London Councils' Welfare Reform Impact Assessment presentation

PowerPoint Presentation

Deven GhelaniPolicy in Practice

WELFARE REFORM IMPACT ASSESSMENT LONDON BENEFIT MANAGERS BRIEFING21 JANUARY 2016

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www.policyinpractice.co.uk

AgendaIntroductionThe challenge facing local authoritiesOur approach: Local data + our softwarePreliminary findings for Hounslow RecommendationsOutcomes for residentsNext Steps

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We make the welfare system simple to understand, so that people can make the decisions that are right for themPolicy in Practice

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www.policyinpractice.co.ukwww.policyinpractice.co.uk

www.policyinpractice.co.ukI cant see whether the people being clobbered by reductions in council tax support, or under-occupation are the same people that have been clobbered by other reforms.

Steve Carey, Leeds City Council

Challenge: Leeds City Council

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The combined impact on households is typically complex, confusing and changingwww.policyinpractice.co.uk

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The Challenge Facing HounslowUniversal Credit live since April 2015New tranche of reforms coming in April 2016

The challenge applies to all London Councils.

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Do you know the impact that welfare reform is having on each of your residents?www.policyinpractice.co.uk

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www.policyinpractice.co.ukWe wanted to ensure a proactive approach to this next round of welfare reforms. This meant having a strong analysis of the impact and scale of impact of these reforms on our residents, in order to target activity effectively. The Policy in Practice analysis has provided us with this and given us a strong basis on which to plan our partnership and Council activity.

Ian Duke, LB Hounslow

Challenge: Hounslow

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Our approachwww.policyinpractice.co.uk

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A person centred Welfare Reform Impact Assessment

data + software = actionable insightswww.policyinpractice.co.uk

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www.policyinpractice.co.ukWe wanted to ensure a proactive approach to this next round of welfare reforms. This meant having a strong analysis of the impact and scale of impact of these reforms on our residents, in order to target activity effectively. The Policy in Practice analysis has provided us with this and given us a strong basis on which to plan our partnership and Council activity. Ian Duke, LB Hounslow

Policy in Practices approach

1. Use local data and insights to inform better decision making2. See the impact of specific and cumulative reforms at an aggregate and household level3. Inform targeted and tailored local welfare support

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Rich data for each householdHousehold detailsUnder-OccupationLocal Housing AllowanceCouncil Tax SupportReference numberHousehold TypeTenureEconomic statusEarningsSavingsUnder occupied (y/n)Under occupied ()LHA cap (y/n)LHA cap (amount )Not protected (y/n)Not protected (amount )

Benefit Cap at 26kBenefit Cap at 23kPay to StayLHA cap on RSLsIncome

Could get WTC (y/n)Receiving DLA (y/n)Benefit cap 26k (y/n)Amount ()Could get WTC (y/n)Receiving DLA (y/n)Benefit cap 20k (y/n)Amount ()Reduced (y/n)Reduced amount ()Earnings below NMW(y/n)Better off in work ()Free school meal eligibility

Universal CreditSupportCumulative ImpactBarriers to work

Needs protection (y/n)Needs protection ()In work conditionality (y/n)Min income floor (y/n)DHP (/no)CTRS (/no)Income Reduction 2015 ()Impact 2015 (no/l/m/h)Income Reduction 2016 ()Impact 2016 (no/l/m/h)Disability (0/1/2)Caring responsibilities (0/2)Parenting responsibilities(0/1/2)Barriers to work (low/medium/high)

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Rich data for each household

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The impact of the benefit capwww.policyinpractice.co.uk

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The Benefit Cap at 26,000:UK, nationwide level

Number of households affected nationwide:< 1,000 1,000 - 3,000 3,000 - 6,000 6,000-12,000 > 12,000 Wales, East, E Mids, YorkshireSW, W Mids, NE, Scotland SE, NWnoneLondon

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Number of households affected nationwide:nonenoneWalesSW, E Mids, NE, ScotlandLondon, SE, East, W Mids, NW, Yorkshire< 1,000 1,000 - 3,000 3,000 - 6,000 6,000-12,000 > 12,000 The Benefit Cap at 20,000 UK, 23,000 London

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The Benefit Cap at 23,000: Hounslow, borough levelNumber of households affected within the borough:One wardTwo wardsFour wards Seven wardsFour wards0 - 15 16 - 35 36 - 45 46 - 55 56+

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The Benefit Cap at 23,000: Hounslow, local authority levelNumber of households affected within each neighbourhood (LSOA) within a ward:One LSOAOne LSOAThree LSOATwo LSOA0 1 - 56 - 9 9 - 12

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The Benefit Cap at 23,000: Hounslow, street levelIndividual households can be identified within a ward, at street level

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Preliminary findings paint a stark picture

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34% of low income working age households in Hounslow are in work




13.2717.05At 26,000At 23,000The Summer Budget will increase the impact of welfare reform on residentsA lower benefit cap will see a greater reduction in household income

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Specific reforms have different impacts

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Housing reforms in HounslowPay to Stay: 12 households in the social rented sector earn more than 40,000 pa. From 2017 they must pay rent at market rates. (NB, SHBE unlikely to show households on higher incomes)

Removal of Housing Benefit for those 18-21 not in work under UC: 223 households at risk of losing housing support

LHA cap for social tenants: 586 in social rented sector paying rent above LHA, average shortfall of 192 p/mth. Most are under 35 and under-occupying

1% cut in social rents

= Risk of higher rent arrears, and revenue streams for Housing Associations and Council HRAs under pressure

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Universal Credit

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Universal Credit reforms in HounslowReduced work allowance: 80% of households in Hounslow that will be entitled to Universal Credit will face a lower work allowance

Conditionality: 5,582 households are in work and will be subject to conditionality because their earnings are below the required threshold

The minimum income floor affects most self-employed people 79% of self-employed households report earnings below the Minimum Income Floor in Hounslow

Transitional protection: in 2016 8,554 households in Hounslow in need of TP, for a total of 30.1 million

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UC in 2020 in Hounslow: National Living Wage and Tax AllowanceHigher living wage ( 9 p/h) and higher personal tax allowance only partially mitigate the impact of the transition to Universal Credit

Transitional protection ensures people are not worse off at the point of transition, but changes in relationship status or large changes in earnings may mean this is lost

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Recommendationswww.policyinpractice.co.uk

Identify exemptionsTarget supportCo-ordinate with partnersIdentify cashable sSavings

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2311,161At 26,000At 23,000Identify ExemptionsA lower Benefit Cap will affect 5x as many householdsCheck exemptions on specific households, eg:

Households in receipt of ESA may be in the support groupChildren in receipt of DLAHouseholds in receipt of carers allowanceThey or their partner may be in work, and eligible for tax credits

Help them to avoid the cap before it hits.

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Target support: Barrier to workTarget employment support based on distance from the labour market

Target intensive outreach support to those households most heavily impacted

In order to make best use of support resources, and ensure financial support is available to the most vulnerable

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Target Support: Benefit Cap

Take proactive stepsSupport those most severely impacted by a lower benefit cap with focused intensive outreach

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Co-ordinate with partners: Better off / Worse off and economic status

Loss of tax creditsLower severe disability premium

Some people are better off

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Cashable savings: 1.1m in additional income for schools in HounslowPupil Premium and Universal Free School Meals in Hounslow

3,400 households have children eligible for free school meals.1,623 households havechildrenof the ages of 5 - 7, who would qualify for Universal Infant Free School Meals.850 of these households have an older sibling, and are therefore likely to be claiming for means-tested free school meals. This leaves 770 households that could be targeted to increase take-up.

1.1m was estimated to be lost to schools in the borough through the Pupil Premium, as a result of fewer families applying for means tested FSM due to the Universal Entitlement offer.

Recommendation: Hounslow can use this analysis to investigate and increase the FSM take-up rates of these households

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How are others using this information?www.policyinpractice.co.uk

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theyre making better strategic and operational decisions

theyre getting the right support, to the right people, at the right time

policyinpractice.co.uk/london


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Proactive steps now can mitigate the impact of reformswww.policyinpractice.co.uk

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www.policyinpractice.co.ukEngage people and change behaviour

In contrast, the current benefit system is very complex. We have a range of benefits offered by 3 different agencies all with their own set of rules. From a recipients perspective, this means multiple applications, providing evidence to more than one agency, and managing multiple claims and payments. The complexity of the system is confusing for people, sometimes even for professionals who deal with it on a daily basis, which can hamper the take up of benefits.

Take up can be as low as 60% in the case of Jobseekers Allowance, or 64% in the case of Working Tax Credit. That means that around 40% of people entitled to those benefits are not receiving them.39


Questions?

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3 Core Deliverables www.policyinpractice.co.uk

1. Household level data set with flags of each welfare reform, and the amount impacted

2. Core report assessing the impact of current and future welfare reforms in your council

3. Presentation of findings in person to your council

In Using your data we are able to deliver

1. Household level data set that will show exactly who is affected and by how much. This one can then be mapped back to the personally identifiable information. 2. Core Report showing aggregate finding and recommendations3. We come and present findings to you - most LAs also invite cabinet members to this presentation. Which improved to be valuable to them understanding what the information means,

All of which is complete within a 6 8 week period- dependant on how quick we can get meeting dates and receive the data 41


Next stepsVisit www.policyinpractice.co.uk/london to:

Download this slide deckRequest a sample impact assessment report for our Welfare Reform Impact Analysis Find out more about our software engine

Join our next webinar:

Universal Credit and the Impact on Work IncentivesThursday 28 January at 10:30amRegister at www.policyinpractice.co.uk

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Thank youDeven [email protected] 560677@deven_ghelani

Janet [email protected] 239 5579@jharkin

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London Councils' Welfare Reform Impact Assessment presentation