Latest news on Welfare Reform and Universal Credit implementation

Transcription

1 Latest news on Welfare Reform and Universal Credit implementation Jim McCafferty IRRV President 4 March 2016 jim.mccafferty2@gmail.com Tel

2 Context - Total Public Spending in UK Public Spending 2016 ( 760bn) 153bn, 20% 106bn, 14% Other 47bn, 6% 14bn, 2% 27bn, 4% 29bn, 4% 110bn, 14% 45bn, 6% Welfare Defence Education Health Care Protection Transport General Gov 138bn, 18% 89bn, 12% Interest Pensions

3 Context - Total Public Spending in UK Welfare Spend 2016 ( 110bn) Housing benefit 11.6bn, 10% 6.8bn, 6% 23.9bn, 22% Child & Working Tax Credits 5.4bn, 5% Jobseeker's allowance DLA and PIP Incapacity benefits 14.1bn, 13% Attendance allowance 29.7bn, 27% Child benefit 15.4bn, 14% 3.1bn, 3% Other benefits

4 Context Welfare Reform Welfare Reform Act 2012 (last briefing) Fundamental changes;- Designed to incentivise employment for those able to work Limit eligibility for a range of benefits Streamline the system to achieve a sustainable long-term reduction in levels of welfare spending.

5 Plenty going on or not quite.. Welfare Reform & Work Bill in ping pong stage next at House of Lords following House of Commons further amendments of 2 March 2016 Regulations to follow. Benefit Cap Now Autumn 2016 UC Roll out to end 2016 announced by IDS in Parliament on 11 February Also stated 2017 plans to be announced in July 2016 with 2018 plans scheduled for announcement in September 2016 Thereafter migration of existing HB claims to UC? Await Supreme Court decisions in A and the Rutherford family cases. To be heard along with R (on the application of MA and others) 3 day hearing began 29 February 2016

6 Plenty going on or not quite.. Temporary Accommodation funding reductions Supported Accommodation funding restrictions LHA rates now deferred to tenancies after 1/4/17 Knock-on impacts of changes in Housing Legislation in England what is rent? Devolved Social Security Benefits? Full fiscal settlement may protect Scotland from cuts targeted at Scotland alone for next five years but we will still be affected by the cuts that affect the UK as a whole

7 Supported Accommodation Issues Too many rent schemes for HB No clear definition of care, support or supervision - Exactly what is Intensive Housing Management in HB terms? Uncertainty over eligible service charges Lack of knowledge relating to rent structuring Lack of clarity from providers No clear direction from the DWP? But a defining case is scheduled to be heard in the Court of Appeal in July 2016

8 Supported Accommodation Issues Increasing pressures? Has loss of other funding streams led to a reliance on Housing Benefit? What is housing related support funding cuts elsewhere may bring this back to the table in new ways? Supported Accommodation is currently outside UC DWP once again becoming interested in costs for Supported Accommodation.

9 Supported Accommodation Issues Realities Wide variety of different schemes supporting vulnerable residents Increasing number of support providers and complicated care contracts and leasing agreements Massive differences in rent and service charges (across schemes and local authorities) Internal pressures to allow schemes to continue r commence DWP awaiting results of research project and subsequent policy review that they commissioned

10 Wider Welfare Reform Issues Is the UK Government s self imposed overall Welfare Spending Cap influencing policy? - Greater move towards locally controlled fixed funding solutions - DHP an increasingly big feature - FERIS 2 tidy up in readiness for UC - Social rent policy in England

11 UC Roll out UC Live a catchy wee name or a lack of transparency The acid test; First Two Tranches announced England with their many small District Councils this has centred on areas where there is a one to one match between LAs and JCP offices. Not possible in Scotland Musselburgh will go Digital UC from end of March Inverness will follow in June Rest of Highland November But what is the picture from those already using the full service?

12 UC Roll out UC Live a catchy wee name or a lack of transparency The acid test; First Two Tranches announced England with their many small District Councils this has centred on areas where there is a one to one match between LAs and JCP offices. Not possible in Scotland Musselburgh will go Digital UC from end of March Inverness will follow in June Rest of Highland November But what is the picture from those already using the full service?

13 UC Roll out- Secret Squirrel or Undercover Elephant At the end of January 2016 Southwark LB had only processed 15 digital UC claims; hardly capacity testing. That fact is lost in the overall number of UC claims at Southwark as both old style and digital UC claims are being processed there. Does the DWP clarify this as a matter of course?

14 Thoughts Observations