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This document outlines critical changes in Welfare Reform and Council Tax Support as of February 2013. It discusses the £18 billion cuts to benefits scheduled from 2011 to 2014, the shift in benefit rate increases linked to the Consumer Prices Index, and the introduction of Universal Credit. It details significant adjustments to Housing Benefit, including increased deductions for non-dependants, restrictions on Local Housing Allowance (LHA), and modifications in the Council Tax Benefit system. Key resources for affected individuals are also highlighted.
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Landlords Forum Welfare Reform & Council Tax Support 13th February 2013
Jackie Hankins • Welfare Rights Manager • Neath Port Talbot CBC
Background • £18 billion cuts to benefits nationally from 2011 to 2014 – announced in June 2010. • From April 2011 annual increases in benefit rates have been in line with Consumer Prices Index (CPI) , rather than as previously Retail Price Index (RPI). • This is a direct cut and accounts for 35% of the £18 billion savings. • Recent announcement that most working age benefits will only increase by 1%
Housing Benefit • There have been a range of Housing Benefit changes from April 2011 which will continue to be implemented throughout 2012 and 2013 • Increase in non dependant deductions – amounts that reduce the H.B/L.H.A payable when there is an adult who is not your partner living in your household. These increased substantially in April 2011 by an average of 20% and will continue to increase each year • NB. – If the tenant or partner receive DLA care component or Attendance Allowance these will not apply
LHA maximum restricted to 4 bedroom rate – regardless of how many bedrooms you actually have • An additional room allowed for a non resident carer – an extra room will be paid for through LHA in respect of a non resident live in carer • LHA rates reduced across the board – LHA rates have been fixed at a lower level which means that less properties will be affordable. • Increase in age of those subject to LHA at single room rate – from January 2012 the single room rent rate only is payable to all single claimants up to age of 35
Payments for housing costs to be part of Universal Credit • H.B. will cease to exist as a separate benefit when Universal Credit is introduced. • Housing costs will form part of this calculation. Existing claimants will continue to receive H.B until they are transferred
Benefit Cap • Overall limit on the amount of benefit a family can receive £500 pw / £350 pw. • Will take form of a cut in Housing Benefit to be implemented at a date in 2013, yet to be determined.. • Will affect those in expensive accommodation and large families. • Very few people in NPT will be affected • Welfare rights and benefits working in partnership are making contact with everyone affected.
Council Tax Benefit • Being abolished in current form from April 2013 • New scheme has been devised by the WG – administered by LA. • Council Tax Reduction Scheme. • 10% reduction in money received by WG for this but for 2013/14 no reduction will be made to individual claimants. • Position in future years remains unclear.
Universal Credit • Universal Credit is being introduced from 2013 up to 2017 to replace the six main means-tested benefits below. • Child Tax Credit, Housing Benefit, Income Related ESA, Income Based JSA, Income Support, Working Tax Credit.
Aim is for simpler system to increase work incentives. • Administered by DWP only but HMRC are involved in supplying PAYE information with ‘real time’ IT system. • Claims are likely to be online – problems with access to internet for some clients. • One monthly payment in arrears to cover all living and housing costs!
Discretionary Housing Payments • Natasha Hart – Housing Options Benefits & Financial Inclusion Officer