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Richard Gass. Chair of Rights Advice Scotland 22 nd June 2011 EDINBURGH. Emergency Budget June 2010. 11Billion in Welfare Savings (a further £7 Billion in Spending Review) Benefits to be increased by Consumer Price Index (CPI) and not Retail Price Index (RPI) from April2011 - PowerPoint PPT Presentation

Transcript of Richard Gass

  • Richard GassChair of Rights Advice Scotland22nd June 2011EDINBURGH

  • Emergency Budget June 201011Billion in Welfare Savings(a further 7 Billion in Spending Review)Benefits to be increased by Consumer Price Index (CPI) and not Retail Price Index (RPI) from April2011Objective Medical Assessment for DLA

  • Benefit UpratingThe Consumer Price Index (CPI) will be used instead of the Retail Price Index for the uprating of benefits and tax credits from April 2011 (paragraph 2.32) UPDATE: Benefits were uprated for 2011 with CPI 3.1% (RPI was at 4.6%)

  • Amount of DLA Lost by uprating with CPI rather than RPIDWP Data August 2010

    DLA All AgesCurrentAnnualTotalCPI Increase 3.1%RPI Increase 4.6%AnnualDifference1.5%Glasgow218.1 million6.76 m10.03 m3.27 MillionAberdeen City37.3 million1.16 m1.72 m0.56 MillionAberdeenshire40 million1.24 m1.84 m0.60 MillionStirling19.4 million0.6 m0.89 m0.29 MillionRenfrewshire50.3 million1.56 m2.31 m0.75 MillionN Lanarkshire110.5 million3.42 m5.08 m1.66 MillionD & G40.5 million1.25 m1.86 m0.61 Million

    Scotland1,341.9 Million41.60 m 61.73 m 20.13 Million

  • CPI Impact in Glasgow

    Benefit Uprated by CPI*Number of claimantsAverage weekly claimAnnual impact per claimantTotal impact on GlasgowJSA23,98062.3948.661,166,968DLA56,60072.4156.683,196,757Income Support39,19088.1468.752,694,281Attendance Allowance19,74062.2348.54958,168ESA9,89069.8054.44538,451Incapacity Benefit38,66050.4547.321,829,391Severe Disablement Allowance3,48073.7557.53200,187Carers Allowance8,05053.8942.03338,375Widows Benefit62075.2158.6636,371.56Bereavement Benefit5809372.5442,073DWP Claimant data May 2010Total11.7 Million

  • Proposed DLA Changes Objective Medical Save 20% of current expenditurePersonal Independence PaymentRemoval of Mobility in Residential CareOnly 2 rates for Daily LivingDoubt over passporting to other benefitsPayable over age 65?

  • DLA Weekly ExpenditureAll AgesTotal DLA payments in Scotland 25 Million/ week

    DLA CAREHigher RateMiddle RateLower RateDLA MOBHigher RateLower RateGlasgow1,008,8821,012,882285,1971,491,013396,813Aberdeen City156,366178,77251,923262,70968,220Aberdeenshire182,784176,38249,459301,59258,176Stirling95,67680,30421,603149,55026,530Renfrewshire236,334213,18865,756373,87579,590N Lanarkshire537,642453,144133,597856,921144,020D & G192,066174,94850,028307,07654,955


  • DLA Weekly ExpenditureWorking Age OnlyTotal DLA payments to working age claimants in Scotland 14.5 Million/w

    DLA CAREHigher RateMiddle RateLower RateDLA MOBHigher RateLower RateGlasgow564,774618,532193,858724,819310,590Aberdeen City88,536112,33036,952147,05750,596Aberdeenshire99,24699,42432,973163,50839,795Stirling240,618223,70467,46271,78420,087Renfrewshire127,806122,84643,206176,46960,071N Lanarkshire269,892250,95082,243391,821106,309D & G99,246101,33632,215157,02738,279


  • Potential DLA Loss (20%)All Age Groups

    DLA All AgesWeeklyTotalAnnualTotal20%AnnualGlasgow4.194 million218.1 million43.6 millionAberdeen City0.717 million37.3 million7.5 millionAberdeenshire0.769 million40 million8.0 millionStirling0.374 million 19.4 million3.9 millionRenfrewshire0.968 million50.3 million10.1 millionN Lanarkshire2.125 million110.5 million22.1 millionD & G0.779 million40.5 million8.1 million

    Scotland25.806 Million1,341.9 Million 268 Million

  • Potential DLA Loss (20%)Working Age Only

    DLA Working AgeWeeklyTotalAnnualTotal20%AnnualGlasgow2.413 million125.5 million25.1 millionAberdeen City0.435 million22.6 million4.5 millionAberdeenshire0.435 million22.6 million4.5 millionStirling0.203 million 10.6 million2.1 millionRenfrewshire0.530 million27.6 million5.5 millionN Lanarkshire1.101 million57.2 million11.4 millionD & G0.428 million22.3 million4.5 million

    Scotland14,484 Million753,168 Million 150 Million

  • Reduction in BenefitLoss of Income to ClaimantsLoss of Income to Local EconomyConsequential loss of JobsGreater demand for council services

  • Fraser of Allander InstituteReports for Glasgow City Council in 2001 and 2003An increase in benefits increases spending in the local economy and creates jobs 11Million created 258 Jobs in Scotland of which 180 would be in GlasgowA cut would have the reverse effect.

  • Personal Independence PaymentConsultation Closed on 18th Feb 2011

    From 2013 for all DLA claimants2 componentsMobility 2 RatesReplacing walking with mobilisingDaily Living 2 RatesTake greater consideration of potential aids

  • The period condition conditions be satisfied 6 months prior to claiming and to be likely to continue for a period of at least 6 months.Terminal illness (same definition as for DLA) automatically receive the daily living component enhanced rate and will not have to satisfy the period condition for the mobility component.Age Restriction Concern that PIP will not be paid once someone reaches the age of 65 or pensionable age, whichever is the higher.

  • Example 1Mother age 50 living in a rented house with her son age 30.Mother is partially sighted and is in receipt of DLA lower rate care & lower Mobility , she also gets Jobseekers AllowanceSon works full time, wage = 250 per weekMother is the tenant, house rent is 100 per week. The full rent met through Housing Benefit.

  • Current Financial PositionWhat if the mother was to lose her entitlement to care/daily living

    Mother (weekly)Son (weekly)DLA Lower Rate Care 19.55DLA Lower Mobility 19.55Jobseekers Allowance 96.35Includes a disability premiumHousing Benefit 100Wages 250.00 gross

  • Mother loses DLALoss to weekly income 73.70 (Note that Non dep deductions rose by 27% taking out another 11.30on HB and Council Tax Benefit.

    MotherSonDLA Care 19.55DLA Lower Mob 19.55JSA 96.35Housing Benefit 100Wages 250.00 gross

    MotherSonDLA Care nilDLA Lower Mob 18.95JSA 96.35Housing Benefit 100Less Non Dep deduction of 48.45Also Non Dep on Council tax 5.70Wages 250.00 gross

  • Non Dependent DeductionsPre April 2011

    Aged 25+ JSA 7.40Gross wages below 120 7.40120 177.99 17.00178 230.99 23.35231 305.99 38.20306 381.99 43.50382 and above 47.75After April 2011

    Aged 25+ on JSA 9.40Gross wages below 122 9.40122 179.99 21.55180 233.99 29.60234 309.99 48.45310 386.99 55.20387 and above 60.60The above are weekly deductions from Housing Benefit. Other deductions apply to Council Tax Benefit.

  • Example 2Father age 50 living in rented accommodation with daughter age 30.Father is partially sighted and is in receipt of DLA middle rate care, and also ESADaughter is registered blind and also gets DLA Middle rate Care and Low Mobility and also ESA.Father is the tenant and the rent is 100 per week. The full rent met through Housing Benefit.

  • Income prior to PIP re-assessmentOn assessment for PIP father loses entitlement and daughter keeps her entitlement

    FatherDaughterDLA Care 49.30ESA 149.55 includingWork related activity componentSevere Disability Premium

    Housing Benefit 100Max Council Tax BenefitDLA Care 49.30DLA Mob 19.55ESA 149.55includingWork related activity componentSevere Disability Premium

  • Loss of Fathers DLA

    Loss of Fathers DLA , Loss of his SDPLoss of Daughters SDPExposure to Non Dependent deductionsWeekly loss to household = 171.95 Note Daughters Income is affected by loss of Fathers DLAFather loses 116.65 Daughter loses 55.30

    FatherDaughterDLA Care nil (-49.30)ESA 91.45 (-55.30)Housing Benefit 90.80 (-9.20)Council Tax Benefit (-2.85)DLA Care 49.30 (no change)DLA Mob 19.55 (no change)ESA 91.40 (-55.30)

  • Options ?If the daughter was to move out she could restore her SDP and her father would then not have non dependent deductions from his Housing Benefit

    This could save 67.35 that would otherwise be lost. **

    FatherDaughterDLA Care nil (-49.30)ESA 91.45 (-55.30)Housing Benefit 90.80 (-9.20)Council Tax Benefit (-2.85)DLA Care 49.30 (no change)DLA Mob 19.55 (no change)ESA 91.40 (-55.30)

  • Even if they maintain entitlement to DLA/PIPWill benefit rates be the same?No guarantees that the passporting that currently exist continues Will there be an equivalent of Severe Disability Premium in new Universal credit

  • ICB Claimants (In thousands)Source DWP as at November 2009Working Age Claimants

    Aberdeen City8.63East Dunbartonshire2.98Aberdeenshire6.64East Lothian3.54Angus4.03East Renfrewshire2.55Argyll and Bute3.19Edinburgh, City of18.12Clackmannanshire2.74Eilean Siar1.02Dumfries and Galloway5.99Falkirk6.99Dundee City8.76Fife15.79East Ayrshire6.41Glasgow City43.93

  • ICB Claimants (In thousands)Scotland total ICB count 243,030

    Highland8.43Renfrewshire8.9Inverclyde5.51Scottish Borders3.74Midlothian3.34Shetland Islands0.61Moray2.83South Ayrshire5.09North Ayrshire7.32South Lanarkshire15.45North Lanarkshire18.94Stirling3.2Orkney Islands0.58West Dunbartonshire5.62Perth and Kinross4.42West Lothian7.73

  • ** Benefit Loss (In millions per year) Assuming that 23% of people fail and 30% of those come off benefit

    Aberdeen City4.82East Dunbartonshire1.66Aberdeenshire3.71East Lothian1.98Angus2.25East Renfrewshire1.42Argyll and Bute1.78Edinburgh, City of10.12Clackmannanshire1.53Eilean Siar0.57Dumfries and Galloway3.35Falkirk3.91Dundee City4.89Fife8.82East Ayrshire3.58Glasgow City24.55

  • ** Benefit Loss (In millions per year)Assuming that 23% of people fail and 30% of those come off benefit altogetherScotland Total loss 135.78 Million

    Highland4.71Renfrewshire4.97Inverclyde3.08Scottish Borders2.08Midlothian1.87Shetland Island