1. Cardiff Partnership Board June 2012
Item 5.1
Welfare Reform Update
Jane Thomas
Cardiff Partnership Board June 2012

2. Summary Reduction in Benefit Levels for private tenants
This year will see radical changes to Welfare Benefits Including:
Reduction in Benefit Levels for private tenants
The Benefit Cap
Social Housing Size Restrictions
Introduction of Universal Credit
Council Tax Support
Social Fund reform
Other welfare benefit changes

3. Reductions in Benefit Levels for Private Tenants
April all benefit levels for private tenants were reduced & 5 bedroom rate removed.
Single room restriction extended to age 34
Started to affect existing claimants from Jan 12
Information is being sent to claimants and their landlords & re-housing advice offered
House Share Wales website launched

4. Benefit cap
From April 2013 total benefits received is to be restricted to average earnings
If income is over £350pw for single person or £500 for couples & families, HB will be reduced
Exemptions - pensioners, disabled, in receipt of Working Tax Credit, War Pensions
Includes hostels, refuges and other temporary accommodation
400 cases in Cardiff, 100 will lose over £100 pw.
95% have children, 41% have 5 or more children.
51% are council or housing association tenants

5. Social Housing Size Restrictions
From April 2013 social tenants who under occupy will have their HB restricted
Pensioners are exempt
Children are expected to share a room until aged 10, (aged 16 for children of the same sex)
14% restriction for one room (£13.50)
25% restriction for two rooms (£24.00)
Estimated 3,500 council tenants could be affected
Concerns about rent arrears / evictions / homelessness and costs of rent collection

6. Universal Credit
Housing Benefit, Income Support and many other welfare benefits are to be replaced by Universal Credit
To be phased in from October 2013 to 2017
Most customers will be expected to apply online
Currently 2,500 customers seen face to face each week in Cardiff
Possible role for Council’s in face to face services
Payment to be made 4 weekly in arrears
Direct payment to social tenants (to be piloted in Torfaen)

7. Council Tax Support
From April 2013 Council Tax benefit is to be replaced by local council tax support schemes
Funding to be reduced by at least 10% (£2.8 million in Cardiff)
Funding to be cash limited – will not increase with demand
Devolved to Welsh Government who want a national scheme with some local variation
No commitment to protecting pensioners / other groups (if pensioners are protected cut to working age is 16%)

8. Council Tax Support Issues
WG have consulted but no response issued yet
Concerns about time to develop & agree local variations, consult, amend software, train staff and communicate changes by Feb 13.
Scottish Govt is funding the shortfall
35,000 households currently claim CTB in Cardiff
Currently assessed alongside HB – one claim for both benefits

9. Social Fund Reform
Some social fund payments are to be devolved from 2013
Community Care Grants – e.g. to help vulnerable people settle in community
Crisis Loans – to meet needs in disaster or emergency
In Cardiff - approx 18,000 applications made in £1.7million paid out.

10. Social Fund Reform Issues
WG want National Scheme with local delivery – they have consulted but no response yet
No clarity on who will be responsible for delivery
Different delivery models have been suggested - Local Authority or Third Sector consortia
WG looking for innovative solutions – eg providing goods rather than money & involvement of credit unions
Concern about delivering any scheme within the timescales
Need for clear gateway to access the service

11. Changes to other Benefits
Incapacity benefit is currently being replaced Employment Support Allowance and claimants reassessed
Working Tax Credit - now need to work 24 hours a week to qualify (does not affect lone parents)
Disabled Living Allowance is being replaced by Personal Independence Payments (PIP) from April 2013 and claimants reassessed

12. Economic Impact
Wales % of working age households are claiming benefit (GB average 14.5%)
Households in Wales to lose 4.1% of their income or £1,110 per year
Inner city area of Cardiff among worst affected
The poorest households with children will lose the largest proportion of their income

13. Way forward Officers working closely with WLGA / WG
Resources for planning have been put in place
Housing Strategy plan developed, working closely with RSLs to develop new types of accommodation and encourage downsizing.
Increased Discretionary Housing Payment to be used to help people move by paying bonds and rent in advance.
Communication plan developed including internal and external stakeholders

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