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Homelessness SIG Welfare Reform Update

5 May 2015

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Welfare Reform in Numbers – City wide

Notices Seeking Possession have been

issued for under occupation arrears cases

working age people in Nottingham receive

council tax support

1,21423,700

NCH tenants have paid no rent resulting from

under occupancy

(2014/15 DHP allocation = £966k)

Approximate number of Council homes under occupied by 1 and 2 bedrooms in Nottingham

NCH tenants have paid full rent resulting from under occupancy

3,291

Households in Nottingham are

subject to the Benefit Cap (April 2015)

2481110£1,1m= total value of DHPs allocated to 2014/15 year end

Hardship awards made in 2014/15

Figures correct as at Q4 2014/15 except where stated DHP – Discretionary Housing Payment

58% 0.5%

2077 Hardship awards made in 2013/14

2168

1894

DHP awards made in 2014/15

DHP awards made in 2013/14

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Welfare issues city wideHB under occupancy

• 1 Bed under occupied – 2,647. 2 bed under occupied 644• 42% tenants affected have partially paid rent• Enforcement action started for arrears cases

Council Tax• January Full Council approved CTSS for 2015/16. No change to

2014/15 Scheme (Everyone of working age will pay at least 20% towards their annual Council Tax bill)

• Council Tax Support - Future reductions in government funding increase the gap

Benefits Cap• Approximately 110 households affected in 2015 (173 in 2014)

Welfare and benefits – the picture in 2015

• Employment & Support Allowance – 3,020 people still in the assessment phase of their ESA claim. While latest DWP figures (Aug 2014) show 790 people still claiming IB. 100 people left IB in the last quarter.

• Personal Independence Payment - From October 2015 onwards, the Government will contact all existing claimants of Disability Living Allowance (DLA) and invite them to claim PIP

• Benefits Uprating – Increases in most working age benefits capped at 1% in cash terms in 2015/16

• Benefits Cap – 110 households affected. Numbers may fluctuate.

• Council Tax Support – No change to level of support in 2015/16. The Scheme will be reviewed in 2015/16 and any changes made to the 2016/17 Scheme will be adopted in January 2016.

• Universal Credit – Nottingham is Tranch 4 of national rollout between December 2015 - April 2016. Some bordering authorities accepting claims earlier.

• Manifesto pledges – Manifestos are a basis for compromise but do provide a useful idea of Parties’ thinking. Full picture of changes in next Parliament will be known when new Government is formed.

2015 Manifesto pledges - welfare & benefits

Scrap the "bedroom tax"

Scrap housing benefit cuts for tenants with spare rooms unless they refuse a smaller property

Scrap housing benefits changes related to bedrooms

Abolish the "bedroom tax"

Abolish the “bedroom Tax”

Benefit cap cut to £23,000 a year, maintain the freeze benefits for two years and end Housing Benefit for 18-21yr olds

Tax credits to rise in line with inflation from 2015 and will consider introducing a regional benefits cap

Cap benefit rise at 1% p.a. for two years

Lower the cap on benefits

Scrap the welfare cap

Oppose plans for further cuts in child benefit and tax credits and Vote to increase benefits at least in line with CPI inflation

No benefits for migrants until resident in UK for 2 yrs

Five year wait before migrants can claim benefits

Replace JSA for 18-21-year olds with a Youth Allowance limited to 6 months

A carer’s bonus of £250 p.a. by 2020

Abolish work capability assessments and restore the former disability living allowance

Universal CreditKey points of national rollout and eligibility:

Rollout between September – November 2015 includes Beeston, Mansfield and Newark. Nottingham City rollout from December 2015 – April 2016 includes Bulwell, Parliament St and Station St.

Eligibility will be for new claims from single people between 18 and 60 yrs and 6 months who would otherwise have been eligible for Jobseekers Allowance.

Those not eligible include:• Homeless, in supported temporary accommodation• Claimants receiving JSA, ESA, IS, IB, DLA, SDA or PIP• Those with caring responsibilities • Self employed, in training or education • Those with savings in excess of £6k

Universal Credit – Learning from pilots• UC will include an amount for rent

• 7 waiting days for payment after claim assessment includes housing costs

• Plans are being developed so that Universal Credit can be paid into all types of Credit Union account by spring 2015

• Landlords “likely” to be able to ask for Advance Payment Arrangements (APAs) from initial sign up (learning from pilots), currently APAs only available after two months rent arrears.

• Managed payments to landlords to start when a claimant has accumulated one month’s rent arrears (UC housing element will be paid direct to landlord).

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What have we done to respond?• Continue to focus on DHP to support households affected by the changes Extended

the Hardship Support Scheme and the Small Loans Scheme through 2015/16 and 2016/17

• Eviction Prevention Protocol in place • Sanctions Protocol trial – working with Jobcentre Plus to review ‘inappropriate’

sanctions decisions. • Consultations – In 2015 responded to Government consultations in partnership with

advice and voluntary sector. Provide evidence of impacts of welfare reforms in Nottingham: WCA, ESA, Sanctions, Localisation policies.

• Continue to fund additional resources: Advice Nottingham dedicated Policy and Campaigns officer

• Established an Employment and Welfare Support Programme Board (EWSPB) – To ensure recommendations from the Welfare Reform Impacts Task and Finish Group are implemented. Recommendations were to help our communities become more resilient to welfare changes.

• Strategic Commissioning Review – a strand of the EWSPB – to ensure that the provision of advice and assistance is best placed to continue to meet the needs of Nottingham’s citizens in to the future.

• Welfare Advice Sessions across the city continue to take place

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Questions

Any questions or feedback?