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Welfare Reform Bill February 2011

Welfare Reform Bill February 2011. 17 th February 2012. Aims. Streamline the system Improve work incentives Remove barriers to work Smooth transitions in and out of work Reduce in-work poverty Reduce Fraud and Error. Universal Credit. Jobseekers Allowance (Income Based)

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Welfare Reform Bill February 2011

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  1. Welfare Reform BillFebruary 2011 17th February 2012

  2. Aims • Streamline the system • Improve work incentives • Remove barriers to work • Smooth transitions in and out of work • Reduce in-work poverty • Reduce Fraud and Error

  3. Universal Credit • Jobseekers Allowance (Income Based) • Employment and Support Allowance (Income Related) • Income Support • Child Tax Credits • Working Tax Credits • Housing Benefits

  4. When • New claims from those out of work from October 2013 • New claims from those in work from April 2014 • Existing claimants will be transferred over to Universal Credit in a migration exercise starting from October 2013 with completion due by 2017.

  5. Housing ElementWhat rent will be covered? • For private tenants the ‘housing element’ in Universal Credit will carry forward Local Housing Allowance provisions. • For council tenants and tenants of Registered Social Landlords ( including Housing Association) the actual rent less any ineligible service charges will be covered initially but……..

  6. How will UC be claimed • Main claim service will be on-line via DWP’s secure website, strictly controlled by passwords and ID entry • Some provision for those who cannot use such a facility ( eg call centre, local JCP offices) • Data will be drawn from DWP and HMRC systems for new claims and claim updates • Not yet clear how verification and validation of rents and tenancies will be carried out

  7. How will UC be paid • Paid directly to claimant using BACS • Paid 4 weekly in arrears to claimant for the household • Safeguards are reluctantly being considered for vulnerable claimants

  8. Pensioners? • From October 2014 no new claims for HB, instead housing costs will be included in the assessment and payment of Pension Credit • From October 2014 existing HB/LHA claims will transfer over to Pension Credit in a migration exercise lasting 3 to 4 years

  9. Appeals • Introduction of a ‘reconsideration’ before an appeal can be lodged • Introduction of time limits for submissions by decision maker to Tribunal Service • CT Support appeals to Valuation Boards

  10. Other changes • Social Fund localisation • DLA/PIPs • Incapacity Benefit to ESA migration

  11. Some potential problems for landlords • Mixture of tenants on HB or UC or PC • Liaison difficulties with DWP • Safeguard uncertainty • Treatment of service charges by DWP? • Temporary Accommodation rates? • Supported (Exempt) Accommodation? • Increase in collection costs • Increase in rent arrears • Impact on SG Homelessness Target 2012

  12. What can Social Sector landlords do by way of mitigation? • Training/advice/guidance on reforms for staff? • Promotion of DHP? • Promotion of Digital inclusion? • Financial inclusion support? • Review of Stock Development strategy? • Review of Lettings strategy? • Review of Sub-letting strategy? • Review of Arrears control policy? • Strengthen Welfare Advice?

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