Benefit Sanctions How to avoid them

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1 Benefit Sanctions How to avoid them Clive Davis Newcastle City Council Jon Clapham Jobcentre Plus

2 Background Part of Welfare Reform Act 2012 included a revised sanctions and hardship regime for JSA; ESA Work Related Activity Group (WRAG) claimants and some lone parents on Income Support. The new regime is designed to make claimants understand the link between receiving benefit and complying with the benefit s conditions, and also to help pave the way for the introduction of Universal Credit (UC). Every claimant must be clear that failure to actively engage with the employment support offered will leave them liable to a sanction In Newcastle, there are about 450 sanctions a month. We want to work together to stop them before they start.

3 Claimant Commitment Introduced from December 2013 onwards Replaces Jobseekers Agreements (JSAgs) Places more accountability on claimants Step towards Universal Credit

4 Claimant Commitment aims to ensure claimants:- Recognise they must do all they reasonably can to find work Take responsibility for getting themselves in to work Are clear about the requirements they must meet Have a detailed plan of action place that they are committed to following Are coached and supported to ensure they are taking the right action at the right time.

5 Why Sanctions Occur The most common reason for a JSA sanction is a failure on the part of the jobseeker to actively look for work The second most common reason is failure to participate in employment programmes (including the Work Programme) designed to help people back to work 20% were sanctioned because they didn t have a good reason for missing a meeting at the jobcentre Sanctions occur for lots of reasons so it is important to get claimants to be open and honest with their adviser.

6 What Are Sanctions? Some Working Age Benefits have work-related activity requirements If a claimant does not meet these requirements their benefit can be stopped or reduced Sanctioned claimants can ask for a hardship payment from Jobcentre Plus

7 JSA Sanctions There are three levels of sanctions: Higher Level sanction period of 13, 26 or 156 weeks. Intermediate Level sanction period of up to 4 or 13 weeks. These are completely new sanctions and may be applied following a period of disallowance. Lower Level sanction period of up to 4 weeks for first failure and 13 weeks for second or subsequent failure. All JSA claimants who are sanctioned have access to hardship provision.

8 ESA Changes Required to: Take part in work focused interviews Undertake work related activity The new sanction for ESA claimants in the Work Related Activity Group will have two parts. An open ended period, which will be lifted when the claimant re-engages with requirements, followed by a fixed period of 1,2 or 4 weeks. ESA claimants who are sanctioned under the new regime have the personal rate stopped but continue with WRAG component of and can ask for a hardship payment (currently 43.45)

9 Lone Parent Changes Increased work related activity for lone parents: Tailored work focused interviews for lone parents with child aged 1 to 4 years old. Mandatory work related activity for lone parents with children aged 3 and 4 years old. Income Support is reduced by 20% of Personal Allowance until claimant re-engages

10 Pre UC Open ended until re-engagement followed by Reasons for Sanction Applicable to: Sanction Level ESA Claimants in the Work Related Activity Group Low Level Failure/refusal to attend any mandatory Interview Failure/refusal to undertake Work Related Activity JSA Claimants JSA Claimants JSA Claimants Lower Level Failure/refusal to attend adviser interview, Failure/refusal to participate in employment programme or training scheme Failure/refusal to comply with Jobseeker direction, Neglect to avail of place on programme or training course, Refusal, failure to attend or loses through misconduct a place on a programme or training course Intermediate Level Only following a disallowance for: not being available for work not actively seeking work Higher Level Leaving a job voluntarily Losing a job through misconduct Refusal/failure to apply for, or accept if offered, a suitable job Refusal/failure to participate in mandatory work activity 1 st Failure 1 week 4 weeks 4 weeks 13 weeks 2 nd Failure 2 weeks 13 weeks 13 weeks 26 weeks 3 rd Failure 4 weeks 13 weeks 13 weeks 156 weeks Current Sanction regime Open-ended 50% of WRAG component for first 4 weeks, then 100% of WRAG component 1, 2, 4 or 26 weeks Disallowance but no sanction Variable 1 26 weeks

11 Have you worked with someone who had a sanction? Why did the sanction occur?

12 Example Jill Mild Asperger's, gets ESA & low rate care DLA. Both reassessed & lost = a drop of to a week JSA. After outgoings of ( 2 crisis loan repayment, 6 water rates, 16 gas & electric, 5.50 TV license, 10 rent and Council Tax (CT) due to April s under occupancy rule and localised CT support) Left with for food, clothing, travel etc. Fails to comply with work requirements. JSA stops/sanctioned Gets hardship payment (lucky!) Left with 3.94 for food, clothing, travel etc

13 If a sanction is applied Sanctions are always double checked internally Decision must be notified in writing Claimants can ask decision be reconsidered If still unhappy can appeal Both claimant and adviser must behave well. Claimants can also complain

14 What can you do to help? Encourage claimants on JSA to actively look for work and fulfil their obligations; Prompt claimants to attend all Jobcentre Plus appointments on time; Encourage and prompt claimants to attend all Jobcentre Plus Employment programmes (i.e. Work Programme); As a representative you can now support claimants by attending appointments with them; Or by writing a letter for your client explaining their circumstances

15 What can you do to help? Help keep their adviser informed of any change in circumstances or if unable to attend for any reason; We can (as a representative) attend interviews with them or arrange for a private interview room if preferred; Encourage all claimants to share any relevant personal circumstances with their adviser; Help claimants understand the claimant commitment and that they have a responsibility for taking agreed actions.

16 Support Available Newcastle Futures Newcastle Families Employment Advisers Familywise Advice services

17 Benefit and debt advice services

18 Newcastle Services Directory

19 Benefit and debt advice

20 City Council Benefit bulletin bi monthly: DWP Touchbase monthly:

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22 Other benefit problems to avoid People have to do things to get benefit e.g. To claim usually phone and complete claim form Sickness or disability benefit medical evidence To avoid problems, claimants should e.g. Report change in circumstances and read letters Act within time limits for claims and challenges Check Housing Benefit continues if benefit stops People missing out on benefit benefit check If can t resolve independent help

23 Consultancy lines & contacts Opportunities for you to talk to specialists about housing, welfare rights & debt issues: Housing Advice Centre, Mon-Fri 8:30-12 & 1-4: / housingadvicecentre@newcastle.gov.uk Reporting concerns about suspected rough sleepers, Mon-Sun / roughsleeping@newcastle.gov.uk Welfare Rights Service consultancy, Mon-Fri / welfare.rights@newcastle.gov.uk Debt advice consultancy, Mon, Tue, Thurs, Fri 9:30-11: / debtadvice@newcastle.gov.uk Financial inclusion, Mon-Fri financialinclusion@newcastle.gov.uk Supporting Independence Scheme & Gateway, Mon-Fri / gateway@newcastle.gov.uk