Welfare
Network
UNDERSTAND
WELFARE REFORM
Michael Fothergill
michael.fothergill@crisis.org.uk
020 7426 8504
THE WORK PROGRAMME
Work Programme was introduced in June 2011
Delivered by a Framework of 18 Prime Contractors – one ‘Lot’ for Gloucestershire, Wiltshire
and west of England with one Contract Package Area (CPA 12), and 2 Prime Contractors
Prime Contractors – CPA 12 JHP Group 22% self delivery, and Rehab Job Fit 0% self delivery ~
managing agent
Sub-contracts ~ 1ST tier ‘end to end’ - 20 organisations, 2nd tier spot purchase/ specialist
intervention – 46 organisations – unusual split due to status of Primes
Actual contracts forecast prices to 1st April 2016 ~ JHP Group ~ £43.7m, and Rehab Job Fit ~
£54.8m
The Employment Related Support Services Framework can include consortia bids, ESF
contracts, and any other employment related support service contracts (15 in the West
Midlands)
ESF and the Work Programme ~ IB/IS voluntary programme = £66 million / Families with
Multiple Problems = £200 million
Benefit forecast - £190 billion in 2011/12
WELFARE REFORM
‘THE WORK PROGRAMME’
Attachment fee / job outcome fee / sustainment fee – maximum £13529, minimum £3996
£15,000
£14,000
£9,429
£13,000
£12,000
Sustainment
payments
£11,000
£10,000
£9,000
£8,000
Job outcome
payment
£5,327
£7,000
£4,859
£4,405
£6,000
£5,000
£2,994
£2,396
£4,000
£2,007
Attachment
fee
£3,000
£2,000
£1,200
£1,200
£1,200
£1,000
£0
£400
1. JSA 25+
£400
2. JSA 18-24
£400
4. JSA
seriously
disadvantaged
£1,200
£400
3. JSA Ex-IB
£1,200
£600
6. ESA Flow
£3,500
£600
7. ESA Ex-IB
£1,000
£400
5. ESA
volunteers
WELFARE REFORM
WELFARE BENEFITS PROPOSALS
The White Paper 11 November 2010 – Welfare Reform Bill February 2011
LHA rates will be subject to caps ranging from £250 per week for a 1 bedroom property to £400
per week for a 4 bedroom property – new claims April 2011, existing claims January 2012
Shared Accommodation Rate extended to 35 year olds – exemptions for people who have lived
in a hostel for 3 months / ex-offenders ~ serious risk to the public
HB on a property that is deemed bigger than their needs – already applies to the PRS
Excess payments of up to £15 to claimants of Local Housing Allowance (LHA) where
contractual rent is lower than the rate of LHA will be scrapped
Discretionary housing payment (DHP) budget to rise (From 2012, Estimated additional
expenditure: £10 million in 2011 and £40 million thereafter)
Social housing rents will increase for new tenants to 80% of the market rental value – 150,000
new homes over 4 years/ limiting social tenancies depending on financial capacity (2 year
review)
LHA Transition Fund - £4 million boost for innovative projects to support HB reforms 2011/12 ~
liaison between tenants and landlords - £15m for the next three years post 2011/12
WELFARE REFORM
WELFARE BENEFITS PROPOSALS
The White Paper 11 November 2010 – Welfare Reform Bill February 2011
The Social Fund to be abolished in April 2013 – Crisis Loans and Community Care
Grants budgets to be administered by local authorities (social services)
Budgeting Loans budget will stay with DWP and form part of the Universal Credit
Cap of £500 per week on benefits for families - £26,000 per year
Cap of £350 per week on benefits for single people - £18,200 per year
Conditionality – refusal to take up job offer – 1st up to 3 months, 2nd up to 6
months, 3rd up to 3 years (housing costs will not be sanctioned)
‘Conditionality threshold’ – will be removed when a certain number of hours of
work being undertaken (amount earned at NMW rather than hours worked)
DLA to Personal Independence Payment (PIP) – 2013/14 – 6 month not 3 month
waiting time (trial WCAs – Atos Healthcare and G4S)
Linking rules for ESA, IB/IS clients abolished from January 2011
Joint conditionality for couples without children
Introduction of the ‘claimant commitment’
WELFARE REFORM
WELFARE BENEFITS PROPOSALS
The White Paper 11 November 2010 – Welfare Reform Bill February 2011
Higher earnings disregards for people with children and people with disabilities –
not single people = Couple £3000 + £2700 per child, lone parent £5000 and £2700
per child, disabled people £7000
Universal Credit will not replace non-means tested benefits – JSA, ESA, DLA, CHB,
SSP, SMP, MA and IIDB
The Enterprise Allowance
Monthly payments of the Universal credit?
Universal Credit will be implemented by Oct 2013, with migration of old cases
taking place between April 2014 to October 2017
All administered by DWP
Passported benefits
Legal Aid (debt, employment, benefits – not homelessness, mental health, asylum
seekers)
Official error overpayments
WELFARE REFORM
WELFARE BENEFITS PROPOSALS ~ 21st Century Welfare
A Universal Credit:
this combines elements of the current income-related benefits and Tax Credits systems (thus subsuming the tax
credit system). There would be additional payments, reflecting circumstances (including children, housing and
disability). Universal Credit would be delivered through a new system which would use up-to-date earnings
information from employers to calculate Universal Credit on a household basis – 31 benefits into one ! To be
implemented over the next two terms of Parliament by October 2013
Real time payment
system
Will keep up to 35% of
their extra income until