DWP: Our Reform Story Overview slides

Transcription

1 Published: 14 March 2013 Update due: April 2013 DWP: Our Reform Story Overview slides Jacqueline Brown National Partnerships Team SHBVN Inverness Thurs 11 th April

2 What s changing? Social Justice The Government published its Social Justice strategy Transforming Lives in March Previous approaches to tackling disadvantage and social exclusion have focused on increasing income levels of poorer families to bring them above a notional poverty line. More working age adults live in poverty than ever before. Social Justice sets out a new approach to understanding and tackling the root causes of poverty rather than just its symptoms. Social Justice principles will increasingly influence our overall direction, our policies, and the delivery of DWP services. 2

3 What s changing? Universal Credit Universal Credit (UC) replaces six main benefits, creating a simpler, single monthly payment for people in work or out of work. UC is formed around a new claimant commitment which sets out what is expected in return for assistance, taking into account personal circumstances and capability to earn. Those who break the commitment will face firm but fair penalties. Claimants will be able to apply for their benefit online. As claimants earn more money, financial support will be withdrawn at a slower rate than is the case under the current system. UC will be paid monthly, in arrears. A single payment will be made to a household rather than an individual. In exceptional circumstances, payments can be split within the household. 3

4 When? Universal Credit Autumn local authority pilots began as part of Universal Credit (UC) testing. April 2013 Pathfinder goes live. Most employers required to send PAYE returns in real time Every eligible person claiming UC by January 2013 Learning the lessons early findings of Direct Payment Demonstration Projects Report available. October 2013 All employers will be routinely reporting PAYE in real time. UC progressive roll out begins. 4

5 Local Authorities Universal Credit Direct Payment Demonstration Projects, running between June 2012 and June 2013, and local authority-led pilots, running between Autumn 2012 and September 2013, are testing new ways to support residents under UC. Early findings from the Direct Payment Demonstration Projects reveal that 54 per cent of responding tenants are already confident about receiving their Housing Benefit payment directly to their own bank account. Local authority pilots are already setting out their delivery plans, showcasing the value of local expertise in delivering the face-to-face support some people may need to make claims. Learning from the pilots will help inform the design of UC and the role of local authorities as delivery partners. This approach is also being used and tested in the UC Pathfinder area. 5

6 What s changing? Support for Pensioners For pension age customers, support for eligible rent will be delivered as an additional Pension Credit (PC) element Housing Credit which will run alongside both Guarantee Credit and Savings Credit elements. An additional amount for children, Child Addition, will be incorporated into the Guarantee Credit element of PC. DWP will continue to pay landlords directly for pension age customers if that is the current arrangement. DWP will also continue to deal with enquiries. There will be no Working Tax Credit replacement within modified PC. Mixed age couples (where one member is over PC qualifying age but the other is under) already in receipt of PC at the effective date will be allowed to remain on it. Existing PC customers who acquire a partner below PC qualifying age after the effective date will lose their entitlement to PC and will have to claim Universal Credit (UC). Mixed age couples who break their claim to PC will lose their protection and will be required to claim UC on the next occasion. New claims from mixed age couples after the effective date will be claims to UC. 6

7 What s changing? Pensions and Ageing Starting with the largest firms from October 2012, employers are now required by law to pay into a workplace pension for eligible workers. Those who save will benefit from contributions from their employer and tax relief from the Government. The proposed introduction of a simple state pension system will make it easier for people to know what they will get from the state in retirement. This will also help them plan ahead. In January 2013 we published a White Paper The single-tier pension: a simple foundation for saving, outlining proposals to reform the State Pension. The Default Retirement Age has been abolished, meaning most people can now retire when the time is right for them. 7

8 What s changing? Disability Disability Living Allowance (DLA) will be replaced by Personal Independence Payment (PIP) for claimants aged from April The Government is working to develop and implement a new cross-government disability strategy, Fulfilling Potential, which commits to enabling disabled people to fulfil their potential and play a full role in society. Universal Credit (UC) will remove the financial risks for disabled people moving back into employment. UC will help people with fluctuating conditions who want to work when their condition allows, or those who can only work limited hours because of their condition. Access to Work support is being made more widely available and funding is being increased to deliver enhanced outcomes for disabled people. 8

9 What s changing - PIP (1) Disability Under PIP everyone will be treated as an individual. Entitlement to PIP will not be based on any particular health condition, but will depend on the level of support someone needs to be able to carry out a range of activities which are fundamental to everyday life, such as planning and making a journey and communicating with others. The first part of the claims process will take place over the phone. It will be possible to make claims online from Most people will have a face to face consultation with a health professional to better understand their needs. Awards will be regularly reviewed to ensure that the right support is in place. PIP, like DLA, will be a non-taxable, non-means-tested cash benefit and available both in and out of work. It doesn t form part of Universal Credit so continues to recognise and support additional needs. DLA will remain for children up to the age of 16 and for existing DLA recipients aged 65 or over on 8 April

10 What s changing - PIP (2) Disability Guidance and tools for stakeholders and support organisations will help them offer advice and support. New claims for PIP start from 8 April 2013 in a controlled start area in the North West and parts of the North East of England, before national rollout from 10 June Existing working age Disability Living Allowance (DLA) recipients will be asked to claim PIP at some point - it won t be an option to remain on Disability Living Allowance. Most people with indefinite or lifetime awards won t be affected before October

11 What s changing? (1) Housing Support From April 2013 all tenants renting from a local authority, housing association or other registered social landlord will receive housing support based on household size criteria. These allow for one bedroom for each person or couple living as part of the household. Both people in a couple must have to be of working age to be affected. Two children under 16 of the same gender will be expected to share a room, as will two children under 10 regardless of gender. Household size criteria will also allow one bedroom for a non-resident carer if a tenant or their partner is a disabled person who needs overnight care. Households with a disabled child may retain housing benefit for an additional room, if the nature and severity of the child's disability disturbs the sleep of the other child that they would normally be expected to share with. This follows a Court of Appeal judgment about the treatment of disabled children under the size criteria rules in private rented accommodation and will apply to social sector accommodation from 1 April 2013, when the spare room subsidy is removed. 11

12 What s changing? (2) Housing Support Where a property is deemed under occupied the eligible rent will be reduced by a national percentage. Those with one spare bedroom will lose 14 per cent of their Housing Benefit, those with two or more spare bedrooms will lose 25 per cent. Approved foster carers whether or not they have a child placed with them or are between placements will be allowed an extra room, as long as they have fostered a child within the last 12 months or become a registered foster carer within the last 12 months. Wives or husbands of those serving in the armed forces will be unaffected by these changes. Parents with adult children in the Armed Forces who continue to live with their parents will continue to be considered as living at home when applying the size criteria whilst away on operational duty. 12

13 What s changing? (1) Localisation Housing Support of Council Tax Support Council Tax Benefit will be replaced with new localised council tax support from April The Local Government Finance Act received Royal Assent on 31 October 2012 and provides the basis for the introduction of localised council tax support schemes in England in April Local authorities had until 31 January 2013 to develop and agree their own council tax reduction schemes working within a framework set out in legislation while meeting a 10 per cent reduction in funding. Those failing to do so will have the default scheme applied. 13

14 What s changing? (2) Localisation Housing Support of Council Tax Support Support for pensioners however, will continue to be governed by a national framework. The government has prescribed in regulations the support to be given to pensioners. Ministers have announced an additional 100 million of funding for councils to help support them in developing well-designed council tax support schemes and maintain positive incentives to work. This is new and additional funding for local government. 14

15 What s changing? (1) Benefit Cap From 15 April 2013 a cap will be introduced on the total amount of benefit that working-age claimants can receive. The cap will be based on average earnings (after tax and National Insurance) of working families 500 a week for couples (with or without children) and single parent households, and 350 a week for single adults. The cap will be introduced first in four local authorities in London Bromley, Croydon, Enfield and Haringey. We plan to implement the Benefit Cap in all other local authorities in summer 2013 and as such all households identified as being affected will have been capped by the end of September The Benefit Cap will apply to the combined income from out of work benefits; and other benefits such as Housing Benefit, Child Tax Credit, Child Benefit and Carer s Allowance. It will be applied through Universal Credit once claimants make new claims or are migrated to that benefit from October There is an online calculator available for claimants to use at and a Benefit Cap helpline: and textphone: (8am-6pm Monday-Friday). 15

16 What s changing? (2) Benefit Cap The following households will be exempt from the Benefit Cap: - those entitled to Working Tax Credit; - all households which include someone receiving a disability-related benefit (Disability Living Allowance / Attendance Allowance / Personal Independence Payment / Industrial Injuries Benefit / support component of Employment and Support Allowance); - War widows and widowers and those in receipt of War Disablement Pension or equivalent payments under the Armed Forces Compensation Scheme. One-off payments, for example, Social Fund Loans and non-cash benefits, such as Free School Meals, will not count towards the cap limit. There will be a grace period whereby the Benefit Cap will not be applied for 39 weeks to those who have been continuously in work for the previous 12 months and have become unemployed. This will allow people time to find alternative employment or consider other options to mitigate the impact of the cap. 16

17 What s changing? Social Fund Community Care Grants and Crisis Loans will be abolished from 1 April From April 2013, local authorities in England, and the Scottish and Welsh Governments will be free to deliver their own local arrangements for assistance for people facing a crisis or short-term unavoidable need. The help and support provided by local authorities and the Scottish and Welsh Governments is called Local Welfare Provision. In Scotland it will be known as the Scottish Welfare Fund. 17

18 What s changing? Employment Offer Significant changes have been made to the welfare-to-work programmes available to Jobcentre Plus claimants. Changes include: Universal Jobmatch is an online job posting and matching service available to all jobseekers, not just those claiming benefits. Youth Contract (including the Wage Incentive) is a 1 billion programme designed to get more young people into meaningful employment, training or work experience. Work Programme offers greater freedom to tailor support to the needs of individual claimants. The number of Employment and Support Allowance claimants benefiting from this support is being increased by mandating additional Employment and Support Allowance claimants to the Work Programme. Work Choice is a specialist disability employment programme which was launched in October Work Choice provides tailored support to help disabled people who face the most complex barriers to employment find, and stay in, work. Work Choice ultimately helps these people progress into unsupported employment, where this is appropriate for the individual. 18

19 What s changing? (1) Appeals Reform Those wishing to dispute a DWP decision will need to be aware of three key changes DWP is making to the appeals process: Following receipt of a decision, anyone wishing to dispute it will have to request that DWP conducts a mandatory reconsideration before being allowed to lodge an appeal. Resolving any disputes before appeal will help ensure that the right decision is reached earlier. In order that DWP can make the right decision as early as possible, it is important that all relevant information in a case is sent to DWP as soon as possible. Those wishing to dispute a decision following a mandatory reconsideration must send appeals direct to Her Majesty s Courts and Tribunals Service (HMCTS). DWP has agreed in principle with the Tribunal Procedure Committee that the appeals reforms provide an opportunity to introduce time limits to stipulate how long DWP has to issue a response to an individual appeal. DWP is currently in discussions with the Tribunal Procedure Committee as to what these limits should be and when they will start. 19

20 What s changing? (1) Freedoms and Flexibilities DWP is driving through major cultural change in which Districts now have far greater Freedoms and Flexibilities to deliver according to their local labour markets to help more people into work. A flexible operating model was first tested by the Local Autonomies pilot between 2009 and 2011, the outcomes of which proved the concept and scoped the benefits achievable. Since then the Directorate implemented the Freedoms and Flexibilities offer in April All Work Services Directorate Districts have been given more local autonomy to tailor their back-to-work services to meet the needs of individual claimants and local labour markets. Freedoms and Flexibilities is about Districts doing the right thing to get claimants into work quickly, rather than simply ticking boxes and delivering one size fits all back to work services. 20

21 What s changing? (2) Freedoms and Flexibilities It is an approach that encourages innovation, and supports the most effective way for us to design and deliver our services to the public. This is a different approach to before, as it allows Districts more freedom to tailor their offer to fit their claimants needs, for example: additional adviser support, over and above the new jobseeker interview and fortnightly face-to-face jobsearch reviews, is now based upon claimant interventions determined by individual need rather than at set points for all. As legislation restricts freedoms and flexibilities regarding benefit processing, this approach is currently restricted to our back to work services. 21

22 Welfare that works Published by the Department for Work and Pensions Universal Credit Employment Offer Support for Pensioners Housing Support Employment Offer Fraud and Error Pensions and Ageing Benefit Cap Appeals Reform If you spot any errors or omissions in this document, have any feedback on its use and effectiveness, or require more information on any aspect of Welfare Reform, please contact us at: Social Fund Disability 22

23 Autumn Spring 2013 Reform Timeline January 2013 Autumn Local Authority Universal Credit pilots began. 17 October 2012 GOV.UK went live. October 2012 Access to Work extended to young people on work experience. Civil penalties introduced. 19 November 2012 Universal Jobmatch launched. Learning the lessons early findings of Direct Payment Demonstration Projects Report available. Single Tier State Pensions White Paper published. Spring 2013 Update Access to Work pre-employment eligibility. 1 October 2012 Automatic enrolment began for the largest companies. 22 October 2012 State Pension statements introduced, replacing State Pension forecasts. November 2012 Reinvigorating Workplace Pensions published. All Employment and Support Allowance claimants with a 12 month prognosis began to be mandated to the Work Programme. Single Fraud Investigation Service initial pilots went live. December Child Maintenance Scheme opened on a pathfinder basis. February 2013 Implementation of stronger Access to Work Triage in operational environment. Fulfilling Potential: Building Understanding launched. Mobile Regional Taskforce pilots in Newcastle, Dundee and Manchester went live. 23

24 April 2013 Reform Timeline Introduction of Localised Support for Council Tax. UC Pathfinder goes live. Appeals reforms introduced for Personal Independence Payment and Universal Credit. Loss of Benefit regulations commencement goes live. Short Term Benefit Advances introduced. April 2013 Controlled start for new claims to Personal Independence Payment for those living in the North West and parts of the North East of England. Benefit Cap comes into force for new and existing claimants in Bromley, Croydon, Enfield and Haringey local authorities. Most employers required to send PAYE returns in real time. Removal of the spare room subsidy comes into force. Local Housing Allowance rates to be uprated annually by reference to the Consumer Price Index or 30th percentile of local rents. Community Care Loans and Crisis Grants abolished and new Local Welfare Provision introduced. 24

25 Summer 2013 Reform Timeline Summer 2013 The first Work Programme claimants finish their 2 years with providers. Launch of Fulfilling Potential document on actions, outcomes and indicators. June 2013 New claims for Personal Independence Payment start for the rest of the UK. July 2013 Publication of final report of Local Housing Allowance monitoring and evaluation research. Benefit Cap implemented in all other local authorities. 25

26 October 2013 Reform Timeline All employers will be routinely reporting PAYE in real time. Universal Credit progressive roll out begins. Temporary Accommodation in Universal Credit will have housing costs met in line with Local Housing Allowance rates. An additional management element will be paid as a national flat rate to local authorities. October 2013 New claims for Universal Credit subject to Benefit Cap. Appeals reforms introduced for all other DWP-administered benefits and child maintenance cases. Reassessment of existing Disability Living Allowance claims for Personal Independence Payment begins for those that report a change in condition or reach the end of an existing award. 26

27 Reform Timeline June 2015 Automatic enrolment begins for small employers. April 2017 The new single tier state pension, expected to be introduced in April 2017 at the earliest 2017 Every eligible person claiming UC by April 2014 Automatic enrolment begins for medium employers. Local Housing Allowance uprating limited to 1% October 2015 Reassessment of remaining Disability Living Allowance caseload for PIP begins. National go live date for modified Pension Credit (new claims and changes of circumstance). May 2017 Automatic enrolment begins for new employers Most claims to Housing Benefit will have been migrated to DWP from Local Authorities. All existing claims to Child Tax Credit/Working Tax Credit will have been migrated to DWP from HMRC. 27

28 Published: 14 March 2013 Update due: April 2013 Thank you any other questions? Jacqueline Brown National Partnerships Team SHBVN Inverness Thurs 11 th April