23
Council for the Homeless NI Welfare Reform Information Session
Council for the Homeless NI
Welfare Reform
Information Session
Council for the Homeless NI
Today's Session
• Rationale for Reform
• Welfare Reform Agenda
• Welfare Reform Bill
• Welfare Reform Regulations
- Housing Benefit
Council for the Homeless NI
Today's Session- cont’d
• Wider Changes
• Timetable for Reform
• Mitigating actions
Council for the Homeless NI
Governments Rationale for Reform
Making Work Pay
• Consider current system to have failed
• Overly complicated
• Too expensive
• Does not encourage people into employment
• Open to fraud
Council for the Homeless NI
Agenda for Reform• Simplified, Streamlined Welfare System
• Reduce Bill for Welfare Benefits by 20%
• Encourage and incentivise people to work– Ensure those not working , no better off than working
households
– Break the cycle of Welfare Dependency
Increased Sanctions attached to all elements of Welfare
Reform
Council for the Homeless NI
Welfare Reform Bill
Council for the Homeless NI
Benefits being abolished
• Income support
• Income based jobseeker’s allowance
• Income related employment and support allowance
• Housing benefit
• Child tax credit
• Working tax credit
Council for the Homeless NI
Universal Credit
• Introduced October 2013
• One benefit payment to be paid in or out of work
• Payment to one member in a household
• New work related activity requirements
• Stronger sanctions
• Real time IT system
• Payments may change to monthly in arrears
Council for the Homeless NI
Personal Independence Payment• Replaces disability living allowance
• 2 components: mobility and daily living with 2 rates for
each component
• Assessment by way of medical examination
• Initially only for working age claimants
• Entitlement to PIP part of gateway for carers allowance
• Plans to introduce a habitual residence test instead of
ordinary residence test (DLA)
Council for the Homeless NI
Regulations
Council for the Homeless NI
Housing Benefit2011
• LHA – capping, change to 30th percentile
• Ending of excess payment award
• Increase in rate of non-dependant deductions
These applied to new claims from April 2011. Changes
were delayed for existing claimants for 9 months after
the 1st anniversary date of their claim after April 2011.
Change started from January 2012
Council for the Homeless NI
2012
• Age range for Shared Accommodation Rate (SAR)
extended to 35
• Capping of LHA for existing claimants
• LHA at 30 percentile for existing claimants
Council for the Homeless NI
2013April
• Reduction in HB award for under-occupation in social
rented sector
• Overall cap on benefits received
• Increase in LHA rate limited by rate of Consumer Price
Index
October
• Introduction of Universal Credit
Council for the Homeless NI
2014-2017
• Phased transfer of existing HB caseload to Universal
Credit
Council for the Homeless NI
Supported Housing HB Reform
• Grouping of different ‘types’ of supported housing with different
payment rates : flat rate/geographical rate
• Identifying types of additional activities and pricing these
• Intensive housing management costs to be separated from HB and
administered by local authorities under personalisation agenda
• Housing benefit to be paid via Universal Credit
• Tied to personalisation agenda
Council for the Homeless NI
Potential Impacts• Increased competition & demand for housing
• Remove/Limit housing choice
• Prevent move on & impede progress
• Financial impact on housing providers due to a number
of changes: direct payments, communal areas, intensive
housing management
• Rent Shortfalls - Debt/ Arrears
• Loss of Accommodation/Homelessness
Council for the Homeless NI
WIDER CHANGES
Council for the Homeless NI
Other key elements• Income support for lone parents
• Contributory ESA limited to one year
• ESA in youth to be abolished
• Benefit cap to be introduced – problematic for disabled
people
• Social Fund community care grants, budgeting loans and
crisis loans abolished from 2013
• Childcare gaps
• Passport benefits
Council for the Homeless NI
Procedural Issues
• Changes to right of appeal
• Overpayment recovery
• Benefit penalties and fraud
• Immigration status and entitlement
• Access to welfare advice
Council for the Homeless NI
TIMETABLE FOR REFORM
Council for the Homeless NI
NI Welfare Reform Bill
• Due 2012. Welfare Reform Bill GB received Royal
Assent 14.03.12
• Possible Accelerated passage
• Social Fund
• Lack of a work programme
• Childcare
• Forecasted longer recession recovery
Council for the Homeless NI
Timetable cont’d
April 2013
• DLA replaced by PIP
• Mobility provisions for people in residential care to be reviewed
• HB entitlement to reflect family size
• LHA to be uprated in line with CPI
• Benefit cap £500 p/w for couple/lone parent. £350 p/w for single people
(does not apply to those on DLA, working tax credit & war pensions)
October 2013
• UC introduced
• Community care grants and crisis loans abolished
Council for the Homeless NI
Mitigating Actions
• Support financial capability
• Promote realistic housing options
• Develop relationships with local employment services
• Develop relationships with local PRS landlords
• Lobby MLAs for changes to HA regs to allow better use
of existing stock
• Respond positively to the Housing Strategy for NI
consultation when available
