April 22, 2023

Welfare Reform: The impact on local communities Samuel Scharf

Contents

• Joining the dots of Welfare Reform• Impact of reforms on local areas and communities• Responsibilities of, and pressures on, local authorities• Solutions

Local provision: welfare assistance

• Welfare Reform Act abolishes, from April 2013:- Community care grants (CCGs) - Crisis loans (CLs) for living expenses

• Previously centrally held Council Tax rebate budget will be added un-ring fenced to LA grant (-10%) with additional policy pressures

• LAs expected to make local arrangements to meet need

• Housing benefit changes

Managing effects of benefit changes

Total benefit cap

• Families look to move to cheaper accommodation (or not as the case appears to be)

• Risks of overcrowding, HMOs (Houses of Multiple Occupation) and homelessness, increases pressure on housing and homelessness depts, children’s and adult services.

• Movement between areas risks employment problems, less social integration and child protection issues. Increases pressure on schools, health services.

Implications for local authoritiesVarious levels of pressures and responsibilities:

1. Local provision of formerly national schemes

2. Managing effects of benefit changes on local communities

3. Involvement in local delivery of national Universal Credit? 4. Others – PIP (Personal Independence Payments) /DLA

(Disability Living Allowance), Re-setting local entitlement criteria to discounted services

Pressures that will impact communities• New administration of these support functions – money

to existing services with high entitlement thresholds• Support in kind versus support in cash• No rights to review – pressure on your complaints

process• Not ring fenced - potential movement of money to

statutory services• Timing• Impact if there is a local residence test

Simpified?

Personal Independence Payment

Universal Credit

Pension Credit, Child Benefit, Carer’s Allowance (will remain)

Income related JSAIncome related ESAIncome Support (including SMI)Working Tax CreditsChild Tax CreditsHousing Benefit

Disability Living Allowance

Contributory JSA and ESA (will remain)

Council Tax Benefit

Tapering

200

100

0100

£100

£500

£400

£300

£200

£100 £300£200£0 £400 £500

Universal Credit payment

Total in-pocket income

Universal Credit: lone parent with two children

£600 £700

Role in delivery of Universal Credit

Delivery of UC is “digital by default” but face to face and telephone access for those who need it

Potential role of LA s, RSLs (Responsible Social Landlords) and third sector organisations in delivery:

• help access online account

• face to face / telephone contact

• budgeting support and financial capability

Top 5 challenges

1) Social Services assessments (new proxies), costs and passported services

2) Empowerment or dependency, what is the balance?

3) Individual and family capability and capacity to cope

4) Digital by default – what does this look like? Impact?

5) Coping with increase in demand both on advice services as well as high cost lenders and unscrupulous traders.

CommunicationActivity Dates Purpose of scan

Benefit Cap direct mail/ Communication (NB further scans post Oct 12 are currently being considered)

• May 2012 -To all ‘stock’ claimants (at that point in time)• July 2012 - To ‘new’ claimants not captured on p April 12 scan• October 2012 - To all ‘stock’ claimants (at that o point in time)

To inform claimants of the cap and the support available to them.

DWP District scan (NB further scans post Oct 12 are currently being considered)

April 2012 – an initial ‘stock’ scan July 2012 - A new claim scan (only cases not o on April scan) October 2012 – A new claim scan (only cases n not on July scan

Districts will use the scan from April 2012 to make contact with claimants and offer of employment support.

Local Authority Scan April/May 2012 – an initial ‘stock’ scan July 2012 - A new claim scan (only cases not o on April scan) October 2012 – A new claim scan (only c c cases not on July scan

LAs will require a scan output of potential cap claimants /households to enable them to offer housing support.

Solutions • Accountability and transparency

• Clear information channels to citizens, need for real engagement and use of appropriate technology

• Working across teams in LAs, Job Centre Plus, with CABx and others to explain changes (Local Delivery Alliances)

• Common issues that joint thinking could provide some solutions

• New partnerships. E.g. Banks, employers.

April 22, 2023

Welfare Reform: The impact on local communities Samuel Scharfe: samuel.scharf@citizensadvice.org.uktw: @cabpartnerup