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Children’s Partnership Board 12th May 2016

This project aims to provide information and support regarding the welfare reforms implemented in Essex, including universal credit, benefit cap, size criteria, tax credits, and social fund. It analyzes data, raises awareness, and facilitates communication to ensure a coordinated response.

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Children’s Partnership Board 12th May 2016

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  1. Children’s Partnership Board12th May 2016 Welfare Reforms

  2. Welfare Reforms • The Welfare Reform Act 2012 introduced a wide range of reforms to the benefit system – some of which were implemented in April 2013 • The Act legislated for the biggest change to the welfare system for over 60 years. • It introduced a wide range of reforms with a purpose to make the Benefits and tax credits systems fairer and simpler by: • creating the right incentives to get more people into work • protecting the most vulnerable in our society • delivering fairness to those claiming benefit and to the taxpayer. • The changes have had implications in Essex for People, place and services, although the implementation of some changes has been incremental

  3. Timeline of changes

  4. Welfare Reform Project Set up to ensure that ECC is in a position to understand and react to the changes bought in by the welfare reforms. • Data Analysis and The Essex Bulletin : This bulletin provides a high level position statement on the known potential impacts of welfare reform across people, place and services. This has developed as the changes have been implemented and data is made available • Raising awareness : working with other authorities and partnership groups including the LGA and ACCE to understand impacts, allow the sharing of data and provide a coordinated response. • Communication : ensuring that key messages are communicated through the creation of materials and stakeholder engagement

  5. Key Welfare Changes for Families A Summary • Universal Credit • Benefit Cap • Size Criteria • Tax Credits • Social Fund

  6. UniversalCredit • For those of working age – in or out of work • Aimed at simplification of the system – one single benefit • Replacing: - Income-based Jobseeker’s Allowance - Income-related Employment and Support Allowance - Income Support - Working Tax Credit (including help with childcare costs) - Child Tax Credit - Housing Benefit

  7. Universal Credit: key features • A single, monthly payment - designed to mirror salaries • claimant commitments with new sanctions for fraud and error • childcare costs included for working a few hours a week • housing costs (mortgage interest payment) if 0 hours of paid work • claims and claim management will be digital by default • centrally and remotely managed

  8. Universal Credit in Essex

  9. Claims in Essex

  10. Universal Credit: Potential implications • Payment - budgeting and financial skills - division of household finance - Direct Payments - Processing times • Claimant commitment - in - work conditionality - sanctions • Digital by default   - access to computers and internet

  11. Benefits Cap • For working age families and single claimants • The total benefit income is ‘capped’ at £500 per week for families or £350 for individuals. • Includes Housing Benefit • Child Benefit, • Carer’s Allowance (removed from Autumn 2016) • Income Support Child Tax Credit and most other benefits • Further proposed reductions in Autumn 2016

  12. Benefits Cap in Essex Numbers affected across Essex via DWP statistic as at February 2016. • 348 families affected with 3 or more children • 40 households losing between £400 and £600 per month • 77 households between £200 and £400 per month

  13. Benefits Cap: potential implications • Payment - Reduced weekly income - Larger families impacted more - Use of Discretionary housing payments - Increased use of payday loans • Claimant support - Assistance in finding work - Budgeting support

  14. Size Criteria – Under Occupancy • For tenants of working-age living in social sector housing who claim housing benefit. • Claimants will have to meet the first 14% of their rent with 1 spare bedroom • Claimants will have to meet the first 25% of their rent without housing benefit with 2 spare rooms • 6% of Essex caseloads affected by legislation (5336)

  15. Size Criteria – removal of spare room subsidy in Essex (as of November 2015)

  16. Size Criteria: potential implications • Reduced weekly income • Potential for increased arrears • Currently the primary use of Discretionary housing payments • Resettlement and Migration • Carer support impacted (currently under review)

  17. Tax Credit and Housing Benefit Changes • No change to Tax Credit taper rates and threshold • Restriction on support for larger families from 2017 • Equivalent changes will also be introduced to Housing Benefit (HB) • removing the family element for those starting a family after April 2017. The equivalent in UC will also not be available for new claims after April 2017. • The extra premium added to Housing Benefit for families (family premium) will be withdrawn for new claims from April 2016.

  18. Crisis Loans and Community Care Grants – Introduction of Essential Living Fund • Support scheme for those in an emergency situation • Supporting resettlement into a community • Provision of Food, Fuel and Furniture • Delivered through the local community • Currently funded until April 2017 • 1000 awards (25% of total awards) have been to families with children and 681 of these families had at least 1 child under 5. 300 awards to those with children under 5 included a food element.

  19. The ELF Process Customer presents with need and contacts the assessment team (Within Southend Borough Council) Colchester CVS distributes award info to relevant partner. Customer receives support in form of advice, Furniture and white good, food parcels and other essential living items Assessment of need and eligibility checks carried out. Decision on award type and amount. For awards of utility payment and food, an all pay prepaid card is credited and made available at a distribution site for customer collection. All other awards are passed on to the ECC delivery function provided by Colchester CVS.

  20. Future proposed changes 2016/17 • Changes to Tax Credits • Further personal independence payment Rollout • Further Universal Credit rollout • Potential Benefit Cap reduction

  21. What are we and districts doing to mitigate? • Identification and support to those affected • Use of Discretionary Housing Payments • Ensuring links to Commissioning activity • Informing Partners, departments and government bodies • Lobbying

  22. Considerations and Risks • Removal of ELF scheme. Reductions and demand in DHP • 4 years Benefits freeze • Are we building the right housing? • Are districts looking at further benefit cap reduction support?

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