Welfare Reform for Housing Support Workers

Fiona Campbell

Housing & Benefits Consultant

Aims

To enable housing support workers to:deal confidently with benefit issues relating to

individual service usersknow when to help a person obtain more specialist

advice on welfare benefitshelp clients access such advice

To equip delegates to brief other support workers within their organisations

Topics

“Bedroom Tax”Scottish Welfare FundBenefit CapUniversal Credit and Direct PaymentsDiscretionary Housing PaymentsPersonal Independence PaymentsCase studies

Quiz

The Answers

1 – (b) 28 October 2013

2 – (c) £167bn (DWP 2011/12). £159bn goes on benefits, of which £74bn goes on state pensions. The remainder is spent on admin.

3 – (a) 0.7% (DWP 2011/12)

4 – (b) 42 according to CPAG research

5 – (b) £18bn

6 – (c) £19bn according to research by Sheffield Hallam University

Your role

Who do you work for?

What do you do?

Who are your clients?

Boundaries

Boundaries between housing support and specialist advice work depend on:your organisationyour positionyour access to up-to-date information

Topic for discussion at team briefingsEach organisation may want to clarify these

boundaries in writing

Help

Who can give you the answers?

Where can you send your clients for the answers?

Who else can help them?

Compile your own list

BEDROOM TAX

Maximum rent (social sector)

Known as “bedroom tax” or “spare room subsidy”

Only applies to the social rented sectorReduction of 14% or 25% in the rent used to

calculate a Housing Benefit paymentBased on the number of bedrooms a

household requiresExemptions in certain circumstances

Accommodation

Local authority housing stock – yesRegistered social landlords – yesPrivate landlords – no

Temporary accommodation - noSupported accommodation - ?Excluded tenancies - no

Temporary accommodation is…

Homeless accommodationprovided by the LA or HA for a charge that

includes cooked meals, orprovided in a hotel, guest house, lodging house or

similar establishment, butexcludes accommodation provided in a care

home, an independent hospital or a hostelIncludes accommodation which the LA or HA

holds on a lease or an agreement with a third party

Excluded accommodation is…

Complicated!

Agricultural tenancyBail hostel or probation hostelShared ownershipHousing action trust tenancyHousing stock disposal but only if there has not

been a rent increase

Supported accommodation

Some supported accommodation is exemptwhere the landlord is a housing association,

registered charity or voluntary organisation; and the landlord also provides the claimant with care,

support or supervision; or a body or a person acting on the landlord’s behalf

also provides the claimant with care, support or supervision

Exempt households

Claimant and/or partner has reached pension agewww.gov.uk/calculate-state-pension

Death of household member – up to 52 weeks

Could previously afford rent – up to 13 weeks

Bedrooms

One bedroom for each person or couple in the household, except: two children of the same gender aged under 16

are expected to share two children aged under 10 are expected to share

No bedrooms for anyone who does not normally live there (e.g. child visiting divorced parent)

More bedrooms

In addition, one bedroom is allowed for:non-resident carer where the tenant or partner

requires overnight careson or daughter in the armed forces who normally

lives there when not on deployment foster child, provided the tenant has become a

registered foster parent, or has fostered a child within the last 52 weeks

student living away during term time – up to 52 weeks

Disabled people

2 legal challengesNot practical for a disabled child to share a

bedroom with a sibling local authorities now have discretion to allow an

extra bedroomNot practical for a disabled adult

to share a bedroom with partnerongoing legal challenge – 10 familiescurrently no discretion

Questions you may be asked

I’m in temporary homeless accommodation – am I exempt?Yes

I live alone in a 2-bedroom sheltered housing flat owned by the Council. Am I exempt?No – unless you have reached pension age

6 months ago I registered with the Council as a foster carer but I haven’t fostered any children yet. Am I allowed a spare room?Yes

More questions

I’m disabled and rent a 2-bed flat from a HA – they have contracted with another organisation to provide me with care and support. Am I exempt from bedroom tax?Yes

My friend lives in a 2-bed HA flat and gets an allowance from the Social Work Dept to arrange her own care. Is she exempt?No

Helping people to appeal

Check carefully the grounds for appeal is it a factual error? is it a discretionary area (disabled child)?

Provide evidence to support the appealmedical reportsproof of foster carer registration

Get help from CAB or Welfare

Rights if it is complicated

SCOTTISH WELFARE FUND

Scottish Welfare Fund

Replaces DWP Social Fund loans and grantsScottish government schemeRun by local authoritiesNo loans, only grantsApplicants can get up to 3 grants in any 12-

month period

Scottish Welfare Fund

Certain payments still administered by DWP: funeral paymentsSure Start Maternity Grantscold weather paymentswinter fuel payments

Scottish Welfare Fund

Similar qualifying criteria to DWP schemeAged 16 or overEntitled to a qualifying benefit:

Income Support income-based Jobseeker’s Allowance income-related Employment & Support AllowancePension Creditno savings over £700 (£1200 if pension age)

Scottish Welfare Fund

Crisis GrantsProvide a safety net

in a disaster or emergency – fire, flood, burglary

where there is an immediate threat to the health or safety of the applicant or his family

One-off payment

Scottish Welfare Fund

Community Care GrantsEnable independent livingHelp people:

set up home in the community or remain in the community rather than going into care

facing exceptional pressures who need essential items such as a cooker

provide safe and secure environment for childrencare for prisoner or young offender on release on

temporary licence

Scottish Welfare Fund

Some things not covered:holidayscourt expensesremoval expenses funeral expensesmaternity expensesmedical treatment/services travelling expensesno recourse to public funds

Scottish Welfare Fund

Local authorities have discretion over the type of support they offercash fuel cards food vouchers loaded store cards for white goods or furniture

BENEFIT CAP

Benefit Cap

Aims to ensure that work paysLimits welfare benefits for non-working

householdsLimit is equivalent to average income in a

working householdApplied to Housing BenefitApplied to Universal Credit where households

receive it

Benefit Cap – how much?

Single adults - £350 per weekLone parents - £500 per weekCouples - £500 per weekCouples with children - £500 per week

Benefit Cap - exemptions

Households on these benefits are exempt:Attendance AllowanceDisability Living AllowancePersonal Independence Paymentsupport component of ESA Industrial Injuries BenefitsArmed Forces Compensation Scheme paymentsWar Pension Scheme paymentsWorking Tax Credit

Benefit Cap – other exemptions

Entitled to claim Working Tax Credit because of the hours worked, but not in payment because earnings are too highexempt

Continuously in work for the previous 12 monthsbenefit cap not applied for 39 weeks

Benefit Cap – what counts?

Benefits taken into account are:Bereavement AllowanceWidowed Parent’s AllowanceCarer’s AllowanceChild BenefitChild Tax CreditEmployment & Support Allowance (except where

the Support Component has been awarded)Guardian’s Allowance

Benefit Cap – what counts? (2)

Housing Benefit (unless in Supported Exempt Accommodation)

Incapacity Benefit Income SupportJobseeker’s AllowanceMaternity AllowanceSevere Disablement AllowanceWidow’s Pension

Benefit Cap - disregarded

Benefits and payments disregarded: Bereavement payment (lump sum)Council Tax ReductionDiscretionary Housing PaymentsScottish Welfare Fund paymentsCold Weather & Winter Fuel PaymentsFuneral PaymentsSure Start Maternity GrantsPension Credit

Benefit cap – example 1

Couple with five childrenWeekly income:

£140 Housing Benefit£12.80 Council Tax Reduction (not counted)£73.90 Child Benefit£330 Child Tax Credit

Total benefits are £556.70Family will lose £43.90 a week HB will be paid at £96.10 every week

Benefit cap – example 2

Single claimant who is disabledWeekly income:

£100 Housing Benefit£100.15 ESA (WRAG)£54.05 DLA (Mobility)£77.45 DLA (Care)

Total benefits are £331.75The Benefit Cap will not apply as the claimant

gets DLA so is exempt 

UNIVERSAL CREDIT

Universal Credit

Intended to simplify benefits system by bringing together a range of working-age benefits into a single payment.

Affects working age claimants of a range of earnings replacement and in-work benefits

North-west England from April 2013October 2013 to 2017 – national rollout starting

with new claims

Universal Credit

Replaces income-based Jobseeker’s Allowance income-related ESA Income SupportChild Tax CreditsWorking Tax CreditsHousing Benefit

Other pensions and benefits will continue to be claimed and paid as at present

Universal Credit - work

Easier for claimants to start a new job or work more hours

UC reduces gradually as take home pay increases

No fixed hours thresholds, such as the 16 and 30 hours rules for current benefits

Universal Credit - claiming

People encouraged to claim onlineFace to face and telephone support available

to those who do not have internet accessAdvice agencies able to provide internet

access and help with claims process

Universal Credit - payment

Paid monthly, directly into a bank accountCouples living together, both claiming UC, will

get one monthly payment into one accountMonthly payments designed to help people

move into work and manage a monthly budgetExceptional circumstances

more frequent paymentsUC payment to be split between two recipients 

Universal Credit – support

Help towards housing costs for people living in supported exempt accommodation provided separately from UC

Supported exempt accommodation is:resettlement placeaccommodation provided by housing association,

registered charity or voluntary organisation where that body or person acting on their behalf provides claimant with care, support or supervision

Universal Credit – direct payments

Landlords anxious about no longer receiving HB from the LA

Concerned that rent arrears will increaseWhere claimant has rent arrears, likely that

housing cost element of their UC will be paid to their landlord

Project to examine direct payment of housing costs being carried out in 6 areas

Extended for further 6 months

Universal Credit – demonstration project

Latest findings show rise in rent collection rate to 94%

6,168 tenants currently paid by direct payment1,258 tenants had payments switched back to

landlord

Universal Credit - projects

Projects investigating: levels of support e.g. advice on managing

personal finances and budgetingexemptions for direct paymentspayment switch-backs to landlord if tenant falls

into arrearssupport needed to help tenants in arrears pay

back arrears and return to direct paymentsearly intervention switch-backs before arrears

reach trigger points

DP project - Edinburgh

Contact, advice and collection very resource intensive, other landlord services compromised

Need for organisational adjustments to meet challenges of Welfare Reform

Developing new rent collection/arrears and advisory processes and structures

Concerns about how tenants will manage when wider and cumulative impacts of welfare reform changes begin to impact

DP Project - Oxford

Need to support residents can arise at any time, even when customer has managed payments successfully for long period

Triggers for arrears aredelays in payment, lifestyle changes, change of

household, impacts of welfare reformMajority of tenants able to manage direct

payment of HBTrend for arrears to steadily reduce after initial

payment

DP Project - Shropshire

Relationships between key partners has become vital part of daily working

12 weeks arrears trigger too long:allows arrears to escalate to unmanageable leveldifficult for customer to recover - particularly where

other debts exist legal action to secure the debt means customer at

risk of losing home should further arrears accrue

DP Project - Southwark

35% not received DP for various reasons, including not having bank account

15% switched back to landlord due to arrearsSignificant additional admin costs for LAAll tenants offered independent support with

banking, budgeting and debt management - take up minimal

4+4 week arrears trigger – probationary period

DP Project - Torfaen

Contact levels with tenants 3 times higher than before DP1 in 4 tenants needing supportmore likely to engage with tenancy support

workers than money advisors texting reminders to pay has positive impact when

backed up with next day interventionTrigger to switch to landlord is 15% shortfall in

payment over 12 weeks threshold

DP Project- Wakefield

Tenants used HB to meet other costsOther creditors collected money from accounts

prior to funds being accessed for either electronic or manual payment of rent

Many different payment cycles and patterns mean process is difficult to automate and report on

Use range of contact methods including text messaging, telephone and home visits as well as written communication

DISCRETIONARY HOUSING PAYMENT

Discretionary Housing Payments

Government fund distributed to local authoritiesNot widely used in some areasLAs can add to their allocationWhen money runs out, it runs outPaid to HB recipients to help with housing

costsLump sum or ongoing paymentsNot normally indefinite

DHP

DHPs can cover housing costs such as:rentdepositsremoval costs

DHP

DHPs cannot cover:rent arrearsservice charges not eligible for HB insurance paymentsbenefit sanctionsoverpaymentsCouncil tax

DHP

Rent normally covered by HB can be met by DHPs where:benefit cap appliesbedroom tax appliesLHA in private rented sector restrictedshared room rate of LHA paid to under-35snon-dependant deductions madeHB reduced because income increased

DHP

April 2013 - DHP fund increased to cover two specific categories:disabled people adapted accommodation subject

to the bedroom tax foster carers who require more than 1 extra

bedroom allowed under bedroom tax rulesDWP recommend DHP award to households

where adult has long term medical condition that creates difficulties sharing bedroom

DHP

Most LAs have DHP claim formUsually administered by the HB departmentProvide evidence:

income & expendituredetails of additional housing costsinvoices, bills, decision letters

Outline solutions claimant is working towardsNo right of appeal so claim has to be

convincing

PERSONAL INDEPENDENCE PAYMENT

Personal Independence Payment

New benefit that replaces Disability Living Allowance for working age claimants

Different criteriaDifferent claim process

PIP – under 16 year olds

New claimants claim DLA

Existing claimants – DLA continuesDWP will write before sixteenth birthday to inform

when DLA will end and how to claim PIP

No automatic transfer to PIP when DLA ends

PIP – 16th birthday

From 10 June 2013New claimants claim

PIPExisting claimants

make a DLA renewal claim

From 7 October 2013New claimants and

existing claimants claim PIP

PIP – 16 to 64 year olds

Up to 9 June 2013New claimants claim DLAExisting claimants’ DLA continues

From 10 June 2013 New claimants claim PIPExisting claimants’ DLA continues

PIP – 16 to 64 year olds

From 7 October 2013New claimants claim PIPExisting claimants claim PIP if care or mobility

needs change, or fixed term award endsOther existing claimants remain on DLA

From October 2015New claimants claim PIPExisting claimants still getting DLA will be invited

to claim PIP – priority for claimants who have reached age 65 or older

PIP – aged 65 and over

From 10 June 2013New claimants (already 65) claim Attendance

AllowanceExisting claimants’ (already 65) DLA continues, as

long as eligibility criteria metFrom October 2015

Existing claimants reaching 65 after 8 April 2013 and still getting DLA will be invited to claim PIP and given priority

PIP - DLA

DLA PIPCare – low rate

Care – middle rate Daily Living – standard rate

Care – high rate Daily Living – enhanced rate

Mobility – low rate Mobility – standard rate

Mobility – high rate Mobility – enhanced rate

PIP claims

Based on how individual’s

condition affects themHealth professional considers

claimant’s ability to carry out 12 activitiesAwards points depending on how well person

is able to carry them outstandard rate – total of 8 pointsenhanced rate – total of 12 points

Daily Living Activities

Preparing food Taking nutritionManaging therapy or monitoring a health

condition Washing and bathing Managing toilet needs or incontinence

Daily Living Activities contd

Dressing and undressing Communicating verbally Reading and understanding signs, symbols

and words Engaging with other people face to face Making budgeting decisions

Mobility Activities

Planning and following journeys

Moving around

PIP example

Some claimants better off with PIPDLA care

require help with bodily functions frequently throughout the day

PIP Daily Livingnumber of problem areas scoring 2 or 4 points

each to total 8 points

Case studies

Any clients who need your help?What can you help them with?Will you need to involve specialists?Do you know who they are and where to find

them?

Close

Any further questions to HSEUHSEU will collate FAQs from the training days

and circulateSlides can be circulatedFactsheets for you to use when briefing your

colleaguesGood luck with Welfare Reform!