The Impact of Welfare Reform
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Transcript of The Impact of Welfare Reform
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The Impact of Welfare Reform
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Overview
Context – biggest shake up of welfare system since it was created
Potential Impact – significant problems with roll out mean in some areas we are still looking at potential rather than actual impact
Universal Credit – reset to zero after 600m spendTarget by Sept 2014 2.5m on Universal Credit; actual at Sept 2014 only 8,500DLA to PIP backlog; 42 years to clear backlog
Actual impactBedroom taxCouncil tax benefitAssessment delaysMandatory reconsiderationBenefit Cap
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Replacing Disability Living Allowance Covering the extra costs of disability. Scope estimates an extra £550 per month
George Osborne 2010: 20% cut
By 2018 400,000 fewer disabled people entitled to motability vehicles
Government claims £1 billion savings; campaigners estimate loss to the economy of more than 2.3 billion
Potential Impact
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Universal Credit Holes in the Safety Net: the impact of UC on disabled people’ calculated 450,000 households with disabled members worse off, including:
230,000 disabled people with high support needs impacted by abolition of severe disability premium100,000 households with disabled children116,000 disabled people in work
Transition protection not inflation linked
Potential Impact‘
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Universal Credit Calculated per household – trapping in abusive relationships
Digital by default – online applications inaccessible to disabled people
Paid direct to claimants not landlords – Southwark council predicts 14m in arrears
Potential Impact‘
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Impact of Welfare Reform
Bedroom Tax
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Impact of Welfare Reform
Council Tax Benefit
Exemptions for “vulnerable”; lack of information
By October 2013 estimated 450,000 ‘vulnerable’ people summonsed as a result
Southwark – total of 9000 summonsesKnowsley – liability orders increased by 99%
Case study: Jan Campbell in Barnsley; ¼ income swallowed up by council tax and bedroom tax shortfall
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Impact of Welfare Reform
Personal Independence Payments – delays
Public Accounts Committee investigation – Margaret Hodge, Chair found “significant delays, a backload of claims and unnecessary distress for claimants unable to access the support they need to live, and in some cases, work independently”
16 months April 2013 – Sept 2014 just under 40% of 529,400 claims processed
Mark Harper: by end of this year no one should be waiting from than 16 weeks for a decisions
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Impact of Welfare Reform
Personal Independence Payments – delays
Overwhelmed with cases
Impact - no access to eg carer’s allowance or blue badge
without PIP award- loss of homes- vehicles repossessed
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Impact of Welfare Reform
Mandatory Reconsideration
Since October 2013 – reconsideration needed before appeal for Employment Support Allowance decisions
Target timeframe is 2 weeks but regularly 6 weeks
During reconsideration can only apply for Job Seekers Allowance
- housing and council tax benefit stopped - only eligible for JSA if you are fit for work
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Impact of Welfare Reform
Benefit Cap
Savings off-set by increased costs; cost-shunting exercise
Challenges: increased social disadvantage; worsening mental health; women unable to leave abusive relationships; children at greater risk of being put into care
Chris Goulden, Joseph Rowntree Foundation: cap does little to cut the deficit; if we want to reduce the welfare bill we need to address high cost of housing, low pay, and barriers to work such as affordable childcare
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Impact of Welfare Reform
Foodbanks
Trussell Trust – 3 days’ emergency food provided to 913,138 people 2013 – 2014 compared to 346,992 for 2012 – 2013
- Northern Ireland 11,697 (population 1.811m) - NorthWest 138,644 (population 7 m)
DEFRA report – increase is NOT a question of supply but of meeting a real and growing need
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Welfare Reform?