Welfare Reform & Anti-Poverty Update June 2014

Welfare Reform in 2014/15

• Under-Occupancy–Discretionary Housing Payments

• Local Council Tax Support

• Local Welfare Provision

• Persons From Abroad

• Universal Credit

Under-Occupancy• Remains most controversial and emotive of current reforms

• In Bolton approx.3,500 tenants and £2.2M loss.

• Last year spent full DHP allocation (Approx.£673K)

• Pre-1996 cases had to be dealt with – over 250 (at an average of £20 per week) of these identified to date but no time limit.

• Lack of consistency at Tribunal – we have had two appeals against UO & won both – other LA’s have lost similar cases.

• Size of the bedroom appears to be an issue for some Tribunal Judges – DWP about to get involved at Upper Tribunal.

• Impacting on rent arrears but in many cases not yet resulted in evictions.

DHP’s 2014/15

•Subsidised fund is £680K

•DHP policy remains unchanged but open to review

•Must be liaising with RSL to find affordable housing

•All income will be taken into account

•Currently 6 month awards

•Spend and committed as at 1st June is £223,792

•Delay with launch of online claim form but still in the pipeline

Local Council Tax Support in 2014/15

• Same scheme as 2013/14

• Number if things to remember:

–No backdating so essential customers claim at the right time–There is a Council Tax Reduction Scheme (DHP’s for LCTS) but take-up is very low–Will sit outside of Universal Credit

• The scheme will be reviewed annually and at the moment is heavily subsidised by Bolton Council

• £3M reduction in funding but at the moment less than £400K of this has been passed onto customers

• On this basis had a relatively low profile in 2013/14

Local Welfare Provision

LWP in 2014/15

• Same funding as 2013/14 - £1,017M

• Policy remains unchanged at the moment–Food–Furniture–Gas–Electricity–Travel–No cash

• 9 loans approved through HOOT (working in partnership with Money Skills and Furnished Tenancy Team)

• Early signs this year that expenditure in some areas is on the increase

Local Emergency Support(food, gas, electricity, travel)

Local Community Support(furniture)

Spend Composition

The future of LWP

• No specific funding for 2015/16 – will be decided by Members

• Hoping to get a decision in the Autumn

• Expenditure on the increase so scheme may need review:–possible cap on value of furniture package–reduction in the type of household good offered–narrowing of eligibility criteria

• Important that customers and those supporting them ask for only those goods that are required – increase in claims where all household items are ticked

Persons From Abroad

Pre January 2014 Post January 2014Prior to 1 January 2014, EEA nationals had an initial right of residence during the first 3 months and could claim JSA IB.

Since 1 January 2014, EEA nationals are unable to claim JSA IB unless they have been living here for 3 months. This applies to returning UK nationals as well as to people coming to the UK for the first time.  

If an EEA national was a jobseeker, they have a right of residence. If they received JSA IB, they could claim Housing Benefit.

From 1 April 2014, an EEA national whose only right to reside is as a “jobseeker” will no longer be able to claim Housing Benefit   EEA “workers” or “self-employed persons” who retain their worker status on stopping work – e.g. due to incapacity – will not be affected.  

A job seeking EEA national was treated as automatically habitually resident, once they prove they have a right to reside.  There was no limit to the length of time a person could claim JSA IB.

From 1 January 2014, to receive income-based JSA an EEA must from the outset provide evidence that they are “seeking employment” and have a “genuine chance of being engaged”, and will only be able to continue to receive JSA after six months if they can provide “compelling evidence” that they are continuing to seek employment and have a genuine chance of being engaged.  

A worker, or self-employed EEA national had to prove they were in genuine and effective work rather than ancillary and marginal.

From 1 March 2014, a new minimum earnings threshold to help determine whether an EEA national is in “genuine and effective work”   

 Bulgarians’ and Romanians’ had to be either highly skilled or and had to obtain a ‘worker authorisation document’ before beginning employment in the UK.

  Bulgarian and Romanian workers will no longer be subject to worker authorisation, and will be able to come to work (or look for work) in the UK on the same basis as other EU nationals

Croatian nationals are required to obtain a ‘worker authorisation document’ before beginning employment in the UK.  

This is likely to remain in force until 2020

European nationals can claim tax credits. For CTC only, you must have the ‘right to reside’ in the UK.

The government has announced that from 1 July 2014, EEA nationals who are looking for work will have to be present in the UK for three months before they can claim CTC

Anti-Poverty Strategy

Financial Proposals• A total of £1M funding over a 4 year period will be targeted in

the following ways:

Work already in progress• Hoot – underwriting interest free loans• Money Skills – funding specialist debt advice posts• Trussel Trust – operational funding• Urban Outreach – operational funding funding• Furnished Tenancy Team – operational funding• Bond Board – support to aid access to affordable housing• Winter Warmth – support with winter warmth campaigns• LWP recommendations – increasing scope of scheme• Safer Sleeping – funding the provision of cots• Welfare Rights – increased resource• Fuel Poverty – increased resource• Bolton Community Transport – financial support• AGMA Help With Rent Team – financial support• BRASS – financial support

Work to be completed

• Hoot - development of the service to increase capacity and offer

• High Street Store – to be sited in Victoria Square (Millets) & will offer a range of new and refurbished furniture

• Supporting the low paid – recent example has been the widening of LWP eligibility criteria to include HB and CTS

• Improving Customer Access – better use of technology, advocacy where needed, better outcomes for customers at first contact

Universal Credit

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Universal Credit - it’s all about work

• Universal Credit aims to reward work. No 16 hour rule and no limits on the number of hours someone can work. UC payment only reduces gradually as their take home pay increases so claimants won’t lose all their benefits at once if they are on a low income.

• Universal Credit will encourage a new type of relationship with claimants. Work Coaches will help claimants to become more independent by supporting them in their worksearch activities. They will help claimants plan and focus their jobsearch as well as set them actions that give them the best chance of finding work.

• Universal Credit aims to support jobseekers through the Claimant Commitment to raise their expectations of what they can achieve, and to encourage responsibility. Those who are fit and ready for work will be expected to look for a job on a full time basis dependent on circumstances.

• Universal Credit claimants are expected to use Universal Jobmatch, an intelligent job matching service that helps employers to get the best fit for the jobs that they have on offer.

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The Universal Credit live service

• The live service started in Ashton-under-Lyne on 29 April 2013.

• Live service will be available in 10 areas of the country.

• This helps us to test the system with local authorities, employers and claimants.

• The live service will expand in 2014 to more types of claimant and to more areas of the North West.

• Inverness

• Harrogate

• Warrington

• Tameside

• Oldham

• Wigan

• Shotton

• Rugby

• Hammersmith

• Bath

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Bolton – go live 30th June 2014

• Associated Jobcentres in Tranche 1

– Bolton

– Farnworth

– Bury (part)

• Jobcentres to be added in Tranche 2

– None

Max per month

Annual

total

Total UC claims

280 2249

On line supported access

17 110

PBS referrals 17 112

LCTRS notifications

69 404

HB queries 138 848

Complex housing queries

17 110

Challenges

• ICT - limited in pilots, information to be sent by e-mail to inform LA’s of UC award for CTS purposes

• Alternative payments – DWP confirmed that they expect at least 20% of customers will require payment to landlord but could be as high as 40%. Accept this isn’t working well at the moment for landlords

• Processing times – DWP confident this will not be an issue but expanding to significantly more areas and delays have been experienced in pilot areas

• Communication – will only affect a limited number of customers which can make it more challenging to communicate – expect many customers unaffected will make contact