1. Financial Inclusion Forum September 2013 Welfare Reform Update

2. Key HB reforms Local Housing Allowance Non-Dependant Deductions Bedroom Tax Discretionary Housing Payments Local Council Tax Scheme Benefit Cap Local Welfare Provision Universal Credit

3. Local Housing Allowance Commenced April 2011, all reforms now implemented The annual loss in Bolton is estimated at £2.8M per annum and over 6,000 customers have been impacted Average losses on the whole relatively moderate compared to social sector reforms, for example the introduction of a 30 th percentile resulted in an average loss of approximately £5 per week compared to an average loss of £12 per week with regard to bedroom tax. DHP’s have been used to provide assistance and this was particularly the case with customers impacted by the under 35’s rules Full £200K DHP subsidised allocation was spent in 2012/13

4. Comparison of Non-Dependant deduction rates 2010/11 bands2010/11 amounts 2013/14 amounts Increase Under 25 and ESA(IR) main phase£7.40£13.60£6.20 IS/JSA(IB), ESA(IR) not in work (25+) £7.40£13.60£6.20 Less than £126£7.40£13.60£6.20 £126 to £186£17.00£31.25£14.25 £186 to £242£23.35£42.90£19.55 £242 to £322£38.20£70.20£32.00 £322 to £401£43.50£79.95£36.45 £401 and above£47.75£87.75£40.00

5. Under Occupancy Annual loss approximately £2.2M with approximately 3,500 customers impacted – pensioners exempt. Average national loss estimated at £14 per week, approximately £12 per week in Bolton Some RSL’s reporting that up to 50% of tenants impacted by the have not paid anything towards the shortfall – combination of won’t pay and can’t pay Major impact on DHP administration B@H have committed to a no homelessness pledge providing arrears are purely under occupancy related and tenant willing to accept alternative accommodation Government challenged at Tribunal

6. Policy changes, case law and court cases Foster carers (limited to 1 bedroom) and armed forces personnel provided with protection Disabled children afforded some protection via case law if it can be shown that the disability prevents room sharing – will be made law in Autumn 2013 Government won challenge in High Court regarding general disability but cases likely to go to the Court of Appeal Couple of successful cases in Scotland at Lower Tribunal regarding under occupancy and room size – not binding & DWP appealing Additional £65K in DHP money and £20M available nationally for successful bids

7. DHP’s Subsidised DHP pot for 2013/14 is £692K (includes additional £65K) 1,123 claims received as at 1 st September Committed spend currently £259K Expecting an Autumn surge in spending as awards expire Many claims being refused on the basis of excess income

8. Local Council Tax Support Effective from April 2013 In Bolton losses limited to £370K in year one following a successful bid for an additional grant Maximum losses capped at 8.5% and aimed at customers who have the best ability to pay Approximately 90% of customers in Bolton not impacted by the changes to the local scheme – pensioners exempt Council Tax Reduction Scheme operates similar to DHP’s – very small number of claims so far. Scheme will be reviewed for 2014/15 but likely there will be no change in terms of savings requirement but keen to review administrative process

9. Benefit Cap Commenced Monday, 15 th July 2013 and ends next week. In Bolton the last DWP scan identified 251 cases – however only received 175 cases – in line with GM experience Losses range from £7 per week to in excess of £150 per week Council’s run homeless accommodation (Benjamin Court) not protected from the cap and rents are high so has been some impact in this area Again DHP’s will be used in some cases to provide temporary support but only realistic solution for customers is to move into employment Can support activity of registered providers – B@H have around 30 tenants impacted and want to engage with all of them

10. Local Welfare Provision Emergency Support Awards

11. Local Welfare Provision Community Support Awards

12. Local Welfare Provision

13. Still early days and already looking at ways to improve the scheme including: –Use of Pay Point vouchers to replace manual fuel top ups; –Pre-populated goods specific payment card to replace Argos trips for sundry items; –More proactive use of the Credit Union; –Improvements to website; –Referral system to partners to provide long term support Also preparing for a 6 month review of the scheme – e-mail will be sent to all partners next month to start consultation and agreed amendments will be introduced in the 3 rd quarter of the financial year

14. Universal Credit Pilots are only testing standard awards and housing costs IT is basic and not testing children and disability related cases Not testing taper, disregards or any self employed Pension credit transfer of housing costs planned for Sept 2015 at the earliest (pushed back from October 2014)

15. Universal Credit 4 pilot sites in the North West – 3 are located in Greater Manchester: –Wigan –Oldham –Tameside –Warrington Only 6 new sites from October 2013: –Harrogate –Bath –Rugby –Shotton –Hammersmith –Inverness

16. Universal Credit Current UC project in crisis and considered high risk New man at the top – previously involved in 2012 Olympics Pilot sites reporting whole range of issues Opposition setting up a UC Rescue Committee Opposition also looking to devolve power from DWP to Local Councils