Benefits briefing 030913

| ©arvato | 18 September 2013
Benefits Briefing
Diane Turner
03 September 2013

Presentation Overview
Latest News Updates:
 LGA report – The local impacts of welfare reform
 CAB reports – Crisis assistance
 Papworth Trust report – making DHP work for disabled people
 Digital Deal – helping to get tenants online
 Telegraph Interview with Howard Shiplee

Latest News
LGA report – The local impacts of welfare reform
– Income of households claiming benefit will be on average £31 per week
(£1,615 per year) lower in 2015/16 as a result of welfare reforms
– The impact represents the loss in income compared with what benefits would
have been awarded in the absence of reform
– All regions expect London seeing average losses between £1,500 and £1,650
per year
– Larger impacts due to more people out of work / on low income in the North
balanced by far higher housing costs in the South
– For London the average loss is £1,965 per year
– Over 45% of working age households receive one of the main state benefits
(i.e. a DWP benefit or a Tax Credit)
– LGA report estimate that 59% of all welfare reform reductions fall on
households where somebody works

Latest News
LGA report – The local impacts of welfare reform cont…
Mitigating impacts
– Responses to Welfare Reform have been limited so far, relatively few
claimants looking for work and even fewer finding work, and little evidence of
claimants moving to more affordable accommodation
– LAs adopting a range of strategies to support claimants:
• Targeted information campaigns
• Personal support
• Financial assistance
• Joint working and signposting
– £155M made available for DHP in 2013/2014;
– DHP covers just £1 in every £7 of the impact of housing reforms on tenants

Latest News
CAB report – Crisis assistance in Stirling & District:
 Figures from the Trussell Trust highlighted that in June 2012, 128,697 people had received foodbank
support within the last 12-months (45,000 were children)
 Increase of 100% compared to 2011
 Research shows that the reasons for the increase relate to Welfare Reform and the economic
downturn
 29% of foodbank referrals were due to benefit sanctions and delays
 19% of referrals were due to low incomes
 Foodbank users also identified shortages due to inflation, losing employment, cut in working hours
 Difficulties in rural communities accessing foodbanks – higher transport costs to access
 Largest age group to use foodbanks is the 30-39 year old category
 69% of referrals were for males, 31% for females

Latest News
Papworth Trust report – looking at how effective DHPs are for disabled people
 1 in 3 disabled people are being refused a DHP;
 LAs have rejected DHPs from disabled people who are living in adapted properties and are unable to
downsize in the short term
 Of those refused a DHP; 75% turned down because their income was greater than expenditure or
hardship was not demonstrated
 Disabled people are cutting back on food and drink in order to pay the “bedroom tax”
 Papworth Trust is calling for:
– Those living in adapted properties to be exempt from the size criteria so that they will not be
affected by the “bedroom tax”
– The DWP to issue stronger guidance to LAs that DLA should not be counted as income for DHP
purposes
– The Government to ring fence DHP funding that they intended LAs to prioritise for disabled people

Latest News
Digital Deal – helping to get tenants online
 The Government’s Digital Deal has provided funding for internet services and training for social
housing tenants
 12 landlord projects will receive funding of £400K from the DWP and DCLG as part of the Digital Deal
 Successful bids will cover innovative initiatives such as:
– Turning residents TVs into internet access devices using android mini-PCs
– Digital access hubs
– Provision of low-cost and recycled computers
– Mobile internet cafes
– Recruitment of local digital champions who will support thir communities in accessing IT
information
– Accessible internet kiosks

Universal Credit has been plagued by problems, says
director
 “In an article Howard Shiplee, a former Olympics executive who was drafted in
to direct the UC project, says he is focusing on ensuring that the cutural
elements” of the welfare reform programme are introduced while an “enhanced”
IT system is being developed.
 It is thought Mr Duncan Smith believes he has been let down by officials and
has had to employ experts from the private sector to get Universal Credit back
on track.
 The people on the ground working day to day at Jobcentre Plus are excellent at
their jobs.
 here were examples of poor project management in the past,
– a lack of transparency where the focus was too much on what was going
well and not enough on what wasn't and with suppliers not managed as
they should have been

Universal Credit has been plagued by problems, says
director
 Equally, there has undoubtedly been bad luck. The former head of UC, Philip
Langsdale, an acknowledged project management expert, died only three
months into the job
 it’s always important to acknowledge in any project where things may have
gone wrong in order to ensure we learn as we go forward.
 key decision taken by the Secretary of State to reset the programme to ensure
its delivery on time and within budget has been critical.
 Pushed ahead on early progress, reviewing delivery plans, and ensuring that
we have a plan in place that is achievable and safe.
 tight grip on programme spending
 There will be a new Director who will be dedicated to ensuring that suppliers
deliver value for money.
 Programme is now back on course and the challenges are being handled.

Universal Credit has been plagued by problems, says director
 working with the new Government Digital Service (GDS) to explore an
enhanced IT programme that would offer more flexibility and security to benefit
claimants.
 take the best of the existing system and make improvements using GDS
support.
 But too many people think Universal Credit is just about IT. That’s a big
mistake. This is about changing the way we do business – and changing
people’s behaviour by ensuring there is always an incentive to be in work.
 All Jobcentres will be using the new Claimant Commitment beginning in
October, rolling out completely by the spring. This will spell out clearly what we
expect from benefit claimants and better prepare them for the world of work.
 bringing Jobcentre Plus into the digital age, so individuals look for jobs online,
apply for their benefit online and access services that will help them get ready
for the increasingly digital world of work.
 build on our experience so far by taking claims to Universal Credit from six
more Jobcentres between October and next spring.

Universal Credit has been plagued by problems, says director
 We will continue with our safe and responsible approach
 We can’t underestimate the scale of the challenge. This is a fundamental
transformation of the welfare system.
 This is no small reform. But it’s a necessary one. And that’s why it’s of
paramount importance that we get it right.

Thank You
Any Questions?

Benefits briefing 030913

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