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Housing Benefit Reform

Housing Benefit Reform. 2010/11 Budget changes Universal Credit. 2011/12 Budget changes. Three phases April 2011 January 2012 April 2013. Changes from April 2011. Capping maximum eligible rent levels

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Housing Benefit Reform

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  1. Housing Benefit Reform • 2010/11 Budget changes • Universal Credit

  2. 2011/12 Budget changes • Three phases • April 2011 • January 2012 • April 2013

  3. Changes from April 2011 • Capping maximum eligible rent levels • GB rates capped at higher levels than N Ireland (e.g. £250 for 1 bedroom property…. £400 for 4 bedroom property) • HB Rates capped at 4-bed rate for new claims (January 2012 for existing claims) • Provision of additional bedroom for non resident carer

  4. Changes from April 2011 • Numbers of Cases Affected by Capping • 231 5-bed cases • 45 6-bed cases • 5 7-bed cases • Withdrawal of £15 maximum “excess” payment - 7000 cases affected. • Increase in DHP by 50% to £1.7m • Further increase to £3.4m in April 2012

  5. Changes from April 2011 • Change in calculation of Local Housing Allowance • Change from median value to 30th percentile value • New claims from April 2011 • Existing claims (47,000) receive transitional protection for 9 months after review date

  6. Changes from January 2012 • Transitional protection ends for existing LHA claims with earliest review dates • Shared Accommodation Rate – Change in age criteria from 25 to 35 (approx 6000 claims affected) • Exemptions:- • Rough Sleepers • Ex-offenders who pose a threat to public

  7. Changes from April 2013 Restriction of HB awards for working-age claimants under occupying accommodation in social-rented sector. Not yet clear on numbers affected Implications for Rent collection Allocations policy Adaptations policy

  8. Changes from April 2013 • Overall cap on benefits receivable for working age claimants • Will apply to claimants in all tenure groups • Proposed cap of £500 per week couples and single parents • Proposed cap of £350 for single claimants

  9. Changes from April 2013 • Exemptions for claimants on DLA, AA and War Widows pension • HB will be the benefit that will be reduced if the cap is exceeded

  10. Changes from April 2013 • Uprating of LHA rates in private sector at rate of Consumer Price Index • Potentially all 47,000 LHA claimants affected • Currently based on evidence gathered on market rents • May result in disparity with real market rents

  11. Issues • More payable by those in greatest need particularly large families • Increase in DHP will not offset all reductions in HB but will create greater workload • Shortfalls in HB especially in private sector may lead to greater demand for social housing and higher levels of homelessness

  12. Issues • Matching accommodation to family size • Location & political/religious issues • Requirement to establish under occupancy levels in social rented sector • Affects both NIHE & HA’s

  13. Universal Credit • WELFARE THAT WORKS – WHITE PAPER • NI Welfare Reform Bill to be laid before NI Assembly during 2012 • Likely to maintain parity with GB

  14. Range and timing • Universal credit will bring together in a single payment income related benefits currently provided by SSA (JSA and ESA); all tax credits; and Housing Benefit for working age claimants • Housing Executive represented on a number of project boards examining how UC will operate in N. Ireland.

  15. Range and timing • New claims for “out of work” benefits will be subject to UC (probably) from October 2013 • New claims for “in work” benefits move to UC from April 2014 • Pensioner claims moving to pension service from Oct 2014 to be assessed alongside Pension Credit • Existing claims will migrate to UC after Oct 2013 and will be completed by 2017

  16. Assessments, awards and payments • First choice will be on line and telephone claims. • Implementation of UC dependant on development of two new IT systems. • One system to run Universal Credit • HMRC system to deliver real time earnings information • Number of issues identified with both systems

  17. Assessments, awards and payments • Both members of a couple must claim UC but payment will be amalgamated and paid to one nominated bank account only. • Issues re split payments in problem situations not clear • Transitional protection at point of transfer

  18. Assessments, awards and payments • UC will be paid monthly in arrears • Budgeting issues for vulnerable customers • Direct payments likely to cease for landlords • Definitely for private landlords • No decision yet for social landlords

  19. Conditionality • Tougher conditions regarding entitlement to UC than HB • Tariffs will be imposed for non compliance with work related directives – could loose UC for up to 3 years.

  20. Issues • Housing Executive currently deals with HB claims for both rent and rates in the private rented sector • Uncertainty how housing costs will be determined for working age claims– rent charges/interfaces • Housing costs paid via pension credit for pension claims

  21. Issues • Current view is that rates will not be included in UC • A new system of providing help with rates may need to be established in NI

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