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Michael Fothergill Crisis Welfare Network Manager michael.fothergill@crisis.uk 020 7426 8504

Michael Fothergill Crisis Welfare Network Manager michael.fothergill@crisis.org.uk 020 7426 8504. Welfare Network. UNDERSTAND WELFARE REFORM. WELFARE REFORM. WELFARE BENEFITS PROPOSALS Cap of £500 per week on benefits for families - £26,000 per year (£560)

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Michael Fothergill Crisis Welfare Network Manager michael.fothergill@crisis.uk 020 7426 8504

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  1. Michael FothergillCrisis Welfare Network Managermichael.fothergill@crisis.org.uk020 7426 8504 Welfare Network UNDERSTAND WELFARE REFORM

  2. WELFARE REFORM • WELFARE BENEFITS PROPOSALS • Cap of £500 per week on benefits for families - £26,000 per year (£560) • Cap of £350 per week on benefits for single people - £18,200 per year • Exemptions to the cap ~ household in receipt of DLA, Personal Independence Payment or Attendance Allowance, ESA Support Group, IIDB, WTC, War Widows Pension or has been in employment for 50/52 weeks and has lost a job through no fault of their own – exempt for 9 months • Shared Accommodation Rate extended to 35 year olds – exemptions for people who have lived in a hostel for 3 months / ex-offenders ~ serious risk to the public (25 to 34 year olds only) • Bedroom tax Social Housing only – 1 extra room 14%, 2 or more 25% - average loss £14 pw ~ April 2013 • Discretionary housing payment (DHP) budget ~ 2013 £150million

  3. WELFARE REFORM • WELFARE BENEFITS PROPOSALS • The Social Fund to be abolished in April 2013 – Crisis Loans and Community Care Grants budgets to be administered by local authorities (social services) • Budgeting Loans / Advances will stay with DWP and eventually form part of the Universal Credit • Budgeting Loans will still remain under the same rules for anyone not on UC • Budgeting Advances will have to be paid back within 12 months not two years, and will not be paid if any existing loan or advance has not been fully repaid • Conditionality – refusal to take up job offer – 1st up to 3 months, 2nd up to 6 months, 3rd up to 3 years (housing costs will not be sanctioned, top two levels only for JSA claimants) • Start dates ~ JSA 22nd October 2012 / ESA 3rd December 2012 • Removal of the ‘rolling’ sanction after six months continuous work

  4. WELFARE REFORM • UNIVERSAL CREDIT • 100% means tested – will replace JSA and ESA income based, Income Support, Housing Benefit, Working Tax Credits and Child Tax Credits – ‘SLOW BURN’ from October 2013 • Higher annual earnings disregards for people under UC – with a minimum and maximum limit depending on housing costs ~ reduced by 1½ housing cost element • Single people ~ max £1,330 / min £1,330 • Couple with children ~ max £6,429 / min £2,660 • Lone parent ~ max £8,812 regardless of number of children / min £3,159 • Limited capability for work ~ max £7,759 / min £2,306 • 35% taper will then be attributed to any earnings above the annual disregard

  5. WELFARE REFORM • UNIVERSAL CREDIT • Introduction of the ‘claimant commitment’ • Joint conditionality for couples without children • Non-dependent deductions for everyone aged over 21 will be £16 per week • Removal of the ’16 hours’ rule • ‘Conditionality threshold’ – will be removed when a certain level of earnings has been reached (amount earned at NMW rather than hours worked) ~ £216.65 for a single person, and £433.30 for a couple • Universal Credit will not replace non-means tested benefits – JSA, ESA, DLA, IIDB

  6. WELFARE REFORM • UNIVERSAL CREDIT • Monthly payments of the Universal credit paid into a bank account • Alternative Payment Arrangements (APA) - claimants will receive a single household payment ~ exceptions may include ~ split household payments, more frequent payments and direct payments to landlords – Tiers one and two definitions • Credit Union ‘Jam Jar’ accounts / Simple Payment card • Passported benefits within UC ~ not subject to the ‘cap’ – will carry on as they are for the time being • Extra £200M in child care, and removal of minimum 16 hours rule • All (eventually) administered by DWP

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