1. Welfare Reform Jacqueline Cameron Area Housing Manager 27 June 2013

2. Welfare Reforms Areas of discussion:  Under occupation – the social sector size criteria – 1 st April 2013  Benefit Cap – 15 th July 2013  Scottish Welfare Fund taken over by local authorities – 1 st April 2013

3. Scottish Welfare Fund

4.  1 April 2013 to 31 March 2015 interim scheme  Replaces DWP discretionary social fund  Community Care Grants  Crisis Loans for general living expenses  Scottish Government scheme  National guidance & national application form  Crisis Grants  Community Care Grants  Grants not loans & to meet one off needs  Administered by the Council / Benefits Service  Demand expected to exceed supply

5. Cash limited funding DWP expenditure 2011/12:  CCGs - £615,000  Crisis Loans - £248,000  Total £863,800 Scottish Government Funding:  CCGs - £705,972 (£58,831)  Crisis Payments - £362,552 (£30,212)  Total £1,068,524  24% increase in funding  Managed monthly budget to cover the whole year  Can move money between the two funds

6. Scottish Welfare Fund Team Benefits Team Leader Scottish Welfare Fund Officer Senior Scottish Welfare Fund Officer Customer contact centre

7. Crisis Grants  Provide a safety net in a disaster or emergency, when there is an immediate threat to health or safety:  immediate short-term living expenses needed until their next income is due because of an emergency, or  living expenses or items where the need for them has arisen because of a disaster.  Need must be current  Disasters are events of great or sudden misfortune:  Flood / Fire  Emergency which needs immediate action:  A breakdown of relationships within the family / domestic violence  Travel expenses

8. Community Care Grants  Enable independent living or continued independent living, preventing the need for institutional care.  Establishing in the community after being in care.  At risk of going into care.  Part of a family under exceptional pressure.  Setting up home as part of a planned programme of resettlement, following a period in which you have been without a settled way of life.  Helping to care for a prisoner or young offender on release on temporary licence.  Travel expenses

9. Eligibility criteria Applicant must be aged 16 or over and in receipt of:  Income support;  Jobseekers Allowance;  Income related Employment & Support Allowance;  Savings Pension Credit;  Guaranteed Pension Credit;  Payment on account of any of the above  Council can make exceptions to qualifying benefits  For example leaving an institution or a gap in income due to a change in circumstances  A claim for both grants is permissible  No limit on number applications made / No award same items if 28 days since last claim

10. Stages to a grant 1.Initial eligibility checks 2.Meeting the requirements of the grant. 3.Needs are of sufficient priority:  First according to the nature, extent, severity and urgency of the need and the impact that an award & items requested would have on the circumstances of the applicant.  Second according to the vulnerability of the applicant and the likely consequences of refusal. Priority status  high - need is immediate and severe, highly vulnerable, an award will have a substantial or immediate sustained effect  medium - need less immediate or severe, moderately vulnerable, an award for will have a noticeable effect  low - need is not time critical, have a degree of personal resilience, an award will have only a minor effect 4. Priority of payments & sufficient money in the budget.

11. Processing targets Scottish Government processing targets:  Crisis Payment - 2 Working days  Community Care Grant - 15 Working days  Excludes bank holidays  Date completed application received to decision made

12. Payment of grants Crisis Grants  PayPoint Voucher – letter / email / text / printed in office  53 outlets in North Ayrshire – good opening hours  Voucher redeemed in store  Cash or utility top-ups or both Community Care Grants  Furnishing Services Limited  Basic starter pack  Furniture (settee, armchair, carpets, curtains, wardrobe)  Household equipment / white goods (cooker, fridge, washing machine, bed, bedding, clothing)  Clothing for former prisoners – Primark store card Travel expenses – bus voucher provided / taxi fares (last resort) North Ayrshire Foodbank - voucher system for food packs

13. Appeals - first tier reviews First tier review Example of appeal – applicant not agreeing that the support they have received is appropriate to their needs:  In writing / Reason for review / Date of decision to be reviewed  20 working days of the original decision  Signed by the applicant.  No attendance at review Decision maker  Senior benefits officer independent of decision will review the case  Outcome notified in writing Performance targets  Crisis Grant review concluded in two working days.  Community Care Grant review concluded in 15 working days.

14. Appeals - second tier reviews Second tier review  Request within 20 working days of first tier review decision letter.  In writing / Reason for review / Date of decision to be reviewed  No attendance at review Review panel  Senior staff in Finance & Property will review the case.  Minimum of 3 staff / Chair casting vote Performance targets second tier  Crisis Grant review concluded in 5 working days.  Community Care Grant review concluded in 30 working days.

15. Position at 2 June 2013 Crisis Grants:  514 applications  294 awards  £14,402 paid  £53,639 cumulative budget  £49 average payment  No stage 1 or 2 reviews Community Care Grants:  274 applications  142 awards  £66,443 paid  £117,991 cumulative budget  £468 average payment  7 stage 1 reviews  No stage 2 reviews

16. DWP - Social Fund Reform Changes  Summary of Social Fund Reform Changes Social Fund to 31 March 2013 From 1 April 2013  Funeral Payments Continuing  Sure Start Maternity Grants Continuing  Cold Weather Payments Continuing  Winter Fuel Payments Continuing  Budgeting Loans Continuing for current benefits – Budgeting Advances will be available if in receipt of Universal Credit  Short Term Benefit Advances Introduced from 1 April 2013 delivered by DWP will replace Interim Payments and Social Fund Crisis Loan alignment payments  Universal Credit Advances Introduced from 29 April 2013 – Pathfinder site  Community Care Grants Abolished  Crisis Loans Abolished  Interim Payments Abolished  Crisis Loans for alignment to benefit Abolished  Social Fund Commissioner Abolished  Independent Review Service Closed

17. Partnership working Scottish Welfare Fund Team Customer contact centre Social Services Housing Services Partners

18. Under Occupation The social sector size criteria

19. What is under occupancy?  Size criteria for social sector tenants  Applies to working age tenants (under Pension Credit qualifying age)  Sees a reduction in Housing Benefit of:  14% if under occupied by 1 bedroom  25% if under occupied by 2 or more bedrooms  Reduction is of full rent charge, regardless of the level of HB the person receives

20. Who is entitled to a room?  Each adult couple  Any other person aged 16 or over  Two children of the same sex under the age of 16  Two children under the age of 10, regardless of their sex  Any other child  A overnight carer for claimant or partner, who does not normally live in household

21. Exemptions  Severely disabled children unable to share a room  Approved foster & kinship carers – 1 additional room  Adult children in the Armed Forces  52 week protection on death of a ‘linked person’  13 week grace period if no HB claim for 1 year

22. Impact on Tenants  Increased gap between rent and benefit to be paid (£9.40 to £17.00)  Some tenants paying rent for the first time  Increased financial hardship and debt  Disruption to family life  More pressure on non-deps to contribute - possible family tensions?  Impact on educational attainment  Households pushed into private sector?  Tenants want to remain in property but may need to consider:  Moving to smaller accommodation (mutual exchange, NAHR application)  Taking in a lodger  Moving into work or working more hours

23. Waiting List Applicants  Current allocation policy more generous than under-occupation criteria  Lack of 1-bedroom accommodation for single applicants (across all landlords)  Applicants need to weigh up housing need against affordability  Increase in numbers of housing applications  More housing options advice needed

24. The Benefit Cap

25. What is the cap?  Benefit cap for working age claimants  Effective from 15 July 2013 in North Ayrshire  Set at an average of net earnings for working households  £500 p/w for lone parents or couples without children (£26,000 per annum)  £350 p/w for single people without children (£18,200 per annum)  Housing Benefit is reduced where total welfare benefits exceed the cap

26. Benefits affected  Income Support  Jobseeker’s Allowance  Incapacity Benefit  Employment Support Allowance (unless receives Support component)  Child Benefit  Child Tax Credit  Housing Benefit  Bereavement Allowance  Carer’s Allowance  Guardian’s Allowance  Maternity Allowance  Severe Disablement Allowance  Widowed Parent’s Allowance

27. Exemptions Not affected if anyone in the ‘household*’ qualifies for Working Tax Credit, or receives:  Disability Living Allowance  Personal Independence Payment  Attendance Allowance  Industrial Injuries Benefits  Employment Support Allowance (if receiving Support component)  War Widow’s / Widower’s Pension If someone has worked continuously for 6 months, the Benefit Cap will not be applied for a period of 39 weeks. *The ‘household’ does not include non-dependants.

28. Impact of Changes - North Ayrshire

29. Under Occupation Concerns  2,387 tenants currently affected  1,947 (82%) under occupying by 1 bedroom  440 (18%) under occupying by 2 or more bedrooms  779 tenants in rent arrears prior to 1 April 2013  1648 tenants in arrears at 23 June 2013  Arrears have increased approx £111.5k in 3 months  Total estimated rent shortfall for Council:  £1.4m per year  Temporary Accommodation - £260,190 income reduction/arrears

30. Alternative accommodation?  Limitations in stock will make it difficult to offer alternative housing options as only 11% of the Council’s mainstream stock is 1 bedroom properties  During 2011/12 only 163 1 bedroom council properties became available for let.  If all one-bed re-lets were made exclusively available to those under-occupying by 1 bedroom seeking to downsize the process would take 13 years.

31. Impact on NAC  Rent arrears initially forecast to increase by £514,000 in 13/14  Increased demand for smaller properties  Low demand for larger properties  Increased costs of collecting rent and managing arrears  Increased arrears caseload  Increase in number of housing, mutual exchange and lodger applications  Increased demand for support services e.g. debt advice, homeless

32. Benefit Cap Concerns  54 households affected at last DWP scan, mostly in temporary accommodation  Average benefit reduction £43.19 per week  Impact on Temporary Accommodation  NAC Temp Furnished £286pw  Hostel Room - £146.18pw  Snapshot of cases – if temp furnished rents reduced to allow for benefit cap - £140,000 per annum lost income to homeless service  Options - rent reduced or service provision reduced

33. Welfare Reform – Key Business Risk  Increased arrears a threat to Housing Revenue Account 30 year Business Plan which aims to:-  Deliver 500 new council houses over 10 years  Deliver Improvements to Council Houses  Meet the Scottish Housing Quality Standard  Invest in sheltered housing complexes  Risk to current Homeless Service Provision  Impact on tenants