What you need to know - welfare reform
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1 Learn with us. Improve with us. Influence with us What you need to know - welfare reform Sam Lister, Policy & Practice Officer, CIH
2 Coverage Reforms so far (supported housing) Disability benefits (DLA to PIP) Bedroom tax, benefits cap and exemptions universal credit (inside/outside, service charges) Future reforms Short-term: Review of what s inside and outside UC Long-term: Full or partial exclusion of housing costs from universal credit with support being devolved locally (SP Mark II) Learn with us. Improve with us. Influence with us 2
3 The reforms so far Learn with us. Improve with us. Influence with us
4 DLA to PIP and consequential Learn with us. Improve with us. Influence with us
5 PIP and consequential Similar structure to DLA (care, mobility) Two rates of care, two rates of mobility In effect the end of the lower care rate Tougher ESA style medical test with points threshold Regular reviews and fixed term awards 500,000 taken off projected caseload by 2015/16 Loss of disability and/or severe disability premium No severe disability premium in universal credit Losses from 21 to 110+ per week for single Learn with us. Improve with us. Influence with us 5
6 Social sector size criteria Learn with us. Improve with us. Influence with us
7 Exemptions Pensioners Aged 62 by 5 April 2014 State pension credit exempt Rules about PC and couples change at UC transfer Housing type Shared ownership Supported housing exempt accommodation Grace periods 52 weeks if death of relative reduces size 13 weeks if could previously afford (no HB in past year) Learn with us. Improve with us. Influence with us 7
8 Calculating size and loss One bedroom for tenant and partner One bedroom for each other person aged 16+ Children expected to share in certain circumstances One bedroom for any one else (i.e. unpaired) Plus one extra bedroom if the tenant/or partner needs an overnight carer Weekly loss is: 14% of the rent if under-occupying by one bedroom 25% of the rent if under-occupying by two or more bedrooms Learn with us. Improve with us. Influence with us 8
9 Household benefits cap Learn with us. Improve with us. Influence with us
10 Benefits cap? Unlikely to apply Exempt state pension credit age Most disability benefits (DLA/PIP, ESA support component) Housing association exempt accommodation Housing benefit eligible rents in excess of 280 per week for single person 390 per week for couple Learn with us. Improve with us. Influence with us 10
11 Exempt accommodation Learn with us. Improve with us. Influence with us
12 Benefits of exempt status Outside UC for help with rent (for time being?) HB not counted towards the cap Exempt from bedroom tax Current HB payment rules apply Learn with us. Improve with us. Influence with us 12
13 Exempt accommodation (1) Accommodation is provided by An upper tier county council A housing association (whether or not registered) A registered charity; or A voluntary organisation (i.e. not-for-profit). Exempt status helps rent allowance claims so cannot be extended to local authority tenants Learn with us. Improve with us. Influence with us 13
14 Exempt accommodation (2) The landlord provides the claimant with care support or supervision directly; or The landlord has a contract with the support provider to provide the care, support etc. Support must be more than minimal (three hour rule?) Learn with us. Improve with us. Influence with us 14
15 UC and beyond long term Learn with us. Improve with us. Influence with us
16 The new system Working age housing costs on UC Pension age housing costs on PC PC/UC divergence or convergence? UC assumption of payment to tenant any landlord payment is temporary measure subject to review PC assumption of tenant payment but retain right to elect payment to landlord Learn with us. Improve with us. Influence with us 16
17 Welfare benefits: old & new HB HB ESA JSA IS Universal Credit Tax Credits PC PC Learn with us. Improve with us. Influence with us 17
18 UC eligible costs Rent: rent and payments for permission to occupy Services: Cleaning of exterior windows on upper floors of multi-storey Maintenance, upkeep and supply of fuel and water supply to internal or external communal areas including reasonable facilities (laundry, children s play areas) Maintenance, cleaning and repair of basic services to communal areas (refuse collection, communal lifts, secure building access, grounds maintenance) Payments for the use of essential items (furniture or domestic appliances) Learn with us. Improve with us. Influence with us 18
19 UC administration End of local negotiation around rents Needs to be simple to administer Pure rent only splitting off the additional costs of supported housing Long-term? - move towards a much more rough and ready assessment of housing costs no longer assume will cover the full rent Learn with us. Improve with us. Influence with us 19
20 Which way to jump? Learn with us. Improve with us. Influence with us
21 UC or not UC Supported housing that is exempt accommodation falls outside universal credit Outside UC refers to help with rent only Up to 2017 rent will continue to be covered by HB Existing HB payment rules apply Post 2017 fully or partial localised solution (SP Mk II) All help with rent localised/devolved Pure rent (stripped of support and additional costs) within UC, extra costs localised/devolved Learn with us. Improve with us. Influence with us 21
22 Review of exempt status Looking to broaden definition Take account of current models of support provision Include local authority tenants (cost issue) Must be cost neutral (local authority extension) Close down abuse Find cuts elsewhere in welfare system DWP talking to CIH and supported housing representatives at present Learn with us. Improve with us. Influence with us 22
23 Partial UC solution Spreads risks (part UC, part local top-up) Partial long-term income security Partial demand led funding Expenditure hidden among general needs Annual rent increases Some cross subsidy No local negotiation Overall expenditure may drive future cuts Welfare spending cap? Learn with us. Improve with us. Influence with us 23
24 Localised solution Attractive to devolved administrations Retain local negotiation Cash limited budget Less than inflation increases and budget squeeze as costs outstrip inflation Impossible to plan long-term all three year contract funding and competitive tendering Learn with us. Improve with us. Influence with us 24
25 Learn with us. Improve with us. Influence with us What you need to know - welfare reform Sam Lister, Policy & Practice Officer, CIH
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