Welfare Reform for Housing Support Workers
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Transcript of Welfare Reform for Housing Support Workers
Welfare Reform for Housing Support Workers
Fiona Campbell
Housing & Benefits Consultant
Aims
To enable housing support workers to:deal confidently with benefit issues relating to
individual service usersknow when to help a person obtain more specialist
advice on welfare benefitshelp clients access such advice
To equip delegates to brief other support workers within their organisations
Topics
“Bedroom Tax”Scottish Welfare FundBenefit CapUniversal Credit and Direct PaymentsDiscretionary Housing PaymentsPersonal Independence PaymentsCase studies
Quiz
The Answers
1 – (b) 28 October 2013
2 – (c) £167bn (DWP 2011/12). £159bn goes on benefits, of which £74bn goes on state pensions. The remainder is spent on admin.
3 – (a) 0.7% (DWP 2011/12)
4 – (b) 42 according to CPAG research
5 – (b) £18bn
6 – (c) £19bn according to research by Sheffield Hallam University
Your role
Who do you work for?
What do you do?
Who are your clients?
Boundaries
Boundaries between housing support and specialist advice work depend on:your organisationyour positionyour access to up-to-date information
Topic for discussion at team briefingsEach organisation may want to clarify these
boundaries in writing
Help
Who can give you the answers?
Where can you send your clients for the answers?
Who else can help them?
Compile your own list
BEDROOM TAX
Maximum rent (social sector)
Known as “bedroom tax” or “spare room subsidy”
Only applies to the social rented sectorReduction of 14% or 25% in the rent used to
calculate a Housing Benefit paymentBased on the number of bedrooms a
household requiresExemptions in certain circumstances
Accommodation
Local authority housing stock – yesRegistered social landlords – yesPrivate landlords – no
Temporary accommodation - noSupported accommodation - ?Excluded tenancies - no
Temporary accommodation is…
Homeless accommodationprovided by the LA or HA for a charge that
includes cooked meals, orprovided in a hotel, guest house, lodging house or
similar establishment, butexcludes accommodation provided in a care
home, an independent hospital or a hostelIncludes accommodation which the LA or HA
holds on a lease or an agreement with a third party
Excluded accommodation is…
Complicated!
Agricultural tenancyBail hostel or probation hostelShared ownershipHousing action trust tenancyHousing stock disposal but only if there has not
been a rent increase
Supported accommodation
Some supported accommodation is exemptwhere the landlord is a housing association,
registered charity or voluntary organisation; and the landlord also provides the claimant with care,
support or supervision; or a body or a person acting on the landlord’s behalf
also provides the claimant with care, support or supervision
Exempt households
Claimant and/or partner has reached pension agewww.gov.uk/calculate-state-pension
Death of household member – up to 52 weeks
Could previously afford rent – up to 13 weeks
Bedrooms
One bedroom for each person or couple in the household, except: two children of the same gender aged under 16
are expected to share two children aged under 10 are expected to share
No bedrooms for anyone who does not normally live there (e.g. child visiting divorced parent)
More bedrooms
In addition, one bedroom is allowed for:non-resident carer where the tenant or partner
requires overnight careson or daughter in the armed forces who normally
lives there when not on deployment foster child, provided the tenant has become a
registered foster parent, or has fostered a child within the last 52 weeks
student living away during term time – up to 52 weeks
Disabled people
2 legal challengesNot practical for a disabled child to share a
bedroom with a sibling local authorities now have discretion to allow an
extra bedroomNot practical for a disabled adult
to share a bedroom with partnerongoing legal challenge – 10 familiescurrently no discretion
Questions you may be asked
I’m in temporary homeless accommodation – am I exempt?Yes
I live alone in a 2-bedroom sheltered housing flat owned by the Council. Am I exempt?No – unless you have reached pension age
6 months ago I registered with the Council as a foster carer but I haven’t fostered any children yet. Am I allowed a spare room?Yes
More questions
I’m disabled and rent a 2-bed flat from a HA – they have contracted with another organisation to provide me with care and support. Am I exempt from bedroom tax?Yes
My friend lives in a 2-bed HA flat and gets an allowance from the Social Work Dept to arrange her own care. Is she exempt?No
Helping people to appeal
Check carefully the grounds for appeal is it a factual error? is it a discretionary area (disabled child)?
Provide evidence to support the appealmedical reportsproof of foster carer registration
Get help from CAB or Welfare
Rights if it is complicated
SCOTTISH WELFARE FUND
Scottish Welfare Fund
Replaces DWP Social Fund loans and grantsScottish government schemeRun by local authoritiesNo loans, only grantsApplicants can get up to 3 grants in any 12-
month period
Scottish Welfare Fund
Certain payments still administered by DWP: funeral paymentsSure Start Maternity Grantscold weather paymentswinter fuel payments
Scottish Welfare Fund
Similar qualifying criteria to DWP schemeAged 16 or overEntitled to a qualifying benefit:
Income Support income-based Jobseeker’s Allowance income-related Employment & Support AllowancePension Creditno savings over £700 (£1200 if pension age)
Scottish Welfare Fund
Crisis GrantsProvide a safety net
in a disaster or emergency – fire, flood, burglary
where there is an immediate threat to the health or safety of the applicant or his family
One-off payment
Scottish Welfare Fund
Community Care GrantsEnable independent livingHelp people:
set up home in the community or remain in the community rather than going into care
facing exceptional pressures who need essential items such as a cooker
provide safe and secure environment for childrencare for prisoner or young offender on release on
temporary licence
Scottish Welfare Fund
Some things not covered:holidayscourt expensesremoval expenses funeral expensesmaternity expensesmedical treatment/services travelling expensesno recourse to public funds
Scottish Welfare Fund
Local authorities have discretion over the type of support they offercash fuel cards food vouchers loaded store cards for white goods or furniture
BENEFIT CAP
Benefit Cap
Aims to ensure that work paysLimits welfare benefits for non-working
householdsLimit is equivalent to average income in a
working householdApplied to Housing BenefitApplied to Universal Credit where households
receive it
Benefit Cap – how much?
Single adults - £350 per weekLone parents - £500 per weekCouples - £500 per weekCouples with children - £500 per week
Benefit Cap - exemptions
Households on these benefits are exempt:Attendance AllowanceDisability Living AllowancePersonal Independence Paymentsupport component of ESA Industrial Injuries BenefitsArmed Forces Compensation Scheme paymentsWar Pension Scheme paymentsWorking Tax Credit
Benefit Cap – other exemptions
Entitled to claim Working Tax Credit because of the hours worked, but not in payment because earnings are too highexempt
Continuously in work for the previous 12 monthsbenefit cap not applied for 39 weeks
Benefit Cap – what counts?
Benefits taken into account are:Bereavement AllowanceWidowed Parent’s AllowanceCarer’s AllowanceChild BenefitChild Tax CreditEmployment & Support Allowance (except where
the Support Component has been awarded)Guardian’s Allowance
Benefit Cap – what counts? (2)
Housing Benefit (unless in Supported Exempt Accommodation)
Incapacity Benefit Income SupportJobseeker’s AllowanceMaternity AllowanceSevere Disablement AllowanceWidow’s Pension
Benefit Cap - disregarded
Benefits and payments disregarded: Bereavement payment (lump sum)Council Tax ReductionDiscretionary Housing PaymentsScottish Welfare Fund paymentsCold Weather & Winter Fuel PaymentsFuneral PaymentsSure Start Maternity GrantsPension Credit
Benefit cap – example 1
Couple with five childrenWeekly income:
£140 Housing Benefit£12.80 Council Tax Reduction (not counted)£73.90 Child Benefit£330 Child Tax Credit
Total benefits are £556.70Family will lose £43.90 a week HB will be paid at £96.10 every week
Benefit cap – example 2
Single claimant who is disabledWeekly income:
£100 Housing Benefit£100.15 ESA (WRAG)£54.05 DLA (Mobility)£77.45 DLA (Care)
Total benefits are £331.75The Benefit Cap will not apply as the claimant
gets DLA so is exempt
UNIVERSAL CREDIT
Universal Credit
Intended to simplify benefits system by bringing together a range of working-age benefits into a single payment.
Affects working age claimants of a range of earnings replacement and in-work benefits
North-west England from April 2013October 2013 to 2017 – national rollout starting
with new claims
Universal Credit
Replaces income-based Jobseeker’s Allowance income-related ESA Income SupportChild Tax CreditsWorking Tax CreditsHousing Benefit
Other pensions and benefits will continue to be claimed and paid as at present
Universal Credit - work
Easier for claimants to start a new job or work more hours
UC reduces gradually as take home pay increases
No fixed hours thresholds, such as the 16 and 30 hours rules for current benefits
Universal Credit - claiming
People encouraged to claim onlineFace to face and telephone support available
to those who do not have internet accessAdvice agencies able to provide internet
access and help with claims process
Universal Credit - payment
Paid monthly, directly into a bank accountCouples living together, both claiming UC, will
get one monthly payment into one accountMonthly payments designed to help people
move into work and manage a monthly budgetExceptional circumstances
more frequent paymentsUC payment to be split between two recipients
Universal Credit – support
Help towards housing costs for people living in supported exempt accommodation provided separately from UC
Supported exempt accommodation is:resettlement placeaccommodation provided by housing association,
registered charity or voluntary organisation where that body or person acting on their behalf provides claimant with care, support or supervision
Universal Credit – direct payments
Landlords anxious about no longer receiving HB from the LA
Concerned that rent arrears will increaseWhere claimant has rent arrears, likely that
housing cost element of their UC will be paid to their landlord
Project to examine direct payment of housing costs being carried out in 6 areas
Extended for further 6 months
Universal Credit – demonstration project
Latest findings show rise in rent collection rate to 94%
6,168 tenants currently paid by direct payment1,258 tenants had payments switched back to
landlord
Universal Credit - projects
Projects investigating: levels of support e.g. advice on managing
personal finances and budgetingexemptions for direct paymentspayment switch-backs to landlord if tenant falls
into arrearssupport needed to help tenants in arrears pay
back arrears and return to direct paymentsearly intervention switch-backs before arrears
reach trigger points
DP project - Edinburgh
Contact, advice and collection very resource intensive, other landlord services compromised
Need for organisational adjustments to meet challenges of Welfare Reform
Developing new rent collection/arrears and advisory processes and structures
Concerns about how tenants will manage when wider and cumulative impacts of welfare reform changes begin to impact
DP Project - Oxford
Need to support residents can arise at any time, even when customer has managed payments successfully for long period
Triggers for arrears aredelays in payment, lifestyle changes, change of
household, impacts of welfare reformMajority of tenants able to manage direct
payment of HBTrend for arrears to steadily reduce after initial
payment
DP Project - Shropshire
Relationships between key partners has become vital part of daily working
12 weeks arrears trigger too long:allows arrears to escalate to unmanageable leveldifficult for customer to recover - particularly where
other debts exist legal action to secure the debt means customer at
risk of losing home should further arrears accrue
DP Project - Southwark
35% not received DP for various reasons, including not having bank account
15% switched back to landlord due to arrearsSignificant additional admin costs for LAAll tenants offered independent support with
banking, budgeting and debt management - take up minimal
4+4 week arrears trigger – probationary period
DP Project - Torfaen
Contact levels with tenants 3 times higher than before DP1 in 4 tenants needing supportmore likely to engage with tenancy support
workers than money advisors texting reminders to pay has positive impact when
backed up with next day interventionTrigger to switch to landlord is 15% shortfall in
payment over 12 weeks threshold
DP Project- Wakefield
Tenants used HB to meet other costsOther creditors collected money from accounts
prior to funds being accessed for either electronic or manual payment of rent
Many different payment cycles and patterns mean process is difficult to automate and report on
Use range of contact methods including text messaging, telephone and home visits as well as written communication
DISCRETIONARY HOUSING PAYMENT
Discretionary Housing Payments
Government fund distributed to local authoritiesNot widely used in some areasLAs can add to their allocationWhen money runs out, it runs outPaid to HB recipients to help with housing
costsLump sum or ongoing paymentsNot normally indefinite
DHP
DHPs can cover housing costs such as:rentdepositsremoval costs
DHP
DHPs cannot cover:rent arrearsservice charges not eligible for HB insurance paymentsbenefit sanctionsoverpaymentsCouncil tax
DHP
Rent normally covered by HB can be met by DHPs where:benefit cap appliesbedroom tax appliesLHA in private rented sector restrictedshared room rate of LHA paid to under-35snon-dependant deductions madeHB reduced because income increased
DHP
April 2013 - DHP fund increased to cover two specific categories:disabled people adapted accommodation subject
to the bedroom tax foster carers who require more than 1 extra
bedroom allowed under bedroom tax rulesDWP recommend DHP award to households
where adult has long term medical condition that creates difficulties sharing bedroom
DHP
Most LAs have DHP claim formUsually administered by the HB departmentProvide evidence:
income & expendituredetails of additional housing costsinvoices, bills, decision letters
Outline solutions claimant is working towardsNo right of appeal so claim has to be
convincing
PERSONAL INDEPENDENCE PAYMENT
Personal Independence Payment
New benefit that replaces Disability Living Allowance for working age claimants
Different criteriaDifferent claim process
PIP – under 16 year olds
New claimants claim DLA
Existing claimants – DLA continuesDWP will write before sixteenth birthday to inform
when DLA will end and how to claim PIP
No automatic transfer to PIP when DLA ends
PIP – 16th birthday
From 10 June 2013New claimants claim
PIPExisting claimants
make a DLA renewal claim
From 7 October 2013New claimants and
existing claimants claim PIP
PIP – 16 to 64 year olds
Up to 9 June 2013New claimants claim DLAExisting claimants’ DLA continues
From 10 June 2013 New claimants claim PIPExisting claimants’ DLA continues
PIP – 16 to 64 year olds
From 7 October 2013New claimants claim PIPExisting claimants claim PIP if care or mobility
needs change, or fixed term award endsOther existing claimants remain on DLA
From October 2015New claimants claim PIPExisting claimants still getting DLA will be invited
to claim PIP – priority for claimants who have reached age 65 or older
PIP – aged 65 and over
From 10 June 2013New claimants (already 65) claim Attendance
AllowanceExisting claimants’ (already 65) DLA continues, as
long as eligibility criteria metFrom October 2015
Existing claimants reaching 65 after 8 April 2013 and still getting DLA will be invited to claim PIP and given priority
PIP - DLA
DLA PIPCare – low rate
Care – middle rate Daily Living – standard rate
Care – high rate Daily Living – enhanced rate
Mobility – low rate Mobility – standard rate
Mobility – high rate Mobility – enhanced rate
PIP claims
Based on how individual’s
condition affects themHealth professional considers
claimant’s ability to carry out 12 activitiesAwards points depending on how well person
is able to carry them outstandard rate – total of 8 pointsenhanced rate – total of 12 points
Daily Living Activities
Preparing food Taking nutritionManaging therapy or monitoring a health
condition Washing and bathing Managing toilet needs or incontinence
Daily Living Activities contd
Dressing and undressing Communicating verbally Reading and understanding signs, symbols
and words Engaging with other people face to face Making budgeting decisions
Mobility Activities
Planning and following journeys
Moving around
PIP example
Some claimants better off with PIPDLA care
require help with bodily functions frequently throughout the day
PIP Daily Livingnumber of problem areas scoring 2 or 4 points
each to total 8 points
Case studies
Any clients who need your help?What can you help them with?Will you need to involve specialists?Do you know who they are and where to find
them?
Close
Any further questions to HSEUHSEU will collate FAQs from the training days
and circulateSlides can be circulatedFactsheets for you to use when briefing your
colleaguesGood luck with Welfare Reform!