Housing Benefit & Universal Credit – Impact on Households

1. Housing Benefit & Universal Credit – Impact on Households • Changes to Housing Benefit • Universal Credit • Local tax support • Benefit Cap • Challenges/Responses

2. Changes to Housing Benefit • Increased non-dependant deductions • £15 LHA excess removed • LHA restricted to four bedroom rate • LHA rates capped • LHA rates set at 30th percentile • Shared room rate for under 35s • CPI used to uprate LHA rates 2013/14

3. Universal Credit • Not really universal • Not really a credit

4. Universal Credit • Includes Housing Benefit • From October 2013 • Administered by DWP • Digital by default? • Direct payments • Role for LAs? • What about pensioners?

5. Local Tax Support • CTB abolished April 2013 • Set a local scheme by 31 January 2013 • 10% reduction in funding - £5m • Three principles • Protect pensioners • Consider vulnerable groups • Incentivise work

6. Single Person aged 27 in work Before changes • Works 30+ hours • Rent £95.00 • Council Tax £14.92 • HB - £68.43 • WTC - £30.00

7. Single Person aged 27 in work • How much worse off is he? • A - £1.00 to £10.00 • B - £11.00 to £20.00 • C - £21.00 to £30.00 • D - £31.00 to £40.00

8. Single Person aged 27 in work After changes • Works 30+ hours • Rent £95 • Council Tax £14.92 • HB - £29.65 • WTC - £30.00 £38.78 worse off

9. Single Person aged 27 not in work Before changes • Rent £95 • Council Tax £14.92 • HB - £92.31 • CTB – £14.92 • JSA - £67.50

10. Single Person aged 27 not in work • How much worse off is he? • A - £10.00 to £20.00 • B - £21.00 to £30.00 • C - £31.00 to £40.00 • D - £41.00 to £50.00

11. Single Person aged 27 not in work • After changes • Rent £95.00 • Council Tax £14.92 • HB - £57.73 • CTB - £11.94 • JSA - £71.00 • £34.06 worse off

12. Family not in work • Before changes • Rent £150.00 • Council Tax £29.84 • HB £150.00 • CTB £29.84 • JSA £168.28

13. Family not in work • How much worse off are they? • A - £1.00 to £5.00 • B - £6.00 to £10.00 • C - £11.00 to £20.00 • D - £21.00 to £30.00

14. Family not in work After changes • Rent £150.00 • Council Tax £29.84 • HB £138.46 • CTB £23.87 • JSA £176.465 £9.33 worse off

15. Family not in work • How much worse off are they? • A - £1.00 to £5.00 • B - £6.00 to £10.00 • C - £11.00 to £20.00 • D - £21.00 to £30.00

16. Large Family not in work Before changes • Rent £240.00 • Council Tax £29.84 • HB £230.20 • CTB £29.84 • JSA £168.28

17. Large Family not in work • How much worse off are they? • A - £10.00 to £20.00 • B - £21.00 to £30.00 • C - £31.00 to £40.00 • D - £41.00 to £50.00

18. Large Family not in work After changes • Rent £240.00 • Council Tax £29.84 • HB £173.08 • CTB £23.87 • JSA £176.44 £54.93 worse off

19. Benefit Cap • From April 2013 • Set at £26k • 97 households in Eastbourne • £2.77 to £377.31 per week • Average of £75.20 per week

20. The challenge • Key risk for vulnerable household will be money management and debt • Sheer complexity • Numbers of people affected • All at a time of budget pressures

21. The impact • Increased stress on vulnerable households • Health & wellbeing • Child poverty • Increased homelessness • Risk of illegal money lending • Pressure on existing services etc…………….

22. An East Sussex response to Welfare Reform: • Recognise need for planned response • Link existing resources across all sectors to reduce overlap and increase impact • Welfare reform to be part of every contact? • Behaviour change • Role of specialist services

23. Activities likely to include: • Prevention based • Targeted awareness raising and ‘every contact counts’ • developing a ‘no wrong door’ and hand holding approach to advice/support • Increasing the ‘challenge capacity’ to ensure protection