Overcoming Barriers to Financial Support

1. Overcoming Barriers to Financial Support Steve Dubbins Benefits Advice Programme Manager

2. Barriers to take-up • Lack of awareness about potential entitlements • Complexity of the benefits and tax credit systems • Poor benefit administration, particularly decision making, resulting in wrongly refused claims • Lack of support available with benefit checks, claims and appeals • Stigma attached to claiming

3. Consequences... • DWP estimate up to £11 billion in means-tested benefits went unclaimed in 2009/2010 • This does not include DLA and AA – which have take-up rates of approximately 55% and 65%, respectively. • It is estimated that the combined benefit and tax-credit under-claim is in excess of £20 billion. • Even when people successfully make claims they may not always receive their full entitlement (DLA underpayments in 2007 amounted to £260 million)

4. Funding for advice and support • There is no statutory duty to provide advice services • Austerity measures have led to wide-scale decommissioning • Legal Aid is no longer available for social welfare law (e.g. benefits, employment, debt & housing) • A perfect storm: Increasing need, diminishing provision and the most radical reforms since Beveridge

5. Welfare Reform • Welfare Reform Act 2012 • Intention to simplify the benefit system and encourage people to move into work • A complete restructure of working age benefits • Social Security expenditure to be reduced by £22 billion per annum by 2014-2015 • A further reduction of £10 billion announced in 2012 budget

6. Personal Independence Payment • PIP replacing DLA for 16-64 year olds • No new claims from June 2013 • Aim to reduce number of claimants by 500,000 • More medical assessments • Tougher criteria, shorter awards, more frequent reviews • DLA renewal or changes of circumstances will require claim for PIP

7. Universal Credit • UC completely restructures means-tested benefits provision for working age claimants • Introduces ‘Digital by Default’ – claims will have to be made online. • Payment will be made once a month (to mirror salaries) • Aim for UC to be fully implemented by 2017

8. Some other highlights • Housing Benefit cut for working age tenants of social landlords (bedroom tax/spare room subsidy) • Council Tax Benefit localised and reduced by 10 per cent • Help with mortgage interest payments reduced by 50% • Contributory- based ESA time-limited to 12 months • Discretionary Social Fund (Grants and Loans) replaced by local authority support schemes

9. Macmillan’s Financial Support Programme Macmillan Welfare Rights Line Macmillan Grants Local benefits advice services Policy & campaigns Financial Guidance Information Resources

10. Local benefits services - 2012 impact • Local advisers helped more than 112,000 • Financial gains of £191m • 126 benefits services

11. Policy & Campaigns • Welfare Reform • Fuel Poverty • Prescription charges

12. Maximising Income: Some Tips • If you’re struggling financially or just want to make sure you’re not missing out get a benefits entitlement check (use the internet, your local CAB, or ask a health or social care professional to refer you) • If entitlements are identified try to get support with the claiming process. • When you receive a decision get it checked by an advisor immediately – there are tight time-limits for appeals and reconsiderations • If you’re refused try to get support with your appeal and don’t give up, decisions are often overturned at appeal

13. Concluding remarks • Income maximisation at the earliest opportunity (and at key transition points) can significantly reduce financial hardship and improve well-being • However, accessing advice and navigating social welfare is arguably more challenging now than it has ever been • Charities must work together to build capacity and to ensure that advice and support is embedded within future care pathways

14. Thank you, any questions?