Post on 30-Dec-2015
Housing Benefit & Universal Credit – Impact on
Households
Changes to Housing Benefit Universal Credit Local tax support Benefit Cap Challenges/Responses
Changes to Housing Benefit
Increased non-dependant deductions £15 LHA excess removed LHA restricted to four bedroom rate LHA rates capped LHA rates set at 30th percentile Shared room rate for under 35s CPI used to uprate LHA rates 2013/14
Universal Credit
Not really universal
Not really a credit
Universal Credit
Includes Housing Benefit From October 2013 Administered by DWP Digital by default? Direct payments Role for LAs? What about pensioners?
Local Tax Support
CTB abolished April 2013 Set a local scheme by 31 January 2013 10% reduction in funding - £5m Three principles
Protect pensioners Consider vulnerable groups Incentivise work
Single Person aged 27 in work
Before changes Works 30+ hours Rent £95.00 Council Tax £14.92 HB - £68.43 WTC - £30.00
Single Person aged 27 in work
How much worse off is he?
A - £1.00 to £10.00 B - £11.00 to £20.00 C - £21.00 to £30.00 D - £31.00 to £40.00
Single Person aged 27 in work
After changes Works 30+ hours Rent £95 Council Tax £14.92 HB - £29.65 WTC - £30.00
£38.78 worse off
Single Person aged 27 not in work
Before changes Rent £95 Council Tax £14.92 HB - £92.31 CTB – £14.92 JSA - £67.50
Single Person aged 27 not in work
How much worse off is he?
A - £10.00 to £20.00 B - £21.00 to £30.00 C - £31.00 to £40.00 D - £41.00 to £50.00
Single Person aged 27 not in work After changes Rent £95.00 Council Tax £14.92 HB - £57.73 CTB - £11.94 JSA - £71.00
£34.06 worse off
Family not in work
Before changes Rent £150.00 Council Tax £29.84 HB £150.00 CTB £29.84 JSA £168.28
Family not in work
How much worse off are they?
A - £1.00 to £5.00 B - £6.00 to £10.00 C - £11.00 to £20.00 D - £21.00 to £30.00
Family not in work
After changes Rent £150.00 Council Tax £29.84 HB £138.46 CTB £23.87 JSA £176.465
£9.33 worse off
Family not in work
How much worse off are they?
A - £1.00 to £5.00 B - £6.00 to £10.00 C - £11.00 to £20.00 D - £21.00 to £30.00
Large Family not in work
Before changes Rent £240.00 Council Tax £29.84 HB £230.20 CTB £29.84 JSA £168.28
Large Family not in work
How much worse off are they?
A - £10.00 to £20.00 B - £21.00 to £30.00 C - £31.00 to £40.00 D - £41.00 to £50.00
Large Family not in work
After changes Rent £240.00 Council Tax £29.84 HB £173.08 CTB £23.87 JSA £176.44
£54.93 worse off
Benefit Cap
From April 2013 Set at £26k 97 households in Eastbourne £2.77 to £377.31 per week Average of £75.20 per week
The challenge
Key risk for vulnerable household will be money management and debt
Sheer complexity Numbers of people affected All at a time of budget pressures
The impact
Increased stress on vulnerable households Health & wellbeing Child poverty Increased homelessness Risk of illegal money lending Pressure on existing services
etc…………….
An East Sussex response to Welfare Reform: Recognise need for planned response Link existing resources across all sectors
to reduce overlap and increase impact Welfare reform to be part of every
contact? Behaviour change Role of specialist services
Activities likely to include:
Prevention based Targeted awareness raising and ‘every
contact counts’ developing a ‘no wrong door’ and hand
holding approach to advice/support Increasing the ‘challenge capacity’ to
ensure protection