City Council officers will be at the meeting to explain the forthcoming changes to benefits.
Minutes:
Darren Moore, Team Manager (Advice Services), advised the meeting that a major change would be made to Council Tax benefit, would not exist in its current form after April 2013. Instead, funding for assistance with Council Tax would be given to local authorities to administer, but it would be 10% less than its current level. As a result, the Council had to adopt a new scheme of assistance. A consultation currently was being held on the proposals for this.
Changes to the scheme being considered by the Council included:-
· Everyone could have to pay a minimum of approximately 10 – 20% of their Council Tax, even if they currently did not pay any;
· Removing the rebate for a second adult; and
· Reducing the level of savings that could be held by someone before assistance could be received from £16,000 to £6,000.
It was estimated that these changes would affect approximately 20,000 people in the City.
Changes to Housing Benefit also were expected. For example, from April 2013 a national “bedroom tax” would be introduced for those in social housing. Under this proposal, working age people with a larger property than that required for their family size would have to pay a proportion of their rent.
For example, if they had one bedroom more than it was calculated they required, they would not receive Housing Benefit for 14% of their rent and if they had two more than needed they would not receive it for 25% of their rent. However, there were exemptions, such as for a bedroom needed for people providing 24 hour care. Each case would be considered individually, as the outcome would depend on the benefits being received.
The meeting noted that, although these changes would lead to many people paying more rent, the Council would have more money available with which to make discretionary payments, (for example, if foster carers needed an extra room).
Darren Moore advised that other changes to benefits included:-
· Everyone receiving incapacity benefit would be assessed for their eligibility for Employment Support Allowance. Unfortunately, many current recipients of incapacity benefit would not receive assisted living support;
· There would be increased sanctions for those not meeting the requirements of their Job Seekers Agreement, (such as not looking for work). Sanctions included the loss of benefits for up to 3 years;
· Disabled Living Allowance (DLA) was being abolished and would be replaced by Personal Independence Payments (PIP). Those currently receiving the lowest level of DLA were likely to not be eligible for PIPs;
· Universal credit would replace all means tested benefits, except Council Tax benefit, for those in and out of work, (ie, this would be one benefit with a lot of different components). Recipients would be expected to claim it on-line and receive monthly payments;
· Couples could only receive Pension Credit when the youngest person in the partnership reached the qualifying age. This had to be claimed, as it would not be paid automatically and the government did not have an obligation to provide individuals with information;
· The premium paid to severalty disabled people would be abolished and the amount paid as the disabled children’s premium would be halved; and
· All of the changes were to benefits received by working age people.
Darren Moore confirmed that officers could visit community groups to provide advice, although there could be a delay in this, as there currently was a big demand for such meetings. In addition, a guide to the forthcoming changes and advice on their implications was available on the Council’s website: http://www.leicester.gov.uk/your-council-services/housing/housing-and-council-tax-benefits/big-benefit-changes/