Employment Advisor

|Date of Change |Benefit |Change |Additional Information |
|April 2011 |Housing |Local Housing Allowance capped at for 1 bed (250), 2 bed (?340), 4 bed (?400) 5 bed rate | |
| | |abolished, | |
| | |Non-dependant deductions ??“ large increases over next 3 years |Impacts tenants with non dependent adults (adult children etc) living in|
| | | |the house. Non??“dependents may not always be willing to make up the |
| | | |shortfall. |
|Jan 2012 |Housing |Local Housing Allowance- single room rent restriction for single people (not LP) under 25 |Could impact on parents with shared care of children. |
| | |extended to under 35 | |
|April 2013 |Council Tax |Handover of responsibility for CTB schemes to local authorities with a 10% reduced budget. |This will result in review of current exemption categories (excluding |
| | | |pensioners) resulting in some who are currently in receipt of CTB either|
| | | |receiving less or none at all. This will have to be met from their other|
| | | |benefits. |
| |Housing |Payments Restricted to the number of bedrooms??™ needed??™ for occupants of social housing |Applies to working age families. If occupying a house deemed larger than|
| | | |their needs they will only get rent covering the rooms deemed necessary |
| | | |e.g. if the live in a 3 bed house but are deemed to only need 2 beds |
| | | |they will only get rent based on 2 beds. |
| | |Local Housing Allowance- rates up rated in line with consumer price index not average market|Housing benefit will no longer be based on what the rent actually costs.|
| | |rents. |Shortfalls in rent will have to be found out of other income. Debt and |
| | | |evictions are likely to increase. |
| | |HB to be used to apply a cap on total benefits income (unless on DLA or WTC) at median |People in receipt of working age benefits will have their total benefit |
| | |income(c ?350 for single adult, ?500 for couple) |capped at either ?350 or ?500 pw. |
| | | |In Bsly we currently have over 100 people over that amount (May 2012) |
|April 2011 |Tax Credits |New category for workers aged 60+ who can claim WTC if working over 16hrs at 60+ regardless |Helps older workers to explore reduced hours option. |
| | |of whether a disabled worker or have children. | |
| | |Childcare element of WTC reduced from 80% to 70% of actual childcare costs up to a capped | |
| | |maximum. | |
| | |Income threshold for family element of CTC reduces from ?50k to ?40K per year | |
|April 2011 |Tax Credits |Baby addition to CTC Family element scrapped |Families with a child under 1 yr will lose up to ?10.50 pw. |
|April 2012 |Tax Credits |Couples with children must work at least 24 hours combined per week to qualify previously 16|Impacts on low income families where unable ot increase hours of work |
| | |hours. With one working at least 16 hours. |from 16 to 24., some may have to give up work. |
| | |50 plus element scrapped |Those aged 50+ moving from unemployment into low paid work no longer |
| | | |eligible for WTC. |
| | |For all tax credits new rule disregarding an income drop of ?2,500 |Tax credits will not increase if income does not drop by more than |
| | | |?2,500. |
| | |For all tax credits time limit for notifying changes cut from 3 to 1 month | |
|Jan 2012 |Income Support(Lone |New claims for IS (lone parents) only if a child is under 5 years. If not then must make |Over 100,000 lone parents switched from IS to JSA since 25.10.10. |
| |Parents) |claim for JSA. Existing claimants with no child under 5 will have the benefit removed in |Nominally same benefit rate, but must ???actively seek??™ and be ???available??™|
| | |stages. |for work or face JSA sanctions. |
|April 2012 |Contributory ESA |Limited to one year for people in the work related activity group. Support group not |Loss of independent income for those with savings or working partners. |
| | |affected |Applied retrospectively so will lose benefit immediately. |
|April 2013 |DLA &PIP |DLA to be replaced by Personal Independence Payment (PIP) features include: |Loss of DLA for those failing the new PIP criteria. Likely to hit those |
| | |20% budget cuts and focus on most disabled. |with less definable issues(e.g. autism, mental health, MS and cancer). |
| | |2 rates based in each component based on severely limited/limited ability/limited ability |A double impact for those on low incomes as loss of DLA will mean loss |
| | |for daily living activity and /or mobilising activity. |of DLA related premiums. |
| | |Medical assessment of all claims using ESA style descriptors focussing on more restricted | |
| | |list of essential living tasks | |
| | |Longer 6 month qualifying period | |
| |Social Fund |Crisis loans (waiting for benefit to be processed) to be replaced by ???payments on account??™. | Funding to local authorities is not ring fenced and there is no |
| | |All other crisis loans and community care grants abolished. And budget passed to Local |statutory requirements to provide so likely to be a postcode lottery |
| | |Authority. |situation arising. No independent appeal process. |
| | | | |
|Oct 2013 |Universal Credit |Merge all means tested benefits and tax credits into a single Universal Credit. New claims |Ministers have confirmed that Universal Credit will be introduced across|
| | |from Oct 2013. |Britain, starting on a small scale in every region from October 2013 and|
| | |Migration to Universal Credit by October 2017 with transition protection. There will be |building up capacity to April 2014, when all new claims to the current |
| | |winners and losers under the new system. |benefits and credits will be entirely phased out |

J. Dearnley May 2012
Information taken from NAWRA report
This should not replace any formal guidance and will not be automatically updated.