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Welfare Reform 2013

Welfare Reform 2013. Perspectives on poverty from a Citizens Advice Bureau. Why reform welfare?. Too complex to understand easily Too complex to administer properly Underclaiming. Simpler & Clearer?. Scale of change?. www.adviceguide.org.uk. www.advicesheffield.org.uk. From April 2013.

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Welfare Reform 2013

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  1. Welfare Reform 2013 Perspectives on poverty from a Citizens Advice Bureau

  2. Why reform welfare? • Too complex to understand easily • Too complex to administer properly • Underclaiming

  3. Simpler & Clearer?

  4. Scale of change?

  5. www.adviceguide.org.uk

  6. www.advicesheffield.org.uk

  7. From April 2013 • Council Tax Benefit (national)becomes Council Tax Support (local) • In Sheffield the maximum help will only be 77% of bill not 100% • Working age families minimum will be £3.29/week where one adult in household or £4.39/week where two or more adults

  8. Under-occupancy rule (bedroom tax) • Housing benefit restrictions on council and housing association tenants • “Extra rooms” beyond basic needs: • 14% HB reduction for one extra room • 25% HB reduction for 2 or more extra rooms • Many tenants will not realise this applies to them- between 6000-7000 tenancies in Sheffield affected

  9. Social Fund –national discretionary scheme abolished Sheffield Local Scheme-will have Local Assistance Loans- in place of crisis loans “To provide short term financial support to minimise health and safety risks due to an emergency or disaster Usually to cover living expenses” Local Assistance Grants- in place of Community Care Grants “To help people establish in the community following a stay in care or a period of unsettled living To help people remain in the community rather than going into care To ease exceptional pressure on families To cover travel expenses under certain circumstances”

  10. Benefit cap- what is it? • Benefit ‘cap’ on the overall level of combined benefits and credits a workless household (with no disability benefits) can receive to around £500/week for lone parents/couples, or £350/week for single people. • 350-400 households in Sheffield affected when this is introduced

  11. Personal Independence Payment (PIP) • PIP gradually replaces Disability Living Allowance for 16-65 year olds • A points-based system similar to ESA • Points will be assessed by ATOS in Sheffield area 9 daily activities activities 2 related to mobility 2 components both at “standard” and “enhanced” rate Where to find out more…. http://www.disabilityrightsuk.org/ To find out if/when you are affected by the transfer to PIP: https://www.gov.uk/pip-checker

  12. One monthly payment of benefits • Universal Credit will normally: • Be paid monthly in arrears • Be paid to a single person in the household • Housing Benefit that has been paid directly to the landlord, it will now come to the claimant instead. To find out if you are affected ask yourself the following questions: ■ Are you a working age household? ■ Do you receive means-tested benefits or tax credits?

  13. Universal credit will combine… * Income Support * Income based Jobseekers Allowance * Income related Employment and Support Allowance * Child Tax Credit * Working Tax Credit * Housing Benefit

  14. Statistics and Beyond…

  15. Understanding the impact

  16. Understanding child poverty

  17. Citizens Advice Service We help people resolve their legal, money and other problems by providing free, independent and confidential advice, and by influencing policymakers.

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