Kevin StewartKevin StewartHead of Revenues, Head of Revenues,

Benefits and Exchequer Benefits and Exchequer ServicesServices

Bedford BCBedford BCand IRRV Council Memberand IRRV Council Member

Welfare Reform ActWelfare Reform Act

Inc. Local Housing AllowanceInc. Local Housing Allowance

Lets ReminisceLets Reminisce

Who remembers 1983Who remembers 1983‘‘Unified’ Housing BenefitsUnified’ Housing BenefitsWhatever happened to the ministerWhatever happened to the ministerRent ArrearsRent ArrearsPayments to LandlordsPayments to LandlordsSocial HousingSocial HousingClaimant ResponsibilityClaimant Responsibility

WELFARE REFORM ACTWELFARE REFORM ACT

Background to Welfare Reform ActBackground to Welfare Reform Act

More responsibility?More responsibility?

More choice?More choice?

Local Housing Allowance?Local Housing Allowance?

Extended Payments?Extended Payments?

Employment Support AllowanceEmployment Support Allowance

Deductions against BenefitsDeductions against Benefits

Information Sharing for Supporting PeopleInformation Sharing for Supporting People

Greater Sharing and Use of Benefit InformationGreater Sharing and Use of Benefit Information

LA Investigations and Prosecutions against Benefit FraudLA Investigations and Prosecutions against Benefit Fraud

Welfare Reform Act - Welfare Reform Act - BackgroundBackground

Part of Government’s Welfare Reform ProgrammePart of Government’s Welfare Reform Programme

http://www.dwp.gov.uk/housingbenefit/publications/2002/buhttp://www.dwp.gov.uk/housingbenefit/publications/2002/building_choice/prospectus.pdfilding_choice/prospectus.pdf

Received Royal Assent on the 3 May 2007Received Royal Assent on the 3 May 2007

Devil will be in the detail – the Regulations!!Devil will be in the detail – the Regulations!!

Consultation on Regulations ongoing – part of the Consultation on Regulations ongoing – part of the Act comes into force 1 April 2008, some laterAct comes into force 1 April 2008, some later

More responsibility, more More responsibility, more choicechoice

Ones to make benefit recipients more Ones to make benefit recipients more responsible eg to pay their own rentresponsible eg to pay their own rent

It wants them to negotiate their own It wants them to negotiate their own rent eg have more choicerent eg have more choice

What about the Unified Housing Benefit What about the Unified Housing Benefit SchemeScheme

Was this not brought in to tackle rent Was this not brought in to tackle rent arrears in Council propertiesarrears in Council properties

Are we not going full circle?Are we not going full circle? Will debts get larger!!!Will debts get larger!!!

Should you be sad enoughShould you be sad enough

The Websites for additional information: The Websites for additional information: Guidance including reference to a number Guidance including reference to a number

of documents: of documents: http://www.dwp.gov.uk/welfarereform/legihttp://www.dwp.gov.uk/welfarereform/legislation_bill.aspslation_bill.asp

And And http://www.publications.parliament.uk/pa/chttp://www.publications.parliament.uk/pa/cm200607/cmbills/001/en/2007001en.pdfm200607/cmbills/001/en/2007001en.pdf

Legislation:Legislation: http://www.publications.parliament.uk/pa/http://www.publications.parliament.uk/pa/

pabills/200607/welfare_reform.htmpabills/200607/welfare_reform.htm

StrategiesStrategies

In Work Better Off – July 2007In Work Better Off – July 2007http://www.dwp.gov.uk/welfarereforhttp://www.dwp.gov.uk/welfarerefor

m/in-work-better-off/in-work-better-ofm/in-work-better-off/in-work-better-off.pdff.pdf

Making Skills Work – November 2007Making Skills Work – November 2007http://www.dwp.gov.uk/welfarereforhttp://www.dwp.gov.uk/welfarerefor

m/making-skills-work.pdfm/making-skills-work.pdf

Local Housing AllowanceLocal Housing Allowance Effective from 1 April 2008Effective from 1 April 2008 For new tenants onlyFor new tenants only Note rules on protectionNote rules on protection For private tenants onlyFor private tenants only Does not affect RSL’sDoes not affect RSL’s

Note government intentions on direct paymentsNote government intentions on direct payments Payments will be made to tenants apart from Payments will be made to tenants apart from

‘vulnerable’ tenants‘vulnerable’ tenants Will pay standard amount regardless of rent Will pay standard amount regardless of rent

with a £15 ceilingwith a £15 ceiling Payment into bank accounts – debt advicePayment into bank accounts – debt advice Tenant will be able to retain any surplus LHATenant will be able to retain any surplus LHA Potential Issues – eg backdatingPotential Issues – eg backdating Further information:Further information:

http://www.dwp.gov.uk/housingbenefit/faq/http://www.dwp.gov.uk/housingbenefit/faq/lha/lha/

People who have difficulty in People who have difficulty in paying – not exhaustive listpaying – not exhaustive list

People with People with medical conditionsmedical conditions Illiteracy, or an inability to speak EnglishIlliteracy, or an inability to speak English Addiction to drugs, alcohol or gamblingAddiction to drugs, alcohol or gambling fleeing domestic violence/single homeless (care fleeing domestic violence/single homeless (care

leavers)/people leaving prisonleavers)/people leaving prison Severe debt problems/recent County Court Severe debt problems/recent County Court

JudgementsJudgements Undischarged bankruptcyUndischarged bankruptcy An inability to obtain a bank accountAn inability to obtain a bank account DWP is making deductions from Income Support DWP is making deductions from Income Support

(IS) or income-based Jobseeker’s Allowance (IS) or income-based Jobseeker’s Allowance (JSA(IB)) in respect of housing costs(JSA(IB)) in respect of housing costs

The claimant is in receipt of Supporting People The claimant is in receipt of Supporting People (SP) help(SP) help

The claimant is in receipt of help from a The claimant is in receipt of help from a homeless charityhomeless charity

Whose decision re direct Whose decision re direct paymentspayments

LA’s decisionLA’s decisionWeigh up all the evidence – seek Weigh up all the evidence – seek

advice/evidence from a number of advice/evidence from a number of organisationsorganisations

There can be a review made by a There can be a review made by a directly affected persondirectly affected person

Can also be considered by Appeals Can also be considered by Appeals TribunalTribunal

Local Housing AllowanceLocal Housing Allowance

LHA Guidance Manual: LHA Guidance Manual: http://www.dwp.gov.uk/housingbenefit/lha/http://www.dwp.gov.uk/housingbenefit/lha/lha-guidance-manual.pdflha-guidance-manual.pdf

The Regulations:The Regulations: http://www.dwp.gov.uk/housingbenefit/http://www.dwp.gov.uk/housingbenefit/

lha/regulations.asplha/regulations.asp LHA Questions and Answers:LHA Questions and Answers:

http://www.dwp.gov.uk/housingbenefit/http://www.dwp.gov.uk/housingbenefit/faq/lha/faq/lha/

LHA Communications and Leaflets:LHA Communications and Leaflets:http://www.dwp.gov.uk/housingbenefit/http://www.dwp.gov.uk/housingbenefit/lha/communications.asplha/communications.asp

Differences between pathfinders and Differences between pathfinders and national roll outnational roll out

that the amount of excess benefit (the difference that the amount of excess benefit (the difference between the contractual rent and the LHA rate) between the contractual rent and the LHA rate) customers can receive will be capped at £15 per customers can receive will be capped at £15 per week. week.

introducing LHA for new customers in the private introducing LHA for new customers in the private sector, those existing customers who have a sector, those existing customers who have a break in their claim or where an existing break in their claim or where an existing customer changes address.    customer changes address.   

an amendment of the size criteria – to consider an amendment of the size criteria – to consider bedrooms only bedrooms only

calculation of LHA rates based on median rents calculation of LHA rates based on median rents rather then mean which means that 50% of rather then mean which means that 50% of market will be available to people on benefit market will be available to people on benefit

that DWP will undertake a review of the scheme that DWP will undertake a review of the scheme after two years, which will include an opportunity after two years, which will include an opportunity to consider whether existing Housing Benefit to consider whether existing Housing Benefit claimants should be transferred onto LHA. claimants should be transferred onto LHA.

LHA Pathfinder EvaluationLHA Pathfinder Evaluation Main website:Main website: http://http://

www.dwp.gov.uk/housingbenefit/lha/evaluationwww.dwp.gov.uk/housingbenefit/lha/evaluation// 15 months on: 15 months on:

http://www.dwp.gov.uk/housingbenefit/lha/evaluatihttp://www.dwp.gov.uk/housingbenefit/lha/evaluation/2006/evaluation.pdfon/2006/evaluation.pdf

Claimants Experiences 15 months on:Claimants Experiences 15 months on: http://www.dwp.gov.uk/housingbenefit/lha/http://www.dwp.gov.uk/housingbenefit/lha/

evaluation/2006/lha-report-9.pdfevaluation/2006/lha-report-9.pdf Landlords and Tenants Experiences One Year on: Landlords and Tenants Experiences One Year on:

http://www.dwp.gov.uk/housingbenefit/lha/evaluatihttp://www.dwp.gov.uk/housingbenefit/lha/evaluation/2005/lha-landlords-exp-1st-yr.pdfon/2005/lha-landlords-exp-1st-yr.pdf

A number of other evaluation documents!!A number of other evaluation documents!!

Extended PaymentsExtended Payments

Will extend the current scheme, when a Will extend the current scheme, when a person has an extended payment when person has an extended payment when they move off qualifying benefitthey move off qualifying benefit

Makes it simpler to applyMakes it simpler to apply Removes the need for a fresh claimRemoves the need for a fresh claim Will still apply if a move to a different LA Will still apply if a move to a different LA

takes placetakes place Consultation currently startedConsultation currently started

Employment Support Employment Support AllowanceAllowance

To replace Incapacity Benefit from To replace Incapacity Benefit from October 2008October 2008

Will be stricter but easier to Will be stricter but easier to administeradminister

Government trying to get people to Government trying to get people to only claim Benefit if really require, only claim Benefit if really require, part of their programme of greater part of their programme of greater responsibilityresponsibility

Deductions from BenefitDeductions from Benefit

Can currently deduct from Income Can currently deduct from Income Support, Pension Credit and Job Seekers Support, Pension Credit and Job Seekers AllowanceAllowance

Cannot deduct from Incapacity BenefitCannot deduct from Incapacity BenefitFrom October 2008 will be able to From October 2008 will be able to

deduct from new Employment Support deduct from new Employment Support AllowanceAllowance

Can collect Council Tax arrearsCan collect Council Tax arrearsBedford BC played its part!! Bedford BC played its part!!

Widening the information Widening the information sharing gateways for HB in sharing gateways for HB in connection with Supporting connection with Supporting

PeoplePeople This extends information sharing by Supporting This extends information sharing by Supporting

People teams to improve services to vulnerable People teams to improve services to vulnerable peoplepeople

Government Connect – Secure Gateways:Government Connect – Secure Gateways: http://www.dwp.gov.uk/housingbenefit/rat/http://www.dwp.gov.uk/housingbenefit/rat/

gc_article.pdfgc_article.pdf Announcement on additional funding for LA s Announcement on additional funding for LA s

imminent!!imminent!! Latest DWP HB Direct IssueLatest DWP HB Direct Issue

Data Discs will be become a thing of the pastData Discs will be become a thing of the past

Greater sharing of LA Greater sharing of LA informationinformation

The Act also allows various gateways for the sharing and use of social security information

It is to improve the take up and delivery of Benefits and other services delivered by the Department for Work and Pensions and Local Authorities

Includes the Provision of Information Sharing for Welfare Services

Creates an offence for unauthorised onwards disclosure of information

Prosecuting Benefit FraudProsecuting Benefit Fraud

Currently LA’s can only investigate Currently LA’s can only investigate and prosecute against HB/CTB fraudand prosecute against HB/CTB fraud

The Act allows LA’s to investigate The Act allows LA’s to investigate and prosecute other prescribed and prosecute other prescribed welfare benefits where HB/CTB welfare benefits where HB/CTB involved eg IS, JSA, IB (or its involved eg IS, JSA, IB (or its replacement)replacement)

Two strikes rule extended from three Two strikes rule extended from three to five yearsto five years

Secretary of State PowersSecretary of State Powers

Will give the Secretary of State greater Will give the Secretary of State greater power to tackle LA non performancepower to tackle LA non performance

Could insist on directing an authority to Could insist on directing an authority to perform to a certain standard within a perform to a certain standard within a certain timescalecertain timescale

Could require to draw up policiesCould require to draw up policies

Could insist that existing benefit Could insist that existing benefit administration policies are reviewedadministration policies are reviewed

LA Discretion on War LA Discretion on War PensionsPensions

Clarifies the current rules on what pensions Clarifies the current rules on what pensions can be included in any local schemecan be included in any local scheme

Gives flexibility to add further qualifying Gives flexibility to add further qualifying service pensions without primary legislationservice pensions without primary legislation

Will ensure that any local scheme is not Will ensure that any local scheme is not subject to a spending limitsubject to a spending limit

What now…..What now…..PreparePrepareConsult and EngageConsult and Engage

Third SectorThird SectorLobby MPs and the Lobby MPs and the

GovernmentGovernmentRemember the devil is in the Remember the devil is in the

detail!!detail!!Advertise and PublicityAdvertise and PublicityNew SystemsNew SystemsDebt AdviceDebt Advice

Thank you for Listening!Thank you for Listening!

This is the biggest shake up to HB since This is the biggest shake up to HB since 19831983

It is a massive part of the Government’s It is a massive part of the Government’s Welfare Reform ProgrammeWelfare Reform Programme

It will impact on our citizensIt will impact on our citizensForget the 18 days to Christmas its 121 Forget the 18 days to Christmas its 121

days to LHA Day on the 7 April 2008!!!days to LHA Day on the 7 April 2008!!!Are you ready?Are you ready?Any questions?Any questions?

Kevin StewartKevin Stewart

Thanks for ListeningThanks for ListeningHappy to provide copies of slides to Happy to provide copies of slides to

attendees or anyone who asksattendees or anyone who asksContact Details:-Contact Details:-

Tel: 01234 221958Tel: 01234 221958Mob: 07917 188350Mob: 07917 188350Email: kstewart@bedford.gov.ukEmail: kstewart@bedford.gov.uk