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Welfare Reform Impacts

Welfare Reform Impacts. Sam Lister, Policy & Practice Officer, CIH. Aims: understand better. The breadth of the reforms Why they have taken place Scale of impacts Future reforms: universal credit How might we better approach campaigning. Welfare & public expenditure.

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Welfare Reform Impacts

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  1. Welfare Reform Impacts Sam Lister, Policy & Practice Officer, CIH

  2. Aims: understand better • The breadth of the reforms • Why they have taken place • Scale of impacts • Future reforms: universal credit • How might we better approach campaigning

  3. Welfare & public expenditure

  4. Public services & expenditure • UK government expenditure on social security • How much is spent annually (£ million) • What are the three biggest items of expenditure • How much does it save from bedroom tax (£ million) • What do we spend on each of these • Health • Education • Police • Housing (non HB)

  5. Before the crash…how government spent

  6. Welfare benefits: old & new

  7. Welfare reform impacts

  8. Welfare reform awareness • How many reforms can you identify (2010) • Who do you think has been worst affected by welfare reform • Numbers (largest group) • By loss (amount of benefit lost)

  9. Bedroom tax impact

  10. The cap: HB headroom

  11. Benefit cap in the South East Household benefit cap: impact on 3 child families in London and the south east.

  12. PIP and consequential • Similar structure to DLA (care, mobility) • Two rates of care, two rates of mobility • In effect the end of the lower care rate • Tougher ESA style medical test with points threshold • Regular reviews and fixed term awards • 500,000 taken off projected caseload by 2015/16 • Loss of disability and/or severe disability premium • No severe disability premium in universal credit • Losses from £21 to £110+ per week for single

  13. Housing support welfare cuts Impact Assessment Annual Policy Costings 2014/15* (£ million) • Social sector size criteria 500 • Non dependent deductions 340 • Household benefits cap 265 • Local housing allowance (30th percentile and CPI indexation)880 • LHA shared room rate extension 215 • Disability living allowance to personal independence payment 1240 • Time limiting contributory ESA 1180 • Tax credits (2010)1225 • Tax credits (2011) 1630

  14. Losses welfare reforms

  15. The Guardian 2 January 2012

  16. Universal Credit

  17. Universal credit main features • Better off in-work • Keep more as you earn more • Smoother transition between in and out of work • Single combined benefit • Payment to tenant • Centralised administration

  18. Current benefits & tax credits Couple, two children, one earner, rent £75.00, council tax £23.00

  19. Universal credit Couple, two children, one earner, rent £75.00, council tax £23.00

  20. Current & UC compared Couple, two children, one earner

  21. Universal credit main features • Better off in-work • Keep more as you earn more • Smoother transition between in and out of work • Single combined benefit • Payment to tenant • Centralised administration

  22. Tenant payment • How do you view it / what will be the impact • Increased rent arrears? • Difficulty managing money? • Any positives? • Public perceptions? • Landlord tenant relationship?

  23. Any lessons learned

  24. Some things to think about • The numbers are mind blowing • The bedroom tax is one element only • Does it matter to us if private tenants lose out • Some of the decisions raise difficult questions does it help our cause if we ignore them • Wider public perceptions are important – because we are public too • What matters is how much support people receive not how it is paid

  25. The Guardian 2 January 2012

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