1 / 23

Welfare Reform

Welfare Reform . Information Session. Today's Session. Rationale for Reform Welfare Reform Agenda Welfare Reform Bill Welfare Reform Regulations - Housing Benefit. Today's Session- cont’d . Wider Changes Timetable for Reform Mitigating actions.

iren
Download Presentation

Welfare Reform

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Welfare Reform Information Session

  2. Today's Session • Rationale for Reform • Welfare Reform Agenda • Welfare Reform Bill • Welfare Reform Regulations - Housing Benefit

  3. Today's Session- cont’d • Wider Changes • Timetable for Reform • Mitigating actions

  4. Governments Rationale for Reform Making Work Pay • Consider current system to have failed • Overly complicated • Too expensive • Does not encourage people into employment • Open to fraud

  5. Agenda for Reform • Simplified, Streamlined Welfare System • Reduce Bill for Welfare Benefits by 20% • Encourage and incentivise people to work • Ensure those not working , no better off than working households • Break the cycle of Welfare Dependency Increased Sanctions attached to all elements of Welfare Reform

  6. Welfare Reform Bill

  7. Benefits being abolished • Income support • Income based jobseeker’s allowance • Income related employment and support allowance • Housing benefit • Child tax credit • Working tax credit

  8. Universal Credit • Introduced October 2013 • One benefit payment to be paid in or out of work • Payment to one member in a household • New work related activity requirements • Stronger sanctions • Real time IT system • Payments may change to monthly in arrears

  9. Personal Independence Payment • Replaces disability living allowance • 2 components: mobility and daily living with 2 rates for each component • Assessment by way of medical examination • Initially only for working age claimants • Entitlement to PIP part of gateway for carers allowance • Plans to introduce a habitual residence test instead of ordinary residence test (DLA)

  10. Regulations

  11. Housing Benefit2011 • LHA – capping, change to 30th percentile • Ending of excess payment award • Increase in rate of non-dependant deductions These applied to new claims from April 2011. Changes were delayed for existing claimants for 9 months after the 1st anniversary date of their claim after April 2011. Change started from January 2012

  12. 2012 • Age range for Shared Accommodation Rate (SAR) extended to 35 • Capping of LHA for existing claimants • LHA at 30 percentile for existing claimants

  13. 2013 April • Reduction in HB award for under-occupation in social rented sector • Overall cap on benefits received • Increase in LHA rate limited by rate of Consumer Price Index October • Introduction of Universal Credit

  14. 2014-2017 • Phased transfer of existing HB caseload to Universal Credit

  15. Supported Housing HB Reform • Grouping of different ‘types’ of supported housing with different payment rates : flat rate/geographical rate • Identifying types of additional activities and pricing these • Intensive housing management costs to be separated from HB and administered by local authorities under personalisation agenda • Housing benefit to be paid via Universal Credit • Tied to personalisation agenda

  16. Potential Impacts • Increased competition & demand for housing • Remove/Limit housing choice • Prevent move on & impede progress • Financial impact on housing providers due to a number of changes: direct payments, communal areas, intensive housing management • Rent Shortfalls - Debt/ Arrears • Loss of Accommodation/Homelessness

  17. WIDER CHANGES

  18. Other key elements • Income support for lone parents • Contributory ESA limited to one year • ESA in youth to be abolished • Benefit cap to be introduced – problematic for disabled people • Social Fund community care grants, budgeting loans and crisis loans abolished from 2013 • Childcare gaps • Passport benefits

  19. Procedural Issues • Changes to right of appeal • Overpayment recovery • Benefit penalties and fraud • Immigration status and entitlement • Access to welfare advice

  20. TIMETABLE FOR REFORM

  21. NI Welfare Reform Bill • Due 2012. Welfare Reform Bill GB received Royal Assent 14.03.12 • Possible Accelerated passage • Social Fund • Lack of a work programme • Childcare • Forecasted longer recession recovery

  22. Timetable cont’d April 2013 • DLA replaced by PIP • Mobility provisions for people in residential care to be reviewed • HB entitlement to reflect family size • LHA to be uprated in line with CPI • Benefit cap £500 p/w for couple/lone parent. £350 p/w for single people (does not apply to those on DLA, working tax credit & war pensions) October 2013 • UC introduced • Community care grants and crisis loans abolished

  23. Mitigating Actions • Support financial capability • Promote realistic housing options • Develop relationships with local employment services • Develop relationships with local PRS landlords • Lobby MLAs for changes to HA regs to allow better use of existing stock • Respond positively to the Housing Strategy for NI consultation when available

More Related