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Housekeeping
www.policyinpractice.co.uk
1. Audio check
2. Please ask questions
3. Finish by 11:15
4. Webinar recording
Today’s Agenda
1. Introduction
2. The challenge in Birmingham
3. The approach with Policy in Practice
4. The outcomes for residents
5. The software that makes it happen
6. Next Steps
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About Policy in Practice
Consultancy
SoftwarePolicy
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Over to Peter
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Peter Carter, Policy in Practice
www.policyinpractice.co.uk
• Delivered process improvement in Revs and Benefits for local authorities
• Practical delivery of welfare reforms with Policy in Practice
• Delivered DHP policy with Welfare Reform Club
We make the welfare system simple to understand, so
people can make the decisions that are right for them
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Today’s agenda
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The Challenge in BirminghamHow to co-ordinate limited support, as demand increases?
The Approach with Policy in PracticeA detailed Impact Assessment for all reforms, today and tomorrow
The Outcomes for residentsBetter targeted support that has a tangible impact on behaviour
Who will Welfare Reforms hit hardest?
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Challenge: Birmingham City Council
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“We want the council to move beyond sticking plaster solutions.
If we can promote work and independence by understanding who is impacted by welfare reforms and working closely with partners, we will have more resources available for people that still need our support.
We have an obligation to protect and support the most vulnerable.” Chris Gibbs, Birmingham City Council
Challenge: Understand the impact of all welfare changes, to better co-ordinate activity.
Birmingham City Council
• Size: Over 1m residents• Diverse: Population, Geography & Affluence• Unemployment: 10.9% vs 6.2% nationally;
30,000 JSA claimant count, 2nd highest• Housing: 56% o/occ, 24% social, 20% PRS• Politically Active: Largest Local Authority in
Europe, with 40 wards and active local councillors
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Challenge: Enhance the existing support offer within Birmingham• Established partnerships – RSLs, Third sector and private landlords
• Welfare Reform Group– Multi Agency Committee chaired by Cabinet
Member
• A sub group focusing on UC implementation– A single portal for feeding back issues on UC to DWP
within the formal monitoring process– Shared training and learning sessions with JCP work
coaches from each of the 12 sites
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Your local authority is:
• Partner among other stakeholders• May be a Social Landlord• Implemented 2013 Welfare Reforms• Universal Credit is live or imminent• Residents face further reductions in support• Reduced budgets to deliver support now and in the future
The combined impact on households is typically changing, complex and confusing.
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Quick poll:
How are you making these decisions today?
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Challenge: Leeds City Council
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“I can’t see whether the people being clobbered by reductions in council tax support, or under-occupation are the same people that have been clobbered by other reforms.”
Steve Carey, Leeds City Council
data + software = actionable insights
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Policy in Practice’s Approach
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1. Use local data and insights to inform better decision makingYour SHBE data
Our Universal Benefit Calculator
A detailed impact assessment - who is impacted and how?
2. See the impact of specific and cumulative reforms at an aggregate and household level
3. Inform targeted and tailored local welfare support
Rich data about each household
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Understand the cumulative impact of these 5 current welfare reforms
Plan to mitigate against the effect of these additional 4 future welfare reforms
Model how these 4 additional indicators will affect residents
1. 2. 3. 4. 5.
Household details
Under-Occupation
Local Housing Allowance
Council Tax Support
Benefit Cap at £26k
6. 7. 8. 9
Benefit Cap at £20k
Tax Credit Changes
Future CTRS Universal Credit
10. 11. 12. 13
Other income / expenditure
Support and Arrears
Cumulative Impact
Barriers to Work
Preliminary findings paint a stark picture
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69% of 147,000 households are of Working age
29%
20%
5%
33%
13%
In workNot in workNot in work, carerNot in work, disabledNot in work, lone parent
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The Summer Budget will double the impact of welfare reform on residents
£9.73 £18.44
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Four times as many household will face a ‘high’ impact
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Specific reforms have differentimpacts
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benefit cap
Under-occupying LHA cap
Council Tax Reduction
CTRS
Tax Credit cuts
lower UC higher UC Better off in Work
# of households affected by multiple reforms
No impact 1 reform
2 reforms
AA1 0 0 7 20 TBC 9 16 32 8 21 7AA4 1 0 59 38 TBC 21 25 55 10 44 25AA11 1 19 45 99 TBC 68 61 143 47 113 47AA16 0 0 0 0 TBC 0 1 1 1 0 0AB1 0 16 25 74 TBC 30 46 99 36 70 34AB2 2 39 89 224 TBC 37 123 246 109 189 96AB3 0 31 41 140 TBC 38 88 134 78 128 55AB4 0 75 166 341 TBC 106 190 456 148 327 163AB5 3 129 73 336 TBC 136 180 432 150 318 155AB6 14 266 630 1355 TBC 406 899 1456 834 1354 575AB7 17 629 346 1839 TBC 780 1038 2235 822 1636 838AB8 43 442 1083 2662 TBC 1140 1306 2786 912 2119 1346AB9 51 968 979 3466 TBC 1481 1614 3103 1411 3085 1676
Who has been impacted by reforms to date?
What will be the impact of
Universal Credit?
Who has been hit by multiple reforms?
The depth of our analysis goes even deeper, to household level
Explain a Complex Picture to Cabinet
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Tax Credit cuts?
Proactive steps can mitigate the impact
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A lower Benefit Cap will affect 10x as many households
756
7,285
At £26,000 At £20,000
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Recommendations:Check exemptions on specific households, for example:• Households in receipt of ESA
may be in the support group• Children in receipt of DLA• They or their partner may be in
work, and eligible for tax credits.
Reduction of the Benefit CapWeekly benefit cap amount
£0-20 £21-40 £41-60 £61-80 £81-100 £101-150
£151-200
£201-300
£301+
169 161 115 85 76 114 23 12 1
2263
951 955756
10031153
2003 1
£26k £20k
Weekly Benefit Cap Amount
Num
ber o
f Cas
es
Recommendation:Take proactive steps• Focus intensive outreach and
support on those most severely impacted by a lower benefit cap
Recommendations:• 4,808 households have a high welfare reform impact, but low barriers to work.• Supporting these households into work could help to alleviate financial hardship
for those families and for the council.
Targeted employment support
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Future Reforms: Tax Credits
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90% of households that will see a reduction to their tax credits have children. The largest proportion of households affected live in the private rented sector.
Tax Credit changes affect mostly those in receipt of Working Tax Credit. Households affected will lose £24 per week on average.
Recommendation: • Take proactive steps to broaden your support offer• Reach out to households less well known to the council, who will be affected
Future Reforms: Universal Credit
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Recommendations: • Take proactive steps to support people who will be better off in work, and working
more, while taking different actions to help those negatively impacted.• Take action to help those already in arrears.
ESA WRAG premium to be removed for new claimants• 5,852 households in the Work Related Activity Group would lose the WRAG
premium, worth £29.05 per week
Changes affecting young people• 85% of HB recipients aged 18-21 are out of work and may lose automatic
entitlement to HB• 4,042 young people aged 18-21 will be expected to ‘earn or learn’ (includes non-
dependants)
The minimum income floor affects most self-employed people• 65% of self-employed households have earning below the Minimum Income Floor
in Birmingham.
The third child rule• 15,598 working-age households have two children. These households would not
be eligible for additional support through tax credits if they had a third child after April 2016.
Other reforms
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If you had these insights too, what would you do
differently?
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Here’s what some of our customers are doing
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Birmingham City Council•Identify households most vulnerable to welfare reforms, and map local support onto local needs
North Hertfordshire Council•Accurately forecast the cost of their council tax reduction scheme•Helped them to eliminate a £500,000 underspend
Leeds City Council •Develop an innovative approach to local support, introducing targeted conditionality, and justify this decision to cabinet
Lewisham Council•Target communications to affected households, and triple the effectiveness of home visits and interventions
Newcastle City Council and Your Homes Newcastle•Detailed impact assessment now, and the start of a big data hub to track the impact of reforms, effectiveness of interventions
Rich data for each householdHousehold details Under-Occupation Local Housing Allowance Council Tax Support
• Reference number• Household Type• Tenure• Economic status• Earnings• Savings
• Under occupied (y/n)
• Under occupied (amount £)
• LHA cap (y/n)• LHA cap (amount £)
• Not protected (y/n)• Not protected (amount £)
Benefit Cap at £26k Benefit Cap at £20k Tax Credit Changes Other
• Could get WTC (y/n)
• Receiving DLA (y/n)
• Benefit cap 26k (y/n)• Amount (£)
• Could get WTC (y/n)
• Receiving DLA (y/n)
• Benefit cap 20k (y/n)
• Amount (£)
• Reduced (y/n)• Reduced amount (£)
• Earnings below NMW(y/n)• Pay to stay (y/n)• Free school meal eligibility
Universal Credit Support Cumulative Impact Barriers to work
• Needs protection (y/n)• Needs protection (£)• In work conditionality (y/n)• Min income floor (y/n)
• DHP (£/no)• CTRS (£/no)
• Income Reduction 2015 (£)• Impact 2015 (no/l/m/h)• Income Reduction 2016 (£)• Impact 2016 (no/l/m/h)
• Disability (0/1/2)• Caring responsibilities (0/2)• Parenting
responsibilities(0/1/2)• Barriers to work
(low/medium/high)
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What outcomes would you like to achieve?
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What have we learned?• Local Authorities face difficult choices
– £12bn of cuts with reforms aimed at changing behaviour.– The combined impact on households is changing, complex and confusing.
• The risk is that households won't get the right support– Councils need to better co-ordinate support with partners. – This includes financial support and support toward independence.– Without better co-ordination, and support into employment, there won't be enough support
available to go around.– This will cost the council and taxpayers through impacts on other services.
• Birmingham Council, with Policy in Practice have developed an approach that will help you to– Better co-ordinate support and prepare for reforms– Explain a complex picture, both to cabinet and to the end user– target and tailor support effectively – Have a tangible and measured impact on behaviour
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Next Actions?
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Next ActionsYou can:• Request a case study and report • Request pricing details• Ask to speak with one of our clients
Next webinar:Behavioural Change, Wed 14 Oct at 10:30
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Timeframes: six to eight weeksKick off meeting:• We agree upon the core deliverables, and outcomes you are hoping to achieve.
Data requirements: • We can send you a template data sharing agreement that has worked well for our clients.• A detailed list of data requirements from your SHBE and CTRS records.
Review preliminary findings:• We want you to get maximum value from the analysis
Final report:• We can deliver a final presentation in person to your project board
• You can request a report• If you want more information, or talk about your own particular circumstances
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