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LDAN Homelessness Forum: Welfare Reform Update

LDAN Homelessness Forum: Welfare Reform Update. March 2012 Michael Simpson, Policy Officer DrugScope /LDAN. Welfare Reform Act 2012. Received Royal Assent on 8 th March 2012, focussing on three main areas: Shared Accommodation Rate (not in Act) Cap on household benefits

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LDAN Homelessness Forum: Welfare Reform Update

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  1. LDAN Homelessness Forum:Welfare Reform Update March 2012 Michael Simpson, Policy Officer DrugScope /LDAN

  2. Welfare Reform Act 2012 Received Royal Assent on 8th March 2012, focussing on three main areas: • Shared Accommodation Rate (not in Act) • Cap on household benefits • Replacement of Disability Living Allowance • Limiting Employment and Support Allowance • Removal of Social Fund ringfence

  3. Shared Accommodation Rate • Effective from Jan this year • Most single, childless claimants under 35 years old will only receive benefit to rent room in a shared property. • 11,780 people affected in London - £87 average cut per week in London • Affects mainly single men (71%) – 16% in employment, 44% unemployed • 67% of under 25s already have a shortfall averaging £29 per week

  4. SAR Exemptions “Exemption for those who have spent at least three months in a specialist hostel for homeless people where main purpose is to provide accommodation, care, supervision and support with a view to assisting homeless people to be rehabilitated or resettled in the community during their time in the hostel.” DWP Source, Kate Webb, Policy Officer at Shelter

  5. Household benefits • A cap on maximum household benefits of £26,000 is to be introduced. • It will apply to families on out-of-work benefits, whether they are single or dual-parent, and regardless of number of children or any health/disability issues • Cap includes JSA, Income Support, ESA, Housing Benefit, Child Benefit and Child Tax Credits

  6. Disability Living Allowance • DLA will be replaced with Personal Independence Payments • Eligible for fewer than 500,000 people • Like DLA, PIP will be made up of two components, care and mobility, but the component will be paid at one of only two rates • Has the effect of upping eligibility threshold

  7. ESA Limits • People who are judged suitable for limited Work Related Activity will only be eligible for ESA for a maximum of one year • After the year, any continued eligibility will be means tested – if capital and savings are below £16k and their joint income does not exceed relevant applicable amounts.

  8. Timetable for implementation • Shared Accommodation Rate Jan 2012 • One year time limit to ESA April 2012 • Cap on maximum benefits 2013 • Replacement of DLA with PIP April 2013 – 2017 • Roll out of Universal Credit Oct 2013

  9. DWP Social Justice Survey • Published on Tuesday – ‘Social Justice: transforming lives’ • Emphasis on recovery and independence and the ‘need to tackle the root causes of poverty’ • Work ‘for those who can’ and unconditional support for people who are ‘severely disabled and cannot work.’ • Notes that the homelessness strategy will be published in ‘the spring’

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