Steve Dubbins Benefits Advice Programme Manager

Overcoming Barriers to Financial Support

Barriers to take-up

• Lack of awareness about potential entitlements

• Complexity of the benefits and tax credit systems

• Poor benefit administration, particularly decision making, resulting in wrongly refused claims

• Lack of support available with benefit checks, claims and appeals

• Stigma attached to claiming

Consequences...

• DWP estimate up to £11 billion in means-tested benefits went unclaimed in 2009/2010

• This does not include DLA and AA – which have take-up rates of approximately 55% and 65%, respectively.

• It is estimated that the combined benefit and tax-credit under-claim is in excess of £20 billion.

• Even when people successfully make claims they may not always receive their full entitlement (DLA underpayments in

2007 amounted to £260 million)

Funding for advice and support

• There is no statutory duty to provide advice services

• Austerity measures have led to wide-scale decommissioning

• Legal Aid is no longer available for social welfare law (e.g. benefits, employment, debt & housing)

• A perfect storm: Increasing need, diminishing provision and the most radical reforms since Beveridge

Welfare Reform

• Welfare Reform Act 2012

• Intention to simplify the benefit system and encourage people to move into work

• A complete restructure of working age benefits

• Social Security expenditure to be reduced by £22 billion per annum by 2014-2015

• A further reduction of £10 billion announced in 2012 budget

Personal Independence Payment

• PIP replacing DLA for 16-64 year olds

• No new claims from June 2013

• Aim to reduce number of claimants by 500,000

• More medical assessments

• Tougher criteria, shorter awards, more frequent reviews

• DLA renewal or changes of circumstances will require claim for PIP

Universal Credit

• UC completely restructures means-tested benefits provision for working age claimants

• Introduces ‘Digital by Default’ – claims will have to be made online.

• Payment will be made once a month (to mirror salaries)

• Aim for UC to be fully implemented by 2017

Some other highlights

• Housing Benefit cut for working age tenants of social landlords (bedroom tax/spare room subsidy)

• Council Tax Benefit localised and reduced by 10 per cent

• Help with mortgage interest payments reduced by 50%

• Contributory- based ESA time-limited to 12 months

• Discretionary Social Fund (Grants and Loans) replaced by local authority support schemes

Financial

Guidance

Macmillan’s Financial Support Programme

Macmillan

Welfare Rights Line

Local

benefits advice

services

Macmillan Grants

Policy & campaigns

Information Resources

Local benefits services - 2012 impact

• Local advisers helped more than 112,000

• Financial gains of £191m

• 126 benefits services

Policy & Campaigns

• Welfare Reform

• Fuel Poverty

• Prescription charges

Maximising Income: Some Tips• If you’re struggling financially or just want to

make sure you’re not missing out get a benefits entitlement check (use the internet, your local CAB, or ask a health or social care professional to refer you)

• If entitlements are identified try to get support with the claiming process.

• When you receive a decision get it checked by an advisor immediately – there are tight time-limits for appeals and reconsiderations

• If you’re refused try to get support with your appeal and don’t give up, decisions are often overturned at appeal

Concluding remarks

• Income maximisation at the earliest opportunity (and at key transition points) can significantly reduce financial hardship and improve well-being

• However, accessing advice and navigating social welfare is arguably more challenging now than it has ever been

• Charities must work together to build capacity and to ensure that advice and support is embedded within future care pathways

Thank you, any questions?