Housing Benefit & Universal Credit – Impact on Households Changes to Housing Benefit Universal Credit Local tax support Benefit Cap Challenges/Responses

Changes to Housing Benefit Increased non-dependant deductions £15 LHA excess removed LHA restricted to four bedroom rate LHA rates capped LHA rates set at 30 th percentile Shared room rate for under 35s CPI used to uprate LHA rates 2013/14

Universal Credit Not really universal Not really a credit

Universal Credit Includes Housing Benefit From October 2013 Administered by DWP Digital by default? Direct payments Role for LAs? What about pensioners?

Local Tax Support CTB abolished April 2013 Set a local scheme by 31 January % reduction in funding - £5m Three principles  Protect pensioners  Consider vulnerable groups  Incentivise work

Single Person aged 27 in work Before changes Works 30+ hours Rent £95.00 Council Tax £14.92 HB - £68.43 WTC - £30.00

Single Person aged 27 in work How much worse off is he? A - £1.00 to £10.00 B - £11.00 to £20.00 C - £21.00 to £30.00 D - £31.00 to £40.00

Single Person aged 27 in work After changes Works 30+ hours Rent £95 Council Tax £14.92 HB - £29.65 WTC - £30.00 £38.78 worse off

Single Person aged 27 not in work Before changes Rent £95 Council Tax £14.92 HB - £92.31 CTB – £14.92 JSA - £67.50

Single Person aged 27 not in work How much worse off is he? A - £10.00 to £20.00 B - £21.00 to £30.00 C - £31.00 to £40.00 D - £41.00 to £50.00

Single Person aged 27 not in work After changes Rent £95.00 Council Tax £14.92 HB - £57.73 CTB - £11.94 JSA - £71.00 £34.06 worse off

Family not in work Before changes Rent £ Council Tax £29.84 HB £ CTB £29.84 JSA £168.28

Family not in work How much worse off are they? A - £1.00 to £5.00 B - £6.00 to £10.00 C - £11.00 to £20.00 D - £21.00 to £30.00

Family not in work After changes Rent £ Council Tax £29.84 HB £ CTB £23.87 JSA £ £9.33 worse off

Family not in work How much worse off are they? A - £1.00 to £5.00 B - £6.00 to £10.00 C - £11.00 to £20.00 D - £21.00 to £30.00

Large Family not in work Before changes Rent £ Council Tax £29.84 HB £ CTB £29.84 JSA £168.28

Large Family not in work How much worse off are they? A - £10.00 to £20.00 B - £21.00 to £30.00 C - £31.00 to £40.00 D - £41.00 to £50.00

Large Family not in work After changes Rent £ Council Tax £29.84 HB £ CTB £23.87 JSA £ £54.93 worse off

Benefit Cap  From April 2013  Set at £26k  97 households in Eastbourne  £2.77 to £ per week  Average of £75.20 per week

The challenge Key risk for vulnerable household will be money management and debt Sheer complexity Numbers of people affected All at a time of budget pressures

The impact Increased stress on vulnerable households Health & wellbeing Child poverty Increased homelessness Risk of illegal money lending Pressure on existing services etc…………….

An East Sussex response to Welfare Reform: Recognise need for planned response Link existing resources across all sectors to reduce overlap and increase impact Welfare reform to be part of every contact? Behaviour change Role of specialist services

Activities likely to include: Prevention based Targeted awareness raising and ‘every contact counts’ developing a ‘no wrong door’ and hand holding approach to advice/support Increasing the ‘challenge capacity’ to ensure protection