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Northumberland
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Welfare Reform

The Government are making some of the biggest changes to the benefits system in 60 years as part of their Welfare Reform Act. The changes will affect many people in Northumberland.

Council Tax Support

Council Tax Benefit has been replaced with Local Council Tax Reduction Schemes from 1st April 2013. In Northumberland, the Council has protected the level of Council Tax Support provided during 2013-14 so it will be the same as it was under the previous Council Tax Benefit scheme.

For more on council tax support

 

Northumberland Emergency Transition Support (NETs)

The Welfare Reform Act 2012 abolished the discretionary elements of the Department of Work & Pensions (DWP) Social Fund (Crisis Loans for items and daily living expenses and Community Support Grants)

As from 1 April 2013 NETs will provide crisis support to residents of Northumberland in the following ways:

Emergency Support

AIM: To help meet your immediate short term needs for goods or services that arise because of a disaster or unforeseen circumstance.

Awards are only available for: food, baby consumables, clothing, heating and travel and for a maximum of 7 days support.

Transition Support

AIM: To help you remain in the community or move back into the community after a period in supported or unsettled accommodation.

Awards are only available for: beds/ bedding, furniture, white goods, kitchen equipment, floor coverings, curtains, travel and storage/ removal costs.

Northumberland County Council recognised the added value that would be achieved if the VCS were engaged to deliver this process.

DAWN (Advice), working in partnership with Five Lamps and Voices Northumberland were awarded the contract to deliver the scheme

http://www.dawnadvice.org.uk/social-fund.aspx

http://www.fivelamps.org.uk/finance/northumberland-emergency-transition-support-nets/

 

Housing Benefit

There will be several changes to Housing Benefit that could affect how much help you get. If you live in a Homes For Northumberland property or rent from a registered social landlord (Housing Association) you could get less benefit if you are:

considered to have too many bedrooms for the number of people living in the property (under occupation).
Non dependant deductions will also increase
There will also be a maximum limit on the amount of benefit someone can receive (benefit cap)

For more on housing benefit

 

Under occupation

If you are of working age (this is someone who has not reached the qualifying age for pension credit) and live in a council or housing association property your Housing Benefit will reduce if your property has too many bedrooms based on the people living in your household.

The new rules allow one bedroom for:

  • Each adult or couple
  • Anyone over 16
  • Any two children under 16 of the same sex
  • Any two children under 10 regardless of sex
  • Any other child
  • A non-resident overnight carer


If you have one bedroom more than the Government says you need, your Housing Benefit will be reduced by 14% of your basic rent. If you have at least two bedrooms more than the Government says you need, your Housing Benefit will be reduced by 25% of your basic rent.

For more information on Under Occupation

 

Benefit cap

The Government is capping how much money someone can receive in benefits. This will happen during the summer of 2013 and anyone affected will have had their benefit capped by the end of September 2013. For anyone receiving Housing Benefit, the total amount of all benefits a person can receive will be capped at:

£500 a week for couples and lone parents
£350 a week for single adults
If you receive benefits totalling more than these amounts your Housing Benefit will be reduced. For those not receiving Housing Benefit the benefit cap will not apply until October 2013 when Universal Credit is introduced.

This change only applies to people of working age (someone that has not reached the qualifying age to claim pension credit). People of pensionable age will remain unaffected by the benefit cap.

However, the benefit cap will not apply to anyone receiving the following benefits.

  • Working Tax Credit
  • Disability Living Allowance
  • Personal Independence Payments (from June 2013)
  • Constant Attendance Allowance
  • Employment and Support Allowance – income related or contributory (support component only)
  • War Pension/War Widows Pension


Use the Government's benefit cap calculator to find out if you’ll be affected, and how much your benefits could go down by.

 

Discretionary housing payments

In certain circumstances, the Council is able to make Discretionary Housing Payments to some people who need to pay more rent than is covered by the amount of Housing Benefit that they receive. These payments are made from a limited fund and can be used to help people who are living in any kind of rented property but who need more help to pay their rent.

It can also be used to help people who are living in council or housing association properties that are affected by under occupation because they need to use an extra bedroom because they are disabled, for example they are unable to share a bedroom with their partner, they use a room to store aids or equipment or their home as been adapted.

For more information on discretionary housing payments

 

Non-dependant deductions

A non dependant is an adult aged 18 or over, who lives with you. They could be a son, daughter, parent, relative or friend. When working out Housing Benefit and Council Tax Support, it is assumed that a non dependant contributes towards rent and Council Tax even if they do not, and so benefit is reduced to take account of this. These non-dependant deductions will increase.

 

Personal Independence Payment (PIP)

Personal Independence Payment (PIP) is the new benefit that will replace Disability Living Allowance as the main non-means-tested benefit for working-age people with a long term health condition or disability that affects their daily living or mobility.

It was introduced on 8th April 2013 but it will not affect all claimants immediately.

On 8th April 2013, Personal Independence Payment was introduced for new claims, instead of DLA, in most of Northumberland. People living in TD postcode areas will continue to make new claims for DLA until June 2013.

Existing DLA claimants aged 16 to 64 on 8th April 2013 will be affected by the introduction of Personal Independence Payment, even if they have an indefinite or lifetime award of DLA.

From October 2013, people who report a change in how a health condition or disability affects them, they reach the end of an existing award of DLA, or they are approaching the age of 16 will be invited to claim Personal Independence Payment. The exception will be renewal claims for a fixed period award due to expire before the end of February 2014 when the renewal claim will still be for DLA.

People with indefinite (“lifetime”) DLA awards do not need to contact DWP now. They will be contacted in October 2015, at the earliest, unless they report a change in how their health condition or disability affects them.

There will be no automatic transfer from Disability Living Allowance to Personal Independence Payment.

 

What is PIP?

PIP has a daily living component and a mobility component. Each component has two rates;
a standard rate and an enhanced rate. People can get both components if they satisfy the conditions for both. People will need to satisfy the disability conditions for 3 months before the claim and be expected to continue to satisfy them for 9 months afterwards, unless they are terminally ill and are claiming under “special rules”. PIP daily living component will be paid at the same rates as high and middle rate DLA care component, but there will be no equivalent to DLA low rate care. The criteria are different, so it can't be assumed that people on high or middle DLA care will all transfer to the equivalent PIP rates, just as it can’t be assumed that everyone currently on low rate DLA will not qualify for PIP.

Entitlement is assessed by considering 12 activities. Points are awarded depending on how well people can carry out each of the activities. Detailed information about the assessment can be found here.

 

Conditionality

The Government states that through its reforms it is seeking to speed up entry into employment from benefits for those able to work.  These will include certain conditions for people returning to work or taking up training opportunities.

For more information

 

Changes to benefit from October 2013

 

Universal Credit

Universal Credit will replace several means tested benefits paid to working age people. It will be introduced on a small scale in the North West region on 29th April 2013 for new benefit claims. It is intended to begin rolling out Universal Credit for new claims in other regions from October 2013. Existing benefit claimants are expected to be moved onto Universal Credit sometime between 2014 and 2017. Older people will still claim Pension Credit, however a couple’s eligibility for Pension Credit will be based on the younger partner’s age, rather than the older partner’s age as is used currently, once Universal Credit has been introduced.

 

Universal Credit will replace claims for Income Support, income based Jobseekers Allowance, income related Employment and Support Allowance, Housing Benefit, Working Tax Credit and Child Tax Credit. Universal Credit will be worked out by awarding a personal amount based on age and whether someone is single or part of a couple. Further additions for disabilities and carers, children and housing costs will be awarded depending on a person’s circumstances. For those unable to work due to a health condition or disability, entitlement to the disability element will be based on the existing assessment used for Employment and Support Allowance.

For more information

 

Useful Links

For more information regarding Welfare Reform, please click on the images below:

 

hfnHomes for Northumberland


 

Department for Work & Pensions - information and updates on Welfare reform

 

isosISOS


 

Berwick Borough Housing

 

two castlesTwo Castles Housing Association


 

jjhJohnnie Johnson Housing Association


 

berniciaBernicia


 

shelterShelter


 

dwpDepartment for Work and Pensions


 

gov ukGov.uk


 

nhfNational Housing Federation