We gave this presentation on Welfare Reforms at recent resident’s meetings, and they asked if we could put it on-line.

1. Welfare Reform

2. How and why the reforms
evolved
 In 1999/2000 Housing Benefit bill was £14 billion
 In 2009/2010 the bill has risen by 50% to £21 billion
 The aim of the Government is to:
 Save £18 billion by 2014-15 in Welfare Benefits
 Simplify the current system
 Improve incentives to work by ‘making work pay’
 Biggest change to welfare system for over 60 years
 Six year reform programme 2011-2017
www.swan.org.uk

3. Welfare Reform
There are eight main areas of the Welfare Reform Act that
will affect us and our residents. The changes are
predominately aimed at the working age people.
Main changes for the Working Age Claimant
 Under Occupation (Bedroom Tax)
 Discretionary Housing Payment
 Benefit Cap
 Local Council Tax Support
 Social Fund
 Personal Independence payments
 Universal Credit
www.swan.org.uk

4. Welfare Reform
Main change for the Pensionable Age Claimants
 Pension Credit
www.swan.org.uk

5. Under-occupation Issues
Sometimes referred to as the “Bedroom Tax” and does
not apply to those over working age
 1 bedroom will be allowed for:
 Every adult or adult couple
 Any other person aged 16 or over
 Any two children of the same sex
 Any two children aged under 10, regardless of sex
 Non-resident carer
 HB reduction is 14% for one extra bedroom and 25% for
2 bedrooms or more (reduction is % of gross rent
regardless if tenant in receipt of partial housing benefit)
www.swan.org.uk

6. The rise of Non Dependant
Deductions
Non-Dependant April April April
Circumstances
2010 2011 2012
Aged 25+ on IS or
JSA (IB) or aged 18+
£7.40 £9.40 £11.45
and not in work
Aged 18+ in work and
earning £124.00 to
£17.00 £21.55 £26.25
£182.99
Aged 18+ in work and
earning £183.00 to
£23.25 £29.60 £36.10
£237.99
www.swan.org.uk

7. Benefit Cap
From April 2013 the total amount of benefit paid to a
claimant will be capped.
£500 per week (£26,000 annually) for single parent
families and couples with or without children
£350 per week (£18,200 annually) for single people
without children
Any deductions in benefits prior to Universal Credit
coming into force in October 2013, will be taken from
tenants current housing benefit payments.
www.swan.org.uk

8. Council Tax Benefit
 To be abolished from April 2013 and replaced by a local
scheme to be administered by local authorities called
Council Tax Support Scheme - this is only 90% funded,
compared to the current scheme. Local Councils will
decide how the funding shortfall is made up
 This does not apply to those over pensionable age
or vulnerable residents
 Nationally it is estimated that non pensioner households
on benefit may lose out by up to 15%
www.swan.org.uk

9. Social Payments Fund
 Previously managed by DWP (department of work and
pensions) and include Crisis Loans and Community Care
Grants
 Both payments stopping in April 2013 and replaced by
the social fund which will be administered by Unitary
Authorities and Essex County Council.
www.swan.org.uk

10. Personal Independence
Payments (PIP)
 PIP will replace the Disability Living Allowance (DLA)
for all new claimants who are of working age
 Expected to be introduced in summer 2013 in our
areas
 All existing claimants of DLA will be invited to claim
PIP and transferral to PIP expected to take 5 years
www.swan.org.uk

11. Universal Credit (UC) Phase 1
1st October 2013 to April 2014
 Paid monthly directly to claimants
 Housing costs (i.e. HB) will be included in UC
 1st Phase introduction of UC - October 2013
 New IT system required
 Who will receive UC from October 2012:
 Those who have a significant change to their claim
e.g. move into work
 New Claimants of working age
www.swan.org.uk

12. Universal Credit
Phase 2 - April 2014 to end of 2015
 “managed migration” to Universal Credit
 “those who may benefit from UC” to migrate first
 Department of Work and Pensions hope to migrate 3.5
million claims during this second phase
Phase 3 - 2015 to end of 2017
 Department of Work and Pensions hope to migrate 3
million households in the third phase
 By Local Council boundary
 “flexibility to respond to the circumstances of a particular
Local Council as they change”
www.swan.org.uk

13. Pension Credit
 Universal Credit will not replace Pension Credit
 Expected implementation October 2013
 If either member of a couple is under the qualifying age
– then the couple will be ‘treated as working age’ and
expected to claim Universal Credit
www.swan.org.uk

14. What is Swan doing?
 Swan has set up a working group to assess how the
Welfare Reform will impact our residents and also
Swan as a business.
 The group has developed a detailed action plan which
will ensure that we are prepared for the changes and
that our residents are informed of the impacts of the
reforms on them personally.
 We are continuing to assess who each benefit change
will affect and contacting those affected.
 Working closely with Local Authorities to identify which
of our residents are likely to be most affected by these
changes
www.swan.org.uk

15. What is Swan doing?
 Publicising the changes:
 In The Communicator & local newsletters
 On our web site, web4residents & facebook
 Via targeted campaigns to those specifically affected
 Via 2 monthly benefits newsletter
 Increasing our resources to provide advice and support
to residents – recruiting a Welfare Reform Officer in
Essex and one in London.
 We have already written to and contacted residents who
will be affected by the ‘bedroom tax’, but there is more to
do.
www.swan.org.uk

16. For more information about the changes
to Benefits and how they will affect
you, please call our Income and
Welfare Benefit Officers on
03003032500.
www.swan.org.uk