Business Planning 2011 Benefit changes Benefit Changes Housing

Business Planning 2011 Benefit changes

Benefit Changes • Housing Benefit • Employment and Support Allowance • Disability Living Allowance • Universal Credit

Benefit changes Housing Benefit – Changes to local housing allowance – Restricting payments on property size – Payment to single people under 35

Housing Benefit Effect on people in private rented accommodation in Richmond Due to changes in the Local Housing Allowance • 491 households will have to find up to an extra £ 20 pw • 472 households between £ 20 pw and £ 50 pw • 205 households between £ 50 pw and £ 100 pw • 85 households over £ 100 pw

Employment and Support Allowance • Replaces sickness and disability related benefits (except DLA and AA) • Introduced for new claims from October 2008 • Existing claims being moved onto ESA from April 2011 to 2014.

Employment and Support Allowance • New claims – Only 32% of claims succeed – 9% placed in the Support Group • Existing claims moved from Incapacity Benefit, Income Support or Severed Disablement Benefit – 68% placed on ESA, (30% in Support Group)

Employment and Support Allowance • New, stricter Work Capability Assessment • Some claimants will have to go through Work Programmes • From April 2012 entitlement to contribution based ESA will cease after 12 months.

Disability Living Allowance Still going through parliament • April 2013 – DLA to be replaced by Personal Independence Payments • Expected to make 20% savings • No indefinite entitlements therefore regular reviews • Face to face assessments

Universal Credit • Part of the welfare Reform Bill – still going through parliament • Due to start in October 2013 • Will replace means tested Jobseekers & ESA, Income Support, Housing cost, working tax credits, child tax credits. • Will be paid monthly

Universal Credit • Will be based on previous months income • Will use a ‘real time’ IT system that employers will access and input earnings details • 75% of claims on line • There is likely to be 2. 5 m households who will be better off. 1. 4 m will be worse off • There will be protective transitional arrangements.

Other important changes • Social Housing landlords will be allowed to increase rent to 80% of local average private rent. • Crisis loans no longer available for items of furniture and capped to 60% of benefit. • Responsibility for Social Fund passed to Local Authority but no ring fencing of money.

Other important changes Removal of Legal Aid for benefits cases Ability to recover ‘official error’ overpayments Changes to Council Tax Benefits Child Benefit removed for high earning households • New pensions/payment for care proposals • •