The Impact of Welfare Reform

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

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

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‘

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‘

Impact of Welfare Reform

Bedroom Tax

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

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

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

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

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

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

Welfare Reform?