Welfare Reform

1. Welfare Reform Tameside Citizens Advice Bureau The reality affecting our community

2. Welfare ReformChanges to benefits from April 2013 Q What is Universal Credit and what does it mean for claimants? Q What are the other main benefit changes introduced by Welfare Reform? Q What is its impact locally

3. Universal Credit Aims To Simplify the system and make it easier to understand To make it easier to move in and out of work Make work pay To reduce poverty and welfare dependency To reduce fraud and error and be cheaper to run. To reduce the overall be benefit bill

4. What is it? Replaces a range of means tested benefits with a single monthly payment. Makes entitlement to benefit conditional on looking for work for more people. Uses new IT systems to ensure claims can be made and managed online. To be introduced from October 2013 over a period of four years. Tameside will have some claims starting from April 2013.

5. What will be needed ? • You will need a bank account • You will need on line access to make claims • You will need to budget as most payments will be made monthly in arrears as payments will be made directly to you and not your landlord for the rent part .

6. What is the impact locally • Needed to set up local digital access points with assistance • Only a small sample locally not representative • Payment of rent direct to client rather than landlord creates need for budgeting support and will lead to arrears and potential eviction • Since 1st May we have helped 3300 clients to access digital claims through the hub –over 70% needed some form of assistance – this could be the need of Universal Credit claimants in 2016-17

7. Personal Independence Payments Replaces Disability Living Allowance for working age people who need help with personal care and mobilising. New test of entitlement and face to face assessments for most people. Continues to be non contributory and non means tested. New claims started April 2013.

8. Local impact • Criteria strengthened – claiming more difficult • Very variable examinations • Clients losing access to Motability scheme • Loss of income creating loss of independence • Reduced entitlements to other benefits • Increase in number of appeals

9. Council Tax Benefit ends From April 2013, the council tax benefit scheme ended Each local authority now have their own scheme. All working age people will be expected to pay something towards their council tax. Pensioners will not be affected. Council tax discounts and exemptions will not be affected.

10. How will this affect households • If you are of working age then you will be responsible for paying some council tax --- even if you are on benefits • Locally if you are in a house with a band A council tax band and are of working age and on Income support or income based JSA you currently pay no council tax --- from April you will have to pay £3.49 per week per household

11. What is the local impact • 27,000 people in Tameside claim council tax benefit • Everyone has to pay at least 20% of their bill • Clients not aware “they now have to pay” • Clients are now getting in arrears • There is an increase in liability orders being issued---bill increases • Bailiffs are engaged – bill increases • Bailiffs wont negotiate • Clients cutting down on food and heating

12. Social Fund changes From April 2013 Community Care Grants and Crisis loans were replaced by local support Our local authority has its own scheme.- Tameside Support for Independent Living Scheme There is a reduction in the total available locally last year the DWP spent £1.7 million locally –TMBC have been allocated £900K All applicants will be signed up to a CREDIT UNION Not limited to people on benefits It will be a grant and not repayable All claims have to be made online

13. What is the Local Impact • In the internet access point in the council offices we have helped over 1500 clients make online claims for TSIL • Low level of computer literacy means high level of support needed • Proliferation of local food banks • We have set up a re cycle outlet to give out clothing as well as to fund food parcels • Massive increase in demand for services • Can take up to 2 days at best if awarded – interim need for food and fuel

17. Benefit Cap From Summer 2013, no workless family receive more in welfare than median after tax earnings for working households This is £500 for couples and lone parents and £350 per week for single adults. People in work and some disabled people are exempt. There will be a 39 week grace period for people who have been in employment for 52 weeks or more.

18. What is the local impact • 220 households locally are affected • Any deductions are made firstly from housing benefit • Some of these have lost 99.9% of their housing benefit – they have to be left with 50p of benefit • Households driven into rent arrears and threats of eviction • Children are the ones who suffer most as its large families most likely to be affected

19. Housing benefit size limit rules From April 2013 working age people renting from a social landlord will have their housing benefit reduced if they live in a house deemed too big for their needs. The reduction will be: For 1 bedroom too many – 14% For 2 or more bedrooms too many – 25%

20. What are the Size Criteria? One bedroom is allowed for: Every adult couple Any other adult age 16 or over Any two children of the same sex aged under 16 Any two children under 10 Any other child (other than a foster child whose main home is elsewhere) A carer (or team of Carers) who do not live with you but provide you or your partner with overnight care.

21. What is its impact locally • 3000 households affected locally • Clients paying £14-25 out of benefit income • Clients forced into debt • Clients forced into high interest payday loans • Threats of eviction • Court orders • £2.5 million a year taken out of local economy • RSL’s revenue affected adversely

22. Bedroom tax –impact locally • Not enough one bedroom accommodation available to cater for new demand • Young tenants discouraged • Insufficient allowance made for those who do emergency fostering • People with disability suffer disproportionately

23. Inequality ?

24. Changes to ESA criteria • Qualification criteria made harder • Current claimants reassessed • Own GP evidence given less weight in decision making • Decision often based on quick examination • Entitlement to contribution based ESA limited to 365 days

25. Impact Locally • Loss to local economy of £11.5 million a year • Clients often badly reassessed with some outrageous examples • Clients put into wrong work group • High levels of appeals creating additional work for welfare rights services at a time when legal aid was cut • 60% of appeals are successful • Clients with mental health issues suffer disproportionately

26. Jobseekers sanctions • From October 2012 sanctions for Jobseekers allowance claimants have increased. • Jobseekers who leave work without good reason or fail to make enough effort to find work face fixed term sanctions of up to three years.

27. ESA Sanctions • Increased from 3rd December 2012 • For claimants who fail to attend a work focused interview or undertake work related activity. • Two part sanction: open ended until compliance, then one, two or 4 weeks after compliance. £71 per week. • Hardship payments for vulnerable claimants • Right to appeal against the sanction.

28. Impact locally • Short term crisis help is now responsibility of the council • Limited funds available • High level of help needed in filling in digital claims • Total fuel and food poverty at start of sanction • Massive impact on people in need ---frustration—despair • Limit on number of applications to fund – what else is there? • Clients not able to meet ID requirements

29. Child Benefit • From April 2013 Child benefit will stop for higher earners • People earning £50,000 per year will have their child benefit reduced. • Those earning £60,000 per year will no longer be entitled.

30. Financial impact locally of all welfare reforms • Freezing of child benefit will cost local economy £3.6 million a year • Changes in hours for working tax credit will cost local economy £3 million a year • Changes to the child tax threshold will cost the local economy £2.3 million a year • 15510 people in Tameside receive DLA , it is likely 1668 will loose the benefit , a local cost of £6.2 million • 3000 households affected by the bedroom tax will take £2.5 million out of local economy

31. Financial implications • Its estimated that by 2015 the combined loss to the local economy of Tameside will be above £68 million • We don’t want this to happen here

32. Social impact locally • High levels of unemployment – 12.5 applicants for every vacancy • 23,380 claimed some form of out of work benefit 17% of working age population • Number of households living in fuel poverty has increased from 13% in 2006 to 20% of all Tameside households in 2013 • We have see a 38% increase in clients seeking advice • Reassessment of ESA claimants means that clients are found “fit for work” 60% successfully appeal the decision

33. Increase in Clients to Bureau

34. Food Parcels Issued by TCAB

35. To end – an actual quote • “ I might have to move into residential care – I have even thought about suicide as my quality of life has been so much reduced already – because of my disability I’ve lost my job, my friends and colleagues , I cant do any social stuff nor go on holidays . There has to be a point beyond which its just not worth trying to stay alive – I cant imagine how someone in my situation can cope with less money “

36. 0r two • “ the worst thing that worries me is not being able to afford heating in the winter, I am so cold at times and I couldn't survive with less money”

37. ANY SUGGESTIONS?

38. Or ideas