1. Welfare Changes & Housing 24 June 2016 The Clayton Hotel

2. Agenda Welcome & Introductions Universal Credit Benefit Cap Social Sector Size Criteria Other Changes Local Housing Allowance Review of Supported and Temporary Accommodation Payments

3. Universal Credit

4. What’s changing? Impacted group: Working Age population AspectNowUnder Universal Credit Support available Housing Benefit (rent and rates) for rented sector Housing cost element of Universal Credit Rates Rebate Scheme Delivery organisation NIHEDfC – Universal Credit LPS – Rates Rebate Scheme

5. When will it change? PhasePlanned TimescalesApproachForecast Volumes* (57% of Universal Credit caseload expected to have a housing element) TransitionSeptember 2017 to June 2018By geographical postcode groups 65,000 households approx 37,000 with housing element Managed Migration Starting July 2018Under development Circa 306,000 households approx 174,000 with housing element *these are estimated figures based on current legacy benefit trends for new claims, on-flows and off-flows

6. High Level Design People of working age will apply for Universal Credit on-line The data provided to support the Universal Credit claim will be verified Entitlement will be based on verified information Some information will be accepted without verification based on assessed risk Payment will be processed to the individual or third party, based on the identified preferred method of payment and periodicity. Payment due date will be linked to the date of entitlement Data Gather Process Payment VerifyRisk

7. Data Gather Relevant information to support the claim for housing costs will be gathered from the claimant when making a claim to Universal Credit Home Owner - Mortgage - Service Charges - Ground Rent Supported Accommodation The housing costs for claimants in supported accommodation will be met by the NIHE Private Sector - Type of property - Number of bedrooms - Joint tenants - Relationship with landlord - Rent amount - Frequency of payment - Date they moved to address - Landlord’s details - Other members of the household Social Sector - Type of property - Number of bedrooms - Joint tenants - Rent amount -Frequency of payment - Date they moved to address - Landlord’s details - Other members of the household

8. Verification Once the claimant applies for Universal Credit, the supporting information will need verified. Examples of supporting information to verify entitlement to Universal Credit’s housing cost element are: Private Sector - Tenancy Agreement - Certificate of occupation - Rent Statement - Bank Statement - Letter from Landlord Home Owner - Mortgage Statement - Bill or letter detailing service charges - Bill or letter detailing ground rent Social Sector - Tenancy Agreement - Certificate of occupation - Rent Statement - Bank Statement Supported Accommodation Not applicable

9. Risk The current process to verify data before assessing entitlement is wholly manual. Work is underway to consider ways in which this can be automated through the sharing of data with other trusted organisations. This will move the service away from the ‘verify everything’ approach towards an approach based on a calculated level of risk of awarding Universal Credit based on incorrect or fraudulent information. Examples under development in relation to Housing: Private Sector -Information already gathered and verified for Land Registry systems -Information already gathered and verified for the Northern Ireland Landlord Register Social Sector -Information already gathered and verified for allocation of social housing

10. Process Payment The agreed Northern Ireland Payment Flexibilities mean that where an individual is entitled to the housing element, the default option will be to pay the housing cost element to the claimant’s landlord. Work is underway to develop the detailed operating processes to support this requirement. Considerations include: Payment Periodicity – assessment period / bi-monthly payments Verification of the landlord’s detail, including capture of bank account information For private sector landlords, linkages to the mandatory requirement to be registered on the NI Landlord Register

12. Benefit Cap

13. The current upper limits for Benefit Cap are: A maximum of £500 a week (£26k per annum) if the claimant is either: a couple, with or without dependent children a lone parent with dependent children A maximum of £350 a week (£18K per annum) if the claimant is a single person and either: has no children the children they have responsibility for do not live with them

14. Benefit Cap The upper limits for Benefit Cap will change from October / November 2016: A maximum of £385 a week (£20K per annum) if the claimant is either: a couple, with or without dependent children a lone parent with dependent children A maximum of £258 a week (£13.4K per annum) if the claimant is a single person and either: has no children the children they have responsibility for do not live with them

15. Benefits included in calculation Housing Benefit Incapacity Benefit Income Support Jobseeker’s Allowance Child Tax Credit Employment and Support Allowance (not in the Support Group) Child Benefit Severe Disablement Allowance Maternity Allowance Bereavement Allowance Widowed Mother’s/ Parent’s Allowance Widow’s Pension Guardian’s Allowance

16. Exempt Benefits / Income Working Tax Credit; Disability Living Allowance and its replacement, Personal Independence Payment; Employment and Support Allowance (where the Support Component awarded); Industrial Injuries Benefit; Attendance Allowance; Carers Allowance; and Armed Forces Compensation Scheme/War Pension Scheme.

17. Introducing the Changes Initially the Benefit Cap will be applied through a reduction in the Housing Benefit award. In the longer term the Benefit Cap will be applied as part of Universal Credit

18. Volumetrics Approximately 570 families were eligible for a Supplementary Payment when the Benefit Cap was set at £26k on the 31 May 2016 Approximately 2,440 families will be eligible for a Supplementary Payment when the Benefit Cap is set at £20k (assumption 7 November 2016).

19. Mitigation Measures The following mitigation schemes are within the scope of the Mitigation Measures Project: Benefit Cap Persons unable to work due to ill health Persons with disability Additions to benefits to those with disabilities Carers Mitigation Measures IT system for delivering Welfare Supplementary Payments.

20. General Principles for the delivery of Benefit Cap Supplementary Payments Supplementary Payments will be paid 4 weekly in arrears There is no requirement for a claimant to make an application or to provide further evidence to receive a Supplementary Payment for Benefit Cap The mitigation measures scheme is due to end on 31 March 2020 and Supplementary Payments for Benefit Cap will continue for eligible claimants up until that point (subject to eligibility conditions continuing to be satisfied) Claimants who are in receipt of a Supplementary Payment for Benefit Cap may be eligible for other mitigation measures depending on their circumstances There is no right of appeal in respect of entitlement to Supplementary Payment, although a claimant can ask for a ‘Review’ of the decision A claimant in receipt of a Supplementary for Benefit Cap will be required to report Changes of Circumstances

21. Housing Benefit Cycles Housing Benefit for people living in privately rented accommodation is paid on a 4 weekly payment cycle in arrears (new claims to Housing Benefit may be paid less than 4 weeks to allow them to align with a payment cycle) A Housing Benefit week runs from Monday to Sunday Housing Benefit is paid three working days following the end of the payment cycle, for example on a Wednesday Housing Benefit for people where the NIHE is the landlord, is paid weekly in advance. The NIHE computer system completes a ‘run’ on a Friday and the claimants account is credited on Monday for the coming week.

25. Social Sector Size Criteria

26. Principles NI Executive agreed to implement and mitigate Social Sector Size Criteria Will maintain welfare system parity with GB Claimants mitigated to 31 March 2020 Mitigation payments made to landlords NIHE will apply criteria to Housing Benefit claims DfC will make the mitigation payments

27. Policy Objectives Align the legislative requirements on how Housing Benefit is calculated in Great Britain with how it is calculated in Northern Ireland Broadly align Housing Benefit policy in the private rented and social sectors Contain growing housing costs

29. Criteria Each adult couple Any other adult aged 16 or over Any two children of the same sex aged under 16 Any two children aged under 10 Any other child (other than a foster child or child whose main home is elsewhere) A carer (or team of carers) who do not live with the claimant but provide them or their partner with overnight care

30. Will not apply to: Those over State Pension Credit age Those in shared ownership schemes Those in sheltered or supported housing who have support services provided by a not-for-profit landlord Parents with adult children in the armed forces (or reservists) who normally live with them will be able to retain the bedroom for that adult child whilst they are deployed on operations Foster Carers – they are allowed one additional bedroom so long as they have fostered a child or become an approved foster carer within the last 52 weeks Disabled children in receipt of middle/high rate Disability Living Allowance (DLA)

31. HB claimants and stock HB ClaimantsHousing Stock NIHE67,47786,507 HAs27,68532,933 Housing StockProportion 1 Bedroom17% 2 Bedrooms38% 3+ Bedrooms45%

32. Households impacted NIHE PropertiesHA PropertiesTotalHB Reduction One Bedroom 19,5185,83325,35114% Two Bedroom 7,0251,1918,21625% Total 26,5437,02433,567 Households under-occupying by:

33. Examples HouseholdRentHBUnder Occupancy (Bedrooms) HB Reduction % HB Reduction £ Nett HBSSSC Mitigation Couple, 1 boy & 1 girl aged 8 & 7 3 Bedrooms £60 114%£8.40£51.60£8.40 Couple, 3 Bedrooms £80 225%£20£60£20

34. Mitigation Funding (£M) 2016/172017/182018/192019/20TOTAL £15£24£26 £91

35. Other Changes Local Housing Allowance & Review of supported and temporary housing accommodation payments

36. Other Changes Temporary and Supported Accommodation Review Application of Local Housing Allowance Rates to social sector Removal of Housing Benefit for 18-25 year olds Reduction in social rent in Great Britain

37. Thank You For information on all the Welfare Changes please visit www.nidirect.gov.uk/welfarechanges If you have any questions please contact us welfarechanges@communities-ni.gov.uk www.nidirect.gov.uk/welfarechanges