Welfare reform: points for corporate appointees to watch

1. Welfare reform: points for corporate appointees to watch 09 May 2012

2. Objectives • Progress review of benefit changes • Focus on the main changes affecting your service users • Things to watch • Questions and discussion

3. Summary of changes • £18 billion removed from benefits / tax credits bill • Most changes impact on people of working age • Most of the savings come from • Sick / disabled claimants • Workless families with children • Housing benefit – (all tenures) • A further £10 billion in cuts promised in 2012 budget

4. Very vulnerable Coping Disabled Fairness Sick Workless families Large families Slightly worse off Much worse off Destitute Private tenants Working families Single LHA claimants under 35 Fairness

5. Where we are now • Transitional protection ending for 2011 changes to HB for private tenants • Welfare Reform Act – Royal Assent 8 March 2012 • Welfare reform Commencement Order No. 1 – 19 March 2012 • Ongoing consultation about Personal Independence Payment

6. What do deputies and appointees need to look out for? • For service users in the community – changes to housing benefit and council tax benefit • For service users of working age – the transfer of ICB / SDA claimants to Employment & Support Allowance • For younger disabled service users – the reform of DLA and the introduction of PIP • For all service users – fines for claimant errors

7. Changes to housing benefit and council tax benefit • LHA caps:Do you have service users in private rented accommodation; are they caught by the caps; when does their transitional protection end • LHA single room rate: Do you have service users aged 25 – 35 in private rented accommodation; are they caught by the SRR; are they exempt (getting SDP; former hostel dweller etc) • Under-occupation: (all tenures) – do you have service users with extra room(s); how many rooms – what will they lose • Local council tax benefit: what is your local scheme – who gets relief?

8. Transfer of ICB / SDA claimants to Employment & Support Allowance • Work Capability Assessments:Apply to all on sickness benefits (SDA, ICB, some income support) and determine whether the person is found • fit for work (needs to claim JSA) • fit for limited work (work related activity group) • Unfit for work (support group) • Risk of benefit suspension if claimant fails to respond to DWP • High proportion of incorrect determinations • Mental health service users more likely to be found fit for work • Contributory ESA time limited to 52 weeks

9. Reform of DLA and the introduction of PIP • Reform of DLA applies to all claimants between 16 and 64 • 500,000 targeted to lose entitlement in preparation for transfer to PIP • Phased introduction of PIP for new claims from April 2012 • Review of existing claimants from October 2013 and they “will be invited to claim Personal Independence payment and will be assessed for the new benefit if they choose to claim it”. DLA will be suspended if claim not submitted within the time limit. • PIP not a passport to higher rates of Universal Credit (that is via WCA)

10. Fines for claimant error • S112 of the WR Act:introduces civil penalty for incorrect statements and failures to disclose information (including changes in circumstances) leading to overpayments • Fines are recoverable from the ‘person on whom it is imposed’ • If the appointee fails to notify a CoC for a person who lacks mental capacity, likely that the fine will be met from the appointee’s resources – not te claimant’s

11. Questions and discussion ?

12. Contact details Martin Baillie Islington Council 020 7527 8620 martin.baillie@islington.gov.uk