Salford Welfare Rights and Debt Advice Service Welfare Benefit and Tax Credit Changes Incapacity Benefit  Employment and Support Allowance Re-assessment over 3 years 16,000 in Salford potentially lose £40 a week Potential annual loss £20 million (£25 million to local economy) Quality of medical assessment Appeals – 40 % success IB/SDA Work-related Activity Group Support Group ‘Fit for work’ JSA or nothing

Salford Welfare Rights and Debt Advice Service

Welfare Benefit and Tax Credit Changes Housing Benefit – all tenants April ’11 – non-dependent deductions increased April ’13 – overall ‘benefit cap’ £500 a week (via HB reduction) Housing Benefit - private tenants Max rent limited to Local Housing Allowance (LHA) level based on no. rooms April ’11 – max 4 rooms (68 existing families in Salford – 9 month protection) April ’11 – LHA rates based on 30 th percentile April ’11 – non-dependent deductions increased Jan. ’12 – ‘shared room’ LHA rate for <25s  <35s (710 existing tenant affected) April ’13 – LHA rates uprating linked to CPI not rent levels Housing Benefit – social housing tenants reduction if ‘under-occupying’ (impact on Salix + RSLs) Supported Employment Supported Tenancies inc. floating support Housing Benefit... the end! Oct. ’13 phased move to Universal Credit over 5 years (new claims initially) 19,656 tenants of ‘working age’ in Salford affected Oct.’14 phased move to Housing Credit in Pension Credit (new claims initially) 9,318 pensioner tenants in Salford affected Supported Tenants (proposed) Extra housing ‘credit’ for low cost support – foyers, refuges, sheltered housing etc. Budget transfer to LAs for high cost support Salford Welfare Rights and Debt Advice Service

Welfare Benefit and Tax Credit Changes Council Tax Benefit – abolition April 2013 not to be incorporated into Universal Credit (or Pension Credit) LAs to devise scheme of support with 10% less but protecting pensioners and other vulnerable groups – average 19% burden on working age householders cut in Salford of £2.64 million approx. 18,000 households in Salford affected possibilities – ‘equal pain’; no entitlement to certain groups; no ‘single person discount’ ? Salford Welfare Rights and Debt Advice Service

Welfare Benefit and Tax Credit Changes Universal Credit – from October 2013 Replaces - Income Support - Income-based Jobseekers Allowance - Income-related Employment and Support Allowance - Working Tax Credit - Child Tax Credit - Housing Benefit Salford Welfare Rights and Debt Advice Service

Welfare Benefit and Tax Credit Changes Universal Credit – features single taper 65% (withdrawal as income increases) income disregards for some – short-term work components that reflect current benefits/tax credits complex calculation of income assessment and housing costs – automatic feed from PAYE maximum payment more stringent ‘conditionality’ + sanctions on-line claims transitional protection (dual system for 5 years) Salford Welfare Rights and Debt Advice Service

Welfare Benefit and Tax Credit Changes Disability Living Allowance  ‘Personal Independence Payment (2013) Aim –to achieve 20% reduction in number of recipients –to cut £1.075 billion by March 2016 Method –abolish low rate care component –new ‘points-based’ medical test –withdraw mobility component in residential care –greater use of aids/adaptations –getting around rather than walking Impact –10,880 working age recipients in Salford (Nov.’09) –20% - 2,176 people –annual loss - £8 million (£10 million to local economy) –‘knock-on’ effects to means-tested benefits/’in-work’ support Salford Welfare Rights and Debt Advice Service

Financial Pressures on Salford People Deprivation 18 th most deprived of 324 English local authorities Child & Family Poverty 30% children living in poverty; 20% in ‘severe poverty’ (Save the Children) Home possessions 2 nd worst in GM for possession claims 3 rd worst in GM for possession orders 950 (9.7 per 1,000 households) in 2010 closure Salford County Court (Aug.’11) Debt (in the most deprived areas) 6% households use loan sharks 20% households had no bank account 50% households pay fuel bills by a pre-payment method 20% households rely on ‘sub prime’ finance No savings (in the most deprived areas) 88% lone parents; 76% ‘workless’ households; 74% tenants Insurance (in the most deprived areas) 50% households have no contents insurance (twice national figure) Salford Welfare Rights and Debt Advice Service