The material contained in this presentation is the copyright of The Scottish Association of Citizens...
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The material contained in this presentation is the copyright of The Scottish Association of Citizens Advice Bureaux – Citizens Advice Scotland (Scottish charity number SC016637) and may not be reproduced, except by bureaux, without the written consent of the CAS Training Team. Voices from the Frontline: Welfare reform and social housing Keith Dryburgh Citizens Advice Scotland
The material contained in this presentation is the copyright of The Scottish Association of Citizens Advice Bureaux – Citizens Advice Scotland (Scottish
The material contained in this presentation is the copyright of
The Scottish Association of Citizens Advice Bureaux Citizens Advice
Scotland (Scottish charity number SC016637) and may not be
reproduced, except by bureaux, without the written consent of the
CAS Training Team. Voices from the Frontline: Welfare reform and
social housing Keith Dryburgh Citizens Advice Scotland
Slide 2
The Big Society? Does it still matter? Big Society vs. welfare
reform vs. budget cuts -Personal responsibility -Conditionality
-Changing behaviours -Withdrawal of the state -Localism and
community response Food banks the result of the above
Slide 3
Welfare reform When the present welfare reforms have come into
full effect they will take more than 1.6bn a year out of the
Scottish economy - equivalent to around 480 a year for every adult
of working age. The biggest financial losses arise from reforms to
incapacity benefits (500m a year),changes to Tax Credits (300m a
year) and the 1 per cent up-rating of most working-age benefits
(290m a year). Fife - 113 million annually - 480 for every working
age adult
Slide 4
Housing Benefit reform Welfare reforms will entail a loss of
175 million annually in housing support for claimants in Scotland
(around 372 per claimant household) The reforms affect the
availability and affordability of homes across Scotland Many
claimants have or will be affected by a multitude of changes,
including sickness and disability benefit reassessments
Slide 5
CITIZENS ADVICE BUREAUX In detail
Slide 6
Citizens Advice Scotland Citizens advice bureaux provide free,
impartial, independent and confidential advice on pretty much
anything. The main areas of advice include benefits, debt,
employment, housing, consumer, and legal issues Clients sought
advice on half a million new issues to bureaux throughout 2012/13
one issue for every minute of the year There are 2,200 volunteers
in the service who provide almost 13,000 hours of their time each
and every week. There are 81 citizens advice bureaux in Scotland
operating through 200 service points. There is probably one near
you.
Slide 7
CAB in Scotland
Slide 8
Did you know? Citizens advice bureaux have been around since
1939 older than the NHS and the modern welfare state!
Slide 9
What bureaux are seeing Increase in benefit issues requiring
advice over 200,000 last year Increase in complexity Significant
increases in form filling and appeal representation ESA by far the
most common issue at bureaux Increase in Housing Benefit, JSA and
food parcel issues this year
Slide 10
HOUSING BENEFIT CHANGES In detail
Slide 11
Changes to LHA 55,000 households lost an average of 10 per week
in payments when LHA was restricted to the 30 th percentile of
local rents limiting payments and the properties available to
tenants Linking LHA increases to the consumer prices index (CPI),
rather than to rent increases The Shared Accommodation Rate was
extended to claimants up to the age of 35. This affected around
7,500 existing claimants who lost between 17 and 54 per week.
Slide 12
Changes to LHA (2) 284 clients seeking advice on the Shared
Room Rate for under 35s -A client faced a shortfall of 244 per
month in rent to make up from ESA payments -A client who has lived
in the tenancy for 11 years and cannot share due his bi-polar
disorder -A client who needed a food parcel after his LHA was
reduced and his JSA was sanctioned
Slide 13
The bedroom tax An estimated 83,500 households in Scotland have
so far been affected Loss of 53m annually an average of 572 per
household affected 63,500 households contain an adult with a
disability 2,128 recorded bedroom tax issues at bureaux since
April
Slide 14
The bedroom tax (2) Client groups affected: -Clients with
significant disabilities -Clients living in adapted housing
-Families with disabled children -Homeless clients -Separated
parents -Young people leaving home
Slide 15
The bedroom tax (3) Impact so far -Hardship for those paying
shortfall -Exacerbating existing debt problems -Difficulties
finding alternative accommodation -DHP funding has changed
impact
Slide 16
The bedroom tax (4) Discretionary Housing Payments (DHPs)
-Entitlement vs. discretion -15m fund to cover 45m loss to tenants
-SG contributed an additional 20m to funding, meaning that majority
of loss is covered -SG intend to cover full cost next year and
abolish policy in event of yes vote
Slide 17
The Benefit Cap Limit of 500/week in benefit payments 4,600
households affected by the cap 1,420 lone parents Up to 10,000
children affected The SG estimate that this will reduce payments by
14m/year An average loss per household of over 3,000/year or
59/week
Slide 18
The Benefit Cap (2) Around 100 issues reported by bureaux
-Single mother with 5 children faces a 900 shortfall in her monthly
rent after her LHA was cut by 195 per week -Single parent with 4
children has been told that she must pay 127/week towards her
rent
Slide 19
Universal Credit 700,000 households in Scotland to be migrated
to UC UC designed to influence claimant behaviour: -Direct payments
-Monthly payments -Digital by Default -Payment to bank account
Slide 20
OTHER BENEFIT CHANGES In detail
Slide 21
Other benefit changes Changes to Housing Benefit only make up
around 10% of the total loss in benefits Other changes will hit
social rented tenants and housing providers including: -JSA
sanctions -Sickness/disability benefit reassessments -Localisation
of crisis support
Slide 22
Conditionality Over half a million individuals received a JSA
sanction in the 12 months prior to Sept 2013 5% of claimants are
sanctioned in any one month 963 claimants have received a three
year sanction Work Programme twice as many sanctions as job
outcomes
Slide 23
Reassessment Reassessment of all IB and DLA claimants -220,000
IB claimants in Scotland to be reassessed for ESA over three years
-Around 66,000 will be found fit for work more than 300 every week
-202,000 working age DLA claimants in Scotland all will have to
apply for PIP -59,000 will get a decreased award and 52,500 will
lose entitlement
Slide 24
IMPACT OF REFORM In detail
Slide 25
Impact - tenants Disabled tenants particularly affected Rent
arrears Stress and uncertainty Need for advice/support Additional
income employment/payday loans Food/fuel poverty
Slide 26
Impact housing providers Preventative approaches Policies on
rent arrears Uncertainty of income and borrowing power Homelessness
and eviction policies
Slide 27
Impact - services New Housing Benefit issues increased by 11%
in 2012/13 Issues in quarter 1 of this financial year were 40%
higher than last year Changes are exacerbating the problems of
existing clients and creating issues for clients that were
previously coping Bureaux are helping in a range of ways, including
income maximisation, signposting to in-kind support and negotiating
with creditors
Slide 28
Impact policy makers Clear conflict between UK and Scottish
Governments SG have decided to mitigate impact of reforms
Universalism vs. Discretion Role of the private sector in
welfare
Slide 29
The future? Bedroom Tax and referendum Direct payments to one
account Monthly rather than fortnightly payments Housing Benefit
removed from under 25s
Slide 30
The Scottish Association of Citizens Advice Bureaux Citizens
Advice Scotland (Scottish charity number SC016637)