Welfare Reform â act now!
Welfare Reform – act now! Pippa Bell, Research and Policy Assistant, National Housing Federation
Main issues
• • • •
Bedroom Tax Overall Benefit Cap Data sharing and data mapping Universal credit and end of direct payments to tenants • Wider reforms
Timetable of changes
April 2013 • Bedroom tax • Overall benefit cap • Start of UC pathfinder in North West (6,000 claimants in Salford, Trafford and Warrington) From October 2013 • Universal Credit and end to direct payments
Bedroom Tax impact
14% one bedroom 25% two bedroom 40,000 claimants in the East Midlands £12 average weekly loss
Benefit Cap
£500 per week cap 67,000 households affected 44% in social housing 54% in London, less than 6% in the East Midlands
£83 per week average loss
Source: DWP Impact Assessment
What’s left for rent? Typical benefits entitlement excluding housing costs Maximum available for housing costs within the cap Couple plus…
Lone Parent plus…
Children
Children
Examples only – actual benefits receipt will depend on household circumstances
Universal Credit...
Included in UC:
Excluded from UC:
• Income-based Jobseeker’s Allowance
• Council Tax support
• Income-related Employment and Support Allowance
• Contributory Benefits (although earnings rules aligned)
• Income Support (including Support for Mortgage Interest) • Child Tax Credits • Working Tax Credits • Housing Benefit • Social Fund (budgeting/alignment)
• Disability Living Allowance
• State Pension • Child Benefit
• Pension Credit • Carer’s Allowance
Universal credit • Single monthly payment to the household • Claimant has to manage the money • Online • Draft regulations out for consultation until 27th July
End to direct payments: Impact
Working age adults, not claiming Housing Benefit
20% 35%
Working age adults in receipt of partial HB payment
Estimate of vulnerable group of working age adults claiming HB Pension age tenants claiming HB
25% 10%
10% All households in the Social Rented Sector, Great Britain
Working age adults claiming HB receiving payments personally for first time
Wider reforms
• £18bn savings • Council Tax benefit • Social Fund • DLA to PIP
Great unknowns • Role of local authorities – local benefits, HB wind down, support for claimants? • Will systems cope? • How will people respond to monthly single payments? • Fall out from greater conditionality and more sanctions? • Future cuts to entitlement? • Older people?
Contact
Pippa Bell National Housing Federation 020 7067 1174 [email protected] Further information: www.housing.org.uk/welfare
Main issues
• • • •
Bedroom Tax Overall Benefit Cap Data sharing and data mapping Universal credit and end of direct payments to tenants • Wider reforms
Timetable of changes
April 2013 • Bedroom tax • Overall benefit cap • Start of UC pathfinder in North West (6,000 claimants in Salford, Trafford and Warrington) From October 2013 • Universal Credit and end to direct payments
Bedroom Tax impact
14% one bedroom 25% two bedroom 40,000 claimants in the East Midlands £12 average weekly loss
Benefit Cap
£500 per week cap 67,000 households affected 44% in social housing 54% in London, less than 6% in the East Midlands
£83 per week average loss
Source: DWP Impact Assessment
What’s left for rent? Typical benefits entitlement excluding housing costs Maximum available for housing costs within the cap Couple plus…
Lone Parent plus…
Children
Children
Examples only – actual benefits receipt will depend on household circumstances
Universal Credit...
Included in UC:
Excluded from UC:
• Income-based Jobseeker’s Allowance
• Council Tax support
• Income-related Employment and Support Allowance
• Contributory Benefits (although earnings rules aligned)
• Income Support (including Support for Mortgage Interest) • Child Tax Credits • Working Tax Credits • Housing Benefit • Social Fund (budgeting/alignment)
• Disability Living Allowance
• State Pension • Child Benefit
• Pension Credit • Carer’s Allowance
Universal credit • Single monthly payment to the household • Claimant has to manage the money • Online • Draft regulations out for consultation until 27th July
End to direct payments: Impact
Working age adults, not claiming Housing Benefit
20% 35%
Working age adults in receipt of partial HB payment
Estimate of vulnerable group of working age adults claiming HB Pension age tenants claiming HB
25% 10%
10% All households in the Social Rented Sector, Great Britain
Working age adults claiming HB receiving payments personally for first time
Wider reforms
• £18bn savings • Council Tax benefit • Social Fund • DLA to PIP
Great unknowns • Role of local authorities – local benefits, HB wind down, support for claimants? • Will systems cope? • How will people respond to monthly single payments? • Fall out from greater conditionality and more sanctions? • Future cuts to entitlement? • Older people?
Contact
Pippa Bell National Housing Federation 020 7067 1174 [email protected] Further information: www.housing.org.uk/welfare
