An overview of the Welfare Reforms The Welfare Benefits Unit Heather Theobold October 2012.
Your guide to welfare reforms in 2013
-
Upload
lichfield-district-council -
Category
Documents
-
view
223 -
download
1
description
Transcript of Your guide to welfare reforms in 2013
Understanding welfare
reform changes
Find out how changes to council tax benefit,
housing benefit, universal credit and more might
affect you from April 2013.
www.lichfielddc.gov.uk/welfarechanges
From April 2013 the
government is making big changes
to housing benefits. Council tax
benefit is also being replaced by a
new scheme. Find out more ...
In 2013 the government is making big
changes to housing benefit,
introducing a new benefits cap, and
launching universal credit that will see
people on a range of benefits getting a
single payment once a month.
The government has also asked us to
introduce a new local council tax
support scheme to replace council tax
benefit.
Under these new changes, people’s
housing benefit may go down, and lots
of working age people will have to pay
something towards their council tax,
even if they have never paid anything
before.
The government is also making
changes to pension credit, local
housing allowance and introducing a
new personal independence payment
for disabled people.
This booklet explains the
following changes:
Local council tax
support scheme
Pages 3 - 7
Housing benefit changes
Pages 8 - 10
Benefits cap
Page 11
Universal credit
Pages 12 - 13
Local housing allowance,
pension credit and personal
independence payments
Pages 14 - 15
www.lichfielddc.gov.uk/welfarechanges 2
Did you
know?
The new
council tax
support
scheme
changes
won't affect
pensioners or
anyone who
receives a
war pension.
3
You might
have to pay
something
towards your
council tax from
April 2013 From 1 April 2013, lots of working age
people who have never had to pay
council tax before, might have to pay
something.
Why? The government has abolished the national council
tax benefit scheme. In its place it asked us to design a
local council tax support scheme that comes into
force on 1 April 2013. We wrote to everyone who
claimed council tax benefit last year, and took their
feedback into account when designing our new
scheme.
Under the new scheme most working age people will
have to pay something towards their council tax, even
if they never have before.
The government has told us our
new council tax support scheme
must protect pensioners and
vulnerable people. It must also
encourage people into work.
We will still calculate their entitlement
to council tax support based on 100% of
their council tax bill.
If you are disabled, but don't claim a
severe disability premium, this change
may affect you.
* What is a severe disability premium?
People have a severe disability premium
if they get disability living allowance,
receive a middle or higher rate care
component, live alone and no one
receives a carer's allowance for looking
after them.
Couples can also have a severe disability
premium if they both receive a middle
or higher rate care component, live
alone as a couple and no one receives a
carer's allowance for looking after
either of them.
www.lichfielddc.gov.uk/welfarechanges 4
Our new scheme Our new scheme differs from the
current scheme in the following ways.
1. Most working age people
will have to pay something
towards their council tax bill
From April 2013 most working age who
previously claimed council tax benefit,
will have to pay the first 20%, or more,
of their council tax bill. The amount of
council tax support they then get, will
be calculated based on their income.
2. Pensioners, severely
disabled, war pensioners and
some young families won’t be
affected by the new scheme
The changes won't affect pensioners,
disabled people who qualify for a
severe disability premium*, people
with children under 5, and people who
receive a war widow’s or widower’s/
war disablement pension.
3. Working age people living in more
expensive homes will have to pay more
towards their council tax bill
Working age people living in a more expensive home
(council tax bands E, F, G or H) will have to pay the
difference between their council tax band and the
amount someone living in an average home (a band D
property) pays, before their council tax support is
calculated. This is on top of paying the first 20% of their
council tax bill (see point 1 on page 4).
What is a council tax band? Every home in the
district is placed in a council tax band that is based on
its value. The council tax band determines how much
the council tax bill for each home will be. The
cheapest council tax band is A and the most
expensive council tax band is H. An average house is
in a band D. To find out what band your house is in ,
look at your council tax bill, or visit
www.lichfielddc.gov.uk/bandchecker and enter
your postcode, or call 01543 308900.
4. We are stopping the second
adult rebate for working age people
Under the previous scheme, if you lived in a home with
an adult on a low income, even if you were not
personally entitled to council tax benefit, you would
have been entitled to up to 25% off your council tax bill.
We are stopping this second adult rebate, so from 1
April 2013, anyone who currently claims it may have to
pay 100% of their council tax bill.
Please note The second adult rebate will still apply to
pensioners. The second adult rebate is not the same as
the single persons discount, which has not been
stopped - see page 7.
5
Did you
know?
You will find
out what you
will have to
pay towards
your council
tax in your
annual bill.
This was sent
to your home
in March.
7. We will help to make
working claimants better off
When assessing council tax support, we
don’t take all of a working person’s
earnings into account. Under the
national scheme, this was £5 for single
claimants a week, £10 for couples a
week, and £25 for lone parents a week.
To make things fairer, from 1 April 2013,
we are introducing a flat rate of £25 a
week for all types of household.
8. All adults living in a
household will be expected to
contribute to the household
When we calculate council tax support
we will take into account the adults
that live with you. If you have non-
dependent adults living with you, for
example adult children or parents, it’s
likely we will expect them to make a
contribution to the household, and we’ll
reduce the support you get as a result.
From 1 April 2013, if the non-dependent
adult living with you doesn’t work we’ll
reduce the amount of support you get
by £5 a week, or if he/she is working,
we’ll reduce it by £10 a week.
Please note: You won’t be affected by
this change if you currently don’t have
a deduction from your benefits as a
result of a non-dependent adult living
with you.
6
5. We will view child benefit
as income when we calculate
a claim
At the moment we don’t take child
benefit into account when we
work out someone's income. From 1
April 2013, we will count child benefit
as income, which will mean some
people will receive less council tax
support as a result.
6. Most people with over
£6,000 capital will not be able
get council tax support
From 1 April 2013 we are lowering the
amount of capital working age*
people can have from £16,000 down to
£6,000. So, if you have more than
£6,000, you will not be entitled to
council tax support, and may have to
pay 100% of your council tax bill.
*This change will not apply to
people on income support,
employment and support allowance
(income related), jobseekers
allowance (income based) or pension
credit (guarantee). This change will
also not affect pensioners.
Please note Capital means all the
money you have in bank
accounts, building society accounts,
shares etc, but not your home.
www.lichfielddc.gov.uk/welfarechanges
7 www.lichfielddc.gov.uk/welfarechanges
To read some case studies
showing how the changes
might affect local people, visit
www.lichfielddc.gov.uk/
supportexamples
There are a number of things
that will not change under
the new council tax discount
scheme. These are:
Pensioners will not be
affected The way we calculate pensioners'
council tax benefit will not change.
Pensioners will continue to be
assessed under a national scheme that
the government has said will be much
the same as the current scheme.
Child maintenance will not be
considered income Currently child maintenance payments
are not included as income when
calculating a claim. This won't change.
Single person discount
and exemptions for people
with severe mental
impairment These will not be affected by the
changes.
What to do now?
If you currently receive council tax
benefit, please make sure the
information we hold about you is
correct. This will help us to make sure
you don't have to pay more council tax
than you need to from 1 April 2013.
In particular, please let us know if:
• you have children and have not told
us about them.
• you receive a severe disability
premium in any benefit you get.
If you are unsure what information
we hold about you, please email
[email protected] or call the
team on 01543 308900.
Questions?
What you have to pay towards your
council tax this year is detailed in your
annual council tax bill, which was sent
to your home in early March 2013. If
you have any questions, please email
[email protected] or call the
team on 01543 308900.
Contact Citizens Advice Bureau for
help and support Call 08444 111 444.
Lines are open Monday - Friday,
9.30am - 4.30pm.
Did you
know?
These changes
to housing
benefit will
not apply to
you if you live
in a private
rented home.
Pensioners
will also not
be affected by
the changes.
Do you have
too many
bedrooms?
Will your
housing benefit
go down? The government is cutting the amount
of housing benefit working age people,
who live in a council or housing
association property, will get if they
have more bedrooms than their family
needs. This is referred to as the
‘bedroom tax’ and the change will come
into effect on 1 April 2013.
We will not make the decision on how many
bedrooms there are in your home. This will be the
responsibility of your landlord, who will be asked to
accurately describe your property, in line with the
rent charged. We will not be able to change this
decision. 8
1. How many bedrooms
am I entitled to?
If you are of working age, live in a
council or housing association home,
and claim housing benefits, under the
new rules that come into effect on 1
April 2013 you will be entitled to
housing benefit to cover one bedroom
for:
• every adult couple (married or
unmarried).
• any other adult aged 16 or over.
• any two children of the same sex
aged under 16.
• any two children aged under 10.
• a carer (or team of carers) who
provide overnight care
• any other child*
*If you foster a child, or look after a
child whose main home is elsewhere,
the child will not be included when
assessing the number of bedrooms you
require.
2. Some worked examples A couple or single person:
• with no children will need one
bedroom.
• with one child will need two
bedrooms.
• with a boy and girl aged under 10
will need two bedrooms.
• with a boy and girl aged 11 and 15
will need three bedrooms.
• with two children of the same sex
aged 11 and 15 will need two
bedrooms.
• with two children of the same sex
aged 13 and 16 will need three
bedrooms.
3. What if I have too many
bedrooms?
From 1 April 2013:
• if you have one bedroom too many,
your housing benefit will be cut by the
equivalent of 14% of your rent.
• if you have two, or more bedrooms
too many, your housing benefit will be
cut by the equivalent of 25% of your
rent.
Please note if you only get partial
housing benefit, and you have one
bedroom too many (for example), you
could lose all your housing benefit if the
amount of benefit you get is currently
less than 14% of the rent you pay.
www.lichfielddc.gov.uk/welfarechanges 9
4. What if I have a bedroom
for a carer?
If you have an extra bedroom for an
overnight carer, your benefit may not
be cut as a result of your carer's
bedroom.
If you have a extra bedroom that is
only used by carers during the day, or
for medical purposes, you will not be
entitled to housing benefit for this
bedroom.
5. What if I am recently
bereaved?
There are exceptions for people who
have too many bedrooms because of a
recent bereavement.
6. What if I am pregnant?
If you are pregnant and have an empty
bedroom ready for your unborn child,
your benefit will be reduced until your
child is born.
What to do now?
Make sure we hold the right
information about the number of
people living in your home
This may affect the number of
bedrooms you are entitled to. Our team
can also explain the changes in detail.
Contact our team on 01543 308900 or
email [email protected]
Contact your housing association to
discuss your options
If you are affected by the change, we
recommend you talk to your housing
association about the changes and your
possible options.
Speak to the Citizens Advice Bureau for
help and support
The Citizens Advice Bureau may be able
to provide you with help, support and
information on your options,
budgeting, financial support and more.
Call the Staffordshire advice line on
08444 111 444. Lines are open Monday
- Friday, 9.30am - 4.30pm.
The exact amount your benefit
will reduce by will depend on
the amount of rent you pay your
housing association.
www.lichfielddc.gov.uk/welfarechanges 10
Did you
know?
We’re still
waiting to
hear from the
government
when the
benefits cap
will be
introduced
in Lichfield
District.
The government
is introducing a
benefits cap In late 2013, a limit on the amount of
benefits a single person or family can
get is set to be introduced. The maximum
financial support/benefits people will be
able to claim is £500 a week for a family,
and £350 a week for a single
person.
If you get more than this at the moment, your housing
benefit will be reduced and you may have to pay more
towards your rent, or find cheaper housing.
The benefit cap does not apply where any household
member receives:
• Disability living allowance
• Personal independence payments
• Attendance allowance
• The support part of employment and support
allowance
• Working tax credit
• War widows/widowers pensions
As soon as we know when the changes will be
introduced, we’ll update www.lichfielddc.gov.uk/
welfarechanges. For more background information
about the changes visit www.dwp.gov.uk/gov
11
Did you
know?
If you
already get
benefits, the
Department
for Work &
Pensions will
contact you
to tell you
when you are
moving to
universal
credit.
One monthly
payment of
universal credit
from October
2013 From as early as October 2013 the
following benefits will be replaced with
a single benefit, called universal credit:
• income support
• income based jobseekers allowance
• income related employment and support
allowance
• housing benefit
• tax credits
When you claim universal credit :
• you will be paid monthly in arrears into your bank
account, like a wage.
• you’ll need to make arrangements to pay your rent
and housing bills out of your universal credit
payment.
12
Things to start
thinking about
If you are a tenant, you will need to
think about how you are going to
budget and also make arrangements to
pay your weekly or monthly rent from
your universal credit payment.
You'll need to make sure you have a
bank account for your universal credit
to be paid into, and for your bills to be
paid out of.
You'll need to set up arrangements to
pay your bills out of your bank account,
including your rent.
The Citizens Advice Bureau may be able
to provide you with help, support and
information. Call the Staffordshire
advice line on 08444 111 444. Lines are
open Monday - Friday, 9.30am -
4.30pm.
Find out more
Find out more about the plans for
universal credit on www.dwp.gov.uk/
gov
The website includes a handy
frequently asked questions sheet.
1. I already claim benefits -
when will I move across to
universal credit?
If you already claim the benefits listed
on page 12, the Department of Work
and Pensions will contact you directly
to tell you about the changes and
when they will affect you.
It is expected that it will take up to
2017 to move everyone across to
universal credit.
2. When will I move to
universal credit if I submit a
new claim for benefits?
The government hasn’t yet published
information about when the changes
will affect new claimants.
We’ll update www.lichfielddc.gov.uk/
welfarechanges as soon
as we find out more from the
government.
You can also visit the Department of
Work & Pensions website to find out
more www.dwp.gov.uk/gov
www.lichfielddc.gov.uk/welfarechanges 13
Did you
know?
Local housing
allowance
payments, for
people living in
private rented
homes, is
unlikely to
increase each
year as it has
in the past.
Payments
could even go
down.
Other changes Local housing allowance for
private tenants
The way local housing allowance rates are worked
out has changed. The change means most local
housing allowance rates will not increase as much
year on year, as they have done in the past.
Local housing allowance rates are no longer
reviewed by the government throughout the year.
New rates are now published once a year in April.
Visit www.lichfielddc.gov.uk/lha to read the most
up to date local housing allowance rates and to find
out more.
Pension credit changes
From as early as October 2014, if you are a
pensioner and claim housing benefit, it could be
paid as a housing credit, as part of your pension
credit.
The change is unlikely to affect the amount you
receive, but it does mean you’ll claim support for
your housing costs from the Pensions Service, rather
than your local council.
You’ll receive a letter to tell you more about the
change, or you can visit www.dwp.gov.uk/gov 14
Personal independence
payments (PIP)
From 8 April 2013 the government is
introducing a new benefit called
personal independence payment (PIP)
to replace disability living allowance
(DLA). To find out more visit
www.dwp.gov.uk/pip
To get PIP you must:
• be between 16 and 64 years of age.
• be able to satisfy the daily living/
mobility tests for three months prior
to claiming.
• be likely to satisfy the daily living/
mobility tests for at least nine
months after claiming.
How much PIP will I get?
The payment you receive will be made
up of:
A daily living element
• Standard rate - if you have a limited
ability to carry out daily living. • Enhanced rate - if you have a
severely limited ability to carry out
daily living activities.
Mobility element
• Standard rate - if you have a limited
ability to carry out mobility activities. • Enhanced rate - if you have a se-
verely limited ability to carry out mobility activities.
People who are terminally ill, and where
life expectancy is less than six months,
will not have to satisfy the period
condition for the mobility element.
How will PIP be assessed? PIP will be assessed on a points basis.
Visit www.dwp.gov.uk/pip for details.
When will PIP be introduced?
Personal independence payments will
be introduced in four stages:
April 2013 The government is running a
pilot in Merseyside, north west
England, Cumbria, Cheshire and north
east England.
From June 2013 If you submit a new
claim for disability support, you will be
asked to submit a claim for a personal
independence payment.
From October 2013 If you currently
claim disability living allowance and
report a change in your health condition
or disability, the Department of Work &
Pensions will invite you to submit a
claim for a personal independence
payment.
From 2015 The Department of Work &
Pensions will write to everyone else
receiving disability living allowance
(unless you report a change, or your
award is due to end before 2015) to
invite them to submit a claim for a
personal independence payment.
www.lichfielddc.gov.uk/welfarechanges 15
www.lichfielddc.gov.ukwelfarechanges
Help and support
Department for Work & Pensions
www.dwp.gov.uk/gov
Jobcentre plus
www.jobseekers.direct.gov.uk
Speak to the Citizens Advice Bureau The
Citizens Advice Bureau may be able to
provide you with help,
support and information. Call the
Staffordshire advice line on 08444 111
444. Lines are open Monday - Friday,
9.30am - 4.30pm.
For impartial local money advice visit
www.lichfielddc.gov.uk/
manageyourmoney
For local housing advice visit
www.lichfielddc.gov.uk/housingoptions
This leaflet covers the major
changes to national benefits from
April 2013, as a result of the
Welfare Reform Act.
There are other changes planned to
tax credits, child benefits, council
tax exemption, and the
employment and support allowance
for young people. To find out more,
visit www.dwp.gov.uk/gov
If you have any questions about the
changes to council tax benefit, or
about the bedroom tax, please email
[email protected] or call
01543 308900, Monday - Friday,
8.45am - 5pm.
16
If you would like this document in large
print or another format please call our
team on 01543 308900
It’s vital
you pay
your rent
If you have problems paying your rent, speak to your
landlord as soon as you can. If you are evicted because
you don’t pay your rent, it is likely you will be classed as
intentionally homeless and the council will not have to
provide you with new permanent accommodation.