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Welfare Reform

Welfare Reform . Information Session. Today's Session. Rationale for Reform Welfare Reform Agenda Welfare Reform Bill Welfare Reform Regulations - Housing Benefit. Today's Session- cont’d . Wider Changes Timetable for Reform Mitigating actions.

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Welfare Reform

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  1. Welfare Reform Information Session

  2. Today's Session • Rationale for Reform • Welfare Reform Agenda • Welfare Reform Bill • Welfare Reform Regulations - Housing Benefit

  3. Today's Session- cont’d • Wider Changes • Timetable for Reform • Mitigating actions

  4. Governments Rationale for Reform Making Work Pay • Consider current system to have failed • Overly complicated • Too expensive • Does not encourage people into employment • Open to fraud

  5. Agenda for Reform • Simplified, Streamlined Welfare System • Reduce Bill for Welfare Benefits by 20% • Encourage and incentivise people to work • Ensure those not working , no better off than working households • Break the cycle of Welfare Dependency Increased Sanctions attached to all elements of Welfare Reform

  6. Welfare Reform Bill

  7. Benefits being abolished • Income support • Income based jobseeker’s allowance • Income related employment and support allowance • Housing benefit • Child tax credit • Working tax credit

  8. Universal Credit • Introduced October 2013 • One benefit payment to be paid in or out of work • Payment to one member in a household • New work related activity requirements • Stronger sanctions • Real time IT system • Payments may change to monthly in arrears

  9. Personal Independence Payment • Replaces disability living allowance • 2 components: mobility and daily living with 2 rates for each component • Assessment by way of medical examination • Initially only for working age claimants • Entitlement to PIP part of gateway for carers allowance • Plans to introduce a habitual residence test instead of ordinary residence test (DLA)

  10. Regulations

  11. Housing Benefit2011 • LHA – capping, change to 30th percentile • Ending of excess payment award • Increase in rate of non-dependant deductions These applied to new claims from April 2011. Changes were delayed for existing claimants for 9 months after the 1st anniversary date of their claim after April 2011. Change started from January 2012

  12. 2012 • Age range for Shared Accommodation Rate (SAR) extended to 35 • Capping of LHA for existing claimants • LHA at 30 percentile for existing claimants

  13. 2013 April • Reduction in HB award for under-occupation in social rented sector • Overall cap on benefits received • Increase in LHA rate limited by rate of Consumer Price Index October • Introduction of Universal Credit

  14. 2014-2017 • Phased transfer of existing HB caseload to Universal Credit

  15. Supported Housing HB Reform • Grouping of different ‘types’ of supported housing with different payment rates : flat rate/geographical rate • Identifying types of additional activities and pricing these • Intensive housing management costs to be separated from HB and administered by local authorities under personalisation agenda • Housing benefit to be paid via Universal Credit • Tied to personalisation agenda

  16. Potential Impacts • Increased competition & demand for housing • Remove/Limit housing choice • Prevent move on & impede progress • Financial impact on housing providers due to a number of changes: direct payments, communal areas, intensive housing management • Rent Shortfalls - Debt/ Arrears • Loss of Accommodation/Homelessness

  17. WIDER CHANGES

  18. Other key elements • Income support for lone parents • Contributory ESA limited to one year • ESA in youth to be abolished • Benefit cap to be introduced – problematic for disabled people • Social Fund community care grants, budgeting loans and crisis loans abolished from 2013 • Childcare gaps • Passport benefits

  19. Procedural Issues • Changes to right of appeal • Overpayment recovery • Benefit penalties and fraud • Immigration status and entitlement • Access to welfare advice

  20. TIMETABLE FOR REFORM

  21. NI Welfare Reform Bill • Due 2012. Welfare Reform Bill GB received Royal Assent 14.03.12 • Possible Accelerated passage • Social Fund • Lack of a work programme • Childcare • Forecasted longer recession recovery

  22. Timetable cont’d April 2013 • DLA replaced by PIP • Mobility provisions for people in residential care to be reviewed • HB entitlement to reflect family size • LHA to be uprated in line with CPI • Benefit cap £500 p/w for couple/lone parent. £350 p/w for single people (does not apply to those on DLA, working tax credit & war pensions) October 2013 • UC introduced • Community care grants and crisis loans abolished

  23. Mitigating Actions • Support financial capability • Promote realistic housing options • Develop relationships with local employment services • Develop relationships with local PRS landlords • Lobby MLAs for changes to HA regs to allow better use of existing stock • Respond positively to the Housing Strategy for NI consultation when available

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