Welfare Reform Ray Perry Kent County

Council

IntroductionThe next few years will see profound changes to the welfare system in the UK

The changes proposed are aimed at making savings of a staggering £18 billion a year by

2015These radical reforms will change the whole

landscape of welfare provision and will have the greatest impact on two groups Families with Children & Sick and

disabled people

The main changesReassessment of IB claimantsDisability Living Allowance

reformUniversal Credit

Sick and disabled peopleReassessment of 1.5 million people

currently in receipt of Incapacity Benefit, Income Support on the

grounds of sickness and Severe Disablement Allowance

Controversy surrounding the Work Capability Assessment

Trials in Burnley and Aberdeen found 30% fit for work which, if mirrored nationally, would result in 450,000 losing benefit entitlement

Nationwide rollout started in February 2011 and will be completed by 2014

Everyone will be reassessed !

Sick and disabled peopleDoes the person have limited capability for

work?ESA 50 form completion – points scoring!

Medical with Atos Origin Health Care Professional Decision “fit for work” = Job Seekers

Allowance Limited capability proven = placed in either

The Support Group or Work Related Activity Group

Appeal Flawed Work Capability Assessment

forwarded to Disability Living Allowance Unit for review of entitlement to DLA

Sick and disabled peopleSupport from LMBBS via web site

ESA checklistsHow to complete your ESA 50

Atos Origin guide to their Health Care Professionals

DWP Customer JourneyAppeal guidance

My e-mail address

The Personal Independence Payment To replace Disability Living Allowance for

people of working age from 2013-2014“Fairer , objective assessment”

but 20% cut in expenditureTwo components and two rates of new

Mobility and Daily Living components

Six month rather than three month “qualifying period”

Client is required to discuss their circumstances with a DWP approved Health

Care Professional All awards subject to periodic review

The Personal Independence PaymentPIPs will be as DLA is at present– non means-

tested, non taxable and a passport for other benefits

“Special Rules” for the terminally ill remainGreater duty to report changes in health conditions with the introduction of legal and

financial penalties if not reportedEverybody with the exception of

“Special Rules” cases will be re-assessed Confused picture not sure if PIPs will replace

DLA for children

Universal creditReplaces existing means-tested benefits and

tax credits for people of working age, including IS, income-based JSA, income-related ESA, HB, Child Tax Credit and

Working Tax CreditBasic allowance for adults plus additions for

children, disability, housing costs and caringAssessed and paid on household basis

Reduced by 65 pence for each £1 of net earnings after applying a disregard

Entitlement will be automatically adjusted as earnings vary using “real time” PAYE data

from HMRC

Universal credit Universal Credit will be administered centrally by the DWP with the majority of

claims made, assessed and delivered electronically

Cap on household benefit payments will mean that those not in receipt of DLA, War Widows

or receiving WTC will be limited to the median level of earning of working families

Limited help with mortgage interest for those in work

Council Tax support schemes will be much more localised and variable from place to

place

Universal creditCommunity Care Grants and Crisis Loans

devolved to local authoritiesCurrent rules that base entitlement to passported benefits, such as free school

meals & prescription charges on receipt of certain benefits will be replaced by a system

that bases entitlement on an income or earnings threshold

Increased conditionality for Jobseekers Pilot in October 2013

For all new claims from April 2014Full transfer of all claimants by October 2017

Universal creditIntroducing Universal Credit will be a huge and complex undertaking and the Government

has set itself a very tight timescaleCrucial to the implementation and success of

Universal Credit is the development of two new IT systems – one for the assessment of Universal credit and a second system to

obtain “real time “ PAYE detailsUniversal Credit will be an integrated benefit.

Households who claim will automatically receive everything they are entitled to

Universal creditThe objective of a simpler, more transparent

scheme which is easier for claimants to understand and with clear work incentives commands widespread support but there is concern over lack of detail on key elementsTaper rate of 65% (76% after tax) low

enough to make work pay? What about the self-employed?

How is help with childcare costs to be provided?

Will UC penalise those with savings? Transitional protection

Families with children Families face major benefit and tax credit changes before the introduction of Universal

CreditChild Benefit frozen for three years and the

Child Benefit clawback for higher rate taxpayers

Tax Credit changes Housing Benefit changes

Abolition of Child Trust Fund, Health in Pregnancy grant and Sure Start Maternity for

second and subsequent children

The next few yearsFor those who need and rely on state

benefits it’s going to be a very bumpy ride over the next few years with lots of uncertainty, change and re-assessment

The re-assessment of those on Incapacity Benefits has just started and there is great concern that many people will be incorrectly found not to

have limited capacity for work.Please use the tools and guidance on

the web pages