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Slides for Express to SMBC staff, 12th December 2012
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Preparing Sandwell for the Impact of the Welfare Reform
Act 2012Cllr Steve Eling
Deputy Leader of the Council Cabinet Member for Strategic Resources
Melanie DudleyDirector – Improvement and Efficiency
express briefing @ 8
Aim of the Session
• Gain appreciation of the scale of the impact of Welfare Reform.
• Understand the focus of the Council response.
• Feedback your views on how we can best support people.
Key ChangesHousing• Private and social rented sector tenants lose benefitsWork availability• More people expected to be fit for work – benefits
reduced/removed• Entitlements won’t last as long, e.g. for Lone Parents
and some ESA claimantsFinancial competence• Direct payment of housing benefit to tenants• Monthly “salary-style” universal credit payment• Assumption of computer literacy and internet accessMaking work pay• Pressure to find work – greater competition for scarce
jobs• Some households will have to find work/increase their
hours in order to avoid the benefits cap
A timeline of reforms
Key Impacts
• 25,000 non-pensioner households affected. 27,000 children in those households.
• Estimated reduction of £100m in Sandwell.• 7,900 affected by LHA rate changes• 4,500 households affected by Bedroom Tax• 1,000 households affected by increase in
deduction for non-dependants
Key Impacts
• Estimated 2,600 affected by PIP introduction.• 6,000 to lose benefit once assessed as fit for
work (ESA).• 1,500 households affected by changes to
WTC.• 300-400 households losing up to £1.6m due
to total benefits cap.
Overall impact of welfare reductions – modelled by ward
Bristnall
Langley
West Bromwich Central
Greets Green and Lyng
HateleyHeath
Wednesbury South
Cradley Heath and Old Hill
Soho and Victoria
Wednesbury North
Charlemont with Grove Vale
Great Barr with Yew Tree
Friar Park
Newton
Princes End
Great BridgeTipton Green
Oldbury
St Pauls
Smethwick
Abbey
Old Warley
Tividale
Rowley
Blackheath
Estimated distribution of all benefit reductionsBased on benefits received by non-pensioner Households. *£m per year, modelled to total of £100m
6.7 to 7.75 (1)4.56 to 5.63 (7)3.49 to 4.56 (7)2.42 to 3.49 (9)
*This map represents a modelled estimate of all welfare reductions, assuming an even rate of reduction for all non-pensioner benefit households known to Revenues and Benefits, and controlling the total reduction to the nominal total of £100m.
What the Council is doing to support people
• Local Council Tax Reduction Scheme • Local Welfare Provision • Discretionary Housing Payments• Coordinated approach• Prioritised advice service• Focused support on those households
most severely impacted
What the Council is doing to support people
• Preventing homelessness• Helping people manage their money• Supporting people into jobs• Communicating key messages
Conclusion
• Scale of impact needs Council-wide concerted action.
• To learn more about potential impact visit Sandwell Trends/ Welfare Reform.
• Give us your ideas of how we should respond in your feedback form.
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