Welfare reform update

Transcription

1 Welfare reform update London Advice Conference 2017 Daphne Hall Editor

2 Where are we at in welfare reform? Universal credit roll-out is slowly inching forward Transition from the live system to the digital system what s the difference and what are the problem areas Housing costs for year olds The two child policy Changes for those with limited capability for work Bereavement support payment Bedroom tax legal challenges where are we up to Benefit cap legal challenges, recent changes and the impact Work, health and disability the green paper what can we expect?

3 Universal credit roll-out 430,000 on the caseload at 8 December 2016 UC in all jobcentres across GB majority live service but full service is rolling out pace of rollout due to increase from July 2017 see ersal-credit-transition-to-full-service Roll-out complete September 2018 and managed migration from July 2019 and March 2022

4 Full service vs live service Full Online claim smart and can be saved Claimant commitment managed online To do list Journal Alerts via SMS/ Live Online claim clunky and can t be saved Claimant commitment managed via meetings with work coach Communication via letter Gateway conditions No gateway conditions (yet!)

5 Problem areas Claiming contributory new style JSA/ESA Universal credit advances see Ask CPAG - universal-credit-advances Implicit consent in full service areas see /#49666 Alternative Payment Arrangements and Discretionary Housing Payments

6 Changes to UC from April 2017 Taper decreased to 63% Removal of housing costs for certain year olds for new claims from 1 April 2017 Youth obligation stronger day one work requirements for year olds Loss of limited capability for work element (similar to loss of work-related activity component in ESA) For new claims from 3 April 2017 Loss of per month

7 Changes to UC from April 2017 Two child policy any claims from April 2017 from families with more than 2 children redirected to tax credits (and other legacy benefits) until November 2018 Existing UC claimants with children who have a third (or more) child will stay on UC but not get money for the child will be paid clerically Removal of the higher amount for the first child for new claims (and also removal of the family element from tax credits)

8 Changes to UC from April 2018 (digital system only) Surplus earnings rule if a person moves off UC but returns within six months then surplus earnings (above a de minimis threshold) will be used to reduce future entitlement Example a single person s UC maximum award is Earnings of will take them off UC the nil UC threshold. Any earnings above (nil threshold plus 300) will reduce subsequent awards of UC Carrying forward self-employed losses a loss in selfemployment can be carried forward for up to 11 assessment periods to offset against future profits

9 Tax credits Other changes No money for third or more child born after April 2017 Loss of family element ESA Loss of work-related activity component for new claims from 3 April 2017 Removal of 52 week limit in permitted work Attendance allowance will not now move to local authority control

10 Bereavement support payment Replaces current bereavement benefits for deaths occurring on or after 6 April 2017 Recipients with children receive an initial payment of 3,500 and 18 monthly payments of 350 Recipients without children receive an initial payment of 2,500 and 18 monthly payments of 100

11 Bedroom tax legal challenges Supreme Court 9 November 2016 [2016] UKSC 58 Considered two cases [2014] EWCA Civ 13 (MA and others) and [2016] EWCA Civ 29 (Rutherford and others) MA and others held that in case of Carmichael (adult couple needing separate bedrooms) no objective reasonable justification for treating different from child Rutherford and others in case of Rutherford (overnight carer needed for grandson) no objective reasonable justification for treating different from adult In case of A (sanctuary scheme) being appealed to European Court of Human Rights

12 Bedroom tax current policy Guidance issued same day 9 November No immediate action needs to be taken by local authorities following this judgment - HB Bulletin U3/ days later responding to urgent question We of course accept the Court s view and we will take the appropriate action as soon as we practicably can Damian Green Written answer in House of Commons 12 January 2017 government still considering the Supreme Court judgment and what changes are required to comply with its terms, including additional exemptions where appropriate - Caroline Nokes

13 Bedroom tax impact Research carried out by Frank Field as chair of Liverpool City Region Child Poverty and Life Chances Commission showed 83% cut back on food budgets 71% cut back on essential household bils 49% resorted to payday/doorstep loans, credit cards or store cards to get by Call for reform to only apply where two or more spare bedrooms

14 Benefit cap Following Hurley & Ors v Secretary of State for Work And Pensions [2015] EWHC 3382 (Admin) there is now an exemption from the benefit cap for carers (in receipt of or underlying entitlement to carer s allowance or carer element in UC) and those in receipt of guardian s allowance New benefit cap ( 23,000 in London, 20,000 outside London) rolled out between 7 November 2016 and end January 2017.

15 Impact of the benefit cap Research from the Chartered Institute for Housing (November 2016) showed 116,000 one to four child families affected 319,000 children Higher cap in London does not fully compensate higher cost of housing In London 6,000 single child families affected Institute for Fiscal Studies estimates that number affected by the cap in London will increase from 8,400 to 19,000

16 Impact of the benefit cap Evidence from CPAG in Scotland s Early Warning System highlights case studies where claimant may not be able use work to avoid cap Refugee with 6 children moving into permanent tenancy Couple who are seasonal workers and so don t work 50 out of 52 weeks Lone parent with 4 children between one and ten youngest one disabled but unlikely to get DLA for few years Local authorities will not have DHPs to meet all need

17 Work, health and disability: improving lives The new green paper Consultation launched on 31 October 2016 and due to close on 17 February t/ Aims to achieve a more personalised and integrated health and welfare system

18 Work, health and disability: Green paper proposes improving lives A review of SSP and GP fit notes to support workers back into their jobs faster, and for longer Encouraging JC+ work coaches to signpost claimants to therapy Reform of the work capability assessment with a view to ending the binary can work / can t work groups A new Personal Support Package Encouraging employers to work with their employees with long-term health conditions to stop them from falling out of work A wide-ranging debate about recognising the value of work as a health outcome

19 Role of the Disability Employment Adviser Increase in number of DEAs from 200 to 500 should all be recruited by March 2017 Each will support up to 30 work coaches via one-toone sessions and monthly group case conferences Some face-to-face work in complex cases Act as a single point of contact for health services, charities and other partnership work Support employment advisers to provide employers with advice re adjustments. Access to Work and other disability issues

20 Any questions?