Welfare Reform
(in the Scottish Borders
A Rural Context)
Homeless Action Scotland
Cathie Fancy
18th April 2013
Today’s Presentation
• SBC’s Approach to managing the Impact of the
Implementation of the Welfare Reform
• Overview of the Impact of the Welfare Reform in the
Scottish Borders
• Highlight of some of the Key Actions/Changes
• Challenges
Estimated Impact Scottish Borders
Approach to the Welfare Reform
• Joint Programme/Joint Solutions
• Focus is on the claimant
– Designing processes around the claimant
– “Customer Journeys”
– Whole picture – 1st contact, support & advice,
accessing benefits, support into employment
• Supporting/Managing the Implementation
• Business Impacts
• Opportunities
• Welfare Aware Borders – Launch 4th March
• Increased publicity/enquiries
Planning
Community Planning Theme 4
Community Planning Theme 4
Future Model of Public Service Delivery
Future Model of Public Service Delivery
for the Scottish Borders
for the Scottish Borders
Lead Officer: Tracey Logan
Lead Officer: Tracey Logan
Community Planning Joint Delivery Team
Community Planning Joint Delivery Team
Strategic
StrategicPartnership
PartnershipAgainst
AgainstPoverty
Poverty
Programme Governance
Community
Scottish Borders Welfare Reform Programme - Programme Structure
Programme Board
Programme Board
Senior Responsible Owners: David Cressey & Jenni Craig
Senior Responsible Owners: David Cressey & Jenni Craig
Programme Manager: James Lamb
Programme Manager: James Lamb
Welfare Reform Officer Steering Group
Welfare Reform Officer Steering Group
Customer
Customer
Services
Services
WR Project
WR Project
Project Portfolio
Responsible for the delivery management
and delivery of the Programme
SBC
Business
Impact
Project
Housing Benefits
Housing
Benefits
Migration
to
Migration
Pension Credit to
and
Pension Credit
Universal
Creditand
Universal Credit
Migration of Council
Migration
of Council
Tax Benefit
Tax Benefit
Benefits Cap &
Benefits
Cap &
Size
Criteria
Size Criteria
Communications
Project
Temp Accommodation
Temp
Accommodation
Subsidy
&
Subsidy &
Discretionary
Discretionary
Housing
Payments
Housing Payments
Scottish Community
Scottish
SupportCommunity
Fund
Support Fund
Universal
Universal
Credit
Credit
(Mitigation)
(Mitigation)
Project
Project
The Customer
The
Customer
Journey
Journey
(including debt
debt
&(including
budgeting
& budgeting
Advice,
Service
Advice, Service
Redesign
and
Redesign
and)
Revenue
Impact
Revenue Impact )
Housing
Housing
Strategy
Strategy
Impact
Impact
Private
Private
Sector
Sector
Housing
Housing
Pathways
Pathways
To
To
Employment
Employment
Support & Advice to
Support
& Advice to
target groups
target groups
Mitigation of impact on
Mitigation
impact on
targeted of
groups
targeted groups
Joint solutions in
Joint solutions
in
Developing
pathways
Developing
pathways
into sustainable
into sustainable
employment
employment
Supporting the Programme Board in
developing and managing the
Programme and responsible for the
management and delivery of projects
Financial Implications
HR Implications (inc org design
& impact of tax credits changes)
Training
Process Redesign
Technology Requirements
Management of Change
SOA
Developing & Managing a joint
communications strategy
Supporting the Communications
requirements of each project
Joint editorial board
Before
April 2013
April 2013
June 2013
Oct 2013/
Feb 2014
April 2014
April 2015
Onwards
Change
•Local Housing Allowance - reduction in rates from 50th to 30th percentile for Private
Tenants (April 2011)
•Increased deductions for non-dependents (April 2011)
•Shared room rate extended from under 25s to under 35s (January 2012)
•Employment Support Allowance starts to replace Incapacity Benefit
Impact
•Reduction in rate to 30th percentile – 1500 cases in the borders, over £430k per
annum reduction in benefit
•Non-dependent deductions – 203 cases
•Shared room - 49 cases, over £61k per annum reduction in benefit
•Employment Support Allowance – Significantly less people qualifying, more (1,760)
people required to find work
Before
April 2013
April 2013
June 2013
Oct 2013/
Feb 2014
April 2014
April 2015
Onwards
Scottish Welfare Fund
Changes
•New/Additional Council Service
•Temporary for 2 years
•Crisis Grants – expect 3000 applications/year – 2000 awards - budget £123k
•Community Care Grants – expect 1200 applications/year - 600 awards – budget
£284k
•Applications by telephone, on-line or postal
•Payment by SMS, Electronic Card or direct to bank
•Closer working with CAB and Welfare Benefits Officers
Impact
•Additional staff required (3FTE) – budget pressures of £30k (13/14) & £25k (14/15)
•New systems and contracts being negotiated
•Security Issues in Contact Centres
•Grant, NOT loan! Expect increase in number of applications
Before
April 2013
April 2013
June 2013
Oct 2013/
Feb 2014
April 2014
April 2015
Onwards
Social Sector Size Criteria
Changes
•Reduction in Housing Benefit where tenants have more bedrooms than they require
•14% for one Bedroom and 25% for more than one bedroom
Impact
•Approx 1100 households affected – financial sum £500k/annum
•Increased pressure on household budgets
•Appropriate size of accommodation being available
•Increased demand for discretionary help
•Potential increase in rent arrears
Before
April 2013
April 2013
June 2013
Oct 2013/
Feb 2014
April 2014
April 2015
Onwards
Council Tax Reduction Scheme
Changes
•Funding reduced by 10%
•No change in 2013/14 for customers, new scheme expected in 2014/15
•Current Council Tax Benefit claims will migrate automatically
•Changes to appeal system – Valuation Appeals Committee, not Tribunal Service
Impact
•New financial burdens – software changes, increased cost of appeals, changes to
documentation
•Dept of Work and Pensions will no longer receive applications – additional
administration
•No longer a social security benefit – cannot access Discretionary Housing Payments
•Financial cost to the Council of meeting the 10% shortfall in funding - £371k (one
year only)
Before
April 2013
April 2013
June 2013
Oct 2013/
Feb 2014
April 2014
April 2015
Onwards
Local Housing Allowance
Changes
•Further reduction in Local Housing Allowance Rates
Impact
•1152 households affected approximately £250k per annum. Between £2.41 and
£5.77 per week.
Before
April 2013
April 2013
June 2013
Oct 2013/
Feb 2014
April 2014
April 2015
Onwards
Discretionary Housing Payments
Changes
•Now seen as the main way to assist claimants in need due to Welfare Reform
•Must demonstrate the need based on income and expenditure
•DWP budget increased from £39k in 2012/13 to £170k in 2013/14
•Properties adapted for disability/foster & kinship carers/moving to more affordable
accommodation
Impact
•Anticipate a significant increase in applications (est. 150pa in 2012/2013 to 800pa in
2013/2014)
•Demand is likely to outstrip funding
•Staff training
•New appeals process
Before
April 2013
April 2013
June 2013
Benefits Cap
Change
•Comes into effect in summer 2013
•Benefits will be capped at:
• £500/week for couples
• £350/week for single people
Impact
•20 households affected in the Borders
Oct 2013/
Feb 2014
April 2014
April 2015
Onwards
Before
April 2013
April 2013
June 2013
Oct 2013/
Feb 2014
April 2014
April 2015
Onwards
Personal Independence Payments
Change
•Disabled Living Allowance will be replaced by Personal Independence Payments for
people aged 16-64
•New claimants will be invited to claim from 10th June
•Will have a more rigorous qualifying criteria
Impact
•National budget reduced by 20%
•Currently 5,450 Disabled Living Allowance claimants in Borders
•20% cut will lead to significant changes and hardship for these people
•Significant loss of income to local economy
•Reduced income to Social Work Care & Health Services
•Increase in demand for support and advice
Before
April 2013
April 2013
June 2013
Oct 2013/
Feb 2014
April 2014
April 2015
Onwards
Universal Credit
Change
•Universal Credit begins to be rolled-out nationally from October in a phased way
•Anticipated that Universal Credit will “go live” in the Borders in February 2014
•Local Support Services Framework in place from October.
Impact
•Redesign of support and advice services
•Increased demand on services including online access
•Potential increase in homelessness/Temporary Accommodation Costs
•Potential loss of income
•Comprehensive training programme to enable staff to understand Universal Credit
and also how it interacts with other benefit entitlement, including e.g. free school
meals
•Potential risk to vulnerable people.
Before
April 2013
April 2013
June 2013
Oct 2013/
Feb 2014
April 2014
April 2015
Onwards
Personal Independence Payments
Change
•Reassessment to Personal Independence Payments starts for fixed period –
Disabled Living Allowance awards coming up for renewal, young people turning 16 or
where claimants report a change in circumstances.
Impact
•Need to provide support with making claims
•Need to make claimants and carers aware of impact on other benefits if Personal
Independence Payment is refused.
•Need for support with review and appeals processes
Before
April 2013
April 2013
June 2013
Oct 2013/
Feb 2014
April 2014
April 2015
Onwards
Universal Credit
•Start of Managed Migration of existing claimants – starting with Job Seekers
Allowance. (Dept. of Work & Pensions still to publish schedule of phased migration).
•By Oct 2017 all working age claimants for means tested benefits would be on
Universal Credit.
Single Fraud Investigation Service
•Local Authority staff to operate under guidelines from the Single Fraud Investigation
Service
•Review of fraud investigation arrangements underway.
Before
April 2013
April 2013
June 2013
Oct 2013/
Feb 2014
April 2014
Change
•Migration of all remaining DLA claimants to PIP (completion in 2018)
•New Council Tax Reduction Scheme Starts (to be determined)
•Housing Benefits Closure (minimum of 2 years notice)
•SFIS new arrangements go live (subject to review)
Impact
•Significant Structural Change
•Subsidy – Budget Impact
April 2015
Onwards
Key Challenges
•Population of 112,430 over 732 sq km =24 per sq km – compared
with Glasgow - population of 584, 240 over 175 sq km = 3329 per sq
km
•Only 3 JCP Officers to cover Area (Hawick, Gala & Eyemouth) – 6 PC’s
available for claimants
•Drop-in – tends not too work in rural locations
•Poor broadband coverage in many rural areas
•Transport Issues (Costs/Services)
•Food costs tend to be higher
•Fewer third sector organisations
•Historically low THB
What work is underway
•
•
Worked jointly with RSL's to identify and write to people affected by the
"Size Criteria"
Rsl's have continued to work by contacting their tenants and supporting
them (30 moves and 100 DHP applications)
changed our Discretionary Housing Policy and consulted widely including
Homeless/housing, CAB, Welfare Advisors and RSLs. The policy now
includes provision for people affected by the " Size Criteria " particularly
where the property has been adapted for a disability,
participated in national groups on the development of the Scottish Welfare
Fund
procured software and payment methods for Scottish Welfare Fund
checked to ensure that we do not have foster or kindred carers affected by
Benefit Cap
running awareness session for practitioners
•
working with Job Centre Plus staff to ease the transition
•
•
•
•
•
What work is underway cont..
• Work ongoing Libraries/contact centre –
establish IT availability/staff support claims
• Work ongoing Service providers to identify
internet access and support for mental health
services
• Investment in the Programme (Staffing)
• Signposts to further information:
– Dept. of Work & Pensions Website
– Scottish Borders Council’s Welfare Reform Web
Pages
• Welfare Aware Borders – Launch 4th March
Thank you for
Listening
Any Questions?