Salford Welfare Rights and Debt Advice Service Welfare Benefit and Tax Credit Changes Incapacity Benefit Employment and Support Allowance Re-assessment

Salford Welfare Rights and Debt Advice Service

Welfare Benefit and Tax Credit Changes

Incapacity Benefit Employment and Support Allowance

Re-assessment over 3 years

16,000 in Salford potentially lose £40 a week

Potential annual loss £20 million (£25 million to local economy)

Quality of medical assessment

Appeals – 40 % success

IB/SDA Work-related

Activity Group

Support Group

‘Fit for work’ JSA or nothing


Welfare Benefit and Tax Credit ChangesHousing Benefit – all tenants

April ’11 – non-dependent deductions increasedApril ’13 – overall ‘benefit cap’ £500 a week (via HB reduction)

Housing Benefit - private tenants Max rent limited to Local Housing Allowance (LHA) level based on no. roomsApril ’11 – max 4 rooms (68 existing families in Salford – 9 month protection)April ’11 – LHA rates based on 30th percentileApril ’11 – non-dependent deductions increasedJan. ’12 – ‘shared room’ LHA rate for <25s <35s (710 existing tenant affected)April ’13 – LHA rates uprating linked to CPI not rent levels

Housing Benefit – social housing tenantsreduction if ‘under-occupying’ (impact on Salix + RSLs)Supported EmploymentSupported Tenancies inc. floating support

Housing Benefit . . . the end!Oct. ’13 phased move to Universal Credit over 5 years (new claims initially) 19,656 tenants of ‘working age’ in Salford affectedOct.’14 phased move to Housing Credit in Pension Credit (new claims initially) 9,318 pensioner tenants in Salford affected

Supported Tenants (proposed) Extra housing ‘credit’ for low cost support – foyers, refuges, sheltered housing etc.Budget transfer to LAs for high cost support



Council Tax Benefit – abolition April 2013not to be incorporated into Universal Credit (or Pension Credit)

LAs to devise scheme of support with 10% less but protecting pensioners and other vulnerable groups – average 19% burden on working age householders

cut in Salford of £2.64 million

approx. 18,000 households in Salford affected

possibilities – ‘equal pain’; no entitlement to certain groups; no ‘single person discount’ ?



Universal Credit – from October 2013Replaces

- Income Support

- Income-based Jobseekers Allowance

- Income-related Employment and Support Allowance

- Working Tax Credit

- Child Tax Credit

- Housing Benefit


Welfare Benefit and Tax Credit ChangesUniversal Credit – features

single taper 65% (withdrawal as income increases)income disregards for some – short-term workcomponents that reflect current benefits/tax creditscomplex calculation of income assessment and housing costs – automatic feed from PAYEmaximum paymentmore stringent ‘conditionality’ + sanctionson-line claimstransitional protection (dual system for 5 years)


Welfare Benefit and Tax Credit ChangesDisability Living Allowance

‘Personal Independence Payment (2013)

Aim– to achieve 20% reduction in number of recipients– to cut £1.075 billion by March 2016

Method– abolish low rate care component– new ‘points-based’ medical test– withdraw mobility component in residential care– greater use of aids/adaptations– getting around rather than walking

Impact– 10,880 working age recipients in Salford (Nov.’09)– 20% - 2,176 people– annual loss - £8 million (£10 million to local economy)– ‘knock-on’ effects to means-tested benefits/’in-work’ support


Financial Pressures on Salford PeopleDeprivation

18th most deprived of 324 English local authorities

Child & Family Poverty30% children living in poverty; 20% in ‘severe poverty’ (Save the Children)

Home possessions2nd worst in GM for possession claims3rd worst in GM for possession orders

950 (9.7 per 1,000 households) in 2010closure Salford County Court (Aug.’11)

Debt (in the most deprived areas)6% households use loan sharks20% households had no bank account50% households pay fuel bills by a pre-payment method20% households rely on ‘sub prime’ finance

No savings (in the most deprived areas)88% lone parents; 76% ‘workless’ households; 74% tenants

Insurance (in the most deprived areas)50% households have no contents insurance (twice national figure)


Documents

Salford Welfare Rights and Debt Advice Service Welfare Benefit and Tax Credit Changes Incapacity Benefit Employment and Support Allowance Re-assessment