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Welfare Reform. The Story So Far 2011 Child Benefit rate frozen for 3 years; Local Housing Allowance restricted to 4 bedroom rate. 2012 The age threshold.

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Presentation on theme: "Welfare Reform. The Story So Far 2011 Child Benefit rate frozen for 3 years; Local Housing Allowance restricted to 4 bedroom rate. 2012 The age threshold."— Presentation transcript:

1 Welfare Reform

2 The Story So Far 2011 Child Benefit rate frozen for 3 years; Local Housing Allowance restricted to 4 bedroom rate The age threshold of the shared accommodation rate of Local Housing Allowance is increased from 25 to 35; Couples with children will now have to work 24 hours per week to qualify for Working Tax Credits; Contributory Employment and Support Allowance time limited to 1 year

3 Key Reforms: Under Occupation in the Social Rented Sector As of April 2013 families will need one bedroom for each of the following: –A couple; –A person who is not a child; –Two children of the same sex; –Two children under the age of 10; –A carer providing overnight care. This change will apply to those with a tenancy in the Social Rented Sector (including Local Authority tenants, and tenants of social housing and registered social landlords) If one bedroom is under occupied then Housing Benefit will be reduced by 14% If two or more bedrooms are under occupied then Housing Benefit will be reduced by 25% This change will affect approximately 900 households in Darlington

4 Key Reforms: Council Tax Benefit Council Tax Benefit is currently available to those on a low income and provides support to pay Council Tax. As of April 2013 Council Tax Benefit will be replaced by a localised Council Tax Support scheme with a 10% reduction in Government funding. The localised service has been approved. Council Tax Support will only be paid to a maximum of 80% of a persons Council Tax. This change will affect approximately 7,000 households People of pensionable age will be protected from this change

5 Key Reforms: Social Fund The Social Fund provides grants and loans to meet costs and needs that otherwise could not be met Elements of the Social Fund will be abolished in April 2013 and replaced by a localised service provided by the Local Authority The Council will provide the Crisis Loan and Community Care Grant aspects of the Social Fund DWP will continue to provide Interim Payments, Alignment Payments and Budgeting Loans The localised scheme will be delivered by the Revenue and Benefits team of the Council

6 Social Fund Key Messages There will be no cash payments Support offered by the Crisis Support element will include: –Food –Clothing –Key consumables for babies –Heating –Travel to hospital Support offered by the Community Care Support element will include: –Beds –Bedding –Chairs/sofas –Tables –Wardrobes –Travel costs to hospital a funeral or a prison visit To be eligible for the Crisis Support element applicants must meet the following conditions: –Major disaster at home –Health will deteriorate as a direct result of being unable to afford the goods or services requested To be eligible for the Community Care Support element applicants must meet one the following conditions: –Requires support to move back into the community –Requires support to move out of inappropriate accommodation –Requires support to prevent a move into residential care or hospital –Requires support to prevent a serious deterioration of health within the home

7 Key Reforms: Personal Independence Payment (PIP) PIP is due to replace Disability Living Allowance (DLA) for eligible working age people (16-64) There are currently no plans to replace DLA for children under the age of 16 or those over 65 PIP will be introduced in the North East in April 2013 and rolled out across the country in June 2013 It is anticipated that the budget for PIP will be 20% less than the budget for DLA This change will affect approximately 4,000 people

8 Personal Independence Payment Key Messages There will be a reduction in the number of rates from 5 rates to 4 There will be a longer qualifying period to qualify for the benefit There will be a reduction in people qualifying for the benefit People will potentially lose Housing Benefit as a result of the changes

9 After April 2013 Benefit Cap –Maximum amount of benefit that some working age people can receive –£350 per week for single adults with no children –£500 per week for couples and lone parents Universal Credit –Due to be introduced from October 2013 –Will replace a number of existing benefits –Will be predominantly online –Paid monthly –Direct payments to landlords in limited circumstances

10 Impacts in Darlington - Total It is estimated that the loss to the local economy will be approximately: -£14,000,000

11 Impacts of Reform Analysis undertaken identified a number of groups who will be most affected by the reforms: –Children and young people; –Disabled people and their carers; –Older people; –Lower income families, and –Lone parents

12 Working with our Partners Welfare Reform is a priority of the One Darlington group of the Darlington Partnership The priorities for the partnership are: –General and targeted awareness raising initiatives; –Signposting and self-help resources; –Financial inclusion and literacy; –Access and digital inclusion; –Crisis support; –Specialist support, advice and advocacy

13 Local Advice and Support Citizens Advice Bureau : http://www.darlingtoncab.co.uk Darlington Credit Union: http://www.darlingtoncreditunion.co.uk People and Families Information Service: http://www.darlington.gov.uk/children/fis Housing Benefits: Compass Choice Based Lettings: Darlington Council Customer Services: http://www.darlington.gov.uk/generic/customerservices.htm Age UK: www.ageukdarlington.org.uk Darlington Association on Disability: www.darlingtondisability.org First Stop Darlington: www.darlingtonfirststop.org.uk 700 Club: www.700club.org.uk Tees Valley YMCA: www.teesvalleyymca.org.uk eVOLution: evolutiondarlington.com evolutiondarlington.com Gay Advice Darlington: http://www.gayadvicedarlington.co.uk/ FRADE: www.frade.co.uk/frade2/darlington.htm

14 National Advice and Support Turn 2 Us: Department for Work and Pensions: StepChange: Money Advice Service: https://www.moneyadviceservice.org.uk/https://www.moneyadviceservice.org.uk/ Shelter: http://england.shelter.org.uk/ Disability Rights UK: HMRC: Samaritans: http://www.samaritans.org/


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