Welcome to
the Landlord
Forum
Changes to come
in relation to Benefits
Chandra Thakrar
Revenues & Benefits Team Leader
Leicester City Council
Welfare Reform
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Save £20 billion on welfare benefits bill
Simplify the benefits system
Make work pay – better incentives
Streamline in/out of work support
Develop ‘claimant commitment’
Increase conditionality and sanctions
Aimed at ‘working age’ claimants
Better use of technology to reduce e
This Year so far….

April 11 – Non dependent deductions no longer
frozen but are uprated on annual basis.
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April 11 – LHA restricted to four bedroom rate.
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Jan 12 - Under 35 in private rented
accommodation – Restriction to Shared
Accommodation Rate (SAR)
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April 12 - LHA rates “Frozen” will not increase until
April 2013 & then by CPI.
Shared Accommodation Rate
(SAR)
Affects singles aged 25 – 34 living in property other
than shared accommodation
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Exemptions – MAPPA level 2, Severe Disability Premium, Hostel resident 3 months
Example
1 bed rate before the change £91.15 pwk
After change will get SAR
£58.00 pwk
Loss
£33.15 pwk
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700 individuals in Leicester
East Midlands average loss is £32 affecting 3,470 individuals
Impact will roll out over 9 months.
Issues
 Too
few ‘shared accommodation’
properties available to move too in PRS
 Cost of moving maybe prohibitive
 Tenancy management for landlords can
be more contentious with multi occupants
 Rent collection can be complex
 Therefore some landlords maybe
reluctant to let to this age group*
LHA Rate change
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Rate will be ‘frozen’ from April 2012
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Increases will then be annual every April, by
Consumer Price Index rate/ or from rent
officer market rent information which ever is
the lower*
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Will not fluctuate, every claimant be on the
same rate
CHANGES TO COME
 Council
Tax Support
 Benefit capping
 Discretionary Housing Payments
 Welfare Assistance
 Other future changes, Universal Credit
Reductions to HB for social housing
Council Tax Support
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Council Tax Benefit will be abolished from April 2013
Replaced with Council Tax Support
10% reduction (Loss of at least £3m for Leicester)
Pensioners will be protected
Biggest impact felt in working age population
Biggest impact felt in working age population

Most households will pay around £200 pa towards Council
tax bill – some for the first time in over a decade

Consultation in progress – have your say until 30th October
Council Tax Support
 Local
scheme – project team set up
 Design is countywide to minimise where
possible a postcode lottery on award
levels. Leicester working with other local
councils.
 Scheme will be fair, protect the most
vulnerable but achieve the savings
 Support the theme – work pays
 Legislation laid Summer 2012
Estimated Council Tax Support
expenditure at Leicester
Working age - the most
vulnerable
LA’s to define who are deemed to be most
vulnerable.
Who could be vulnerable Groups identified for
consideration so far are:
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Claimant or child in receipt of middle or higher
rate care components DLA/AA.
Disabled people who are living independently but
in supported living accommodation who have
carers and are unable to work because of their
health.
Households with dependent child under five living
on Income Support.
War widow’s income could be excluded from the
income calculation.
Benefit Income Capping
April 2013
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Benefit income for working age benefit claimants will be restricted
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£500 pwk week for families/lone parents
£350 pwk for singles.
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Any ‘benefit income’ above £500 will not be paid.
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Housing benefit is included in this but NOT Council Tax Benefit which will no longer be a state benefit in
April 2013.
DWP data shows around 500* households affected in Leicester.
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Where the family make up has more than 4 children they will receive less Housing Benefit towards their
rent - an average loss of £130pw. *
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Council households in Leicester where the family make up has more than 5 children will receive less
Housing Benefit towards their rent - an average loss of between £71. 18 and £82.74pw. *
* Data is currently being checked & more accurate information should be available shortly.
Benefit Income Capping continued
The DWP are providing LA’s with the details of
those claimants they think will be affected by
this cap.
These claimants are being sent a letter from the
DWP stating they are likely to be affected by
the change.
(Plus Direct.Gov web site have a calculator & there is a telephone helpline)
The LA will also be contacting these customers
before the change occurs.
Benefit Income Capping continued
Exemptions apply if claimant is in receipt of…
Disabled Living Allowance/PIP/AA,
 War widow/widower,
 Support element of ESA (& UC when in) and
 Working Tax Credit.
 “Grace period”
Cap not applied for 39 weeks for people who have
worked continuously for previous 12 months and have
lost their job through no fault of their own.

HB Restriction – April 2013

Working Age customers in social housing
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14% for 1 extra bedroom*
25% for 2 or more extra
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This % amount is a reduction from the eligible rent then the HB
award is calculated on the lower amount.
* The room allowances are in line with LHA so it does not
always mean there is a spare bedroom as some young
children are required to share
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There will be some exemptions.
Issues

Leicester has predominately family sized accommodation 3
bed roomed
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Very few two bed social housing across Council and RSL
stock.
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RSL’s are considering converting 4 – 5 bed stock into 2 bed
flats or shared accommodation.
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This in turn reduces the capacity of larger housing stock.
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The majority of under occupied accommodated stock is
occupied by pensioners.
Issues

Shelter say people will try to absorb the cut rather than
move.
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The impact on Leicester City as a whole is unknown but
Government statistics say 670,00 homes face cuts from this
measure.
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Perverse incentive :This could force families into smaller but
more expensive private rented accommodation.
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Data suggests this change could affect households by an
average of between £955 pa in the North West to £1,385
pa in London.
Discretionary Housing
Payment (DHP)
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Leicester will receive £209,549K for 2012/13
Awarded on a case by case basis.
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Payments are time limited, although claimants can re
apply. They are paid at the discretion of the council to
households who can show a financial need for additional
support and are in receipt of Housing Benefit which does
not cover the rent in full.
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Leicester’s policy aims to support families and disabled to
remain in their homes while they seek alternative cheaper
accommodation
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Payment where HB is from 50 pence upwards
DLA moves to PIP
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Disabled Living Allowance moves to Personal
Independence Payments
Reduced qualifying criteria
Not means tested.
Review impacts on 16 -64 year olds (2013 -16)
Will be a tougher ‘fitness’ test
Aim to reduce numbers claiming DLA
Not life long award – there will be regular reviews
Those who no longer qualify will loose out on Blue
Badges, Carer’s Allowance and Motability schemes,
exemption to benefit cap, and other Welfare reform
changes, DHP support, priority for Welfare Assistance
etc……..
Welfare Assistance 2013

Community Care grants and other Crisis loans
will be abolished. A new award will be paid
out by LA, instead of DWP
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Will be a grant
Administered at the discretion of the LA
Nationally £178m to distribute
These will be local schemes but funding will
not be ring-fenced
LA’s will use existing powers to administer
payments
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Universal Credit
Oct 2013
Means tested benefit which replaces:Income Support
JSA
ESA(IR
Tax Credits
HB
One payment direct to claimant, paid in
arrears, administered by DWP.
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Starts Oct 2013 gradual migration until 2017
Universal Credit headlines
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New Benefit for Working age applicants in/out of work
Single application route – Online claims
*Housing Costs ( Housing Benefit & Mortgage Allowances)
Tax Credits
Working Tax element
Child Care element
Child Tax Credit
Single taper (65%) Working age claimants only
Capital limit £16,000
Mimics work
Single system of disregards
No ‘cliff edge’ loss of financial support
What’s not in UC?
 JSA
& ESA – contribution based
 DLA (& what will be PIP)
 AA
 Child Benefit
 Bereavement benefits, SSP, SMP,
Maternity Allowance, Industrial Injury
Disability Benefits, Widows Benefit.
Universal Credit core
objectives
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improve work incentives through a
combination of improved earnings disregards
and/or lower benefit withdrawal rates;
smooth the transitions into and out of work;
reduce in-work poverty;
simplify the system, making it easier for people
to understand, and easier and cheaper for
staff to administer; and
cut back on fraud and error.
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NB) CTS will follow the same objectives
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HB payments under Universal
Credit
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One single monthly payment in arrears
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Households could get £2000+ to cover, food, living expenses, rent, child
care etc.
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Majority of HB payments will go to the claimant and not the landlord
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Only 20% of payments in the social sector housing claimants will be paid
direct to landlord through the ‘default exception scheme’
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Third party payment will be catered for ( Power of Attorney etc.)
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To evaluate the effect there are to be 6 pilot sites starting in June 2012.
Timetable for UC
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February 2012 - Royal assent of the Welfare Reform Bill.
October 2012 (approx.) - Main UC regulations published.
April 2013 - Pathfinder area used to test UC.
October 2013 to April 2014 –
New Claims and Change of circumstances.
If applying for - jobseekers allowance, employment support allowance, housing
benefit, working tax credit or child tax credit.
 April 2014 –
You may be moved onto UC if it is considered that you will benefit from this –
e.g. if you are on working tax credit and work a small number of hours a week but
could work more hours with support from UC.
 The end of 2015 - the end of 2017 –
If you have not been moved onto UC already you will be moved during this time.
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What help is out there? (in Leicester)
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Housing Options
LCC is reviewing the homelessness policy
LCC is reviewing the allocations policy
Extensive publicity
Money Advice Service
Financial help with moving to cheaper,
smaller accommodation
Additional funding
DHP’s for vulnerable households
Landlord/stakeholder awareness sessions
Any Questions?
Chandra Thakrar
Revenues & Benefits Team Leader
Leicester City Council
chandra.thakrar@leicester.gov.uk
rbstepteam@leicester.gov.uk