Issue - meetings

To receive an update on the new arrangements relating to benefits and the implications for the Council – report to follow

Liz Rimmer attended the meeting and presented a report on Welfare Reform.

The Welfare Reform Act received Royal assent on 8 March 2012 and introduced the Government’s proposals to reform welfare to improve work incentives, simplify the benefits system and to tackle administrative complexity.

The main changes were summarised as follows:

Housing Benefit

From April 2011

·         The rates of Local Housing Allowance (LHA), payable to those in private-rented accommodation, restricted to a maximum of a 4-bedroomed property, as opposed to the previous 5-bedroom limit for large households

·         An overall maximum cap on the rates of LHA applied

·         The LHA rates set at the 30^th percentile of market rents rather than the median. 

·         Private Rented claimants, with a disability and a non-resident carer, allowed an extra bedroom where there is a need for overnight care.

From January 2012

·         Single people, aged under 35, renting in the private sector, limited to the rate for shared accommodation (such as houses in multiple occupation, bedsits) similar to the restriction in place for those under 25, rather than the rates for self-contained accommodation previously allowed.

From April 2012

·         LHA rates frozen for 12 months, rather than reviewed monthly.

From April 2013

·         Working age claimants in Social Sector accommodation to have Housing Benefit reduced if calculated as under occupying their home (14% reduction for one extra bedroom, 25% for two or more spare bedrooms).

·         Benefits Cap introduced to Housing Benefit

·         A new Single Fraud Service to be introduced merging the Fraud teams from all Councils with those teams from DWP and HMRC

·         LHA rates to be increased on the lower of the average market rents or the rate of CPI.

Council Tax Benefit

Council Tax Benefit to be abolished from April 2013.  Following this, each Council to be responsible for introducing a replacement Localised Council Tax Support Scheme, the cost of which would be 10% less than the current Council Tax Benefit Scheme.

The Council was identifying potential options to deliver a Localised Council Tax Support scheme and was shortly due to carry out a full public consultation to inform its decision making.

Benefits Cap

A Benefits Cap was to be introduced in order to ensure that no workless family (subject to a number of exempt categories) could receive more in welfare than the average earnings for working households.  The provisional figures were:

·         £350 per week - Single people

·         £500 per week - Couples/Lone Parents

Universal Credit

Universal Credit was due to be introduced from October 2013 for new out-of-work claims and April 2014 for new in-work claims to replace the following main benefits:

·         Employment and Support Allowance (Income related)

·         Housing Benefit

·         Income Support

·         Job Seeker’s Allowance (Income based)

·         Tax Credits (Working Tax Credit and Child Tax Credit)

It was expected that claims would be made digitally (on-line or telephone

Disability Living Allowance (DLA) and Personal Independence Payment (PIP)

From April 2013 through to March 2016, DLA to be abolished for those of working age, and replaced with PIP. 

Incapacity Benefit and Employment Support Allowance  ...  view the full minutes text for item 38