community Care Grant aspects of the Social Fund • DWP will continue to provide Interim Payments, Alignment Payments and Budgeting Loans • The localised scheme will be delivered by the Revenue and Benefits team of the Council

  6. Social Fund Key Messages • There will be no cash payments • Support offered by the Crisis Support element will include: • Food • Clothing • Key consumables for babies • Heating • Travel to hospital • Support offered by the Community Care Support element will include: • Beds • Bedding • Chairs/sofas • Tables • Wardrobes • Travel costs to hospital a funeral or a prison visit • To be eligible for the Crisis Support element applicants must meet the following conditions: • Major disaster at home • Health will deteriorate as a direct result of being unable to afford the goods or services requested • To be eligible for the Community Care Support element applicants must meet one the following conditions: • Requires support to move back into the community • Requires support to move out of inappropriate accommodation • Requires support to prevent a move into residential care or hospital • Requires support to prevent a serious deterioration of health within the home

  7. Key Reforms: Personal Independence Payment (PIP) • PIP is due to replace Disability Living Allowance (DLA) for eligible working age people (16-64) • There are currently no plans to replace DLA for children under the age of 16 or those over 65 • PIP will be introduced in the North East in April 2013 and rolled out across the country in June 2013 • It is anticipated that the budget for PIP will be 20% less than the budget for DLA • This change will affect approximately 4,000 people

  8. Personal Independence Payment Key Messages • There will be a reduction in the number of rates from 5 rates to 4 • There will be a longer qualifying period to qualify for the benefit • There will be a reduction in people qualifying for the benefit • People will potentially lose Housing Benefit as a result of the changes

  9. After April 2013 • Benefit Cap • Maximum amount of benefit that some working age people can receive • £350 per week for single adults with no children • £500 per week for couples and lone parents • Universal Credit • Due to be introduced from October 2013 • Will replace a number of existing benefits • Will be predominantly online • Paid monthly • Direct payments to landlords in limited circumstances

  10. Impacts in Darlington - Total It is estimated that the loss to the local economy will be approximately: -£14,000,000

  11. Impacts of Reform • Analysis undertaken identified a number of groups who will be most affected by the reforms: • Children and young people; • Disabled people and their carers; • Older people; • Lower income families, and • Lone parents

  12. Working with our Partners • Welfare Reform is a priority of the One Darlington group of the Darlington Partnership • The priorities for the partnership are: • General and targeted awareness raising initiatives; • Signposting and self-help resources; • Financial inclusion and literacy; • Access and digital inclusion; • Crisis support; • Specialist support, advice and advocacy

  13. Local Advice and Support • Citizens Advice Bureau : http://www.darlingtoncab.co.uk 01325 256999 • Darlington Credit Union:http://www.darlingtoncreditunion.co.uk 01325 520005 • People and Families Information Service: http://www.darlington.gov.uk/children/fis 0800 9172121 • Housing Benefits:http://www.darlington.gov.uk/advice+and+benefits/benefit • 01325 388514 • Compass Choice Based Lettings: http://www.darlington.gov.uk/Housing/findingahome/applyingforacouncilhome/Applying.htm01325 388542 • Darlington Council Customer Services: http://www.darlington.gov.uk/generic/customerservices.htm 01325 388542 • Age UK: www.ageukdarlington.org.uk 01325 362832 • Darlington Association on Disability: www.darlingtondisability.org 01325 362832 • First Stop Darlington: www.darlingtonfirststop.org.uk 01325 254463 • 700 Club: www.700club.org.uk 01325 366397 • Tees Valley YMCA: www.teesvalleyymca.org.uk 01325 462452 • eVOLution: evolutiondarlington.com 01325 266888 • Gay Advice Darlington: http://www.gayadvicedarlington.co.uk/ 01325 355551 • FRADE:www.frade.co.uk/frade2/darlington.htm 01642 245927

  14. National Advice and Support • Turn 2 Us: http://www.turn2us.org.uk/ • Department for Work and Pensions: http://www.dwp.gov.uk/ • StepChange: http://www.stepchange.org/ • Money Advice Service: https://www.moneyadviceservice.org.uk/ • Shelter: http://england.shelter.org.uk/0344 515 1601 • Disability Rights UK: http://www.disabilityalliance.org/ • HMRC: http://www.hmrc.gov.uk/ • Samaritans: http://www.samaritans.org/ 08457 909090

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