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A fresh approach to people, homes and communities fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

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Page 1: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

A fresh approach to people, homes and communitiesA fresh approach to people, homes and communities

Berneslai Homes Customer Panel 5th September 2012

Welcome

Mark McGee

Director of Housing Management

Page 2: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

A fresh approach to people, homes and communitiesA fresh approach to people, homes and communities

Welfare Reform

• Barnsley Council’s Welfare Rights and Community Liaison Service will share with you some of the changes to the welfare system and how the changes may affect you.

• It’s complicated…• It’s still changing…• We’re planning for the impact…

Page 3: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

A fresh approach to people, homes and communitiesA fresh approach to people, homes and communities

Welfare Reform

• You can ask questions (general ones from the floor or personal questions at the end).

• We don’t have all the answers yet!

• But it’s happening so we’re not here to debate it!

Page 4: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Tonight's panel

Welfare ReformPete Francis

Head of welfare rights and community liaisonBMBC

Page 5: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Welfare Reform Agenda

• Government’s policy agenda: – to reduce welfare bill – to improve work incentives by ‘making work pay’ – to reduce welfare dependency– to reduce complexity

• Major reform planned via Universal Credit (integration of means-tested working age benefits and tax credits from late 2013).

• £18bn package of welfare cuts planned 2011-2014. Some introduced by Welfare Reform Act, some without need for legislation

Page 6: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Changes to Housing BenefitFrom April 2011 • Local Housing Allowance (LHA) rates capped.

• LHA rates set at the 30th percentile of local rents (instead of the current 50th percentile).

• Maximum LHA rate reduced from five to four bedrooms.

• £15 excess payment withdrawn.

• Non-dependant deductions increase by 27 per cent for all claimants from April 2011.

Page 7: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Cuts affecting families• Child benefit frozen for three years

• Child benefit will be withdrawn from families with a higher rate taxpayer from January 2013

• £190 Health in pregnancy grant withdrawn from 2011

• £500 Sure Start maternity grant withdrawn from 2013

• Tax credits childcare costs reduced from 80% to 70% (Apr 2011)

• To receive WTC, couples with children must work 24 hrs (instead of 16) between them, and one must work at least 16 hrs, (April 2012)

Page 8: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Main changes in Welfare Reform Act

• Universal Credit to integrate means-tested working age benefits and tax credits

• DLA replaced with Personal Independence Payment-PIP

• Cap placed on total household benefits received• Uprating of benefits and tax credits by CPI

• Contribution-based ESA for those in work-related activity group limited to 12 months

Page 9: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Changes continued….

• ESA cut for young people who haven’t paid NI   • HB cuts where social housing tenants are under-

occupying (only working age)

• Changes to discretionary social fund payments

• Council Tax Benefit replaced with local discount scheme (only working age)

Page 10: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Changes to up rating

• Move to CPI (Consumer Prices Index) for up-rating of benefits, tax credits and public sector pensions.

• Local Housing Allowance rates to be uprated by CPI rather than reflecting local rents

Page 11: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Concerns……

• Real cut in value of benefits accumulates over time.

• LHA rates will no longer keep pace with local rents because CPI rises more slowly than private rents. This will lead to gradual erosion of LHA rates, resulting in difficulties finding affordable accommodation, debt and homelessness.

Page 12: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Universal Credit

• UC will be paid to people both in and out of work replacing the following benefits :

– Income based JSA and ESA, Income Support, Housing Benefit, Council Tax Benefit, Child Tax Credit, W Tax Credit

– UC combines working age benefits and tax credits into one household allowance - “personal allowance”

Page 13: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Payment levels

• Full allowance if household has no other income and up to £6,000 of savings.

• A percentage of allowance if savings between £6,000 & £16,000.

• No allowance for those with savings over £16,000.

– Households to be entitled to varying earnings disregards

– Single taper set at 65%

Page 14: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Cap placed on total benefits

• Applies to out-of-work households

• Based on average wage of in-work households - £500 per week for couples and lone parents, and £350 per week single people.

Page 15: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Concerns…

• Doesn’t consider household size, circumstances or variations in housing costs regionally

• Definition of “out of work” i.e. hours threshold?

• Comparison with national “average income” • Impact of cap on housing benefit

Page 16: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Amounts & Tapers• Universal Credit applicable amounts have yet to be

finalised and regulations still to be released but entitlement is expected to be similar to today’s figures.

• Awards of universal credit will be calculated by adding up all the allowances applicable to the claimant and their family and then deducting amounts in respect of earnings, other income and capital.

• The taper was expected to be 55p in the pound but pressure from the Treasury has resulted in the proposed taper being increased to 65p in the pound. (Current – working tax credit 41p)

Page 17: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Conditionality• Tougher conditionality is being introduced for all

claims. • Will include partners of claimants in a joint claim• For the first time, conditions will be applied to current

housing benefit and tax credit claimants covering topics such as– Work focused interviews– Work preparation– Work search– Work availability

Page 18: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Sanctions

• Severity of sanctions in current system will increase.

• Penalties will vary, with two main levels of sanctions.– Higher : can be imposed for periods up to three

years– Other : can be imposed for periods up to 26 weeks

Page 19: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Sanctions continued….• Hardship payments will be available for sanctioned

recipients in need, but it is proposed these are loans and they are recoverable (paid back from benefits).

• £50 civil penalty if failure to report a change in circumstances

(For Barnsley there were 88,576 notifications of changes in 2010/11)

Page 20: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Personal Independence Payment (PIP)

• DLA replaced by a Personal Independence Payment (PIP) from 2013-14. Aim is to save 20% of current DLA budget – 500,000 under threat of losing the benefit

(For Barnsley expected annual reduction is min £14.5 million)

• Mobility and daily living component - each with two rates

• Qualifying time six months

Page 21: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

PIP continued• No automatic entitlement for certain conditions but

existing rules apply for terminally ill

• Assessment-advice from independent health care

professional -consider aids and adaptations

• All awards subject to periodic review

• Penalty for failure to notify changes in circumstances

Page 22: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Concerns with PIP• DLA reform process led by a decision to cut cost of

working age disability benefits by 20 per cent. Will lead to greater social exclusion for some disabled people

• Less people will be eligible for the benefit, meaning some people who need this support will no longer qualify

• Six month qualifying period too long for those who fall suddenly ill or have an accident and need immediate support or have high care needs while undergoing treatment e.g. (non terminal) cancer patients

Page 23: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Concerns with PIP• The main aim of any assessment process should be

satisfactory outcome, not necessarily ‘independence’

• Alternative routes to ‘pass porting’ must be offered for people with a disability who would previously have been entitled to DLA, but who - under PIP - will no longer be entitled

Page 24: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Contribution based ESA

• Contributions based ESA will be limited to 12 months for those in the work-related activity group.

• Withdrawal of ESA from young people who have

not accrued NI contributions.

Page 25: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Concerns

• Destroys the principle that those who have paid National Insurance Contributions (NIC’s) will be protected if they become sick.

• Will badly affect sick and disabled young/single people with some savings or other income, and couples with similar savings or in which one partner works.

• Undermines the intention to support people with disabilities to live independent lives.

Page 26: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Housing Benefit &under-occupancy

• HB entitlement will be restricted for working-age households living in social housing accommodation considered to be too large for their needs, rather than being based on the actual rent of their home.

• This will apply to new and existing tenants from 2013.

• Currently Berneslai Homes estimates that:– 2,220 households are under-occupying by 1 bedroom and could

face HB shortfall of £12 per week

– 750 Households under-occupying by 2 bedrooms with HB shortfall £24 per week

Page 27: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Concerns for Barnsley

• Under-occupying households will face a shortfall between their HB and their rent.

• DWP impact assessment shows disabled and ethnic minority households particularly affected

Page 28: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Concerns continued…

• Even if they are prepared to move, it won’t be possible for everyone to transfer to a property of the right size.

– Berneslai Homes stats show there is a surplus of 3 bed properties and a shortage of 1 or 2 beds properties.

• Many families may have to turn to private sector

Page 29: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Other HB changes (for those of working age)

• No longer paid directly to social housing landlord will go direct to tenant (as current LHA)

• UC to be paid monthly (not fortnightly as at present) – budgeting and money management issues & concerns rent arrears will increase

• Berneslai Homes predict increased transaction costs (more people paying rent)

Page 30: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Council Tax Benefit

• Council Tax benefit to be replaced with a Local Discount Scheme with Local Authorities only receiving 90% of the amount currently allocated to Council Tax Benefit to fund it, making a saving of 10% to Govt.

• BMBC estimates the 10% reduction equates to a cut of £1.9 million annually to the Council, with a subsequent “knock-on” effect for people claiming the benefit.

Page 31: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Council tax continued…

• Government wishes pensioners and other vulnerable adults /families to be protected from the effects of this cut. This means that the 10% financial savings will have to be found from working age claimants only, resulting in cuts of 20% to 30% from their existing awards.

 

Page 32: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Finally…..

• Estimated that the DLA, HB, CTB and IB measures alone will result in a reduction of £33 million per year for Barnsley residents / high street – this should be seen as a minimum figure

• UC still planned to have October 2013 start for new claimants

• Old & new benefit systems to run alongside until 2017 when everyone on UC.

• More information on DWP website – policy area

Page 33: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

Thanks for listening!

Contact us….

• Welfare Rights and Community Liaison

01226 772360

Monday to Thursday 9am to 5pm

Friday 9am on 4.30pm

Page 34: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

A fresh approach to people, homes and communitiesA fresh approach to people, homes and communities

Summing up….

• Yes it’s complicated!• Don’t panic! • If you’re to be affected – Berneslai Homes,

the council and/or DWP will be in touch. • Talk to us and plan for those things you know

will affect you.

Page 35: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

A fresh approach to people, homes and communitiesA fresh approach to people, homes and communities

More questions?

• Officers available for rents or lettings enquiries.

On your tables….

• question forms

• Useful contact numbers

Page 36: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

A fresh approach to people, homes and communitiesA fresh approach to people, homes and communities

Prize draw

Helen Jaggar

Page 37: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

A fresh approach to people, homes and communitiesA fresh approach to people, homes and communities

Next Panel

Budget review and setting

Wednesday 17th October 2012

6pm to 8pm

Page 38: A fresh approach to people, homes and communities Berneslai Homes Customer Panel 5 th September 2012 Welcome Mark McGee Director of Housing Management

A fresh approach to people, homes and communitiesA fresh approach to people, homes and communities

Have a safe journey home

Don’t forget to fill in your review forms!