1. Welfare Reform: issues for services

2. Current benefitpurpose Jobseekers Allowance-Income based, Employment Support Allowance-income related and Income Support Means tested safety net for people not in work Working & Child Tax CreditsMeans tested top up for people both in and out of work Pension CreditMeans tested safety net for older people Housing and Council Tax BenefitMeans tested help with rent and service charges Social FundLump sum payments Disability Living AllowanceNon-means tested disability benefit

3. currentreform Jobseekers Allowance-Income based, Employment Support Allowance-income related, Income Support, Housing Benefit, Working and Child Tax Credits Universal Credit Council Tax BenefitLocal council tax scheme Disability Living AllowancePersonal Independence Payment Social FundCommunity Care Grants and elements of the crisis loan scheme devolved to local councils Pension CreditHousing Credit added to Pension Credit Other benefits unchanged

4. Example Jenny has 3 children and lives in an HA flat. She currently gets Income Support, Child Tax Credit, Housing Benefit, Council Tax Benefit and Child Benefit. In future, she will get Universal Credit, Child Benefit and local council tax support. NB She will have to pay her landlord directly.

5. Universal Credit (UC) UC replaces Income Support and Housing Benefit New claims from October 2013 Change of circumstances from October 13 will trigger switch to UC 4 year migration for existing claimants Transitional protection for migrated claimants only

6. Claims & Payment issues Online claiming and online reporting/management of claim but telephone and face to face for exceptions Single agency, DWP Monthly in arrears payment but fortnightly payment in exceptional cases Monthly assessment, changes effective from 1 st day of assessment period

7. C & P contd Direct payment of rent support, with exceptions, not yet defined Demonstration projects from June 12 to June 13 All overpayments recoverable £50 penalty for information failures

8. Other issues “Exempt accommodation” will stay in HB initially then will go to LA. Still under consideration Benefit cap, £350 for a single person, some exceptions, eg getting DLA/PIP

9. Other issues contd Passporting will continue but details not decided yet 4 levels of conditionality from none to full work seeking 2 disability additions to replace current three additions, loss of benefit for most claimants, see example

10. UC example 1 Joe is aged 42 and gets Income Support made up of £71.70 + £30.35 (Disability Premium) + £15.15 (Enhanced Disability Premium) + £59.50 (Severe Disability Premium) = £177.35 UC will be either £100.42 or (if in support group) £141.96. Loss of £76.93 or £35.39 depending on circs. 13/14 rates applied

11. Housing issues issuePosition as at Jan 13 Monthly payment of UCExceptions not defined yet Rent direct, ie paid with UCExceptions not defined yet Rent paid on 2 homesFor domestic violence and disability cases only Supported housingHousing costs exempt from UC if accom provided by HA or similar and “also provides the claimant with care, support or supervision”, ie same as at present Sheltered housingWithin UC/PC unless exempt, see above Service chargesSimilar under UC

12. Personal Independence Payment Replaces Disability Living Allowance for adults age 16-64 from 2013. –Under 16’s can still claim DLA but under review –Over pension age can still claim Attendance Allowance No automatic transfer of data or entitlement for existing DLA claimants. Existing claimants will be invited to make a new claim for PIP and if they do not apply benefit will stop. Similar assessment to ESA (points) 2 components: –Daily Living Component (2 rates, £53.00 and £79.15) –Mobility Component (2 rates, £21.00 and £55.25)

13. PIP summary Personal Independence Payment will have two components: Daily living component Mobility component Each component has two rates: Daily living component standard rate - If you have a limited ability to carry out daily living activities. Daily living component enhanced rate - If you have a severely limited ability to carry out daily living activities. Mobility component standard rate - If you have a limited ability to carry out mobility activities. Mobility component enhanced rate - If you have a severely limited ability to carry out mobility activities.

14. Example 1 Tommy is blind. Gets DLA lower rate mobility and lower rate care. PIP might get: PIP standard rate care, enhanced rate mobility. (£53.00 and £55.25, 13/14 rates)

15. Example 2 Linda has learning difficulties. Gets DLA middle rate care, lower rate mobility. PIP. Might struggle to get anything on PIP. NB knock on effects may include loss of severe disability premium on ESA

16. PIP contd DAILY LIVING ACTIVITIES 1. Preparing food and drink 2. Taking nutrition 3. Managing therapy or monitoring a health condition. 4. Bathing and grooming 5. Managing toilet needs or incontinence 6. Dressing and undressing 7. Communicating 8. Engaging socially 9. Making financial decisions MOBILITY ACTIVITIES 1. Planning and following a journey 2. Getting around

17. Column 1 Activity Column 2 Descriptors Column 3 Points 1. Preparing food and drink a. Can prepare and cook a simple meal unaided.0 b. Needs to use an aid or appliance to either prepare or cook a simple meal. 2 c. Cannot cook a simple meal using a conventional cooked but can do so using a microwave. 2 d. Needs prompting to either prepare or cook a simple meal. 2 e. Needs supervision to either prepare or cook a simple meal. 4 f.Needs assistance to either prepare or cook a simple meal. 4 g.Cannot prepare and cook food and drink at all.8

18. DLA to PIP DLA abolished for working age claimants from April 2013 All working age DLA claimants will be invited to claim PIP and their DLA stopped on a rolling programme from Oct 13 to April 16 2 PIP components and 2 rates for each

19. DLA to PIP contd Some gains: people who can walk but need supervision may get an increase in mobility support Losers: no lower rate care component, functional based assessment, shorter awards, ATOS Knock on effects, eg no PIP, no exemption from benefit cap

20. PIP issues Blank claim packs not available 2 stage claiming process F2F assessment in most cases

21. Council Tax Benefit Abolished from April 2013 Replacement will be 90% funded by govmnt Pensioners will be protected Most Lancs councils making all working age claimants pay minimum 20% council tax Severe mental impairment exemption retained

22. Example of overall impact Frankie is single, working age, and has mental health problems. Gets Emp. Support and DLA. Lives in 2 bedroom HA flat. Income is £121 (ESA and DLA) and his rent and CT are both paid via HB & CTB. From April 13 he has to pay £10 rent (bedroom tax) and £4 weekly council tax. If he lost his DLA that would reduce his income by £20 weekly and if he failed the work capability assessment he would lose another £28 weekly Post “reform” impact, £62 weekly worse off, ie 50% drop in net income.

23. Community Care Grants Abolished from April 2013 New scheme will be introduced by Lancashire County Council Grants available, similar provision to current scheme No loans, limited urgent needs support available Awards in kind, cash the exception

24. Pensioners Pension Credit will include a Housing Credit to replace Housing Benefit (NB rent can still be paid directly to landlord for social rented tenants via an opt in). Capital cut off for Pension Credit new claims from October 14, substantially “higher “ than current means tested benefits “mixed age” couples, new claims from Oct 13

25. Families No new claims for tax credits from April 2014 Migration of existing claimants from April 14 to April 17 UC has capital limit but no working hours hours requirement

26. Impact on housing providers Direct payment of housing element for social rented tenants Bedroom tax Localised council tax support Service charges Supported accommodation Social Fund