Changes to the welfare system:

implications for people with a learning disability

Tatu DelaneyRegional Campaigns Officer

September 2012

Overview

• Employment and Support Allowance (ESA) & the Work Capability Assessment (WCA)

• DLA reform – the new Personal Independence Payment (PIP)

• Wider changes under the Welfare Reform Act 2012:– Housing Benefit changes

– A new Universal Credit

Part one – Employment and Support Allowance (ESA) and the Work Capability Assessment (WCA)

ESA and the WCA (1)

• ESA to replace Incapacity Benefit, Income Support (because of a disability), and Severe Disability Allowance.

• New claims from October 2008, ALL existing claimants from April 2011 – March 2014.

• 1.5 million people being re-assessed.• New assessment underpinning ESA – the WCA.• No exempt group as per the previous PCA –

small number of exceptions. Likely that many of the people we support will be called in for a face to face assessment with a medical practitioner.

• If a claimant does not attend the WCA they face a sanction.

ESA and the WCA (2)

WCA

Limited capabilit

y for work?

Limited capabilit

y for work

related activity?

Yes

Fails the WCA

Apply for JSA

Yes

No

Eligible for ESA

No

Support group

Work-related activity group

6 work focused interviews and some work related

activity

IB migration - reassessment process1) Near review date – letter from JCP2) Telephone call from JCP3) ESA 50 form4) WCA (for the majority) – claimants can take

a supporter, they can request help with taxi fares, in some cases they may be able to be examined at home

5) A decision maker will telephone to inform claimant of decision they are likely to make

ESA claimants – what will they have to do?

• 6 work focused interviews– Identify activities or training that may

help claimant move towards work• Work-related activity

– “activity which makes it more likely that a person will obtain or remain in work or be able to do so”

– Welfare Reform Act inserts ‘work experience’

• Take part in Work Programme if required

Implications for people with a learning disability

• Supportive of broad principles of ESABUT• Too many people being found ‘fit for

work’• Staff training issues – DWP and Atos staff• Increased conditionality – but are

claimants getting the right support?

Part two – Reform of DLA and the new Personal Independence Payment (PIP)

DLA reform – the proposal• Replacement of DLA with the Personal Independence

Payment or PIP (working age adults only) • Rising caseload and expenditure unsustainable

– More enabling – helping people to manage their disability or condition

– Periodic review– No automatic entitlement

• PIP to be introduced 2013/14 – daily living and mobility component

• To remains a non-means tested, extra costs benefit • Context: estimated 500,000 less people will receive

PIP than under DLA

Before and after… DLA to PIP

PIPPIPDLADLA

CARE component

CARE component

Non-means tested

Non-means tested

Highest rate £77

Highest rate £77

MOBILITY componentMOBILITY

component

Middle rate £52Middle rate £52

Lowest rate £21Lowest rate £21

Higher rate £54Higher rate £54

Lower rate £21Lower rate £21

MOBILITY componentMOBILITY

componentDAILY LIVING component

DAILY LIVING component

Enhanced rateEnhanced rate Enhanced rateEnhanced rate

Standard rateStandard rate Standard rateStandard rate

Automatic entitlement for those with “severe learning

disabilities”

Automatic entitlement for those with “severe learning

disabilities”

Extra costsExtra costs

DLA to PIP – next steps

• New assessment being designed – consultation on assessment and thresholds taken place

• Regulations expected Autumn 2012 (i.e. some of the details – rates, finalised assessment etc)

• Key dates– April 2013: PIP for new claimants– Autumn 2013 (- 2016): PIP migration

Implications for people with a learning disability

• Half a million people to lose out• Focus on those with the “greatest need”• A threat to independent living?• The draft assessment – will it allow people with

lower level needs to meet the threshold for eligibility?

• Will the assessment process work for people with a learning disability?

• Impact on passported benefits?

Part three – wider changes under the Welfare Reform Act 2012

• New size criteria (under occupancy / bed room tax)– 450,000 disabled people affected– Some exceptions for those with a social care

package including overnight carer• Household benefit cap

– Upper limit, family: £26k (£500 / week)– Upper limit, single person £19k (£350 / week)– Exemptions – DLA recipient

• Council Tax Benefit – Outside the Universal Credit– Council discretion, but with Government

requirement to achieve 10% cut whilst maintaining concessions for older people

Housing Changes

• To replace all means-tested support (i.e. Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Housing Benefit, Child Tax Credit and Working Tax Credit).

• Aim: improve work incentives (i.e. people are often not better off in work) and to make the system less complicated.

• Basic allowance + additional elements for disability, children, housing costs etc.

• First individuals expected to enter the new system from 2013.

• Great in principle, but some issues with the details:– Loss of Severe Disability Premium– Children’s disability additions

Universal Credit

Any questions or comments?