Changes to the Benefit System

Welfare Reform

Start

The Welfare Reform Act is being introduced by the

Government, starting in April 2013 .

The Government say that these reforms will make the

benefits system simpler and fairer.

During this training you will learn about the changes in the benefits system that

may affect you.

This includes:

• Benefit Cap

• Universal Credit

• Bedroom Tax

• Personal Independent Payments (PIP)

• Discretionary Housing Payments

Welfare Reform

By making these changes the Government are aiming to save £18 Billion.

Click on each tile to find out more.

By making these changes the Government want to save £18 Billion!

Click on each tile to find out more.

By making these changes the Government want to save £18 Billion!

Click on each tile to find out more.

The Government say that the reforms will encourage people to work, as they will be better off working than being on benefits.

They say it will tackle welfare dependency.

It will deliver fairness to those claiming benefit and the taxpayer.

Incapacity Benefit

The Department of Work and Pensions

are carrying out a national exercise to

reassess everyone on Incapacity Benefit.

People will be transferred onto either

Employment Support Allowance (ESA),

or Jobseeker Allowance (JSA).

Benefit Cap

From April 2013, the Government will

introduce a cap on the total amount of

benefits that working age people will

receive. This means households on

benefit should no longer get more money

than working households.

Benefit Cap

Click on the figures below to find out what the current

forecasted benefits cap is.

Benefit Cap

Click on the figures below to find out what the current

forecasted benefits cap is.

Click here to go to the benefit cap calculator

The cap will be set at around £350 per week for single people with no children.

Benefit Cap

The cap will be set at around £500 per week for a couple and single parent families.

Benefit Cap

The benefits cap does not apply where any member of the

household receives:

• DLA or PIP

• Attendance Allowance

• The support component of ESA

• Working Tax Credit

• War Widow’s/Widower’s Pension

Benefit Cap

Universal Credit

Universal Credit (UC) is going to be brought in as a single means -tested benefit payment and will eventually replace the following benefit payments.

WorkingTax

Credits

HousingBenefit

Income Related

JSA

IncomeSupport

ChildTax

Credits

Income Related

ESA

Universal Credit

UniversalCredit

UC will be available to people under the state pension age.

It will be paid in one lump sum each month to top up the income

of working age people.

This includes people who are:

Employed

Unemployed

Sick

Disabled

Caring for children

Caring for disabled people

Universal Credit

If you start working, you’ll not lose all your entitlement to UC, like you

would under the old system. And if your earnings or hours of work

increase, UC will be withdrawn gradually.

Universal Credit

How will your Universal Credit be paid?

Universal Credit will normally be paid

monthly in arrears and will be paid to

one person in the household.

Click on the links for more information.

Monthly

One payment perhousehold

Into a bank account

How will your Universal Credit be paid?

Universal Credit will normally be paid

monthly in arrears and will be paid to

one person in the household. Click on

the links for more information.

Monthly

One payment perhousehold

Into a bank account

How will your Universal Credit be paid?

Universal Credit will normally be paid

monthly in arrears and will be paid to

one person in the household. Click on

the links for more information.

Monthly

One payment perhousehold

Into a bank account

The Government say that because working people usually have to manage their money monthly, so should people on benefits.

Monthly Payments

One monthly payment will be made and you will have to pay all your bills from that payment, including any rent, service charges or council tax charges.

This does not apply if you are in Supported Housing. If you are in shared accommodation or in supported accommodation, your rent will still be paid directly to Action Housing and Support.

One Payment per Household

Universal Credit is household credit, not an individual benefit, and it will be paid to one member of the household.

Universal Credit is going to be paid directly into a bank account. If you don’t already have an account or have trouble getting one, then it’s worth thinking about joining a credit union. Ask your key-worker for more information.

Direct Payments into a Bank Account

From April 2013 the government is reducing the amount of Housing Benefit some people can claim. Under the new rules, if you live in a property where it is considered too big for your needs, you will lose part of your housing benefit.

Bedroom Tax

Bedroom Tax

Housing Benefit will be restricted to cover the costs of one bedroom per single adult or two people living as couple.

Children under 16 of the same gender are expected to share.

Children under 10 are expected to share regardless of gender.

A disabled person who requires overnight care will be allowed an extra bedroom.

If you are of pension age, then this will not affect you

Everyone who claims housing benefit and who has more bedrooms than the Government say they need.

Who will be affected?

This includes:

Separated parents who share the care of their children. Only the person claiming the Child Benefit can claim for the child’s bedroom.

Couples who use their ‘spare’ bedroom when recovering from an illness or operation.

Families with disabled children

Disabled people living in specially adapted or designed accommodation

The cuts will be a fixed percentage of an eligible housing benefit claim.

How much will people lose?

The Government has said that it will be 14% for one extra bedroom and 25% for two or more extra bedrooms.

Click on the pictures to see fictional stories of how housing benefit cuts will affect people.

The cuts will be a fixed percentage of an eligible housing benefit claim.

How much will people lose?

The Government has said that it will be 14% for one extra bedroom and 25% for two or more extra bedrooms.

Click on the pictures to see fictional stories of how housing benefit cuts will affect people.

Tony’s Story

I live in a two bedroom flat and my housing benefit covers my rent while I’m looking for work. My spare room is for when my kids, Sam and Billy, come to stay at the weekends as they live with their mum. The change could stop me from seeing my kids unless I find the extra money to cover the cost of keeping the spare room.

We live in three bedroom house and have two children, Spencer who’s 3 and Katie who’s 8. The housing benefit changes mean that they have to share a room because they are both under 10. Unless we can find the extra money needed we’ll have to move to somewhere smaller.

Sam and Troy’s Story

I’ve lived in my three bedroom house for over 30 years and now my children have moved out. I was worried about how the changes would affect me. But as I’m 64, I’ve found out I won’t be affected and I wont have to pay anything extra.

Maureen’s Story

Paul’s Story

I live in a three bedroom council house and although I have two spare rooms, the changes won’t affect me because I’m working and I don’t claim Housing Benefit.

I live in a four bedroom house and my children have all moved out. As I’m 45 years old the changes mean I have to find a lot more money to stay in my home. I’m not sure what I’m going to do or how much I have to pay.

Janet’s Story

Kai’s Story

The council gave me a two bedroom flat when I was made homeless. I claim housing benefit because I’ve not got a job yet. I need to either move to a one bed place, which I don’t want to because I just started a course at the college nearby, or find the extra money from my Jobseeker's Allowance. I don’t know how I’m going to manage.

I live in a two bedroom flat, due to my disability I can keep a spare room for my carer to stay overnight.

Claire’s Story

I’ve lived in my three bedroom family home all my life. Sadly, my parents passed away last year. I’m not working and I claim full housing benefit. I can’t afford to pay 25% of the £100 a week rent, so I’ll have to leave or find someone to share the house with. It’s very difficult as I don’t want to leave my family home.

Aisha’s Story

What you can do to minimise the impact

• Move to a smaller property

• Apply for a Discretionary Housing Payment

• Increase your income – check that you are receiving the full amount of benefits which you are entitled to, or if you work, as kif you can increase your hours

• Find employment – If you are working, and in receipt of Working Tax Credit, you won’t be affected by the Bedroom Tax. The Job Centre will be able to help you with this.

• Review your expenditure – Do a budget plan see to where you can save money. Contact your gas and electric supplier to see if you can change suppliers to pay a reduced amount.

The personal independence payment replaces Disability Living Allowance (DLA) from April 2013.

Personal Independence Payment (PIP)

PIP will be very similar to DLA as it will have two components: a daily living component and a mobility component.

At some point between August 2013 and Spring 2016 people in receipt of DLA will get a letter from the DWP to inform them that their DLA is due to end. It will explain how people can apply for PIP. DWP will continue to make DLA payments until a decision on PIP has been made.

When will be PIP be introduced?

The mobility scheme will work with PIP in the same way as it does with DLA. Motability will continue to lease cars, powered wheelchairs and scooters to disabled people who receive either:

PIP and Motability Scheme

• The Higher Rate Mobility Component of DLA• The enhanced rate of the mobility component of PIP (from April 2013)• The War Pensioner’s Mobility Supplement

Useful Links

DWP - Benefit Cap Calculator

Turn2Us.org – More information about Benefit Cap and other benefit advice.

Shelter – Information on Discretionary Housing Payments