1. Welfare Reform and How it Affects
You!
Blaby
4th September
Sharon Stacey &
Quin Quinney

2. HB – where are we now?
 Benefits Caseload has increased (12% over 4
years)
 Approximately 1 in 7 on HB or CTB (or both)
 Paying out in region of £16m plus
Overpayments are increasing
 Claimants are not telling us about changes
on time (70-80% do not tell us within 4 wks)
 Fraud is on the increase (numbers/values)

3. April 2011 to present date
 Removed the £15 pw ‘excess’ paid to tenants
 Removed the baby premium from HB and tax credits
 Introduced new rate of rent for LHA set at 30 percentile of
‘going rates locally’
 New claimants receive no protection from start of claim
 Additional bedroom allowance for over night carers
 Introduced top limits (caps) for 1, 2, 3, 4 bed properties
 Removed the 5 bedroom rate (now 4 bed rate max)
 Those receiving 9 month protection from the LHA changes start
to become affected from January 2012 – 1,062 affected
households in Blaby

4. From January 2012
 Firstgroup of claimants lose their LHA
protection (claimants have to contribute more
towards rent as HB reduces)
 Single room rate change implemented (age
increases to 35 – previously 25) Claimants
previously receiving circa £91pw HB 1 bed
rate now get circa £58pw – shared room rate

5. From April 2013
 Bedroom tax introduced (affects social sector
under pension age if living in accommodation
deemed too large for needs)
 Benefit cap introduced (max £350 pw single
or £500 pw couple/lone parent if claimant
doesn’t fall into exempt category)

6. Universal Credit
 From April 2013 the Department for Work & Pensions (DWP)
are trialling UC in a number of LA’s in the North West in
readiness for the October 2013 go live date.
 The plan to introduce one single benefit to replace a patchwork
of other benefits and credits in order to simplify the system.
 This includes Housing Benefit (HB), Income Support (IS),
Employment and Support Allowance (ESA), Job Seekers
Allowance (JSA), Working and Child tax credits (WTC, CTC)
 Early indications are that passported claims with a change in
circumstances will be the first group to transfer across
 Doesn’t include Council Tax Support (presently CTB)

7. Localisation of Council Tax Support
 To deliver locally a council tax benefit
scheme that ‘makes work pay’ whilst
protecting pension age claimants &
vulnerable claimants.
 Scheme will save 10% of the national bill
 Consultation is now taking place in your
locality on the scheme proposed

8. Council Tax Support summary for ease
of understanding
 To save 10% Councils are having to look at
which benefit recipients/tax payers might
have to pay more Council Tax (for example,
those seeking work, those who have savings
over a certain amount etc)
 Lots of people will have less money coming
into their household – could be you!

9. Social Fund
 This is being allocated to the County
Council/Unitary authorities
 Presently looking at ways for local delivery
 Amount for 2013 will be based on the 2005
funding

10. Changes in Housing
 Discharge of homeless duty into Private
Rented Sector
 ‘Bedroom tax’
 Affordable rents
 Social Housing not always now ‘life-time’
homes
 Allocation Policy e.g. flexibility and freedom
 Future service charges not covered by HB

11. Grahame
Grahame is aged 30 and was in a relationship and has 3
children. He has a solicitor’s letter which gives him residence
of the children for 3 nights per week, but he doesn’t get the
child benefit.
 Only eligible for shared accommodation with other people
 He has a 1 bedroomed flat
 Receives £71.00 per week JSA
 He has £30.70 per week to live on - to buy all his food, pay gas, electric,
water, TV licence, travel costs for getting to interviews
How does he manage?
If he can’t manage what might we surmise he may do to make ends
meet?

12. Ian and Teresa
 Living together with a child aged 4. Teresa is 8 months pregnant. Ian works
full time but earns just above the minimum wage.
 Overtime has been cut and his pay has been frozen for the second year.
 They claim HB. The rent charged is £114 per wk. for a 2 bed house.
Housing Benefit covers £109.62 per wk
 Child benefit, tax credit rates and LHA rates have been frozen from April
2012 which means that if the rent goes up, HB won’t match the rise.
 They have current rent arrears of £83.22 and the landlord is threatening
legal action
 They have credit cards debts of over £1,500 and have not paid last quarter’s
gas bill
 From 2013 they will have to find a further £36 per month in Council Tax

13. Raj and Alma
 Live together and Alma is disabled receiving Incapacity
Benefit and DLA. Alma has a degenerative condition with
a life expectancy of about ten years.
 The new DWP regime and re-assessment decide Alma is
fit for some work and stop her Incapacity Benefit. At the
same time her entitlement to DLA is reviewed and this is
stopped. She appeals but there is a 20 month backlog in
these cases being heard.
 On losing her DLA she loses the payments towards the car
under the ‘motability scheme’. The company are
sympathetic but cannot wait nearly two years for an
outcome of an appeal.

14. Deterioration
In mental health?
Less HB?
Homelessness?
Reduction in childcare? Less Council Tax?
Increased
Substance use?
Poor diet?
Pensioners on saving credit
Relationship Smaller increases?
Service User Less Benefit?
Breakdown?
Increased
Minimum working rules
Domestic Abuse? affect Change in housing tenure?
Tax Credit eligibility?
Increased debt?
Tax Credits Frozen?
Increase in ‘Troubled Families’

15. These changes could affect:-

16. What Can We do About it?
 Listen out for service users/colleagues in
financial hardship
 Know what support is available
 Know where to signpost to

17. What’s available in your locality?
 Support Services (Substance Use, Domestic Abuse, Children’s
Worker, Resident Support)
 Discretionary Housing Payments
 4 ways to warmth
 Citizen Advice Bureau – locality based on different days
 Loans and grants – rent deposits
 Mortgage rescue
 Lend a Hand Scheme for First Time Buyers
 Food parcels and furniture available through Community
Services
 Arrange for free places for children’s activities
 Discretional Fund for Council Tax