27 August 2015 Issues for disabled people in the welfare reform
bill Sue Royston
Slide 2
Summary Main issues in the bill Universal Credit Support for
disabled adults Support for disabled children Housing costs
Conditionality and sanctions Council tax not included Personal
Independence Payment ESA(contribution based) time limiting Benefit
cap
Slide 3
Universal Credit Not working Maximum personal allowance (for
household) Includes earning replacement amount Housing costs (LHA
rate) Amount for children May have WR or support or carer addition
Working Maximum personal allowance reduced by 6.50 for every 10
earned
Slide 4
At its simplest Single adult paying rent (& LHA) of 100
Unemployed 65 (approxJSA rate) + 100 (housing costs) UC of 165
Earning 10 UC reduced by 65%of 10 = 6.50 UC = 158.50 + earnings of
10 = 168.50 Earning 100 UC reduced by 65%of 100 = 65 UC = 100 +
earnings of 100 = 200
Slide 5
Support for disabled people Gateway to all extra support for
disabled people is WCA Work related or support component If working
WR (or support) component plus disability disregard Disability
disregard 26.50 more than single adult worth 17
Slide 6
Disabled children Now Children on DLA get 55 dis el of CTC
Children on HR care get 55 + 21 severe dis el (76) Under UC
Children on DLA get 27 dis addition Children on HR care (and those
with severe sight impairment) get 77 higher dis el
Slide 7
Personal Independence Payment Driven by 20% reduction in
spending No equivalent of lower rate care this will save 8% so more
cuts Assessment method face to face assessments Qualifying time
changed from 3months to 6months Reduction in numbers eligible for
disability benefits
Slide 8
ESA(CB) time limiting ESA(CB) limited to 1 yr for WRAG Starts
April 2013 some will lose benefit immediately Concerns round
exceptional circumstances rule Concerns around those with
deteriorating conditions
Slide 9
Other measures in bill which will affect disabled people
Housing element Under-occupancy Shared room rate up to 35yrs old
Conditionality and sanctions Much tougher Civil penalties -50 for
negligence Benefit cap DLA or PIP excluded
Slide 10
Summary of what is changing? UC No severe disability premium in
UC No equivalent of disability element of WTC if fit for work
Support for all disabled children halved Not money saving all money
going into support group PIP No equivalent of lower rate care
Qualifying time 6 months ESA (CB) time limited to 1yr for those in
WRAG Other HB changes, conditionality, benefit cap
Slide 11
How will these changes affect people?
Slide 12
Someone in support group and eligible for SDP Someone in
support group and eligible for SDP will be worse off 169 now likely
to get just 114 until savings allow increase Even when raised will
still only have 144
Slide 13
What will be the effect on disabled people who are working
Someone found fit for work but on mid rate care eg registered blind
Someone paying rent & earning 100 have 190 disposable income in
present system less than 100 in UC PIP may be lower than DLA.
Slide 14
Someone found fit for work on lower rate care eg someone with
MS Someone paying rent and earning 100 have 144 in the present
system plus 20 DLA less than 100 in UC same as someone without
impairment Unlikely to get PIP LAs and other orgs use DLA as a
proxy for other support eg travel and leisure passes Will lose
recognition of disability anywhere in system
Slide 15
Disabled children 27 reduction in support for most disabled
children Includes children with Downs syndrome, profoundly deaf
etc
Slide 16
Impact of PIP qualifying time and ESA time limiting Dramatic
and unpredictable drop in income - sudden illness or disability
Wait 6mths not 3mths Someone who has been recently diagnosed with
cancer faces a large drop in income at a time when they face
increasing expenses frequent cause of debt now will wait 6 months
for PIP. No SDP ESA(CB) will stop after a year in WRAG
Slide 17
Key amendments Severe disability premium addition Disability
addition for children Under occupancy rule Council tax benefit
ESA(CB) time limiting PIP qualifying time Benefit cap Civil
penalties
Slide 18
Evidence we need Evidence about importance of the SDP Extra
costs of working for disabled people Problems coping with drop in
income if need prolonged period off work Non recognition of mental
health condition of learning difficulties when imposing
sanctions
