WELFARE REFORM An update on the key changes and local advice services September 2014 Nick...
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![Page 1: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/1.jpg)
WELFARE REFORM
An update on the key changesand local advice services
September 2014Nick Hodgkinson, Bradford District
Community Advice Network
![Page 2: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/2.jpg)
Local advice services
• Bradford Council is evaluating local advice services, from October to December 2014 – the findings will inform future proposals about commissioning the advice sector
• local advice charities help over 26,000 people deal with more than 57,000 problems
• they raise over £20m additional income for local residents and handle more than £25m of local debt
• 64% of problems are about benefits, tax credits, disability & carers allowances
• 11% of problems are about debt and money problems (more debt advice is provided with non-BMDC funds)
![Page 3: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/3.jpg)
Welfare reform: updated headlines
£18+ billion pa national spending cuts, all affecting people of working age (not pensioners), by 2017(?):
• cuts to social & private rented Housing Benefit – 2011/12 • ‘localisation’ and cuts to Council Tax support – 2012 • household ‘benefit cap’ and child benefits cuts – 2012/13• Disability Living Allowance replaced by PIP – 2013 & 2015• new benefit sanctions regime – 2012 • ESA assessment and new appeal rules – 2012 & 2013 • cuts to JSA, HB, etc for EU/CEE communities – 2014 • cut to DSP Community Care & Crisis Grant budget – 2015• Universal Credit – from 2016?
![Page 4: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/4.jpg)
Housing Benefit and ‘Bedroom Tax’
• at July 2014, 2,900 households had HB ‘bedroom tax’ cuts – 1,520 children live in those households
• average cut of £15 per week – over £3m overall HB ‘bedroom tax’ cut in Bradford District since 2013
• 50% of Incommunities tenants affected now in arrears
• ‘legal loophole’ meant BMDC, housing associations and advice agencies recovered £183,500 for tenants in 2014
• Discretionary Housing Payments support many tenants
• increasing demand on private rented sector – over £8m overall HB cut in Bradford District since 2011
![Page 5: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/5.jpg)
Help with Council Tax bills
• national Council Tax Benefit abolished & reduced budget devolved to councils for local schemes in Apr 2013
• maximum rebate under BMDC scheme is 75% - 26,000 households on lowest incomes must pay 25% of CT bill
• court summonses for non-payment up from 25,800 in Apr-Dec 2012 to 44,500 in Apr-Dec 2013
• external bailiffs not used for CTR recovery and recovery suspended if JSA sanction causes CT debt
• local arrangements and liaison between advisers and Revs & Bens to deal with problems sensitively
![Page 6: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/6.jpg)
Household Benefit Cap
Since summer 2013, if total means tested benefits plus most other benefits (excl DLA and working tax credits) is…
• more than £500pw for couples & lone parents, then benefit paid is capped at £500pw – by reducing HB
• in Bradford District ’cap’ only affects large families – at July 2014, 335 families ‘capped’, 60% private tenants
• 4-10 children per family – 1,680 children affected in total
• average HB cut £48pw – £16,250 total weekly HB cut
• Discretionary Housing Payments support many families
![Page 7: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/7.jpg)
Disabled people and carers
• Personal Independence Payment (PIP) replaces Disability Living Allowance (DLA) for working age adults (16-65) – new test for daily living and mobility needs
• PIP replaced DLA for all new claims since June 2013 – claims assessed by Atos (lost contract to assess ESA)
• long delays in assessment – 5-6 months not uncommon
• approx 24,000 existing DLA awards in Bradford District will be re-assessed from Oct 2015
• advisers will help clients understand the process, complete claim forms and, if needed, make appeals
![Page 8: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/8.jpg)
People too ill to work and new appeal rules
• since 2011, Work Capability Assessment (WCA) assesses if people are ‘fit for work’ – nationally half of all ‘fit for work’ decisions appealed, 43% of appeals succeed, large area of work in local advice agencies
• new appeal rules from Oct 2013 create complexity for ESA clients – now have to ‘sign on’ for JSA while DWP ‘reconsider’ decision for several weeks before allowed to appeal and re-claim ESA pending tribunal
• advice agencies helping more people (inc with mental health problems) who don’t understand process and left with no income at all when ESA stops
![Page 9: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/9.jpg)
Sanctions
New JSA and ESA ‘stricter sanctions regime’, Oct 2012:
• sanctions if fail to satisfy Jobcentre ‘work related’ rules
• JSA sanctions last for 4, 12, 26 weeks (max 156 weeks); ESA ‘work related activity group’, sanctions last up to 4 weeks – low rate hardship payment may be possible
• JSA sanctions more than doubled locally from 2010 to 2014 – 17,775 imposed from Oct 2012 to Mar 2014
• advice agencies help to apply for hardship payments, appeal against decisions and give food parcels
![Page 10: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/10.jpg)
Central & East European communities: JSA and HB
• complex new benefit rules introduced during 2014 make it much more difficult for ‘migrant workers’ from EEA countries to qualify for JSA and HB
• since January, no JSA allowed for first 3 months in UK
• since April, many people who claimed JSA since Jan 2014 cannot get any HB
• since July, many JSA claims limited to 6 months and no entitlement to children’s benefits or tax credits
• advice agencies helping more destitute CEE families, with few options (food parcels) – major concern
![Page 11: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/11.jpg)
Food poverty
• increasing use reported by local food banks
• both Trussell and Metropolitan issued more than twice as many food parcels in 2013 as 2012 and increase in demand continues during 2014
• advice agencies use both these food banks and also report increasing need to issue food parcels
• report on small scale, qualitative research into who uses food banks and what ‘triggers’ them to need help went to Welfare Reform Strategy Group in September
![Page 12: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/12.jpg)
Discretionary Support Payments scheme
• DSP scheme administered by Revs & Bens since 2013
• Community Care Grants help people live independently, pay for basic essentials – eg cooker, bed, fridge
• Crisis Awards give short term, low level emergency help
• national government abolishes DSP funding, Apr 2015
• Revs & Bens proposals for next year, funded by current DSP scheme underspend – consultation soon
• Judicial Review caused government to reconsider decision to cut funds – no new decision made yet
![Page 13: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/13.jpg)
Universal Credit (UC): working age reforms
• Universal Credit replaces all means tested working age benefits/tax credits: single source of financial support, in or out of work, abolishes ‘16 hour pw’ work rule
• policy aims: ‘make work pay’ and ‘simplify the system’
• people on UC, whether in work or out of work, required to seek work, more hours or higher pay or face sanctions
• UC combines all following into one monthly payment: income support, income based JSA, income related ESA, working tax credit, child tax credit, housing benefit
![Page 14: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/14.jpg)
UC: local challenges and preparation
• do not know when UC will be rolled out to Bradford district – working assumption is late 2015 or 2016
• local partnership groups in place – Welfare Reform Strategy Group and UC Local Support Service group
• key issues… advice and support to ‘navigate’ new system, ensure correct award and deal with debts
• access to PCs and IT skills & support to claim online – eg CHAS IT support ‘drop-in’ sessions
• money management skills to deal with monthly UC payments – eg Royds ‘money buddies’ project
![Page 15: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/15.jpg)
How to find ‘self help’ information
For people with access to the internet and skills & self confidence to use it…
•wealth of reliable information online
•independent national advice services plus local and national government departments
•direct links provided on:
www.bradfordcan.org.uk
![Page 16: WELFARE REFORM An update on the key changes and local advice services September 2014 Nick Hodgkinson, Bradford District Community Advice Network.](https://reader036.fdocuments.us/reader036/viewer/2022062423/5697bfb91a28abf838c9fc05/html5/thumbnails/16.jpg)
Where to get local advice
Search for free, independent, confidential, impartial and quality assured local and national advice services:
www.bradfordcan.org.uk
Ring for ‘self help’ information and signposting to local and national advice services:
03442 451282