Housing Benefit Changes April 2013 onwards

1. Housing Benefit ChangesApril 2013 onwards

2. April 2013 - Changes • Much more change for April 2013 • Council Tax Support • Social rent sector restrictions • Social fund and community care grants • Benefit Cap

3. Council Tax Support • CTB abolished, local replacement scheme • 10% savings from previous year’s CTB • Must protect elderly, consider vulnerability and incentives for worklessness • Need to consult on proposals which are • Everyone pays some CTAX (around 15%) • Ending 2AR (only 3 live cases in Lewisham) • But pending Council decision (January 2013)

4. Impact 24,384 working age households of which 9,493 single-parents and 1,485 families with children 37% in Band B, 36% in Band C

5. What are we doing? • Extensive consultation • Equality impact analysis • Recommendations for Mayor and full Council • Bidding for additional funding • Development of hardship fund • Advanced communication and factsheets

6. Under Occupation in the Social Sector • 14% reduction if under-occupied by 1 bedroom, 25% if 2 or more • Reduction is from eligible rent (charge) NOT the level of HB • Produced lists for all major providers • New, improved solution requires data from providers for uploading into LA systems • Issue re contacting those not paid direct (to LL)

7. What are we doing? • Produced lists of all affected households • Extensive liaison with housing providers • Getting details of those entitled to DHP (foster carers and adapted properties) • Cross borough protocols • Preparation of information factsheets

8. Benefit Cap • Introduced from April 2013 • Applies to combined income from main out-of-work benefits + child benefit, housing costs, child tax credits • Caps will be £500 p/w for couples and lone parents and £350 p/w for single adults • Cap will initially be applied to housing costs only • Exemptions – Households entitled to working tax credits, DLA, attendance allowance, some components of ESA • 880 households affected in Lewisham

9. Impact of the Cap? Household 207 couples with children, 606 lone parents, 9 with 7 children, 1 with 8, 4 with 9 and 1 with 12 children Weekly Losses 339 Up to £50, 269 to £100, 119 to £150 and 153 over £150, weekly, losses range from 38p to £453 Property Social sector 267, private-rented 613

10. What are we doing? • JC+ have written to all affected and trying to help people into work • We will be writing to all affected with specific amounts of impact • Profile DHP, set thresholds, need to finalise what we will and will not cover with DHP • Shared information on those affected with housing providers • Universal Credit pilot

11. Our pilot model Universal credit online system Triage assessment No significant issues anticipated. Some additional signposting for financial and digital inclusion services in VCS made available to all Likely to experience issues on 2 or more of categories (inc. employment or housing) Quick face to face assessment establishes ‘vulnerability’ of customer in the UC system Full assessment & support planning Assesses need and establishes an appropriate support package against four categories Low level need = referrals to Lewisham Credit Union, online support offering for budgeting, other VCS support for financial skills Low level need = provide access to computers at self-serve kiosks, f2f support to access online support at our front office, signposting to free internet, computer services High level need = Setting up pre-paid cards and Direct debits etc, using DHP/ social fund to deal with immediate issues, a more bespoke package of debt counselling High level need = web skills courses via the VCS, phased mediation of web applications (inc UC following pilot) Financial inclusion Digital inclusion Single assessment for all housing needs (including HB for pilot) Employment support Housing support Assesses distance from the labour market and level of support required Low level need = Pro-active early engagement with landlords, access to schemes such as RIS, referrals to VCS support as appropriate Low level support needs = referrals to DWP and VCS support services High level need = completes homelessness assessment and makes appropriate provision via private/ social rented sector High level support needs = Referral to community budgets project Review Letters and if required follow up meetings at pre-agreed intervals to establish whether needs are being met

12. Social fund and community care grants • SF – Social Fund - An interest-free loan, to help with items and services needed as a result of an emergency or disaster eg lost money, fire damage. • CCG – Do not have to be paid back, to support someone entering or to remain in the community eg care leavers, ex-offenders • Previously with DWP, with LAs from April 2013 • LAs to design their own schemes • SF 8,160 applications, 5980 successful receiving £524k • CCG - 5,940 applications, 1,690 successful receiving £1.274m

13. What are we doing? • Dedicated project manager and Board • SF – Exploring partnerships with CU to stimulate financial inclusion • Gathering information on other schemes, benchmarking • Attended external events with DWP, JC+ and other London boroughs • Met external partners and IT providers - Family Fund, CU • Organised workshops for third parties, advice bureaux and third sector • Delivery model - Stand alone in year 1, integration as part of wider single assessment year 2 onwards

14. Discretionary Housing Payments • Additional DHP 2012/13 to cover shortfalls in LHA and SRR (under 35 year old restrictions) • More for 2013 (£75m cap, £30m under-occupying for foster carers and adapted properties) • Reluctant to spend for higher excesses or where conflicts with Government policy • Awards generally short term to allow those affected to make alternative arrangements