welfare reform and the impact of changes – june 2015 · 2017. 4. 3. · welfare reform and the...

Welfare Reform and The Impact of Changes – June 2015

Chief Executive’s Department, Information and Research Team

1 Welfare Reform and the impact of changes When Welfare Reform comes into full effect it is estimated that more than £1.6bn a year will be taken out of the Scottish economy or around £460 a year for every working age adult. For Dundee City the estimation is £56m a year taken out of the economy and a reduction of £560 a year per working age adult. Table 1 shows that Dundee is expected to have the fourth highest losses in Scotland. Table 1: Overall impact of welfare reform on Scotland

Local Authority

Estimated Loss £m per Annum

Loss Per Working age adult per annum

Glasgow 259 620

Inverclyde 32 600

West Dunbartonshire 35 580

Dundee 56 560

North Ayrshire 49 560

North Lanarkshire 119 540

East Ayrshire 42 520

Clackmannanshire 18 520

Renfrewshire 58 510

South Lanarkshire 101 490

South Ayrshire 34 490

West Lothian 55 470

Fife 109 460

Dumfries and Galloway

43 460

Midlothian 25 460

Falkirk 46 450

Argyll and Bute 23 420

East Lothian 26 410

Highland 59 400

Angus 29 400

Edinburgh 130 390

Scottish Borders 28 390

Perth and Kinross 35 380

Eilean Siar 6 370

Stirling 22 370

East Renfrewshire 20 350

Moray 20 340

Orkney Islands 5 340

East Dunbartonshire 22 330

Aberdeen 50 310

Aberdeenshire 48 290

Shetland Islands 4 270

Scotland 1,600 460



Within Dundee the East End Ward is expected to be most impacted with a loss of £730 a year, the 6th highest of all Wards in Scotland. The least impacted Ward is the West End with a loss of £360 a year for every working age adult. Six of Dundee’s 8 Wards are expected to have greater yearly losses per working age person than the Scottish average Table 2: Worst Affected Wards in Scotland

Authority Ward Overall financial loss per adult of working age £ per year

Glasgow Calton 880

Glasgow Springburn 780

Glasgow North East 750

Glasgow Drumchapel/Anniesland 740

Glasgow Southside Central 730

Dundee East End 730

Glasgow Shettleston 720

Fife Buckhaven, Methil and Wemyss Villages

700

Glasgow Canal 700

Inverclyde Inverclyde East Central 690

Glasgow Garscadden/Scotstounhill 690

Glasgow Govan 690

Glasgow Ballieston 680

Glasgow East Centre 680

Dundee North East 670

Fife The Lochs 670

Glasgow Linn 670

Renfrewshire Paisley North West 660

Inverclyde Inverclyde North 660

West Dumbarton Clydebank Central 660 Source: Sheffield Hallam estimates based on official data

Figure 1: Dundee City Wards



Table 3: £ Loss per Working Adult per annum by Ward, Dundee

Ward Loss per working age adult £ Per annum.

Coldside 600

East End 730

Lochee 660

Maryfield 600

North East 670

Strathmartine 580

The Ferry 390

West End 360 Source: Sheffield Hallam estimates based on official data

The Welfare Reform Committee1 demonstrated that at the level of local authorities there is a clear relationship between the financial loss arising from welfare reform and the level of deprivation: as a general rule, the more deprived the local authority the greater the financial loss. Figure 2 confirms this relationship at the level of wards: the higher the average deprivation score of the ward, the greater the estimated loss per adult of working age. Figure 2: Link between deprivation and welfare reform

Source: Welfare Reform Committee, 5

th Report

The individual welfare reforms vary greatly in the scale of their impact, in the number of individuals or households affected, and in the intensity of the financial loss imposed on those affected. In Scotland the biggest financial impact comes from the reform of incapacity benefits2 an estimated loss in Scotland of £500m a year. Changes to Tax Credits and the 1 per cent up rating of most working-age benefits from April 2013 also account for substantial sums - £300m and £290m respectively. Child Benefit changes affect the largest number of households, more than 600,000 in Scotland. This is because the three-year freeze in Child Benefit rates up to April 2014 (instead of up-rating with inflation) impacted on all recipients.

1 1. Welfare Reform Committee, 5

th Report, 2014

2 2. Welfare Reform Committee, 2

nd Report, 2013



The household benefit cap impacts on fewer households in Scotland, 1,900 according to the latest figures, but the average financial loss for each of these households is relatively large (ref)

2 Key Changes to Benefits Housing Benefit – Local Housing Allowance Changes to the rules governing assistance with the cost of housing for low-income households in the private rented sector. The new rules apply to rent levels, ‘excess’ payments, property size, age limits for sole occupancy, and indexation for inflation Increases in the deductions from Housing Benefit, Council Tax Benefit and other income-based benefits to reflect the contribution that non-dependant household members are expected to make towards the household’s housing costs Household benefit cap New ceiling on total payments per household, applying to the sum of a wide range of benefits for working age claimants Disability Living Allowance Replacement of DLA by Personal Independence Payments (PIP), including more stringent and frequent medical tests, as the basis for financial support to help offset the additional costs faced by individuals with disabilities Incapacity benefits Replacement of Incapacity Benefit and related benefits by Employment and Support Allowance (ESA), with more stringent medical tests, greater conditionality and time-limiting of non-means tested entitlement for all but the most severely ill or disabled Child Benefit Three-year freeze and withdrawal of benefit from households including a higher earner Tax Credits Reductions in payment rates and eligibility for Child Tax Credit and Working Tax Credit, paid to lower and middle income households 1 per cent up-rating Reduction in annual up-rating of value of most working-age benefits

2.1 Universal Credit Universal Credit has been gradually introduced across the UK since late 2013, and will eventually replace six of the main means-tested benefits. Phased implementation of this is due to begin in Dundee in November 2015

Jobseeker’s Allowance (income based)

Employment and Support Allowance (income-related)

Income Support

Child Tax Credits

Working Tax Credits

Housing Benefit



The aim is to simplify the benefits system by merging together the six benefits above into a single payment. Currently, Jobseeker’s Allowance, Employment and Support Allowance and Income Support are all paid fortnightly to the claimant, while Tax Credits are paid weekly or four-weekly. Universal Credit is to be paid monthly, in arrears, to one person in the household, into a bank account. This means that if a claimant is receiving help with their rent, the claimant will need to pay their landlord directly. At present, Housing Benefit can be paid direct to landlords only if the claimant permits it. Contribution based JSA and ESA will not be included within Universal Credit.

3 Who is affected by Welfare Reform? Housing Benefit Local Allowance

Low income households, mostly of working age, in the private rented sector

Under-35s, often single men, in the private rented sector

Families with large numbers of children in the private rented sector Non-Dependent Deductions

Low-income households with grown-up children living at home Household Benefit Cap

Large out-of-work families in high rent areas Disability Living Allowance

Less severely disabled of working age, mostly older, mostly out-of-work Incapacity Benefits

Out-of-work, mainly older adults with ill health or disability, except the most severely ill or disabled

Child Benefit

All households with children

Households with higher earners Tax Credit

Low-to-middle income families with children, including workless households

Part-time workers on less than 24hrs a week 1 per cent Uprating

Everyone on the main working age benefits (JSA, IB/ESA, IS, HB(LHA), Tax Credits)

4 Dundee City Benefits Claimants Figure 3: Total Claimants, November 2014

Source; Nomis June 2015

0

500

1,000

1,500

2,000

2,500

3,000

3,500



In Dundee, at November 2014 there were 17,635 benefit claimants. The area with the highest amount of claimants was Coldside followed by Lochee. Coldside has the highest amount of people claiming key out of work benefits overall, Employment Support Allowance and other out of work benefits. Lochee has the highest amount of people claiming Job Seekers Allowance The East End ward shows the highest amount of people in receipt of Lone Parent benefits and Strathmartine ward the highest amount Carers and Disabled benefit recipients.

Table 4 Benefit Claimants by Ward

Co

ldsid

e

East

En

d

Lo

ch

ee

Mary

field

No

rth

Ea

st

Str

ath

ma

rtin

e

Th

e F

err

y

West

En

d

T

ota

l

Total Claimants 3,200 2,620 2,880 2,375 2,050 2,620 895 935 17,635

% 18.1 14.9 16.3 13.5 11.6 14.9 5.1 5.3 100

Job Seekers 17.7 14.3 19.3 16.4 10.4 13.4 3.8 5 3,285

ESA 19.8 14.3 15.9 13.8 11.1 13.6 5.7 5.9 9,605

Lone parents (%)

16.5 19.5 19.1 9.9 15.1 16.2 1.1 2.2 1,360

Carers (%) 12.4 17.3 14.9 9.9 14.9 21.4 5 4.6 1,615

Others on income related benefits (%)

23.9 15.9 15.9 15.9 6.8 11.4 4.5 6.8 440

Disabled (%) 16.3 13.3 12.4 11.2 13.3 18.9 8.6 4.7 1,165

Bereaved (%) 12.1 12.1 12.1 15.2 12.1 21.2 6.1 9.1 165

Male (%) 19.9 14 16.9 15.3 10.4 12.9 5.1 5.7 9,075

Female (%) 16.5 15.9 15.9 11.7 13 16.9 5.2 4.9 8,560

Aged 16-64 (%) 15.6 14.3 19 13.7 12.6 16 3.6 4.7 2,340

Aged 25-49 (%) 18.1 15.3 17.3 13.9 11.9 14.5 4,3 5 8,880

Aged 50+ (%) 19.3 14.5 14.1 12.9 11 15 6.8 5.9 6,415

Out of Work Benefits

19.2 14.8 17 14.1 11.2 13.8 4.8 5.4 14,690


4.1 Duration of Benefit Claims Table 5 below outlines the duration of time claimants had been receiving each benefit in November 2014. It shows that for Carers and DLA benefits the largest majority had been in receipt for 5 years or more, for Job Seekers Allowance the majority had been in receipt for 6 months and under. Those in receipt of ESA/Incapacity benefits had 1150 in receipt for 6 months and under and just slightly lower, 1110, in receipt for 5 years or more.



Table 5: Benefit claimants by duration of claim, November 2014

Benefit claimants – Duration of Claim– working age client group (Nov 2014)

Up

to

6

mo

nth

s

6 m

on

ths

to

1 y

ear

1 y

ear

& u

p

to 2

yea

rs

2 y

ears

& u

p

to 5

yea

rs

5 y

ears

an

d

ove

r

Carers Allowance

90 90 30 240 290

Disability Living Allowance

* * 40 240 920

Incapacity Benefit or ESA

1,150 620 690 710 1,110

Job Seekers Allowance

1,580 400 430 670 60

Income Support, Personal Credit and Carers Allowance

50 60 120 250 440

Other combinations

40 40 50 120 590

All benefits/all combinations

3,160 1,420 1,810 3,250 9,970


4.2 Children living in out of work benefit claimant households

Latest data available shows that there were 6,080 or one in four children aged under 16 living in out of work benefit claimant households in Dundee City. It also shows that there were 6,790 young people aged 0 to 18 years living in 3,950 out of work benefit claimant households. Dundee proportions are higher than proportions for the whole of Scotland as shown in tables 6 and 7. Table 6: Number of Children living in out of work benefit claimant households in Dundee City in May from 2010 to 2013

Year Age 0 - 4

Age 5 - 10

Age 11 – 15

Age 16 - 18

Age 0- 15

Age 0 - 18

No of households

2013 2,230 2,250 1,600 710 6,080 6,790 3,950

% of age group 27.0% 26.5% 22.8% 12.7% 25.6% 23.1%

2012 2,310 2,330 1,750 620 6,380 7,000 4,030

2011 2,300 2,360 1,830 610 6,490 7,090 4,030

2010 2,280 2,400 1,850 640 6,530 7,170 4,040 Source: HRMC



Table 7: Number of Children living in out of work benefit claimant households in Scotland in May from 2010 to 2013

Year Age 0-

4 Age 5-

10 Age 11-

15 Age 16-

18 Age 0-15

Age 0-18

Nr of househ

olds

2013 59,810 58,800 45,400 18,660 163,970 182,690 105,840

% of age

group 20.3% 17.5% 16.1% 9.9% 18.0% 16.6%

2012 62,040 62,260 49,400 18,120 173,690 191,800 111,240

2011 62,080 63,160 51,280 18,900 176,600 195,470 112,950

2010 62,050 64,900 53,680 19,420 180,630 200,040 115,170

Source: HRMC

4.3 Child Benefit and Tax Credits Child Benefit is available to people who are responsible for a child under the age of 16, or under 20 if they are in ‘approved education or training’. Only one person can claim Child Benefit; usually the parent or guardian that the child lives with. Child Benefit should be claimed as soon as a child is born, or as soon as the child moves in with the claimant. The rate of Child Benefit is £20.50 a week for the eldest or only child, and £13.55 a week per additional child. This is usually paid four-weekly into a bank account; Child Benefit cannot be paid into children’s accounts, Child Trust Funds or building society accounts. From the beginning of 2013, Child Benefit was capped for families where one parent is earning over £50,000 a year, and stopped completely if one parent’s income reached £60,000. This could, however, mean that both parents could earn up to £40,000 each and still receive Child Benefit, despite having a net income of £80,000. Table 8: Number of children in families receiving Child Benefit

Number of children in child benefit

By age of child By gender of child Total

Under 5

5 to 10 years

11 to 15 years

16 to 19 years Boys Girls Unknown

All Children

7,810 8,510 6,790 3,340 13,500 12,910 0 26,445 Source: HMRC

Table 9: Number of families receiving Child Benefit

Number of families receiving Child Benefit

By Size of Family Total

One Child

Two Children

Three or more children All families

8,885 5,395 2,020 16,355 Source: HMRC

Child Tax Credits (CTC) Child Tax Credits (CTC) are available to people who are responsible for children under the age of 16, or under 20 and in ‘approved education or training’. Responsibility for a child depends on whether they live with the claimant all the time, or the claimant is the main ‘carer’ for the child. Claimant’s do not need to be working to claim CTC, and will receive money for each child that is eligible. CTC will not affect the rate or amount of Child Benefit the claimant receives.

Working Tax Credit (WTC) Working Tax Credits (WTC) are available to people who are aged 16-24 and have a child or disability. For people without children, they can only claim WTC if they are 25-59, and must be working at least 30 hours per week. People aged 60 or over must be working at least 16 hours to



claim WTC. Single people with one or more children must be working at least 16 hours a week, while couples with one or more children need to work at least 24 hours a week between the two (one member of the couple must work at least 16 hours). Table 10: Families in receipt of child or working tax Credit, Dundee City, April 2014

Out of work WTC and CTC

CTC Only

Childcare Element No Children

Families Children Families Children Families Children Families Families

3800 6800 4400 7100 1800 3300 1000 1600

4.4 Housing Benefit and Council Tax Reduction

Housing Benefit Housing Benefit helps people on low incomes with the cost of their rent. It is only available to tenants, not people who own their home. To claim Housing Benefit you must:

live in the property you are claiming for

be charged rent for this property

Receive Income Support, Employment Support Allowance, Jobseeker's Allowance or Pension Credit.

The benefit awarded is intended to help with the cost of rent, but not with living costs such as food and heating. Dundee City Council can pay some of, or the entire claimant’s rent, but cannot meet all the service costs that landlords might charge. There are two main types of Housing Benefit:

Rent allowance: claimed if you are renting from a private landlord or housing association

Rent rebate: claimed if you are renting from Dundee City Council

Council Tax Reduction (CTR) was introduced to replace Council Tax Benefit (CTB) in April 2013. CTB has been abolished by the UK Government as part of the Welfare Reforms. Responsibility for assisting those who need help to pay their Council Tax in Scotland now sits with the Scottish Government and Scottish Local Authorities. CTR is paid to people on a low income to help with the cost of their Council Tax. To claim CTR, you must:

be liable to pay the Council Tax for the property, if not this reduction cannot’ be claimed

live in the property Table 11: Live Housing Benefit and Council Tax Reduction Claims, Dundee, June 2015

Total Passported

Non-Passported

Housing Benefit Claims 18,445 12,944 5,501

Council Tax Reduction Claims 18,857 13,288 5,569

Source: Dundee City Council, Revenues Department

4.5 Scottish Welfare Fund From April 2013, changes to the DWP Social Fund scheme meant that Crisis Loans and Community Care Grants have been replaced by the Scottish Welfare Fund (SWF) which is delivered by Local Authorities. The SWF is intended to offer grants or in kind support for two purposes:

Crisis Grants

Community Care Grants



The following two tables show a comparison of the total number of applications and the total number of people in receipt of the Scottish Welfare Fund during 2013/14 received by Scotland and Dundee residents. The total number of applications rose by 13%, similar to Scotland overall and the number of people in receipt of fund rose by 240 persons from January to December 2014. Table 12 Total Applications to the Scottish Welfare Fund to December 2014

2013 2014 Change

Apr to Jun Jul to Sep

Oct to Dec

Jan to Mar

Apr to Jun

Jul to Sep

Oct to Dec

Number %

Scotland 33,207 39,300 43,546 53,132 53,164 52,942 49,369 5,823 13%

Dundee

2,351

2,110

2,029

2,365

2,440

2,526

2,286 257 13% Source: DWP, Stat-xplore

Table 13: All people in households in receipt of Scottish Welfare Fund 2014

Total

People in

Hholds

Total Hholds Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Scotland 13,375 12,750 13,265 13,500 14,435 15,830 17,115 19,045 16,980 16,525 239,415 134,595

Dundee

465

485

500

555

590

690

655

695

775

680

9,870

5,704 Source: DWP, Stat-xplore

Crisis Grants A Crisis Grant can help claimants that are in crisis because of a disaster like a fire or flood, or an emergency such as being robbed, burgled, or having lost their money. It may help with costs that have happened as a result of the disaster or emergency, to keep them or their family safe from harm. To qualify for a Crisis Grant, claimants must be in receipt of one of the ‘passported benefits’; Income Support, Jobseekers Allowance (Income Based), Employment and Support Allowance (income-related), Pension Credit Guaranteed Credit, and Child or Working Tax Credits. If qualified for a Crisis Grant, the help received will depend on the particular difficulties the claimant faces. Claimants may be given money or another form of support; for example, a voucher, fuel card, or travel ticket. Claimants are restricted to three successful Crisis Grant payments in a rolling 12-month period, and are prohibited from making applications within 28 days of an award being granted. The two tables below show a comparison of the total number of Crisis Grant applications and the application outcomes during 2013/14 received by Scotland and Dundee residents. Dundee’s level of applications has risen by 23% since 2013. The most common reason for application was ‘helping people to stay in the community’; the average amount awarded was £83, £11 higher than the Scottish average Table 14 Crisis Grant Applications to the Scottish Welfare Fund 2013/2014

2013 2014 Change

Apr to Jun

Jul to Sep

Oct to Dec

Jan to Mar

Apr to Jun

Jul to Sep

Oct to Dec

Number %

Scotland 22,838 27,233 28,665 35,739 35,511 35,790 32,955 4,290 15%

Dundee 1,571 1,451 1,324 1,573 1,715 1,783 1,622 298 23% Source: DWP, Stat-xplore



Table 15 Crisis Grants Award Outcomes

Crisis Grants

Number Accepted

Number Rejected

Total Applications

% Accepted

Spend this

Quarter

Average Award

Scotland 23,715 9,780 33,495 71% £1,712,461 £72

Dundee 1,100 560 1,655 66% £91,163 £83 Table 16 Crisis Grant Application Reasons

1 October 2014 to 31 December 2014

Moving out of res/institute

accommodation

Helping people to stay in the community

Planned resettlement

after an unsettled way

of life

Families facing

exceptional pressure

Caring for a prisoner/offender on temporary

release

Other reason

Total

Scotland

1,540 7,350 1,275 4,830 100 1,940 17409

Dundee 105 390 60 125 5 0

680 Source: DWP, Stat-xplore

Community Care Grants (CCG) A Community Care Grant may help claimants that are about to leave care or prison to live on their own in the community, or face going into care because they don’t have the support needed to continue living at home. A Community Care Grant may also be able to help if families face exceptional pressures and need an essential item like a cooker or washing machine but don’t have the money to buy it. To qualify for a Community Care Grant you must be in receipt of a ‘passported benefit The number of Community Care Grant applications in Dundee dropped between April 2013 and December 2014 by 6%. Fifty five per cent of all applications were accepted, 10% less than the overall Scottish figure however the average award of £721 was higher than the Scottish average figure of £596. Table 17 Community Care Grant Applications to the Scottish Welfare Fund

2013 2014

Change

Apr to Jun

Jul to Sep

Oct to Dec

Jan to Mar

Apr to Jun

Jul to Sep

Oct to Dec

Number %

Scotland

11,156

12,600

15,400

18,102

18,391

17,802

17,041 1,641 11%

Dundee City

864 692 724 819 736 760 682 -42 -6%

Source: DWP, Stat-xplore

Table 18 Community Care Grant Awards, 1

st October to 31 December 2014

Community Care Grants

Number Accepted

Number Rejected

Total Applications

% Accepted

Spend this

Quarter

Average Award

Scotland 12,290 6,745 19,035 65% £7,319,935 £596

Dundee 435 350 785 55% £ 313,667 £721 Source: DWP, Stat-xplore

Discretionary Housing Payments Discretionary Housing Payments can be paid to those who receive housing benefit and require additional help to meet their housing costs (rent). The local housing benefit department assess and decide who will



receive the payments. They will usually take into account any special circumstances that contribute to claimant’s financial difficulties, for example:

reductions in housing benefit or universal credit where the benefit cap has been applied

reductions in housing benefit or universal credit following the removal of spare room subsidy in the social rented sector (‘the bedroom tax’ or under-occupancy charge)

reductions in housing benefit or universal credit as a result of local housing allowance (LHA) restrictions

rent officer restrictions such as local reference rent or shared room rate

non-dependant deductions in housing benefit, or housing cost contributions in universal credit

rent shortfalls to prevent a household becoming homeless whilst the housing authority explores alternative options

any extra heating costs because the claimant spends a lot of time at home because they are sick or disabled

additional travel costs because the claimant travels to a doctor or hospital or cares for a relative or friend. Table 19: DHP Applications and Outcomes from 1 April 2014 to 31 March 2015

Source: DWP, Stat-xplore

Figure 4 below shows that Dundee City has the second highest average award payment in Scotland at £595 per year

Figure 4: Average Discretionary Housing Payments in Scotland

Source: Scottish Government

£- £100 £200 £300 £400 £500 £600 £700 £800

South Ayrshire

Eilean Siar

Angus

Scottish Borders

Fife

East Renfrewshire

North Lanarkshire

East Ayrshire

East Lothian

East Dunbartonshire

Moray

West Lothian

West Dunbartonshire

Aberdeenshire

Clackmannanshire

Dundee City

Edinburgh City

Average DHP Award (£)

Local Authority

Applications Determinations Awards Total Award Value Average Award

Dundee City 3,834 3,834 3,584 £ 2,131,191 £ 595

Scotland 132,360 130,088 117,832 £ 50,532,470 £ 429



4.6 Local Housing Allowance Dundee City This is the maximum amount of weekly housing benefit Dundee City Council can pay towards the rent of claimants living in privately rented accommodation. Table 20: Dundee Local Housing Allowance

Rate Amount Maximum HB

Per Week (Paid 4 Weekly)

*Shared Room Rate

£57.69 £230.76

1 Bedroom £79.24 £316.96

2 Bedrooms £103.85 £415.40

3 Bedrooms £128.19 £512.76

4 Bedrooms £189.07 £756.28 Source: Scottish Government

4.7 Disability Living Allowance From April 2013, anyone aged between 16 and 64 can no longer claim Disability Living Allowance (DLA), and would need to claim Personal Independence Payment (PIP) instead. Those who were already in receipt of DLA in April 2013 will be transferred onto PIP from 2015. New claims for DLA will only be accepted by people aged 65 and over on 8th April 2013, or people caring for children under 16. DLA for children may help with the extra costs of looking after a child who is under 16, or has difficulties walking, or needs more looking after than a child of the same age who doesn’t have a disability. DLA has two main components; the Care component and the Mobility component Table 24 shows that 72% of all those in receipt of DLA at November 2014 had been in receipt of that claim for a period of 5 years or over, this was slightly lower than the Scottish figure of 81%. Table 21: Persons in receipt of care component, November 2014

Total Caseload

Care Award Type

Higher Rate Middle Rate Lower Rate Nil Rate

Dundee City 11,350 2,900 3,980 3,050 1,420

Scotland 343,000 85,600 117,97 92,600 46,880

Source@ DWP, Toolkit

Table 22: Persons in receipt of Mobility Award Type November 2014

Total Mobility Award Type

Higher Rate

Lower Rate

Nil Rate

Dundee 11,230 5,430 4,750 1,050

Scotland 315,470 170.62 111,830 33,001 Source@ DWP, Toolkit

Table 23: Amount of weekly payment, November 2014

Care Award Type

Total Higher Rate Middle Rate Lower Rate Nil Rate

Average weekly Average weekly

Average weekly

Average weekly

Average weekly

amount of benefit

amount of benefit

amount of benefit

amount of benefit

amount of benefit

Dundee City £81.79 £122.76 £88.97 £51.79 £45.96



Table 24: DLA Claimants duration of current claim November 2014

Total Thousands

Duration of current claim (days)

Up to 3 months

3 months

up to

6 months

up to

1 year and up

2 years and up

5 years and over

6

months 1 year

to 2 years

to 5 years

Dundee City

11.35 0.04 0.04 0.1 0.48 1.7 8.98

Scotland 334.73 1.26 1.3 2.57 12.09 46.48 271.0

4.8 Personal Independence Payment (PIP) PIP is gradually replacing Disability Living Allowance (DLA) and helps with extra costs caused by long-term ill-health or a disability for claimants aged 16-64. The rate depends on how a claimant’s medical condition affects them, not the condition itself, and is determined by an assessment. PIP claimants must have a long-term health condition or disability and have difficulties with activities related to ‘daily living’ or ‘mobility’ needs. Claimants may receive the mobility component of PIP if they need help with going out or moving around, while they may receive the daily living component of PIP if they need help with things like:

preparing or eating food

washing, bathing and using the toilet

dressing and undressing

reading and communicating

managing your medicines or treatments

making decisions about money

engaging with other people

There have been recent criticisms of the transition between DLA to PIP3 with Citizens Advice Scotland reporting that claimants are waiting an average of six months between claiming PIP and receiving a first payment, causing severe hardship. The following table shows a comparison of the total number of PIP claims in payment by Scotland and Dundee City. The number of claims continues to rise as this benefit replaces DLA. In January 2015 there were 1095 PIP claims in payment, an increase of 1008 from January 2014. Table 25: Total Number of PIP claims Dundee and Scotland, 2014/2015

Source: DWP

Table 26 outlines the age groups of those in receipt of PIP in January 2015, due to the nature of the benefit there are more older PIP claimants than in younger age groups. In Dundee City the highest amount of claimants were in the 55 to 59 age group, a similar picture is reflected in the Scotland wide figures.

3 Citizens Advice Scotland, The Impact of Welfare Reform, 2013

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14 Dec-14

Jan-15

Scotland 4070 5037 6239 7285 9000 10293 12222 16479 19572 23139 26942 31318 36038

Dundee 87 119 143 170 194 219 254 354 411 530 706 930 1095



Table 26: Age of those receiving PIP January 2015

5 JSA Sanction Decisions There are three categories of JSA sanction: higher, intermediate and lower, all depending on the nature of the offence. The sanction period begins either on the first day of the benefit week in which the offence occurred, if the claimant has not been paid JSA for that week, or on the first day of the benefit week following the date the claimant was last paid JSA

Higher level sanctions, which can be invoked for leaving a job voluntarily, will lead to claimants losing all of their JSA for a fixed period of 13 weeks, for a first failure, 26 weeks for a second and 156 for a third and subsequent failure.

Intermediate level sanctions last 4 weeks for a first failure and 13 weeks for a second and any further failures, and can be applied following a period of disallowance for not actively seeking employment.

Lower level sanctions will lead to claimants losing all their JSA for a fixed period of 4 weeks, followed by 13 weeks for any further failures.

5.1 JSA Sanction Decisions Made in 2014 In 2014 there were over 6,100 JSA sanctions decisions made for residents of Dundee City. The table below shows the number of JSA sanction decisions made on a monthly basis during 2014. Numbers range from a low in October of 372 to a high of 667 in February. A similar pattern was experienced across Scotland and Dundee City with the highest number of sanctions occurring at the start of the year then decreasing overall to lower figures later in the year. In November 2014 the number of JSA sanctions represented 13.5% of JSA Dundee City claimants and 8.0% across Scotland.

Table 27 JSA sanction decisions made by month during 2014

2014

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Scotland 13,998 11,664 11,040 9,370 8,904 9,466 8,778 8,111 8,751 7,712 7,036 6,241

Dundee City 665 667 598 529 647 596 421 386 405 372 443 382

Source: DWP Stat-xplore

5.2 Reasons for JSA Sanctions October to December 2014 In October to December 2014, the three main reasons for JSA sanctions were:

‘failure to participate in a scheme for assisting person to obtain employment without good reason – a work programme’. (43% Dundee City, 26% Scotland)

failure to attend or failure to participate in an adviser interview without good reason’ (18% Dundee City, 21% Scotland)

not actively seeking employment’ (12% Dundee City, 23% Scotland) Table 28 shows the breakdown for all JSA Sanction reasons October to December 2014 for both Scotland and Dundee City.

Age of those receiving Personal Independence Payment, January 2015

16 to 17

18 to 24

25 to 29

30 to 34

35 to 39

40 to 44

45 to 49

50 to 54

55 to 59

60 to 64

65 and over

Dundee 17 61 65 81 87 118 144 161 193 159 9

Scotland 695 2,228 1,807 2,336 2,571 3,651 4,707 5,628 6,186 5,704 511



Table 28 Known reasons for JSA sanctions from October to December 2014

Scotland Dundee City

Known reasons for JSA Sanctions Oct to Dec 2014 Month Number

% of month total Number

% of month total

Failure to attend or failure to participate in an Adviser interview without good reason

(Oct-14) 1729 22% 80 22%

(Nov-14) 1464 21% 72 17%

(Dec-14) 1297 21% 63 16%

Refusal or failure to comply with a Jobseeker's Direction without good reason

(Oct-14) 306 4% 17 5%

(Nov-14) 254 4% 29 7%

(Dec-14) 183 3% 5 1%

Failure to participate in a scheme for assisting person to obtain employment

without good reason - Work Programme

(Oct-14) 1689 22% 91 25%

(Nov-14) 1952 28% 201 46%

(Dec-14) 1858 30% 210 55%

Failure to participate in a scheme for assisting person to obtain employment without good reason - other scheme

(Oct-14) 509 7% 26 7%

(Nov-14) 232 3% 11 3%

(Dec-14) 290 5% 18 5%

Not actively seeking employment

(Oct-14) 1794 23% 70 20%

(Nov-14) 1769 25% 52 12%

(Dec-14) 1224 20% 25 7%

Not being available for work

(Oct-14) 113 1% 5 1%

(Nov-14) 87 1% 10 2%

(Dec-14) 70 1% 0 0%

Left employment voluntarily without good reason

(Oct-14) 698 9% 31 9%

(Nov-14) 616 9% 38 9%

(Dec-14) 711 11% 31 8%

Losing employment through misconduct

(Oct-14) 185 2% 5 1%

(Nov-14) 217 3% 9 2%

(Dec-14) 234 4% 12 3%

Refusal or failure to apply for, or accept if offered, a job which an employment officer has informed him/her is vacant or about to

become vacant without good reason

(Oct-14) 369 5% 6 2%

(Nov-14) 304 4% 6 1%

(Dec-14) 271 4% 5 1%

Failure to participate in Mandatory Work Activity without good reason

(Oct-14) 219 3% 27 8%

(Nov-14) 82 1% 8 2%

(Dec-14) 39 1% 8 2%

Other referral reason

(Oct-14) 96 1% 0 0%

(Nov-14) 60 1% 0 0%

(Dec-14) 59 1% 6 2% Source: DWP Stat-explore



5.3 JSA Sanction Decisions within Dundee City

There were over 6,100 sanction decisions made in Dundee City during 2014. Map 1 shows how these decisions were spread over the residents of the Dundee City Intermediate Geography. The areas of Stobswell and Lochee had significantly higher amounts of sanction decisions than any other. City Centre, Ardler and St Marys, The Glens, Hilltown, Charleston, Menzieshill, Whitfield and Linlathen and Mid Craigie also had high counts all with over 300.

5.4 JSA Sanction by age Group Figure 5 shows the age profile for those who had a JSA Sanction Decision made in 2014 for Scotland and Dundee City. Figure 5: Sanction Decisions Age Profile



Dundee City follows a similar pattern to Scotland with about a third of all sanction decisions being made on individuals aged 18 to 24.

5.5 JSA Sanction Decision Outcomes Table 29 shows that the decision to apply a sanction was at 45% at January 201 and 55% in December 2014. Table 29 Sanction Decision Outcomes

2014


Scotland 13,998 11,664 11,040 9,370 8,904 9,466 8,778 8,111 8,751 7,712 7,036 6,241

Decision to apply a sanction (adverse) 45% 46% 48% 49% 50% 54% 53% 52% 51% 54% 56% 55%

Reserved 6% 5% 6% 6% 8% 8% 8% 9% 9% 7% 6% 5%

Cancelled 29% 25% 22% 22% 22% 18% 19% 18% 20% 18% 16% 17%

Decision not to apply a sanction (non-adverse) 21% 24% 24% 23% 21% 20% 20% 21% 20% 22% 22% 23%

Dundee City 665 667 598 529 647 596 421 386 405 372 443 382

Decision to apply a sanction (adverse) 39% 40% 43% 47% 43% 52% 51% 46% 42% 47% 44% 42%

Reserved 7% 6% 5% 6% 6% 6% 6% 7% 10% 7% 6% 5%

Cancelled 28% 27% 27% 23% 27% 20% 20% 23% 23% 25% 23% 22%

Decision not to apply a sanction (non-adverse) 27% 27% 25% 24% 24% 22% 23% 24% 25% 21% 27% 32%


5.6 JSA Sanction Decision Outcomes by Level

Of the 6,111 JSA Sanction Decisions made in in Dundee City in 2014, there were 2,072 decisions which resulted in a sanction being applied and 1,533 decisions which resulted in a sanction not being applied. The following tables display the level of sanction that were being decided upon in 2014. Table 30 shows the level of the decisions to apply a sanction for Dundee City and Scotland. Approximately half of the sanctions were at the low level for both Scotland and Dundee City. The other half were either intermediate or high level. Table 30: Decision to apply sanction

Decision to apply a sanction (adverse) (V)

Low Level (XVIII)

Intermediate Level (XIX)

High Level (XVIII)

Unknown Not Applicable (Old regime)

All Decisions

Scotland

Count 27,869 21,748 6,214 35 0 55,866

% 50% 39% 11% 0% 0% 100%

Dundee City

Count 1423 1011 268 0 0 2702

% 53% 37% 10% 0% 0% 100% Source: DWP Stat-xplore



Table 31 shows the level of the decisions not to apply a sanction for Dundee city and Scotland. Approximately two thirds of the decisions not to apply a sanction were at the low level for both Scotland and Dundee City. The remaining third was shared between intermediate and high level. Table 31: Decision to not apply sanction

Decision not to apply a sanction (non-adverse) (IV)

Low Level (XVIII)

Intermediate Level (XIX)

High Level (XVIII)

Unknown Not Applicable (Old regime)

All Decisions

Scotland

Count 15,669 2,605 5,930 57 0 24,261

% 65% 11% 24% 0% 0% 100%

Dundee City

Count 1,051 193 276 13 0 1,533

% 69% 13% 18% 1% 0% 100% Source: DWP Stat-xplore

6 Employment Support Allowance (ESA) ESA claimants placed in the ‘Work Related Activity Group’ (WRAG) who fail to meet requirements are subject to an open-ended sanction which is lifted when they re-comply. When the open-ended sanction is lifted, there will be an extra fixed-period sanction which is:

One week for a first failure Two weeks for a second failure Four weeks for a further failure within 52 weeks

The sanction amount is 50% of their entitlement, rising to 100% after four weeks. Claimants can be sanctioned if they fail to take part in a work focused interview or fail to comply with a work related activity direction. The sanction does not apply if they have “good cause”. They must notify the Job Centre of a “good cause” argument within 5 days of the failure that is at risk of being sanctioned. The term “good cause” can include issues such as

health or disability

language or literacy problems

transport problems

conflicting appointments you could not reasonably rearrange

attending a funeral

attending a job interview

6.1 ESA Sanction Decisions Made in 2014 Table 32 below shows the number of ESA sanction decisions made on a monthly basis during 2014. The numbers fluctuate throughout the year with the lowest Dundee City number occurring in April with 27 and the highest in December with 95. Table 32 Sanction decisions made

2014


Scotland 858 906 819 787 966 922 864 714 632 599 669 634

Dundee City 39 39 36 27 88 55 80 41 33 32 67 95




6.2 Reasons for ESA Sanctions October to December 2014 Table 33 shows the referral reasons for ESA Sanctions for Scotland and Dundee City for the last three months of 2014. The Table shows that almost all of the referrals for ESA sanctions come from the failure to participate in work related activity. This applies to both Scotland and Dundee City. Table 33 Known Reasons for ESA Sanction, Scotland and Dundee City, Oct – Dec 2014

Scotland Dundee City

Failed to attend mandatory interview

Failure to participate in work related

activity

Failed to attend mandatory interview

Failure to participate in work

related activity

Oct-14 6% 94% 0% 100%

Nov-14 7% 93% 0% 100%

Dec-14 6% 94% 7% 93% Source: DWP Stat-xplore

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