1. Over £100 million distributed to people in need Benefits Overview Welfare State Benefits 2013

2. Over £100 million distributed to people in need Benefits Not Claimed £20 billion in unclaimed benefits every year 4.5 million people losing out 1.2 million entitled households without children miss out on Tax Credits 500,000 entitled working households miss out on Housing Benefit 3 million households miss out on Council Tax Benefit 1.7 million pensioners missing out on Pension Credit

3. Over £100 million distributed to people in need Why people don’t claim  Ignorance (didn’t know they could)  Too complicated  Pride  Think they don’t qualify  Have been ill-advised by amateur ‘Experts ’

4. Over £100 million distributed to people in need Means Tested Benefits Income-related ESA Income-based JSA Income Support Pension Credit Housing Benefit Local Housing Allowance Council Tax Benefit Social Fund payments inc. funeral grants & cold weather payments Non-Means Tested Benefits Attendance, Carer’s, Guardian’s, Maternity Allowance Disability Living Allowances Contribution-based ESA & JSA Industrial Disablement Benefit/WDP Child Benefit State Pension Severe Disablement Allowance Statutory Maternity & Sick Pay

5. Over £100 million distributed to people in need State Retirement Pension  Full Amount – Single Person £107.45  Spouse or adult dependent £64.40 BUT Standard Appropriate Amount = £142.70/£217.90

6. Over £100 million distributed to people in need Pension Credit  Guarantee Credit  Savings Credit

7. Over £100 million distributed to people in need Guarantee Credit  Mrs Bloggs is 66 years old, lives on her own and is in receipt of State Pension of £105.60 per week therefore Entitlement to Guarantee Pension Credit of £37.10 per week to bring her up to £142.70

8. Over £100 million distributed to people in need Savings Credit  Designed to reward individuals who have made some sort of financial plan for retirement  Can be paid on its own or with Guarantee Credit  Over 65 or have a partner over 65

9. Over £100 million distributed to people in need Savings Credit  Figures: –Maximum rate of £18.54pw for single person/£23.73pw for a couple –Will probably qualify with an income of up to £189pw for single person/£277pw for couple

10. Over £100 million distributed to people in need Housing and Council Tax Benefit  If in receipt of guarantee credit then there is entitlement to 100% Housing and Council Tax Benefit  However, although this will cover full cost of Council Tax it may not pay total rental costs  Those in the private rented sector receive Local Housing Allowance (LHA)  Different rules for those under 60/65

11. Over £100 million distributed to people in need Attendance Allowance  Payable at Higher (£77.45) and Lower (£51.85) rates depending on disability  65 or over to claim  Need help with day-to-day living  Can be claimed even if not in receipt of the help required or living alone  Usually help required for 6 months or more but special help available for terminally ill

12. Over £100 million distributed to people in need Disability Living Allowance (DLA)  Under 65 at time of claim  Can be claimed for ill/disabled child  Same eligibility as Attendance Allowance  Care element has 3 rates according to disability  Mobility element has 2 rates  Other benefits can increase if in receipt of DLA

13. Over £100 million distributed to people in need Forthcoming Changes

14. Over £100 million distributed to people in need Benefit Cap  Effective April 2013  £500pw for families  £350pw for single people  Exemption for disabled and pensioners  Deduction from Housing Benefit initially  Deductions will be from Universal Credit from October 2013

15. Over £100 million distributed to people in need Benefit Cap  Assessment phase already underway  Discretionary Housing Payments available – not a right  67,000 households affected in 2013/14  75,000 households affected in 2014/15  54% of those affected are in London  Average benefit reduction is £83pw per household

16. Over £100 million distributed to people in need Universal Credit  To be introduced October 2013 – April 2014 for new claimants  Twelve million existing claimants will be transferred from April 2015 – October 2017 (transitional protection)  Will replace Income Support/Job Seekers Allowance/Employment Support Allowance/Housing Benefit/Local Housing Allowance/Child and Working Tax Credits

17. Over £100 million distributed to people in need Universal Credit  Age Group 18 - qualifying age for Pension Credit  Not in education  Must accept claimant commitment  Commitment will depend on ability to work  Sanctions for not fulfilling commitment  Could result in reduction of benefits for up to 3 years

18. Over £100 million distributed to people in need Universal Credit  Calculation will be personal amount plus additions for children/children with disabilities/limited capability for work or work related activities/caring for a disabled person and housing costs  Subject to benefit cap (£500 for families and £350 for singles)  Upper capital limit £16k  Paid monthly to individual

19. Over £100 million distributed to people in need Universal Credit  All claimants will be placed in one of four conditionality groups –No work related requirements –Work focused interview requirement only –Work preparation and subject to work focused interviews –All work related requirements (full conditionality)

20. Over £100 million distributed to people in need Council Tax Benefit  Will be abolished 1 April 2013  Replaced by localised schemes  Initial plans must be submitted to government by January 2013  10% cut in funding from central government  Protection for pensioners  Local Authorities will decide on the approach but all working age households are likely to have to pay some form of Council Tax  Disputes will be heard at local Tribunals

21. Over £100 million distributed to people in need Council Tax Benefit  Postcode lottery as different authorities use differing rules  Public consultations underway  Some proposals: –Local authorities may ‘take the hit’ –Cutting capital limit to £6k from £16k –Capping maximum support to 65% –Counting Child Benefit as income –Removal of second home discount –Second homes to pay 150% (roughly 1.5m people)

22. Over £100 million distributed to people in need Housing Benefit  86% rise in working applicants for Housing Benefit since 2009  Rental costs have risen 37% in five years  390,000 new families in 2011  111,000 new homes built

23. Over £100 million distributed to people in need Housing Benefit  Changes apply from April 2013  Applies to council or housing association properties  Benefit will be allocated in accordance with bedroom entitlement  LHA will rise by CPI not average area rent  Only impacts on those under pensionable age (61.5 in April 2013)

24. Over £100 million distributed to people in need Housing Benefit  Will affect 1.4 million people  Recent survey by NAO shows that 90% of claimants are not fully aware of changes  Almost 50% know nothing at all about what is going to happen

25. Over £100 million distributed to people in need Housing Benefit  Who needs a room ? –Adult couple –Single person over 16 –Two children of same sex under 16 –Two children under 10 regardless of their sex –Any other child –Carer (who does not normally live with you and only if you need overnight care)

26. Over £100 million distributed to people in need Housing Benefit  Who doesn’t need a room ? –Your partner (even if you have to sleep apart because of a medical condition) –Visiting children

27. Over £100 million distributed to people in need Housing Benefit  One ‘spare’ bedroom will result in a cut in Housing Benefit of 14%  Two or more ‘spare’ bedrooms will result in a cut in Housing Benefit of 25%

28. Over £100 million distributed to people in need Housing Benefit  Example: Mr and Mrs Smith live in a two-bedroom flat costing £70pw in rent. At the moment they receive full Housing Benefit to cover this. From April 2013 they are classed as having one ‘spare’ bedroom therefore their Housing Benefit will be cut by 14% or £9.80 per week. They will have to pay this themselves.

29. Over £100 million distributed to people in need Housing Benefit  Example 2 Mr and Mrs Bell and two teenage sons aged 13 and 15 live in a 3-bed house. The rent is £100pw and they receive £10pw in Housing Benefit. From April 2013 the boys are expected to share a room so they are considered to have a spare bedroom. Housing Benefit will reduce by £14pw therefore they will lose it all

30. Over £100 million distributed to people in need Disability Living Allowance  Replaced by Personal Independence Payment from April 2013  2 components – mobility and daily living  Each component will have 2 rates – standard and enhanced  New activities test  No automatic entitlement