webinar: how to future proof your ctrs scheme for universal credit

Policy in PracticeWebinar: How to Future Proof Your CTRS scheme for Universal CreditWednesday 9 March 2016

Housekeeping• Audio check• Please ask questions • Polls and a survey• Finish by 11:30

Daniel CavanillasPolicy in Practice

Speakers

Paul HowarthWelfare Reform Club

Agenda• Introduction to Policy in Practice• The challenges ahead for local authorities• Our process• Examples of our past work• How we can help

We make the welfare system simple to understand, so that people can make the decisions that are right for them

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SOFTWAREindividual impact

Over to Paul

Context for reform of CTRS• Responsibility for policy devolved• Part of wider local authority role in welfare• Budgets static or cut – 10% cut at the outset• Cash limited schemes• Ongoing need for administrative savings• Move towards a discount?• Implications of Universal Credit

New Policy Institute – Changes made to CTR schemes

Where now for local authorities?• Understand the cumulative impact of welfare reform in their

locality (including CTRS), so they can identify possible exemptions, and target support effectively

• Integrate services and funding streams – provide the most appropriate help, working with partners

• Be clear about the impact of new CTR schemes e.g. on: type of household, tenure, those in work

• Recognise that people will always turn to local authorities when in difficulty!

Policy in Practice’s approach

Your Housing Benefit / Council Tax data

Our Universal Benefit Calculator

Rich, detailed impact assessment: who is impacted and what are the

Council-wide effects?

1. Use local data and insights to inform better decision making

2. See the impact of different models together with ongoing welfare reforms

3. Inform Council Tax Support decisions

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Client examples

The challenge facing North Herts• Small local authority• Predicted underspend of £500,000• Generally happy with the design of their scheme.• Wanted to spend more, while making sure tax credit cuts did not

drive demand up.• Also aware that more people would apply for support if the scheme

was more generous – this had to be modelled

The challenge of coming in on budget

Our work with North Herts

• Accurately modelled the Council’s scheme

• Found that effects of cuts on scheme were limited

• Established the ideal level of support

The challenge facing Leeds • Welfare reform and roll-out of Universal Credit• Wanted to ensure that their Council Tax Support scheme was fair to

everyone• Work incentives were another area of focus• Wanted to cut costs so that they could provide better face-to-face

support for residents instead

Our work with Leeds

• We modelled five different schemes

• Graded them on work incentives, financial cost, political costs, and administrative burden

• Financial work incentives are minimal in any case

The challenge facing Newcastle• Want to cut expenditure on payments to be able to support

residents in other ways• Fast roll-out of Universal Credit challenging current scheme• Administrative complexity is another concern, as are arrears• Wanted to model six schemes and see which covers all angles

better.

Our work with Newcastle• Modelled the six different schemes accounting for next year’s rate

increase • Analysed each scheme in terms of work incentives, financial cost

to the Council, administrative complexity, political risk, and arrears.

Our modelling for Newcastle1: ‘No change’2: Current scheme at higher level of support3: Removing protections4: Self-employed workers scheme5: Administratively simple scheme6: Work incentives scheme7: Hybrid

Our analysis for Newcastle NO

CHANGE HIGHER

SUPPORT PROTECTIONS SELF-

EMPLOYED SIMPLE UC

WORK INCENTIVES − − − − −

FINANCIAL COST − − −

ADMIN COST − − − − −

POLITICAL RISK − −

ARREARS − −

• No scheme is perfect – largely a political decision

• Hybrids can get around some weaknesses

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Do you know how you can future-proof your Council Tax Support scheme?

How others are using their analysisBirmingham City Council Identified households most vulnerable to welfare

reformsMapped local support onto local needs

North Hertfordshire Council Accurately forecast cost of CTRSHelped eliminate £500,000 underspend

Leeds City Council Developed innovative approach to local supportIntroduced targeted conditionality and justified his decision to cabinet

Melton Council Used analysis on the most heavily impacted householdsCombined with strategic intervention activity

Newcastle City Council and Your Homes Newcastle

Detailed impact assessment nowBig data hub to track the impact of reforms and effectiveness of interventions

In summaryWe can model CTRS schemes to help you:

• Forecast expenditure in upcoming years• Account for UC roll-out and welfare reform• Model higher take-up as result of changes• Break down the effects on households• Calculate administrative costs• Model effect on arrears levels

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Questions?

Next stepsComplete the automated survey immediately after this webinar to:

1. Request existing client reports2. Request pricing details3. Request our Customer Testimonials eBook

We have permission from existing clients to share their reports with other local authorities who may be similar in structure, demographics or strategic vision to your council.

www.policyinpractice.co.uk

Thank youDaniel Cavanillasdaniel@policyinpractice.co.uk0793 066 5768

Paul Howarthpaul@welfarereformclub.co.uk07854773164

hello@policyinpractice.co.uk

Leading Lights NetworkMarch 2016

www.policyinpractice.co.uk