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Welfare Reform

Welfare Reform. 14 October 2013. Employment Support Allowance (The sickness benefit). ESA: 2 Types Contributory and Income related May 2012 Contrib ESA limited to 1yr for those in work related activity group (70% of contrib esa claimants) Monies stopped but still unfit

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Welfare Reform

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  1. Welfare Reform 14 October 2013

  2. Employment Support Allowance(The sickness benefit) • ESA: 2 Types Contributory and Income related • May 2012 • Contrib ESA limited to 1yr for those in work related activity group (70% of contrib esa claimants) • Monies stopped but still unfit • May be able to claim (ir)ESA but problems for certain claimants ie couples were one works

  3. Employment Support Allowance • 3 Dec 2012: Sanctions • Applies all claimants in work related activity group regardless of type of ESA (70% of claimants) • Fails to take part in work focused interviews or undertake work related activity (without good cause) • Penalty: loss of £71.70 pr week for as long as don’t participate plus 1, 2 or 4wk addition • Possibility of hardship payments in limited circs

  4. Employment and Support Allowance • Sanctions • Appeal • 1 month from date of decision to lodge appeal • Can be up to 12 months later but need to show good cause • Housing Benefit • Should continue to receive Housing Benefit during sanction period

  5. Jobseekers Allowance • Oct 2012: Sanctions • 3 types: Low, intermediate or high • Fail to attend an adviser interview or not actively seeking employment or leaving a job voluntarily without good cause • 4, 13, 26 or 156 weeks • Loss of all monies • Hardship payments can be claimed • (discretionary and not paid for first 14days unless in vulnerable group)

  6. Jobseekers Allowance • Sanction Appeals • 1 month • Can be up to 12 months later but need to show good cause • Housing Benefit • Should still be paid during sanction however often issues ( HB Regs 2006 2 (3) (a)) (also nil income declaration)

  7. Housing Benefit: Bedroom Tax • April 2013: Social Sector: Size Restriction • Entitlement for working age claimants reflect household size (16 – Pension Credit qualifying age) • Size Criteria applies • 1 spare bedroom 14% cut in rent allowed for HB • 2 or more spare 25% reduction applied • Options: Discretionary Housing Payment’s and/or Appeals

  8. Housing Benefit Size Restrictions: Bedroom Tax • 1 bedroom per • Adult couple • Any other adult aged 16 or over • Any 2 children of same sex under 16 • Any 2 children regardless of sex under 10 • Any other children • Foster children* • Disabled Child* • Non resident carers*

  9. Housing BenefitSize Restrictions: Bedroom Tax • Carer • Additional bedroom in size criteria for a non resident carer where the need for overnight care has been established and arranged • Claimant or partner is on AA or DLA Care M or H rate or if not in receipt • Can provide evidence to LA they require overnight care • Only applies where HB claimant or partner need care

  10. Housing Benefit Social Sector: Size Restriction • No account taken of couples were one or both are disabled such that they cannot share a bedroom • No account of properties were additional room for disability equipment • No account taken of properties that have been disability adapted • No account taken of children whose main residence is elsewhere

  11. Housing Benefit: Appeals andDiscretionary Housing Payments • Intended to assist those who require further financial assistance with housing costs • It’s a cash limited pot • Large demand on cash so need to make the case that claimants situation a priority • Priority given to disability, carers, moving into employment etc • Usually awarded for limited period

  12. Housing Benefit: Appeals • Lodge1 month (although have additional up to 12 months if good cause) • Free representation Social Work Services Welfare Rights Appeals team and other orgs • Appeal letter on council website • Appeals have been won (ie Kirkcaldy, Glasgow)

  13. Social Fund / Scottish Welfare Fund • April 2013: Part of social fund abolished • Comm Care Grants and elements of Crisis Loans • Replaced by Scottish Welfare Fund • (Comm Care Grants and Crisis Grants) • Paid on same grounds as they were in discretionary social fund • Sits in GCC (Grant Services Team 0141 276 1177) • Can claim online

  14. Social Fund • Budgeting loans still exist • Crisis loan (alignment loans) still exist now known as Short term Advances (waiting on payment of benefit) • The Regulated Social Fund still exists • All paid by the DWP

  15. Disability Living Allowance/PIP • DLA a pivotal benefit for income maximisation • 10/6/2013 introduction of Personal Independence Payments as replacement for DLA (for adults) • Tougher Test • PIP has 2 components like DLA comprising Daily Living and Mobility • Paid at 2 rates of each (standard and enhanced)

  16. DLA/PIPNew Assessment tool • Similar to ESA: done on a points basis • Activities – Tasks • Descriptors – Measurement of ability • Have problems over 50% of time • No day/night time tests • Very likely claimants will face consultation as part of assessment • Winners and losers ie mobility criteria

  17. Disability Living Allowance / Personal Independence Payments • Transfer of existing DLA claimants in 2 runs • 28 Oct 2013 • Oct 2015 – Oct 2017 • Claimants invited to claim PIP • No automatic entitlement from DLA to PIP • DLA ends if do not take up invite (8 wks) • If DLA ends other bens can be badly affected i.e disability premium, severe disability prem, enhanced disability prem, HB non dep deductions

  18. Personal Independence Payment • Invitation to claim • DLA recipients will receive a letter and will be invited to claim PIP • No response to invitation • After 4 weeks • DLA suspended • No contact within 8 weeks of invitation • DLA award ended • If a claim for Personal Independence Payment made • DLA continues in payment until PIP claim decided

  19. Personal Independence Payment • Who gets transferred in first run • 28 Oct 2013 onwards • Anyone whose existing DLA ward is scheduled to end from mid March 2014 onwards • Anyone who reports a change of circumstances • Oct 2015 – Oct 2017 • All other eligible claimants (ie indefinite awards) • No system announced for this

  20. Benefit Cap • Limit on what can be paid via benefit system • £350 per wk single adults no children • £500 per wk lone parent and couples with or without children • Applies to combined income from • JSA, IS, ESA, Incap Ben, SDA, HB, Child Ben, Child Tax Credit, Carers Allow, Widows Ben, Widowed Parents All, Bereavement Allow • Initial deductions made from HB

  21. Universal Credit • Means tested (£6,000 - £16,000) • People of working age (18 – Pen Credit qualify age) • Replace IS, (ib)JSA, (ir)ESA, HB and both types ofTax credits • Single Payment • Paid monthly • Administered by DWP • Claim online

  22. Universal Credit • Basic Allowance • Additions for children, disability*, caring and housing costs • Monies for childcare costs • System of earnings disregards • Changes to non dep deductions for housing • Strengthened sanction regime • Timetable???

  23. Change to Appeal Procedure • Decisions made on or after 28 Oct 2013 • Negative decision (all DWP bens except UC and PIP already introduced) • 1st step review request to DWP (1 month) • Receive Mandatory reconsideration notice (no time limit for DWP to respond) • 2ND Step • Lodge separate appeal with Courts and Tribunal Service (1 month)

  24. Other Issues • April 2011: Rates of Child Ben frozen for 3 yrs • May 2012: Inc Support: L Parent child now under 5 • Dec 2012: Ben rates to be increased by only 1% in next 3yrs • April 2013: Abolition of Council Tax Ben creation of new scheme (£40m cut 1st yr 8.5% cut in 2nd year)

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