Targeting Support: Who will welfare reforms hit hardest?

Transcription

1 Targeting Support: Who will welfare reforms hit hardest?

2 About Policy in Practice Consultancy We make the welfare system simple to understand, so people can make the decisions that are right for them. Work with Birmingham, Leeds, Serco, DWP and many others. Policy Software Recently secured investment from Sean Williams and Big Lottery. Looking to build long term partnerships, to support people into work, and toward independence

3 Targeting Support: Who will Welfare Reforms hit hardest? Context: About Birmingham City Council Problem: How to Co-ordinate Support Approach: A detailed Impact Assessment for all reforms, today and tomorrow Outcomes: Better targeted support that has a tangible impact on behaviour The individual perspective

4 Today s speakers Deven Ghelani Policy in Practice Guy Chaundy Birmingham City Council

5 Context: Birmingham City Council The Scale of Birmingham Size: Over 1m residents Diversity: Population, Geography & Affluence Unemployment: 10.9% vs 6.2% nationally; 30,000 JSA claimant count, 2 nd highest Housing: 56% o/occ, 24% social, 20% PRS Politically Active: Largest Local Authority in Europe, with 40 wards and active local councillors

6 Context: Birmingham City Council The Local Authority is also: A partner among other stakeholders A large Social Landlord, with 63,000 properties Universal Credit is live Reduced budgets to deliver support now and in the future

7 Support within Birmingham Established partnerships with RSLs, Third sector and private landlords, with Strategic District Housing Panels in each of the 10 Districts A single Welfare Reform Multi Agency Committee chaired by Cabinet Member, with a sub group focusing on UC implementation A single portal for feeding back issues on UC to DWP within the formal monitoring process Shared training and learning sessions with JCP work coaches from each of the 12 sites However

8 However... We need to understand the impact of all welfare changes, to better co-ordinate activity. We want the council to move beyond sticking plaster solutions. If we can promote work and independence by understanding who is impacted by welfare reforms and working closely with partners, we will have more resources available for people that still need our support. We have an obligation to protect and support the most vulnerable Chris Gibbs, Birmingham City Council

9 Our approach: Using local data insights effectively SHBE Universal Benefit Calculator Any Questions? See the impact of specific and cumulative reforms at an aggregate and a household level A detailed impact assessment for Cabinet members that informs targeted and tailored local welfare support

10 Explain a complex picture to Cabinet Detailed picture of welfare reform at household level Who has been impacted by reforms to date? Tax Credit cuts? What will be the impact of Universal Credit? Who has been hit by multiple reforms? benefit cap Underoccupying LHA cap Council Tax Reduction CTRS Tax Credit cuts lower UC higher UC Better off in Work # of households affected by multiple reforms No impact 1 reform 2 reforms AA TBC AA TBC AA TBC AA TBC AB TBC AB TBC AB TBC AB TBC AB TBC AB TBC AB TBC AB TBC AB TBC The depth of our analysis goes even deeper, to household level

11 Preliminary Findings Universal Credit Universal Credit with full transitional protection would bring the local economy 1.6m each month an additional 30/month for each working age household on average. 32,028 Earnings required for UC to fall to zero 26,956 18,189 15,959 Couple with children Couple without children Lone parent Single

12 Preliminary Findings Benefit Cap A reduced Benefit Cap would more than quadruple the number of capped households NUMBER OF BENEFIT CAP CASES , , ,000 23,000 20,000

13 Some key findings in one large city: 85% of self-employed households have earning below the Minimum Income Floor. There are 2, year olds on housing benefit The number of households in the ESA WRAG Group The number of households affected by changes to Tax Credits

14 Better Outcomes: A better Council Tax Scheme and operational plan for UC The council has now approved an innovative Council Tax Support scheme aimed at supporting jobseekers into work. The scheme is based on the analysis of schemes provided by PiP. Better partnership working Better preparation for Universal Credit Better targeted support Better personalised support

15 Support that leads to savings: Targeted and Tailored Support letters that engage people VS

16 Engage people and change behaviour How do you show the impact to the person in a meaningful way? JSA Child Tax Credit ESA Housing Benefit Working Tax Credit Income Support

17 What have we learned? Local Authorities face difficult choices 12bn of cuts with reforms aimed at changing behaviour. The combined impact on households is changing, complex and confusing. The risk is that households won't get the right support Councils need to better co-ordinate support with partners. This includes financial support and support toward independence. Without better co-ordination, and support into employment, there won't be enough support available to go around. This will cost the council and taxpayers through impacts on other services. Birmingham Council, with Policy in Practice have developed an approach that will help you to Better co-ordinate support and prepare for reforms Explain a complex picture, both to cabinet and to the end user target and tailor support effectively Have a tangible and measured impact on behaviour

18 Any Questions?

19 Next Steps Visit our stand Pick up the Leeds CC case study Follow us on Twitter Learn more on one of our Webinars

20 Thank you Guy Chaundy Deven

21 Universal Credit: the story so far National Audit Office: A Progress update The impact on pockets and prospects in aggregate and at a household level What Leeds and Birmingham are doing about it

22 Slow and Steady: De-risking timetables Universal Credit caseload, millions Universal Credit: progress update 22

23 Rapid scaling up: The digital service Timetable for digital development Universal Credit: progress update 23

24 Explain a complex picture to Cabinet You need to understand the cumulative impact of current and future welfare changes I can t see whether the people being clobbered by reductions in council tax support, or underoccupation are the same people that have been clobbered by other reforms. Steve Carey, Leeds City Council