Learn with us. Improve with us. Influence with us | www.cih.org Welfare Reform Impacts Sam Lister, Policy & Practice Officer, CIH.

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Presentation transcript:

Learn with us. Improve with us. Influence with us | Welfare Reform Impacts Sam Lister, Policy & Practice Officer, CIH

Learn with us. Improve with us. Influence with us | 2 The breadth of the reforms Why they have taken place Scale of impacts Future reforms: universal credit How might we better approach campaigning Aims: understand better

Learn with us. Improve with us. Influence with us | Welfare & public expenditure

Learn with us. Improve with us. Influence with us | 4 UK government expenditure on social security  How much is spent annually (£ million)  What are the three biggest items of expenditure  How much does it save from bedroom tax (£ million) What do we spend on each of these  Health  Education  Police  Housing (non HB) Public services & expenditure

Learn with us. Improve with us. Influence with us | Before the crash…how government spent

Learn with us. Improve with us. Influence with us | 6 Welfare benefits: old & new

Learn with us. Improve with us. Influence with us | Welfare reform impacts

Learn with us. Improve with us. Influence with us | 8 How many reforms can you identify (2010) Who do you think has been worst affected by welfare reform  Numbers (largest group)  By loss (amount of benefit lost) Welfare reform awareness

Learn with us. Improve with us. Influence with us | 9 RegionEstimate affected % working age HB tenants Average loss North East50,00037%£13 North West110,00043%£14 Yorkshire80,00043%£13 East Midlands40,00027%£12 West Midlands60,00031%£13 East of England50,00030%£15 London80,00022%£21 South East40,00022%£15 South West30,00020%£15 Bedroom tax impact

Learn with us. Improve with us. Influence with us | 10 The cap: HB headroom

Learn with us. Improve with us. Influence with us | 11 Household benefit cap: impact on 3 child families in London and the south east. Benefit cap in the South East

Learn with us. Improve with us. Influence with us | 12 Similar structure to DLA (care, mobility) Two rates of care, two rates of mobility In effect the end of the lower care rate Tougher ESA style medical test with points threshold Regular reviews and fixed term awards 500,000 taken off projected caseload by 2015/16 Loss of disability and/or severe disability premium No severe disability premium in universal credit Losses from £21 to £110+ per week for single PIP and consequential

Learn with us. Improve with us. Influence with us | 13 Impact Assessment Annual Policy Costings 2014/15* (£ million) Social sector size criteria 500 Non dependent deductions 340 Household benefits cap 265 Local housing allowance (30 th percentile and CPI indexation) 880 LHA shared room rate extension 215 Disability living allowance to personal independence payment 1240 Time limiting contributory ESA 1180 Tax credits (2010) 1225 Tax credits (2011) 1630 Housing support welfare cuts

Learn with us. Improve with us. Influence with us | 14 Welfare reform measureEstimate affectedAverage loss Social sector size criteria 660,000£14 Benefits cap56,000£93 LHA 30 th percentile775,000£9 LHA national caps21,000£74 LHA SAR extension63,000£41 DLA to PIP500,000Minimum £21 Time limiting ESA625,000£52 Tax credits in-work4,846,000£12 Tax credits out-of-work1,462,000-£7 Losses welfare reforms

Learn with us. Improve with us. Influence with us | 15 The Guardian 2 January 2012

Learn with us. Improve with us. Influence with us | Universal Credit

Learn with us. Improve with us. Influence with us | 17 Better off in-work Keep more as you earn more Smoother transition between in and out of work Single combined benefit Payment to tenant Centralised administration Universal credit main features

Learn with us. Improve with us. Influence with us | 18 Current benefits & tax credits Couple, two children, one earner, rent £75.00, council tax £23.00

Learn with us. Improve with us. Influence with us | 19 Universal credit Couple, two children, one earner, rent £75.00, council tax £23.00

Learn with us. Improve with us. Influence with us | 20 Couple, two children, one earner Current & UC compared

Learn with us. Improve with us. Influence with us | 21 Better off in-work Keep more as you earn more Smoother transition between in and out of work Single combined benefit Payment to tenant Centralised administration Universal credit main features

Learn with us. Improve with us. Influence with us | 22 Tenant payment How do you view it / what will be the impact  Increased rent arrears?  Difficulty managing money? Any positives?  Public perceptions?  Landlord tenant relationship?

Learn with us. Improve with us. Influence with us | Any lessons learned

Learn with us. Improve with us. Influence with us | 24 The numbers are mind blowing The bedroom tax is one element only Does it matter to us if private tenants lose out Some of the decisions raise difficult questions does it help our cause if we ignore them Wider public perceptions are important – because we are public too What matters is how much support people receive not how it is paid Some things to think about

Learn with us. Improve with us. Influence with us | 25 The Guardian 2 January 2012