Officers from Welfare and Benefits have been invited to give a presentation on the changes to Welfare Reform.
Minutes:
Darren Moore, Team Leader, Welfare Rights, gave a presentation on the proposed changes to the benefits system which were to be implemented from April 2013.
During the presentation Darren made particular reference to the following key points:
· Council Tax Benefit would be replaced by Council Tax Support from April 2013 and local authorities would receive 10% less government grant for the scheme leading to recipients paying more towards Council Tax. It was estimated that this could impact upon 40,000 people in the City.
· There would be a Benefit cap of £500 per week for families and lone parents (£350 for singles) which would particularly affect families with 4 or more children.
· Housing Benefit paid to people of working age would be changed to reduce the level of eligible rent by 14% for 1 extra bedroom that was unoccupied and by 25% if two or more bedrooms were unoccupied. The level of benefit would then be calculated on the lower amount of eligible rent.
· The Disability Living Allowance would be abolished in April 2013 and replaced with a new scheme that would cut out the lowest level of allowances. Current recipients would be gradually re-assessed from the old system to the new points based system.
· A new system of Universal Credits would come into operation from April 2013. Universal Credits were designed to simplify the current large number of means tested benefits into one payment. New claimants and existing claimants with changed circumstances would transfer to Universal Credits in October 2013. Existing claimants, who could benefit from Universal Credits, would be transferred from April 2014 and remaining claimants would be transferred from the end of 2015 to the end of 2017.
· Some of the existing premiums, including disability and carers allowances were to be abolished. It was envisaged that claimants would not be worse off at the point of change over; but there would be a gradual reduction in the level of benefits over a period of years.
· The qualification criteria affecting Pension Credits were also changing. In future, Pension Credits would only be available when the youngest person in the partnership reached pensionable age.
· Future Payments would be made monthly and be paid direct to the claimant and only one claimant per partnership. It would then be the claimant’s responsibility to pay their rent and Council Tax.
In response to questions Darren referred to the appeals process and to the high levels of appeals which had already been received. It was reported that Incapacity Benefit appeals had caused significant pressures as medical evidence was required to process each case.
It was also reported that the process being undertaken to assess whether people were fit for work had received a large amount of criticism.
In closing the report it was noted that further help and assistance could be obtained
by contacting the Welfare Rights Helpline - 0116 2568211 or the Revenues and Benefits Service - 0116 2527006. The Community Legal Advice Service also provided advice.
Darren was thanked for his attendance and report.