1. Welfare Benefit Changes 2011 to 2017 Anne Jordan Housing Benefits Service

2. Overview of Housing Benefit & Council Tax Benefit Means Tested Amount needed to live on (set amounts) compared to income Excess income? 65% goes towards rent 20% goes towards Council Tax bill Limit on rent payable - Local Housing Allowance

3. April 2011 LHA Changes – Private Tenants Removal of £15 ‘excess’ LHA levels set at 30 th percentile - was 50 th Removal of 5 room rate (capped to 4 rooms) Absolute caps –1 bed £250 –2 bed £290 –3 bed £340 –4 bed £400

4. Private Rents Local Housing Allowance Limits 1 room1 bed2 bed3 bed4 bed5 bed LHA March 2011 £72.50£121.15£150.00£173.08£242.31£369.23 LHA June 2011 £67.50£114.23£140.77£164.56£213.46 Weekly Difference £5.00£6.92£9.23£8.52£28.85£155.77

5. April 2011 changes Private Tenants only Extend the circumstances in which HB can be paid direct to the landlord Extra room allowed for a non-resident carer Everyone Increase in non dependent deductions Full disregard of special guardianship order and residence order payments Removal of the Baby premium

6. Non Dependant Deductions Will be increased over the next three years to match the level had they not been frozen since April 2001 2010 deduction £0 to £47.75 weekly Now 2011 deduction £0 to £60.60 weekly Amount depends on circumstances

7. Increase in non dependent deductions - HB Non Dependant gross weekly income Deduction 2010 Deduction 2011 Claimant or partner blind or on AA or receiving care component of DLA £0.00 In receipt of Pension Credit. Other means tested benefit and under 25. Full time student in term time. Under 18yrs £0.00 Earnings £387.00 or more£47.75£60.60 Earnings £310.00 to £386.99£43.50£55.20 Earnings £234.00 to £309.99 £38.20£48.45 Earnings £180.00 to £233.99 £23.35£29.60 Earnings £122.00 to £179.99 £17.00£21.55 Earnings £122.00 or less£7.40£9.40 Over 18 others £7.40£9.40

8. Increase in non dependent deductions – Council Tax Benefit Non Dependant gross weekly income Deduction 2010 Deduction 2011 Claimant or partner blind or on AA or receiving care component of DLA £0.00 Under 18yrs. Receiving means tested benefit and under 25. In receipt of Pension Credit. Full time student in term time. £0.00 Earnings £387.00 or more£6.95£8.60 Earnings £310.00 to £386.99£5.80£7.20 Earnings £180.00 to £309.99 £4.60£5.70 Earnings less than £180£2.30£2.85 Over 18 others £2.30£2.85

9. Housing Benefit changes 2012 to 2013 HB for Single people under 35 restricted to Shared Accommodation Rate from Jan 2012 (£67.50 weekly) April 2013 Changes to social housing so that claimants living in a property too large for their needs will have their HB capped LHA will be index linked and up-rated with the consumer price index

10. Towards 2013 Government intentions; –simplify the system, making it easier for people to understand, and easier and cheaper for staff to administer –improve work incentives –smooth the transitions into and out of work –reduce in-work poverty –cut back on fraud and error Incapacity Benefit to Employment Support Allowance conversion Universal Credit

11. Single Universal Credit to replace work-related benefits, including: – Income Support –Job Seekers Allowance (IB) –Employment Support Allowance (IB) –Child Tax Credit –Working Tax Credit, and –HOUSING BENEFIT paid to working age claimants Not included: –Pensioners – but housing costs for pensioners may be included within their Pensions Credit. –DLA, Child Benefit, SSP, Maternity Pay, Bereavement benefits, Carers Allowance –COUNCIL TAX BENEFIT –Exempt and temporary accommodation

12. Universal Credit – what do we know? Total Maximum Benefit Cap –Single £18,000 pa –Family £26,000 pa Those in work will have maximum benefit tapered down using a Single Taper of 65% Commitment that no one will be worse off by utilising an initial transition scheme Delivery model uncertain - internet & call centre suggested Payments will not be made to landlords – including Council.

13. When is Housing Benefit affected? New claims for Housing Benefit from October 2013 Existing claims transferred across in stages until 2017

14. 2013 onwards – what else? Council Tax Benefit to be abolished Possible transfer of crisis loans and social fund payments from DWP Administration of residual housing costs which are to stay with local authorities End to child benefit for higher rate tax payers

15. Questions?