2 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: anddeliver fairness to those claiming benefit and to the tax payer.
3 Welfare Reform changes in 2013 April 2013Size Criteria (under occupation penalty)Changes to Council Tax BenefitSocial Fund ReformUniversal CreditPhased rollout April – September 2013Benefit CapPhased rollout April – October 2018Personal Independence Payment
4 Size Criteria (underoccupation) Claimants will qualify for one bedroom(up to a maximum of four) for:Every adult coupleAny other adult aged 16 or overAny two children of the same sex aged under 16Any two children regardless of sex aged under 10Any other child aged under 16A non-resident carer (claimant/partner have disability and need overnight care).
5 Size Criteria (underoccupation) Size criteria will be introduced to Housing Benefit for working age claimants in the social rented sector from 1st April 2013Those considered to be under-occupying their accommodation will see a reduction14% of their total eligible rent for under-occupation by one bedroom; and25% of their total eligible rent for under-occupation by two bedrooms or more.
6 Examples Three bedroom house Rent = £60 plus service charges of £20 (£80 in total). £5 of the service charge is ineligible so total eligible rent for HB purposes is £75.Two examplesIf Tom and Penny live in the property with James aged three and Polly aged oneApplying the size criteria means that the household is deemed to be under-occupying by one bedroom. A 14% reduction of £10.50 is applied to the eligible rent of £75 resulting in HB entitlement of £64.50.If Mohammed and Aysha live in the property , they have lived their for 15 years and their three children have all now left home.Applying the size criteria means that the household is deemed to be under-occupying by two bedroom. A 25% reduction of £18.75 is applied to the eligible rent of £75 resulting in HB entitlement of £56.25.
7 Size criteria in Oldham There are 8,791 working age Housing Benefits claimants in the social rented sectorAnalysis suggests that 2,526 are under occupied2,064 by 1 bedroom462 by 2 bedrooms or moreFor those under occupyingby 1 bedroom the average reduction in eligible rent will be £11 per weekby 2 bedrooms or more the average reduction in eligible rent will be £21 per weekWe estimate the total reduction in HB to be £1.7m per annum
8 What are we doing?Key area of focus for Oldham Housing Investment Partnership (OHIP) and established a Welfare Reform Working GroupAgreed Data Sharing Protocol and exchanged dataAgreed Joint Communications PlanLooking to provide tenants with Financial and budgeting supportMonitoring the impact on own organisationsLooking at Discretionary Housing PaymentsOHIP WELFARE REFORM WORKING GROUPSet Up May 2012Reps from Housing Providers and Oldham CouncilExplore the challenges and impacts of welfare reformsIdentify the priority actionsWork together saving duplication, creating efficiencies, greater impactJoint comms planComms leads working togetherVerification of dataAgreed wording and timing of letters to tenants who are affectedAwareness raising and support for tenants.Financial and budgeting supportMonitoring the impact on own organisationsData sharing: -Agreed protocolSecure portal to transfer informationRP security of dataFinancial inclusion group refocusing their action plan on welfare reform issues.Standard item on OHIP Board
9 Discretionary Housing Payments Oldham allocation for 2012/13 was £173k for 13/14 that has increased to £498kFunding 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
10 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 benefit10,786 claimants of Pension Credit Age are protected12,916 households will have Council Tax to pay for the first time4,209 households will have an increased amount to pay
11 Oldham’s scheme for working age claimants Approved at full council on 12th December 2012The 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 differentBenefit 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
12 Local Welfare Provision Abolition of Crisis Loans for living expensesand Community Care Grants paid by DWP Social FundNew emergency provision for vulnerable groupsCouncil has approved a new scheme which will includepreventative measuressupply of goodscash in exceptional circumstances only
14 Simplifying a complex system Current systemFuture systemIncome Based JSAIncome related ESAIncome SupportWorking Tax CreditsChild Tax CreditsHousing BenefitUniversal CreditDisability Living AllowancePersonal Independence PaymentPension Credit… to include support for housing and childrenChild Benefit, Carer’s Allowance (will remain)All current income based/related benefits in to one benefitReformed versions of contributions-based benefits, such as Jobseeker’s Allowance and the Employment and Support Allowance, will continue alongside Universal Credit.Simplified processesInterruptions and uncertainties inherent in having to switch between benefits will go away. For example, the current benefit and tax credit systems don’t interact with each other – so people trying to leave benefits find their benefit income stops instantly, but there can be a wait for tax credits payments start. By bringing the tax credit and benefit systems together, there will be no need to move between systems – and no payment gaps which is important to people when taking work.Increased incentive to take short term work and try jobs outReduces potential for fraud and error.Council Tax Benefit (Localised Council Tax Support Schemes)Contributory JSA and ESA (conditionality rules changing)
15 Universal Credit isthat tackles welfare dependency, poverty and worklessness by making work payA policythat replaces a complex system of working-age benefits and credits with the Universal Credit and a single set of rulesA benefitthat together with employment support programmes, helps people into workA gatewaythat will help deliver an internet-age service whilst continuing face-to-face support for those who need itA platformAn ambitionWhat is UC?It the biggest change to the welfare system for 50 years –It a modern approach for modern lives - Universal Credit is designed for the world of work today (example)It is more accessible to people who really need itUniversal Credit will provide a new single system of means-tested support for working-age people who are in-work or out-of-work that will ensure more people are better off in workIt includes support for housing costs, children and childcare costs will be integrated in the new benefit. It will also provide additions for disabled people and carersThe service will be digital by default, not everyone is expected to switch channels on day 1. There is a four year transition period from 2013 to 201750% of contacts that can be digital, should be digital in 201380% of contacts that can be digital, should be digital by 2018But it is recognised that some claimants will need help to use the online service - other channels will be available for the minority who need themreforming welfare to transform lives
16 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 advisorsit is expensive to administerIt aims to make work pay:more help for low income working familiesclaimants will keep more of what they earnimproving incentives to increase hours of worksimplified system will make moving to work feel less ‘risky’Simplify v Complex30+ benefits in different agencies with 10,000 guidance pagesExpensive£95bn forecast for working age spending in£5bn a year is lost to error and fraudHuman cost – wide ranging and intergenerationalMake work pay .28% of working age people receiving out-of-work benefits have done so for nine of the last ten yearsBut present system encourages dependency, discourages work as the financial gains to work are slightLack of transparency about how transition and what is available makes moving into work too riskyPoverty is a life and death matter …For every tube stop on the Jubilee line going east, from Westminster to Canning Town, life expectancy decreases by one yearLife expectancy in two different neighbourhoods of Glasgow, one rich, one poor, vary by as much as 28 yearsWorklessness has become a major issue for society. We believe Universal Credit will start to change this
17 Universal Credit implementation – key dates Pathfinder beginsAPRIL 2013National introduction of Universal Credit starts – gradual introduction and testing of further scope and functionality, and phasing out of claims for existing benefitsFrom OCT 2013Expansion - new claims from people in work and moving current claimants to Universal Credit in phased approachDuring 2014Universal Credit roll-out complete2017
18 Universal Credit – implementation and transition challenge To deliver this DWP need to:convert 12 million claims to 8 million household accountscreate 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 onlineensure the right support for claimantscreate a system capable of flexibility and continuous improvementFrom old to newA key aspect of successfully delivering Universal Credit, is handling the transition from old to newThe Government has made it clear that DWP will be responsible for the implementation of Universal Credit and for organising its administration. The Department is currently examining in detail how best to achieve this and what impact that might have on its existing delivery agencies. Jobcentre Plus, HMRC, Local Authorities and the Pension, Disability and Carers Service have a wealth of expertise and knowledge and this will be crucial as the Department develops it plans.The best of the current capability will be used to deliver the new service, taking the opportunity to modernise and improve it to deliver better efficiency for the taxpayer and better service for claimants.minimises risk to implementationHow Universal Credit will be delivered in the longer term is under active consideration. Decisions will be taken in 2015, so that we can learn from our early experience of delivery.Nothing static – don’t want to build something that then can’t be changed – want to be able to learn as we go along in delivery
19 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 timeModel 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 developedDirect Payment Demonstration Projects (started June 2012)will test key elements of incorporating housing support into Universal Credit whilst protecting the financial position of social landlordsBefore Universal Credit is launched in October 2013, various elements will be tested using both controlled scenarios and real claimants, in order to design out any issues which naturally arise when any major new service is launched.The selected pilots will be led by the following councils:Lewisham, Bath and NE Somerset, Birmingham, Melton in partnership with Rushcliffe, North Dorset, Oxford, West Lindsay, Dumfries and Galloway, North Lanarkshire, West Dunbartonshire, Newport and Caerphilly.In addition, bids from Wigan and Oldham were accepted and will now be taken forward by Pathfinder as pathfinder preparation projects.Joint work now underway to mobilise the pilots, working with the LAs, local DWP Managers, LGA, WLGA, CoSLA and across UC Programme.
20 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 focusPathfinder (from April 2013 in Greater Manchester and Cheshire)an early implementation of Universal Credit – to enable DWP to learn from experience and build confidenceBefore Universal Credit is launched in October 2013, various elements will be tested using both controlled scenarios and real claimants, in order to design out any issues which naturally arise when any major new service is launched.The selected pilots will be led by the following councils:Lewisham, Bath and NE Somerset, Birmingham, Melton in partnership with Rushcliffe, North Dorset, Oxford, West Lindsay, Dumfries and Galloway, North Lanarkshire, West Dunbartonshire, Newport and Caerphilly.In addition, bids from Wigan and Oldham were accepted and will now be taken forward by Pathfinder as pathfinder preparation projects.Joint work now underway to mobilise the pilots, working with the LAs, local DWP Managers, LGA, WLGA, CoSLA and across UC Programme.
22 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.Pathfinder will take place from April It will test new payment system with local authorities, employers and claimants in a live environment – before national roll-out. Will target single, unemployed people, with or without rented housing costs, in selected areas in Tameside, Wigan, Oldham and Warrington local authority areas.
24 Pathfinder Stage 1 2 3 November /December 2012 Landlord Engagement and AwarenessStaff Awareness2January/February 2013External stakeholder engagement3March/ April 2013To be confirmed by DWP
25 Oldham UC Face to Face Pilot ObjectivesRaise awareness of Universal Credit through the development of a comprehensive Communications and Marketing PlanSupport residents to access services online by providing access to computers, developing skills and building confidence in using self serve facilitiesProvide residents with access to financial and budgeting support and debt advice Identify residents with complex needs and assess the level of support requiredSupport residents to access employment claimant and community
26 Oldham’s Universal Credit Timeline DateClaimant groupNovember 2012Local Authority-led (face to face) pilot commencedApril 2013Pathfinder commences with a limited group of new JSA claimantsOctober 2013Roll out commences for a wider group of new JSA claimantsJanuary 2014New Working Tax Credit and Child Tax Credit will be claims for UCApril 2014New IS, ESA and HB claims will be claims for UCJuly 2014Managed migrations with priority given to those who will benefit most from the transitionFromA gradual managed transfer of the remaining claims
27 Key issues Paid to one person in the household Monthly payment (in arrears)Paid to one person in the householdRent will no longer be paid direct to landlords , except in‘exceptional circumstances’On-line application and claims management
29 Benefit Cap £350 per week for single claimants. 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 receivingWorking Tax CreditDisability Living AllowancePersonal Independence Payment (from April 2013)Attendance AllowanceIndustrial Injuries BenefitsEmployment and Support Allowance (support component )War Widow's or War Widower's Pension
30 Benefit Cap Introduction NEWBenefit Cap IntroductionPhased roll-outFrom 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 processesEnsures the supporting products and services for both staff and claimants are effectiveAllows DWP to build capacity to learn and respond to issues raised in the initial phase of rollout to inform national rollout.In December DWP announced that rather than national introduction from April 2013 there will be a phased roll outThe benefit cap will be implemented from April 2013, starting in four local authorities in London – Bromley, Croydon, Enfield and Haringey. These were chosen as London has the highest percentage of potential benefit cap claimants and a diverse cross section of residents. This will be a phased roll-out with the remaining local authorities implementing the cap from 15th July 2013 and roll out complete by the end September The precise date at which this change will be rolled out nationally will be agreed in the New Year.A phased roll-out allows us to:test our systems and processes end to end in a controlled live environmentensure the supporting products and services for both staff and claimants are effectiveensure there is a measured approach to rolling out the cap to affected householdsbuild capacity to learn and respond to issues raised in the initial phase of rollout to inform national rollout.
31 An introduction to Personal Independence Payment
32 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 2013It is part of a wider reform of the welfare systemIt remains non means tested and non taxable, and is payable both in and out of workIt will include an assessment of individual needs and introduces more consistent use of supporting evidenceSlide 2: A new benefit for disabled people is being introducedDLA has been in place for 20 years, used little independent evidence and had no systematic review to make sure an award still met the claimants’ needs.The government is reviewing the whole of the welfare system and the replacement of DLA for working age claimants and the introduction of PIP is part of that review.
33 PIP is designed to help with additional costs PIP is to help towards some of the extra costs arising from ill health or disabilityIt is based on how a claimant’s condition affects them not on what condition they haveThere 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 needsReviews will be at appropriate intervals depending on how likely it is for their condition or impairment to changeSlide 3: PIP is designed to help with additional costsAwards will be based on the extent to which people are able to live independently and participate in society.There is a 3 month qualifying period (the time a condition or ill health has existed before a claim is made) and a 9 month prospective test (the amount of time a condition or ill health is expected to last when a claim is made).Claimants who already get DLA and who apply to PIP will not need to meet the qualifying period but will still need to meet the prospective period.Like DLA, claimants with a terminal illness will not need to meet either period and will be fast tracked to a decision under ‘special rules’, maintaining the short process that focuses on immediate needs.
34 Updated implementation timetable NEWUpdated implementation timetableDateClaimant Group8 April 2013New claims in specific postcode areas in the North West and part of the North East of EnglandJune 2013New claims for from all parts of the countryOctober 2013Existing DLA claimants will be invited to apply for PIP- Children turning 16- People reporting changes of circumstances which would affect their rate of payment (does not include those going into a care home, hospital or prison or change of address)- Fixed-term DLA award recipients whose award expires from the end of February 2014- Self-selectors (includes those with indefinite or fixed- term awards).October 2015 to October 2018All remaining claimants in receipt of DLA will be randomly selected and invited to make a claim for PIPPersonal Independence Payment assessment timelineFrom 8 April 2013From 8 April 2013 new claims to PIP will be taken in the controlled start area in the North West and part of the North East of England. Postcodes affected are:CA, CH (except CH5, CH6, CH7 and CH8), LA (except LA27, LA28, LA62 and LA63), CW, FY, L, PR, WA, WN, BL, DH, DL (except DL6, DL7, DL8, DL9, DL10 and DL11), M, NE, SR, and TS (except TS9).During this time we will not invite any existing DLA claimants to claim PIP. Nor will we allow claims from DLA recipients who are seeking to make an early application to PIP (“self-selectors”).From June 2013In addition to the area covered by the controlled start new claims to PIP will be taken in all remaining areas of GB.We will no longer accept new claims for DLA from anyone aged 16-64, unless they are making a renewal claim from a fixed term DLA award which is due to expire before the end of February These claimants will re-claim DLA, and where entitlement continues will be invited to claim PIP at a later stage.From October 2013The following DLA recipients will begin to be invited to claim PIP:Children turning 16 (with the exception of those awarded DLA under the rules for people who are terminally ill) will be invited to claim PIP when their existing fixed term award is coming to an end;People reporting changes of circumstances which would affect their rate of payment (this does not include payability decisions as a result of going into a care home, hospital or prison or other changes of circumstances e.g. change of address). The rate of DLA will not be adjusted;Fixed-term DLA award recipients whose award expires from the end of February 2014 (reassessment activity starts approximately 20 weeks before existing DLA awards end); andSelf-selectors (includes those with indefinite or fixed-term awards).From October 2015All the remaining claimants in receipt of a DLA award will be invited to make a claim for PIP. We will randomly select those recipients of DLA in receipt of an indefinite award or a fixed term award, and notify them about what they need to do to claim PIP. We will invite claims as early as possible from recipients who have turned 65 after 8 April 2013, when PIP was first introduced.
35 PIP has two components with two different rates Personal Independence Payment is made up of a:Daily living componentMobility componentAwards will be made up of one or both of these componentsEach component will have two rates:StandardEnhancedSlide 6: PIP has two components with two different ratesIf a claimant is awarded PIP, DWP will ensure there are no gaps between benefit payments, as long as a claimant sends in the information when they are asked for it.The benefit rates to PIP have been announced. They are:Daily Living Enhanced Rate = £79.15Daily Living Standard Rate = £53.00Mobility Enhanced Rate = £55.25Mobility Standard Rate = £21.00These rates are provisional until the legislative process is completed in early 2013.
36 The proposed level of points needed for an award of PIP Daily living component (activities 1-10)Mobility component (activities 11-12)Standard rate = 8 pointsEnhanced rate = 12 pointsActivityPossible points1. Preparing food0-811. Going out0-122. Eating and drinking0-1012. Moving around3. Managing your treatments4. Washing and bathing5. Managing your toilet needs6. Dressing or undressing7. Communicating8. Reading0 - 89. Mixing with others10. Making decisions about money0-6Slide 8: The proposed entitlement threshold is the level of points needed to make an award of PIPPoints will be awarded depending on the individual’s level of ability and the barriers they face
37 There are 5 key stages to a new claim for PIP Thinking about claiming – Information will be available online, leaflets and through support organisationsMaking 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 individually2. The claim form will be called ‘How your disability affects you’ and additional support, such as provision of alternative formats will be available.3. Claim form will ask how their condition affects their daily life, both on good and bad days and over a range of activities.4. Home visits will be available when necessary. Some claims may be assessed by written evidence supplied.
38 Reassessed DLA cases by likely outcome of award under PIP NEWReassessed DLA cases by likely outcome of award under PIPOutcomeNumber of claimants%Award increased510,00029Award unchanged270,00016Award decreasedNo award450,00026Total1.74 millionDWP 19/12/12
39 What are we doing?Raising awareness and seeking opportunities to work togetherWe have an action plan and communications planWorking with wide range of stakeholders in the BoroughWorking closely with DWPPreparing a draft local welfare scheme for considerationReviewing the Discretionary Housing Payment PolicyLinking into Welfare Rights Take Up Activities and Council’s other campaign e.g energy switchingAppointing two new Welfare Rights Officers
40 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.
41 Communications Activities – strategy cont The campaign will run in two phases:Pre - changes: January – April 2013.Raising awareness / encouraging residents to make preparations2. Post changes: April 2013 onwardsImpact of WR changes will be real and felt by residents, messages will be tailored accordingly
42 Communications Activities – campaign identity A campaign identity will be established to ensure, as far as possible, a level of brand awareness in residents:Activities commencing January – notes to follow
43 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.Signposting will also direct residents to other support mechanisms such as debt advice, skills and training, family budgeting courses, counselling services etc.
44 Communications Activities – www.oldham.gov.uk/yourmoney Includes:Money matters – benefits and debt advice, savings and loans etcJobs, training and courses – jobs, training, apprenticeships, work experience, volunteering and learning courses etcHousing – mortgages, mortgage rescue, renting, homelessness, council housing etc
45 Communications Activities – www.oldham.gov.uk/yourmoney Family and emotional support – support for families and counselling services to help you copeWays to save money – advice, tips and tricks to help you save moneyFree activities – have fun on a budgetDrop in events will be promoted on both Welfare Reform and Your Money pages
46 How can you help? Help us to identify and support those affected Signpost people to the Council’s websitePromote the events that are taking placeLet us know if you are interested in getting involved the Universal Credit Pilot we are looking for Community Champions who can support online accessLet us know your ideas!