Welfare reform 2011 Chris White CJ Mental Health Constancy March 2011

1. Welfare reform 2011 Chris White CJ Mental Health Constancy March 2011 www.cjmentalhealthconsultancy.co.uk

2. Continual talk of Welfare Reform is a cause for concern for many people We will all have seen or heard headlines like this over recent months 500,000 BENEFIT SCROUNGERS WILL BE MADE TO SEEK WORK 17 September 2010 www.cjmentalhealthconsultancy.co.uk

3. New Labour and Welfare Reform In 1997 Tony Blair and “New Labour” entered government with welfare Reform a key New Labour policy New Labour adopted a "rights and responsibilities" approach where benefits recipients were to “pull their weight” Welfare reform plans to focus on people who are sick or disabled, replacing Incapacity Benefit with Employment and Support Allowance In 2008 Employment and Support Allowance was introduced for new claimants with a new Work Capability Assessment focusing on what people can do rather than what they can’t do www.cjmentalhealthconsultancy.co.uk

4. Coalition plans for Welfare Reform Employment Support Allowance Over the next 4 years all current incapacity claimants will be moved over to ESA. Oct 2010 IB migration started in Aberdeen and Burnley Jan 2011 Linked rules abolished all new claims will be for ESA Feb 2011 IB migration due to start across the UK Mar 2014 All claimants will have moved to ESA People reaching state pension age before March 2014 may not be included in the migration. www.cjmentalhealthconsultancy.co.uk

5. Employment Support Allowance National Roll-out Incapacity Benefit Statistics In recent trails in Aberdeen and Burnley about 30% of people had their entitlement affected. From April approx. 10,000 claimants every week in the UK will be reassessed under the Employment and Support Allowance rules. www.cjmentalhealthconsultancy.co.uk

6. The ESA Process • After a new claim is made people enter a 13 week assessment phase. Where people are eligible they will receive a basic rate of ESA during this phase. • During the assessment phase you may need to:- • Complete a self assessment Questionaire • Attend a Medical Assessment • Attend a Work Focused interview with a Jobcentre Plus Advisor • A decision will be made after this phase: • Fit for Work and not entitled to ESA • limited capability for work-related activity, you will be placed in the work-related activity group • limited capability for work-related activity, you will be placed in the support group www.cjmentalhealthconsultancy.co.uk

7. The Work Capability Assessment • Employment Support Allowance uses a new medical assessment • The Work Capability Assessment (WCA) • a self assessment health questionnaire • independent medical assessment • Unlike the current medical assessment., the WCA is based on what a person can do rather than what they can’t do www.cjmentalhealthconsultancy.co.uk

8. Problems with the assessment process • Self assessment health questionnaire • people either underestimate or over-estimate • poor concentration to complete forms • lack details of how they are affected • Independent medical assessment • poor reporting • snap-shot view • lack of insight into mental health issues www.cjmentalhealthconsultancy.co.uk

9. Government Review of the WCA • Earlier this year mental health organisations across Scotland provided evidence of problems with the WCA • Following this the government have promised to:- • If a claimant appeals an ESA decision, the DWP will ring them to discuss their claim • improve the decision making process • improve the information about the assessment process • ensure Atos has greater expertise in mental, cognitive and intellectual conditions • review the mental, intellectual and cognitive descriptors and a revised set of descriptors will be introduced from March 2011 www.cjmentalhealthconsultancy.co.uk

10. Housing Benefit Changes from April 2011 Limit housing benefit to £250 a week for a one-bedroom home to £400 a week for a four-bedroom property. end the maximum £15 weekly Housing Benefit excess that some customers can receive under the Local Housing Allowance arrangements reduce all Local Housing Allowance rates so that about 3 in 10 properties for rent in the area should be affordable to people on Housing Benefit rather than every 5 in 10 properties as now. The Welfare Reform bill suggests that people will only receive housing benefit for the number of bedrooms that they need. This will affect 32 per cent of all working age social tenants with most losing around £11 a week. www.cjmentalhealthconsultancy.co.uk

11. Future Welfare Reform www.cjmentalhealthconsultancy.co.uk

12. Universal Credit a new benefit which will replace: • child tax credit • housing benefit • income related employment and support allowance • income based jobseekers allowance • income support • social fund budgeting loans • working tax credit People will begin moving over to universal credit in 2013 and it is anticipated that people will be moved over onto the new benefit within 4 years www.cjmentalhealthconsultancy.co.uk

13. Earning Disregards Working on benefits affects individual benefits differently, and often acts as a disincentive to work. Introduce one set of earnings disregards and for earnings above that level benefits will be withdrawn at a single withdrawal rate. E.g. someone on Income Support can earn up to £20 without affecting benefit, but for every £ they earn above that they lose £1 in benefit. Using a taper then they would still be able to earn £20, but then for every £ the earn benefit would reduce by 65 pence www.cjmentalhealthconsultancy.co.uk

14. Tougher Conditions and Sanctions • Conditionality • Individuals who are able to look for work or prepare for work will be required to do so as a condition for receiving benefit and those who fail to meet their responsibilities will face a sanction such as a benefit reduction. • Sanctions are likely to be tough • loss of benefit for four weeks for a first offence, • three months for a second offence. • In the most serious cases people could lose entitlement to • claim for up to three years. www.cjmentalhealthconsultancy.co.uk

15. Reforming Disability Living Allowance George Osborne MP, announced in his June Budget that he would change the way that Disability Living Allowance (DLA) is assessed. He said that from 2013-14 all people claiming Disability Living Allowance (DLA) will have to undergo an “objective medical assessment” to ensure payments are only made for as long as a claimant needs them. In November the Government announced it would reform disability living allowance (DLA) and introduce an ‘objective medical assessment’ for all claimants from 2013. www.cjmentalhealthconsultancy.co.uk

16. DLA will be replaced by a Personal Independence Payment which will have two components: A daily living component - paid at either a standard rate or enhanced rate this will be similar to the DLA Care component, but there will not be a lower rate of entitlement A mobility component - again paid at either a standard rate or enhanced rate this will be similar to the DLA mobility component, which is already paid at two different rates www.cjmentalhealthconsultancy.co.uk

17. Preparing for Change It is clear that the way benefits are assessed will change, from April 2011 people will begin to be moved over to ESA and will be re-assessed. www.cjmentalhealthconsultancy.co.uk

18. Preparing for Change • At this stage it may be useful to:- • look at how you illness affects daily life and your ability to work • Consider how the new mental health descriptors might apply to you • Consider who is the best person to help you complete forms • Think about who might be able to provide additional evidence to help your claim • Think about whether you would be able to do some part time work, how would this affect your health, find out how this would affect your finances; and what support might be available. www.cjmentalhealthconsultancy.co.uk

19. Inquiry into Migration over to ESA • On the 17 March 2011the Work and Pensions Committee launched a new inquiry into the migration from Incapacity Benefits to ESA. The Inquiry will focus on the following issues: • The Department’s communications to people going through the assessment • The Work Capability Assessment including: the assessment criteria; the service provided by Atos staff; the suitability of assessment centres; and customers’ overall experience of the process. • The decision-making process and how it could be • The appeals process, including the time taken for the appeals process to be completed • The outcome of the migration (where people go). • The time-scale for the national roll-out for the migration process, including the Department’s capacity to introduce changes identified as necessary in the Aberdeen and Burnley trials. www.cjmentalhealthconsultancy.co.uk