Welfare Benefit changes 2016 onwards
2016-2017
Benefit Cap reduction Couples & families Single people Current cap £26,000 £18,200 (2013 – 2016) New Cap £23,000 £15,410 (2016 – ) £20,000 (outside London) £13,400 (outside London) NB. TA placements from London boroughs outside London will count as outside London.
Discretionary Housing Payment RBKC Budget National Budget 2011/12 £0.5 million £30 million 2012/13 £1.5 million £68 million 2013/14 £2.2 million £155 million 2014/15 £1.7 million £165 million 2015/16 £1.1 million £125 million 2016/17 £1.3 million £150 million 2017/18 Not yet known £185 million 2018/19 Not yet known £170 million 2019/20 Not yet known £155 million 2020/21 Not yet known £140 million
When? To be implemented during November, December and January.
Benefit Cap in RBKC as it stands • 191 cases Benefit Cap in RBKC after November 2016 • 615 cases • Average cap will be £73.90 per week
Impact of Benefit Cap on Children in RBKC • 321 of those affected will be families • 780 children affected
The Cap by tenure Tenure No. of Caps Council (excluding Temp. Accommodation) 28 Temporary Accommodation 255 Housing Associations 125 Private sector tenancies 207
• People in receipt of Carer’s Allowance and Guardian’s Allowance to be exempt from the Benefit Cap. • Probably from November 2016. • Not seen legislation yet.
Discretionary Funding A year of the average caps = £73.90 x 615 x 52 = £2.63 million DWP Discretionary Housing Payment = 2016/17 £1.34 million
Our benefit cap strategy • Letters – DWP – Council round 1 – Council round 2 • Interview focussed on work
Limit on backdating in Housing Benefit to 1 month SI 2015/1857 Working Age Pension Age Current position 6 months 3 months From April 2016 1 month 3 months
Backdating continued • The one month is from the date of the backdating (not the claim) • Who do you publicize to? • We will phone customers before closing-down claims. • Alternative is to review decisions to close claims. • CTR still 6 months
Temporary Absence & Housing Benefit Draft SI only. Public consultation ended 29.2.16. Gov website says “currently analysing feedback” The new rule will apply to working age and pension age claiman ts Absences in Absences Special reasons GB outside GB Currently 13 weeks 13 weeks 52 weeks From April 2016 13 weeks 4 weeks 26 weeks (52 weeks in GB)
Temporary Absence & Housing Benefit continued • If the absence is in connection with the death of a close relative, their child or partner, then the 4 weeks may be extended by up to 4 further weeks where it is unreasonable “to expect the person to return to Great Britain within the first 4 weeks ”. • If the claimant is “a member of the armed forces away on operations, a mariner or a continental shelf worker” they can be absent from Great Britain for up to 26 weeks, not 4 weeks. • 13 week trial period in residential accommodation now has to be in Great Britain ; the trial period rule remains otherwise unchanged.
Temporary Absence & Housing Benefit continued • The draft regulation contains a transitional rule which ensures that the old regulations will apply to anyone whose absence began before the new rule becomes law. • According to the draft regulation, the new rule will apply to working age and pensioners alike. It is also mirrored in Pension Credit regulations. • The draft regulation does not amend the Council Tax Reduction rules. Therefore, for the time being, the “old” temporary absence rules continue for CTR, meaning that HB and CTR are “out of synch” with each other.
Family Premium withdrawn SI 2015/1857 • Some new claimants will lose £17.45 per week in Housing Benefit • Will affect those not on out-of-work benefits • NB Income Support to “standard” is OK • From 1 st May 2016.
4 year benefit freeze from April 2016 • In Housing Benefit, this means the freezing of: – the applicable amounts (the allowances and some premiums), and – LHA rates. (No “targeted affordability fund” for areas with above-average rent increases, in 2016-17). • Exceptions for disability premiums, carer premium and for pensioners.
New State Pension • Only affects new pensioners from April 2016. • Most will be better off. • But may be worse-off if less than 35 years National Insurance contributions. • Pension (Savings) Credit will not be available.
Social rent 1% reduction • Good for tenants NOT on HB • No affect on tenants on HB • Social landlords will lose revenue • Only applies to core rent not service charges
Tax Credits • Threshold for disregarding in-year changes reduced from £5000 to £2500 • Other proposed changes abandoned.
Universal Credit • All Borough now affected – but only new claims and only limited groups • But more groups will soon be affected – The “Full Service” (as opposed to current “Live” service) will be rolled out as follows: • Hammersmith Jobcentre June 2016 (July 27 for W14 8 postcodes) • Fulham and Shepherd’s Bush Jobcentres December 2016 • North Kensington Jobcentre will be sometime between Jan 2017 and mid- 2018 • New claims for “legacy” benefits will cease sometime during 2017 • Main (managed) migration : June 2018 to 2021-ish.
Changes to student finance Sept 2016
April 2017 and beyond
Employment and Support Allowance (ESA) • People in the ESA “work group” will have their ESA paid only at the basic rate (i.e. the same amount as JSA). • This will only apply to new ESA claims from April 2017.
• New TA subsidy scheme April 2017 • 18-21 years will not get Housing Element of Universal Credit or Housing Benefit if out-of work, from April 2017 • 2 children limit in HB, Universal Credit and Tax Credit (April 2017) – This will apply to a third or subsequent child born after April 2017, or new claims made after that date where there are already three or more children. – There will be some exceptions for exceptional circumstances. • Pay-to-Stay. April 2017. DCLG announced in December this would be a voluntary scheme for Housing Associations. • LHA rates in social rented sector from 2018 – only for tenancies that start from April 2016. No detail yet. Will pensioners and supported accommodation be exempt? One year delay for Supported Accom announced by Lord Freud 1 March 2016.
Others • April 2017 Bereavement Support Payment • Family Element removed from Tax Credits new families from April 2017 • SMI to become a loan from April 2018 • PIP migration continues • State Pension Age increasing
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