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Welfare Reform Impacts. Sam Lister, Policy & Practice Officer, CIH. Aims: understand better. The breadth of the reforms Why they have taken place Scale of impacts Future reforms: universal credit How might we better approach campaigning. Welfare & public expenditure.

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Welfare reform impacts

Welfare Reform Impacts

Sam Lister, Policy & Practice Officer, CIH


Aims understand better
Aims: understand better

  • The breadth of the reforms

  • Why they have taken place

  • Scale of impacts

  • Future reforms: universal credit

  • How might we better approach campaigning



Public services expenditure
Public services & expenditure

  • UK government expenditure on social security

    • How much is spent annually (£ million)

    • What are the three biggest items of expenditure

    • How much does it save from bedroom tax (£ million)

  • What do we spend on each of these

    • Health

    • Education

    • Police

    • Housing (non HB)





Welfare reform awareness
Welfare reform awareness

  • How many reforms can you identify (2010)

  • Who do you think has been worst affected by welfare reform

    • Numbers (largest group)

    • By loss (amount of benefit lost)




Benefit cap in the south east
Benefit cap in the South East

Household benefit cap: impact on 3 child families in London and the south east.


Pip and consequential
PIP and consequential

  • Similar structure to DLA (care, mobility)

  • Two rates of care, two rates of mobility

  • In effect the end of the lower care rate

  • Tougher ESA style medical test with points threshold

  • Regular reviews and fixed term awards

  • 500,000 taken off projected caseload by 2015/16

  • Loss of disability and/or severe disability premium

  • No severe disability premium in universal credit

  • Losses from £21 to £110+ per week for single


Housing support welfare cuts
Housing support welfare cuts

Impact Assessment Annual Policy Costings 2014/15* (£ million)

  • Social sector size criteria 500

  • Non dependent deductions 340

  • Household benefits cap 265

  • Local housing allowance (30th percentile and CPI indexation)880

  • LHA shared room rate extension 215

  • Disability living allowance to personal independence payment 1240

  • Time limiting contributory ESA 1180

  • Tax credits (2010)1225

  • Tax credits (2011) 1630



The guardian 2 january 2012
The Guardian 2 January 2012


Universal credit

Universal Credit


Universal credit main features
Universal credit main features

  • Better off in-work

  • Keep more as you earn more

  • Smoother transition between in and out of work

  • Single combined benefit

  • Payment to tenant

  • Centralised administration


Current benefits tax credits
Current benefits & tax credits

Couple, two children, one earner, rent £75.00, council tax £23.00


Universal credit1
Universal credit

Couple, two children, one earner, rent £75.00, council tax £23.00


Current uc compared
Current & UC compared

Couple, two children, one earner


Universal credit main features1
Universal credit main features

  • Better off in-work

  • Keep more as you earn more

  • Smoother transition between in and out of work

  • Single combined benefit

  • Payment to tenant

  • Centralised administration


Tenant payment
Tenant payment

  • How do you view it / what will be the impact

    • Increased rent arrears?

    • Difficulty managing money?

  • Any positives?

    • Public perceptions?

    • Landlord tenant relationship?



Some things to think about
Some things to think about

  • The numbers are mind blowing

  • The bedroom tax is one element only

  • Does it matter to us if private tenants lose out

  • Some of the decisions raise difficult questions does it help our cause if we ignore them

  • Wider public perceptions are important – because we are public too

  • What matters is how much support people receive not how it is paid


The guardian 2 january 20121
The Guardian 2 January 2012