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Welfare Reform Update March 2013 . Welfare Reform Act 2012. The Act introduces a wide range of reforms to: make the benefits and tax credits system simpler; create the right incentives to get more people into work; protect the most vulnerable in our society: and
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Welfare Reform Act 2012 The Act introduces a wide range of reforms to: • make the benefits and tax credits system simpler; • create the right incentives to get more people into work; • protect the most vulnerable in our society: and • deliver fairness to those claiming benefit and to the tax payer.
Size Criteria (underoccupation) Claimants will qualify for one bedroom (up to a maximum of four) for: • Every adult couple • Any other adult aged 16 or over • Any two children of the same sex aged under 16 • Any two children regardless of sex aged under 10 • Any other child aged under 16 • A non-resident carer (claimant/partner have disability and need overnight care).
Size Criteria (underoccupation) • Size criteria will be introduced to Housing Benefit for working age claimants in the social rented sector from 1st April 2013 • Those considered to be under-occupying their accommodation will see a reduction • 14% of their total eligible rent for under-occupation by one bedroom; and • 25% of their total eligible rent for under-occupation by two bedrooms or more.
What are we doing? • Key area of focus for Oldham Housing Investment Partnership (OHIP) and established a Welfare Reform Working Group • Agreed Data Sharing Protocol and exchanged data • Agreed Joint Communications Plan • Looking to provide tenants with Financial and budgeting support • Monitoring the impact on own organisations • Looking at Discretionary Housing Payments
Discretionary Housing Payments • Oldham allocation for 2012/13 was £173k for 13/14 that has increased to £498k • Funding allocated to local authorities to support those affected by the size criteria and the benefit cap • £30m for the size criteria funding priorities • £25 million to assist those who live in significantly adapted accommodation due to someone in the household having a disability. • £5 million to assist foster carers, including those between placements. • New DHP policy
Council Tax Benefit replaced by local scheme • Reduction in funding to local authorities • £3m reduction in funding (which includes £400k for the fire and police preceptors) • £1m additional income will be raised from Council Tax changes to empty properties and second homes • £2m less available to pay in benefit • 10,786 claimants of Pension Credit Age are protected • 12,916 households will have Council Tax to pay for the first time • 4,209 households will have an increased amount to pay
Oldham’s scheme for working age claimants • Approved at full council on 12th December 2012 • The method of calculation will be similar to the current Council Tax Benefit Scheme i.e same rules for income capital and non-dependent charges. • What’s different • Benefit will only be calculated based on the Band A Rate of Council Tax (this will affect all claimants in Band B or above) • Benefit entitlement will be reduced by 25% • Second adult rebate will be abolished
Local Welfare Provision • Abolition of Crisis Loans for living expenses and Community Care Grants paid by DWP Social Fund • New emergency provision for vulnerable groups • Council has approved a new scheme which will include • preventative measures • supply of goods • cash in exceptional circumstances only
Simplifying a complex system Current system Future system Income Based JSA Income related ESA Income Support Working Tax Credits Child Tax Credits Housing Benefit UniversalCredit Disability LivingAllowance Personal Independence Payment … to include support for housing and children Pension Credit Child Benefit, Carer’s Allowance (will remain) Council Tax Benefit (Localised Council Tax Support Schemes) Contributory JSA and ESA (conditionality rules changing)
Universal Credit is that tackles welfare dependency, poverty and worklessness by making work pay A policy that replaces a complex system of working-age benefits and credits with the Universal Credit and a single set of rules A benefit that together with employment support programmes, helps people into work A gateway that will help deliver an internet-age service whilst continuing face-to-face support for those who need it A platform An ambition reforming welfare to transform lives
Why Universal Credit? DWP are aiming to simplify a complex system of multiple benefits: the current system has over 10,000 pages of guidance for advisors it is expensive to administer It aims to make work pay: more help for low income working families claimants will keep more of what they earn improving incentives to increase hours of work simplified system will make moving to work feel less ‘risky’
Universal Credit implementation – key dates Pathfinder begins APRIL 2013 National introduction of Universal Credit starts – gradual introduction and testing of further scope and functionality, and phasing out of claims for existing benefits From OCT 2013 Expansion - new claims from people in work and moving current claimants to Universal Credit in phased approach During 2014 Universal Credit roll-out complete 2017
Universal Credit – implementation and transition challenge To deliver this DWP need to: convert 12 million claims to 8 million household accounts create a digital platform that both meets the needs of people who are used to managing their lives online, whilst helping claimants who need extra support to get online ensure the right support for claimants create a system capable of flexibility and continuous improvement
Testing before delivery Live Innovation Trialling (started in April 2012) • to trial components of the end-to-end Universal Credit service proposition in a live environment with real people in real time Model Office (first took place in April 2012) • a series of incremental, integrated tests in a ‘controlled’ environment that will be built as the Universal Credit system, processes and support products are developed Direct Payment Demonstration Projects (started June 2012) • will test key elements of incorporating housing support into Universal Credit whilst protecting the financial position of social landlords
Testing before delivery Local Authority-led pilots (to start Autumn 2012 – end September 2013) • will test service integration, particularly design of face-to-face service delivery, at local level for improved claimant support and work focus Pathfinder (from April 2013 in Greater Manchester and Cheshire) • an early implementation of Universal Credit – to enable DWP to learn from experience and build confidence
Oldham and Universal Credit
Pathfinder • Pathfinder will take place from 29th April 2013. • It will test new payment system with local authorities, employers and claimants in a live environment – before national roll-out. • Will target single, newly unemployed people, with or without rented housing costs, in Oldham, Tameside, Wigan, and Warrington.
Oldham UC Face to Face Pilot Objectives • Raise awareness of Universal Credit through the development of a comprehensive Communications and Marketing Plan • Support residents to access services online by providing access to computers, developing skills and building confidence in using self serve facilities • Provide residents with access to financial and budgeting support and debt advice • Identify residents with complex needs and assess the level of support required • Support residents to access employment
Key issues Monthly payment (in arrears) Paid to one person in the household Rent will no longer be paid direct to landlords , except in ‘exceptional circumstances’ On-line application and claims management
Benefit Cap The cap will be set at • £500 per week for couples and lone parents • £350 per week for single claimants. Will not apply to those receiving • Working Tax Credit • Disability Living Allowance • Personal Independence Payment (from April 2013) • Attendance Allowance • Industrial Injuries Benefits • Employment and Support Allowance (support component ) • War Widow's or War Widower's Pension
NEW Benefit Cap Introduction • Phased roll-out • From April 2013, starting in four local authorities in London – Bromley, Croydon , Enfield and Haringey. • All other Local Authorities will begin to apply the cap from 15th July 2013 and roll out will be complete by end of September 2013. • Phased roll-out allows:- • Testing of DWP systems and processes • Ensures the supporting products and services for both staff and claimants are effective • Allows DWP to build capacity to learn and respond to issues raised in the initial phase of rollout to inform national rollout.
A new benefit for disabled people is being introduced • Personal Independence Payment (PIP) will replace DLA for eligible claimants aged 16 to 64 from 8 April 2013 • It is part of a wider reform of the welfare system • It remains non means tested and non taxable, and is payable both in and out of work • It will include an assessment of individual needs and introduces more consistent use of supporting evidence
PIP is designed to help with additional costs • PIP is to help towards some of the extra costs arising from ill health or disability • It is based on how a claimant’s condition affects them not on what condition they have • There is a three month qualifying period (the time a condition or ill health has existed before a claim is made) and a nine month prospective test (the amount of time a condition or ill health is expected to last when a claim is made) • Awards will be reviewed to make sure the assessment continues to reflect the claimant’s needs • Reviews will be at appropriate intervals depending on how likely it is for their condition or impairment to change
NEW Updated implementation timetable
PIP has two components with two different rates Personal Independence Payment is made up of a: • Daily living component • Mobility component Awards will be made up of one or both of these components Each component will have two rates: • Standard • Enhanced
There are 5 key stages to a new claim for PIP • Thinking about claiming – Information will be available online, leaflets and through support organisations • Making a claim – A claim will be made by a telephone call to DWP initially and an application form will be posted out. Claiming online will be available from Spring 2014. • Application -The claimant or their support will complete the claim form and post back to DWP with any supporting evidence. • Assessment – Most people will be asked to attend a face to face consultation with a health professional. They can take someone along for support. • Decision – A decision will be made by a DWP Case Manager on entitlement including level and length and of award. Existing DLA claimants will be invited to claim PIP individually
NEW Reassessed DLA cases by likely outcome of award under PIP DWP 19/12/12
What are we doing? • Raising awareness and seeking opportunities to work together • We have an action plan and communications plan • Working with wide range of stakeholders in the Borough • Working closely with DWP • Preparing a draft local welfare scheme for consideration • Reviewing the Discretionary Housing Payment Policy • Linking into Welfare Rights Take Up Activities and Council’s other campaign e.g energy switching • Appointing two new Welfare Rights Officers
Communications Activities - strategy The campaign will take a two tiered approach: • Multi channel promotion across the borough utilising all external and internal communications and marketing opportunities. This will include Borough Life, social media, district screens, online, print and direct mail, partners, advertising and media. • Delivery of targeted ‘drop in’ events (in areas that will be significantly impacted by WR) run in partnership with other local agencies, councillors and other departments. An event ‘toolkit’ will be developed to enable these events to be delivered.
Communications Activities – strategy cont The campaign will run in two phases: • Pre - changes: January – April 2013. Raising awareness / encouraging residents to make preparations 2. Post changes: April 2013 onwards Impact of WR changes will be real and felt by residents, messages will be tailored accordingly
Communications Activities – campaign identity A campaign identity will be established to ensure, as far as possible, a level of brand awareness in residents:
Communications Activities – key messages • There are two key messages: Benefits are changing (Welfare Reform details) Make sure you’re prepared (support offer – see below) • There will also be an overarching message of ‘make the most of your money’. This will signpost residents to money saving opportunities such as the Energy Switching Scheme, Oldham Credit Union, Fairs Fair Campaign, The Co-operative Shop etc. www.oldham.gov.uk/yourmoney • Signposting will also direct residents to other support mechanisms such as debt advice, skills and training, family budgeting courses, counselling services etc.
Communications Activities –www.oldham.gov.uk/yourmoney Includes: • Money matters – benefits and debt advice, savings and loans etc • Jobs, training and courses – jobs, training, apprenticeships, work experience, volunteering and learning courses etc • Housing – mortgages, mortgage rescue, renting, homelessness, council housing etc
Communications Activities –www.oldham.gov.uk/yourmoney • Family and emotional support – support for families and counselling services to help you cope • Ways to save money – advice, tips and tricks to help you save money • Free activities – have fun on a budget Drop in events will be promoted on both Welfare Reform and Your Money pages
How can you help? • Help us to identify and support those affected • Signpost people to the Council’s website • Promote the events that are taking place • Let us know if you are interested in getting involved the Universal Credit Pilot we are looking for Community Champions who can support online access • Let us know your ideas!
