Officers from Welfare Rights Services, Leicester City Council, will be in attendance to provide information with regards to how changes to the benefits and pensions systems will affect residents.
Minutes:
Darren Moore, from Welfare Rights Service gave details on proposed changes to welfare benefits.
Welfare Rights Service, Leicester City Council helped Leicester residents claim £6 million in additional benefits and tax credits in 2011. The government aims to cut benefits by approximately £16-17 billion, per annum and will be changing the way increases in benefit are calculated, ceasing to use the Retail Price Index (RPI) and using the Consumer Price Index (CPI. This will reduce the amount of increase in benefits for claimants over the years, and will affect all benefits. The Welfare Rights Service can also help people who have been turned down for benefit and want to appeal. The government are looking at abolishing legal aid for a lot of areas from 2013, for example welfare benefits law, and there will be fewer agencies to give advice.
Welfare Advice Service also undertook benefit checks for people with Home Care service, to ensure they were receiving all possible help available to them.
The government introduced a phased increase in retirement age for men and women, who would now retire at age 66 in 2020, age 67 in 2026 and age 68 in 2034. The figures above may change as there was currently a Welfare Reform Bill going through Parliament. Also people of working age in receipt of benefits would face a tougher testing for eligibility. It was reported that many people on Incapacity Benefit being reassessed, now known as Employment Support Allowance from 2008 (ESA), had been visiting Welfare Advice claiming they had been assessed unfairly and had been refused ESA. It was noted that there was a process of appeal. Another change to the benefits system from 2013 would be the replacement of the Disability Living Allowance with Personal Independence Payment for eligible working age people aged 16 to 64. This benefit would face a different test and some people might not meet the criteria, estimated to be half a million people.
Furthermore, in order to simplify the benefit system, a Universal Credit was set to replace the present benefit structure in 2013. There was likely to be an initial period of confusion as the two systems would run concurrently for a period of time. There would also be a new Enterprise Allowance created to assist unemployed people set up in business themselves.
The government would be tightening up on the number of people in work on low income claiming tax credits. Couples would now have to work 24 hours per week to qualify (previously 16 hours), and the backdating of claims would be reduced to one month. The change would also mean people would not receive extra tax credit if their income fell.
Jane Gallagher, Liaison Officer with Revenues and Benefits gave information on housing benefit and council tax changes.
It was stated that from April 2011 there were changes to housing benefits as part of the Welfare Reform Bill, which affected mainly private tenants claiming Local Housing Allowance (LHA). LHA is Housing Benefit (HB) paid to assist people unable to afford rent in the private rented sector, (Local Housing Allowance was a national scheme introduced in April 2008 for all new HB claims from people renting from a private landlord). The allowance is based on the size of the household. Some of the Welfare Reform changes affected LHA rates: the maximum LHA rate is now a four bedroom rate from April 2011 (previously five bedroom rate pre April 2011). Pre April 2011 LHA rates were set at the 50th percentile (lowest half of market rents charged in Leicester. From April 2011 the rates are set at the lowest 3rd of market rents, or 30th percentile. This means the LHA rates reduced from April 2011.
A more recent change took effect from 1st January 2012. The ‘shared accommodation’ LHA rate is now the maximum bedroom rate that can be paid to a single person under the age of 35 years. The rate is paid even if a single person was living in a self-contained property. Before changes to the benefits, a restriction applied to single people under the age of 25 years.
From April 2011 where a disabled claimant requires overnight care provided by a non-resident carer, an extra bedroom for the non-resident carer is allowed, and could increase the amount of benefit received for some claimants, though they must meet certain criteria for example.
Leicester City Council hold a budget to make Discretionary Housing Payments (DHPs), to provide financial assistance for people who need help with their housing costs. Each case is decided on its own merits, though DHPs are made in single or periodic payments.
The meeting was also informed that from April 2013 there is a proposed introduction of size criteria in the social rented sector of housing. Homes that were larger than the Government said were needed may lose part of their housing benefit. Examples of homes that could be affected were:
· A single person or couple living in a two bedroomed home;
· A family with two same-sex children living in a three bedroomed home;
· A family with a boy and girl aged ten living in a three bedroom home.
The Government proposes that no account would be taken of extra room needed for a foster child, or parents with a disabled child who required their own bedroom. Changes would also affect separated couples who wanted children to stay.
For one bedroom over quota, there is a proposed 14% reduction, rising to 25% reduction in housing benefit for two or more bedrooms over quota. It was stated an average of £13 per week would be lost per family, and approximately 67,000 families nationally would be affected.
From October 2013 new HB claims would receive the housing element of the Universal Credit, rather than it being paid directly to the landlord, and by October 2012 it is proposed that HB would no longer be administered by local authorities, but will be paid as part of Universal Credit. It was believed pensioners and vulnerable people might be exempt from direct HB payments. Tenants would be responsible for ensuring their rent was paid.
The meeting was informed that contact details for Welfare Rights Service and Revenues and Benefits advice agencies in Leicester are attached to the minutes for information.
Members stated that changes to welfare benefits were complex, and that it was difficult for Leicester City Council to plan ahead as information was changing very quickly. It was also stated it was a frightening situation for people, and it was estimated that approximately 7,000 people in the city would receive less benefit.