DWP Update South Tyneside New Horizons Partnership Welfare Reforms Workshop Name: John Moiser Specialist Partnership Manager Date: 12 th February 2013

DWP Update

South Tyneside New Horizons Partnership

Welfare Reforms Workshop

Name: John Moiser Specialist Partnership Manager

Date: 12th February 2013

Department for Work and Pensions2

• Welfare Reform Act

• Social Justice

• Employment Support

• Benefits

Themes

Department for Work and Pensions

Welfare Reform Act

The Act

Timelines


• Most fundamental reforms to the social security system for 60 years.

• Aims for a simpler, fairer benefits system and to ensure that work pays.

• Universal Credit.

• Personal Independence Payment.

• Employment Support Allowance (ESA) time-limiting.

• Benefit Cap.

• Fraud and error penalties.

• Industrial Injuries Disablement Benefit (IIDB) amendments.

• Social Fund changes.

• Housing Benefit changes.

• Revised Appeals Process.

Welfare Reform Act


April 2013

• Housing Benefit / Local Housing Allowance linked to Consumer Price Index and Social Sector ‘Under Occupancy’ Regulations.

• Benefit Cap rollout commences.

• Revised appeals process rollout commences.

• Social Fund reform.

• Universal Credit pathfinder starts.

• Personal Independence Payment (PIP) New Claims controlled start.

• Council Tax Benefit abolished - replaced by local schemes.

June 2013

• PIP new claims introduced nationally.

Timeline 2013 - 2014


October 2013

• Reassessment of Disability Living Allowance (DLA) claims begins.

• Universal Credit (phased roll-out begins).

• Entitlement to work requirement for benefit.

• No new In Work Credit or Return to Work Credit awards.

April 2014

• Universal Credit (new in-work claims, plus start transfer of existing out of work benefit claims).

• Incapacity Benefit reassessment complete.

October 2014

• Modified Pension Credit.

Timeline 2013 - 2014


Social Justice


Social Justice• Social Justice is about giving individuals and families facing multiple

disadvantages the support that they need to turn their lives around.

• The Government published its Social Justice strategy in March 2012.

Social Justice focuses on;

Prevention and early intervention.

Concentrating interventions on recovery and independence - not maintenance.

Promoting work as the most sustainable route out of poverty - while offering unconditional support for those who are severely disabled and cannot work.

Recognising that the most effective solutions will often be designed and delivered locally.

Ensuring that interventions provide a fair deal for the taxpayer.


Service Delivery

Digital Services

Universal Jobmatch


• Our aim is for digital to become the main channel to claim benefit and search for jobs. Universal Credit will be our first digital by default service.

• GOV.UK has replaced Direct.gov and Business Link websites. • JSA Online is now easier to claim on GOV.UK – over 2.5 million people

have done so already. 41.9% of all JSA claims were made online in November.

• Over 3.2 million visits made to the online Benefit Adviser Service by August 2012.

• 25,000 State Pension claims made online by November 2012.

• Up to 3 million visits a week to the job search tool on GOV.UK. • My Benefits Online is a new service which will allow claimants to go

online and find answers to common enquiries, check their claims, awards and payments securely.

Digital Services


• Launched on 19th November 2012.

• Easier and quicker to search for jobs using the very latest technology.

Online users can;

Create and upload their CV.

Search and apply for jobs 24 hours a day, 7 days a week.

Access their personal account anywhere.

Tailor their own job preferences and receive job alerts when a vacancy arises that meets their requirements.

Employers can;

Upload and manage their own vacancies and receive CVs from those who match the person specification and job criteria.

Universal Jobmatch


Employment SupportJobcentre Plus SupportLabour Market Benefit ConditionalityGet Britain Working Youth Contract Lone Parent SupportWork ProgrammeSupport for Families with Multiple Problems Specialist Disability Support


• Unemployment is falling.

• Most individuals do move off benefits quickly.

• There is now a greater focus on diagnosing customers’ individual needs and providing them with an appropriate level of support.

• To achieve this our Advisers have been granted more responsibility and our managers given greater freedoms and flexibilities.

• We want to help people get better at looking for work and ultimately move them off benefits in to sustainable employment.

• For those who do not need our help, we want them to make use of our digital services and get the best out of them.

• Advisers can now place some claimants on Mandatory Work Activity.

• New sanctions regime introduced.

Jobcentre Plus Support


• New sanctions regime for JSA claimants began in October 2012.

• Claimant requirements have not changed – the sanctions have.

• Sanction periods increased with some fixed sanction periods.

• Individuals need to engage with our support and do all they can to look for and prepare for moving off benefits and into work.

• The sanctions are designed as a deterrent.

• We will apply them consistently and with commonsense. Anyone not complying with mandatory activity should be sanctioned unless they have a genuinely good reason for not doing so.

• ESA Work Related Activity Group sanctions were introduced in December 2012.

• Access to hardship provision is still available.

Labour Market Benefit Conditionality


Provides a menu of flexible support options to encourage;

• Sharing of skills and experience through Work Clubs.

• Volunteering as a way of developing work skills through Work Together.

• Self-employment as a route off benefits through the New Enterprise Allowance and via Enterprise Clubs offering community based and locally led support for unemployed people.

• Greater insight into the world of work through Work Experience.

• Pre-employment training and work placements through sector-based work academies.

• Partnership between voluntary sector, colleges, employers and Government.

Get Britain Working


• Early access to the Work Programme (at 3 months) for 18 year olds who claimed JSA when they were aged 16-17.

• Voluntary work experience available to 16-17 year old JSA claimants.

• Increased adviser support for 16-17 year olds on JSA.

• Signposting advice available to 16-17 year olds who are Not in Education, Employment or Training (NEET).

• Work Clubs extended to 16-24 year olds.

• Additional funding available to help 16-17 year olds develop job seeking skills.

Support for Young Unemployed (Aged 16 – 17)


• £1 billion package of support to help young people prepare for work and find a job.

• Offers a voluntary work experience or sector based work academy place for every unemployed 18-24 year old who wants one (after they have been on JSA for 3 months) before they enter the Work Programme.

• Extra Jobcentre Plus support for all 18-24 year olds.• Wage incentives to make it easier for employers to take on young

people. • Additional funding to support the growth of 16-24 year old

apprenticeships. • A new programme for persistently NEET 16 and 17 year olds to get

them learning, on an apprenticeship or in a job with training. • Expand the current Mandatory Work Activity programme.

Youth Contract


• Job seeking support extended to more lone parents.

• From May 2012 lone parents with a youngest child aged 5 or older are no longer eligible to claim solely on the grounds of being a lone parent.

• For existing Income Support claimants the changes were phased in;

From May 2012 lone parents with a youngest child aged 6, or who turns 6, and;

From August 2012, lone parents with a youngest child aged 5, or who turns 5.

• In line with earlier changes some lone parents retain their entitlement to Income Support.

• Work Focused support also available for those on Income Support.

Lone Parent Support


• Designed to help those in danger of becoming long term unemployed.

• Provides tailored support for claimants who need more help to undertake active and effective job seeking.

• Local provision designed and delivered by providers with complete autonomy which encourages innovation.

• Payment by results - with higher payments made for supporting the hardest to help in to sustained employment.

• Support based on individual needs to help overcome barriers that prevent people finding and staying in work.

• Not only supports people into work but aims to keep them there.

Work Programme


Work Programme Eligibility - JSA

Customer Group Time of Referral Basis for Referral

Jobseekers Allowance (JSA) claimants aged 25+

From 12 months Mandatory

JSA claimants aged 18-24 From 9 months Mandatory

JSA either NEET, Repeat claimant or ex-Incapacity

Benefit

From 3 months Mandatory

JSA claimants who are seriously disadvantaged by

one or more factors

From 3 months Voluntary

JSA former prisoners Immediately on release from prison

Mandatory


Work Programme Eligibility – Other Benefit GroupsCustomer Group Time of Referral Basis for referral

All Employment and Support Allowance (ESA) claimants

At any time Voluntary

New claimants ESA (income related) Work Related Activity Group

With a 3, 6 or 12 month prognosis (how long the Department believes should pass before the claimant has another Work Capability Assessment)

If their youngest child is under five years old or they are a full time carer.

Mandatory

Optional

Pension Credit claimants From 12 months after claim or from day 1 if have a health condition

Voluntary

Income Support claimants At any time (England only) Voluntary

Incapacity Benefit claimants

At any time (England only) Voluntary


• In December 2011, DWP launched the ESF Provision for Families with Multiple Problems. Families are referred by local authorities to provision that is delivered by local welfare to work providers.

• In March 2012 the Troubled Families Programme led by the Department for Communities and Local Government was launched. It is delivered through local authorities.

• Both programmes aim to reducing worklessness amongst the most troubled families in England through a whole family approach.

• The two programmes complement one another - common goals.

• Multiple disadvantages might include entrenched worklessness, debt, criminal or anti-social behaviour, school attendance issues, youth crime, housing problems and low educational attainment.

Support for Families with Multiple Problems


• Resources for supporting disabled people into employment are being focussed on disabled people themselves rather than on specific institutions.

• The Government wants to give disabled people the opportunity to realise their aspirations and to get into and progress in work.

• Spending on specialist disability employment programmes will be protected over this Spending Review.

• The Government has implemented the Sayce recommendations on reforming Remploy and accepted those on Access to Work.

• All disabled Remploy employees affected by the changes to the Remploy factories are receiving a comprehensive package of personalised support.

Specialist Disability Employment Support


• AtW helps support disabled people and people with long term health conditions into mainstream jobs – the same as everyone else.

• AtW helps employers meet the cost of employing a person with disabilities or long term health conditions by providing specially adapted equipment, support workers and interpreters.

• We are spending more than ever before on AtW. We currently spend around £100m on it to support over 30,000 people in work.

• The Government has also announced that an extra £15m is available for Access to Work in this Spending Review.

• For the first time we are giving young disabled jobseekers the support they need to gain vital work experience through AtW.

Access to Work (AtW)


Benefits

Social Fund ReformBenefit UpratingBenefit CapEmployment Support Allowance and Work Capability AssessmentPersonal Independence PaymentUniversal Credit Bereavement Benefit


Social Fund Reform

From April 2013• Community Care Grants and Crisis Loans will be abolished with

funding transferred to Upper Tier local authorities in England and to the Scottish and Welsh Governments to introduce new Local Welfare Provision.

• Crisis Loans for alignment to benefit and Interim payments of benefit will be replaced by Short Term Benefit Advances (DWP administered)

From October 2013• Budgeting Loans will be replaced by Budgeting Advances and be paid

as part of Universal Credit. (From April 2013 in UC Pathfinder areas).

• Regulated Social Fund (Funeral Payments, Sure Start Maternity Grants and Cold Weather Payments) will continue with Universal Credit as a qualifying benefit.


Benefit Uprating

• An announcement about DWP benefits was made in the 2012 Autumn Statement.

• The announcement was that most DWP benefits, except those for disabled people, carers and pensioners, would be increased by 1% for three years from 2013/14.

• It was subject to parliamentary approval.

• Legislation to make the change for 2014/15 and 2015/16 was debated and voted on. This took place on 8th January 2013.

Claimants will be told by letter of the changes to benefits by:

April 2013 - for working-age and pension claimants May 2013 - for disability and carers claimants


Benefit Cap• Limits benefit payments to a household to no more than average

household earnings – equivalent to a gross salary of £35,000. Cap excludes one-off payments and non-cash benefits.

• Exemptions for households include recipients of Disability Living Allowance, Attendance Allowance or Industrial Injuries Disability Benefit. War widows / widowers and those in ESA Support Group also exempt.

• Housing benefit paid to households in supported exempt accommodation is being disregarded for the Benefit Cap. Those entitled to Working Tax Credit exempt.

• Roll-out starts in April 2013 in four Local Authority areas with full national roll-out by the end of September 2013. DWP has contacted individual claimants likely to be affected offering support to find work.

• An online calculator is available at www.gov.uk/benefit-cap.


• Limits time people can receive contribution-based ESA to 365 days if in the Work Related Activity Group or assessment phase.

• Removed special contribution conditions allowing some young people to qualify for contribution-based ESA without paying National Insurance contributions.

• Time-limit does not include any time spent in the Support Group or time spent in the assessment phase – if immediately followed by placement in Support Group.

• Came into effect on 1st May 2012.

• The 104 week linking rule abolished through separate regulations. • More consistent with contribution-based JSA and its 6 month time

limit.• ESA claimants in work related activity group subject to a new

sanctions regime.

ESA Changes


• Government committed to a 5 year independent review of the WCA to ensure it is a fair and effective assessment.

• First independent Harrington review reported in November 2010. All recommendations for DWP and Atos Healthcare delivered and impacts continue to be monitored to identify further improvements.

• Second review reported November 2011. Year 2 improvements build on recommendations from first review of the Work Capability Assessment. – All year two recommendations accepted either fully or in principle. – A pilot to smooth the transition between the WCA and work for ESA

claimants which began in Handsworth Benefit Centre extended and now includes Sussex and Surrey district and its linked Jobcentres.

• Professor Harrington's 3rd review (and the Government's response) published in November 2012. The report included 4 further recommendations - 1 accepted in principle and all others accepted.

Work Capability Assessment (WCA) Improvements


Personal Independence Payment Overview

• Disability Living Allowance (DLA) will be replaced by a new benefit for eligible working age people (16-64) called the Personal Independence Payment (PIP).

• It retains the key features of DLA. It is non means tested and non taxable and payable whether in or out of work.

• More objective assessment process, including a face to face consultation with a health professional for most claimants.

• Regular reviews and an objective assessment will help ensure that support goes to those who most need it.

• Public consultations and input from support organisations helped shape the design and criteria for PIP.


Personal Independence Payment Timetable

June

2013

April

2013• New Claims to PIP from controlled start area

October

2013

October

2015

• National rollout of new claims to PIP. DLA will no longer be available to new working age claimants

• Reassessment to PIP starts for fixed period DLA awards coming up for renewal, young people turning 16 or where DLA claimants report a change in their condition.

• DWP will begin selecting existing DLA claimants and tell them what they need to do to claim PIP. We will prioritise DLA claimants who have turned 65 after 8 April 2013, when PIP was first introduced.


• Simplifies a complex system.

• Designed to ensure that work will always pay.

• Tackles welfare dependency, poverty and worklessness.

• More help for low income working families.

• Financial security for the most vulnerable in society.

• Improves incentives to increase hours of work.

• Will transform lives and society through work.

• Personalised conditions according to capability and circumstance.

• Introduced in phases from April 2013 through to 2017.

Universal Credit – Making Work Pay


Universal Credit Migration - Key Dates

APRIL 2013

OCT 2013

APRIL 2014

2017

Pathfinder Go-Live

New claims from unemployed claimants start

New claims from in-work claimants startManaged migrations start

Managed migration activity completed


Bereavement Benefit

• A public consultation preceded announcement of future changes.

• The new Bereavement Support Payment will be introduced after the next General Election.

• It will provide a lump sum followed by smaller instalments for up to a year.

• There will be a uniform rate unless the claimant has dependent children.

• It will provide new simplified conditions of entitlement.

• It will meet the immediate financial needs.

• Existing claimants at the time of the change will be unaffected.


Pensions

Changes to State Pension AgeState Pension ReformAuto-Enrolment


• State Pension Age will rise to keep pace with life expectancy changes.

• Pensions Act puts into law changes to the State Pension age timetable.

• From April 2016, women's State Pension age will rise faster than originally planned, equalising with men's at 65 by November 2018.

• Between December 2018 and October 2020, men and women's State Pension ages will be increased from 65 to 66.

Under the current law State Pension age will already increase to:

– 67 between 2034 and 2036 – 68 between 2044 and 2046

• Government considering how the State Pension age should be changed in the future and have announced that State Pension age will now increase to 67 sooner between 2026 and 2028. This is not yet law and will be subject to Parliamentary scrutiny when legislation is introduced.

Changes to State Pension Age


• Single Tier White Paper was published on 14th January 2013.

• The Single Tier pension will deliver a simple, clear and fair state

pension. It will support saving for retirement.

• The reforms aim to modernise our state pension system to reflect the

lives and contributions of today’s working age people.

• At the point of introduction, people will have their contributions to the

existing pensions system recognised.

• The new rules will apply to future pensioners only.

• Anyone reaching State Pension age before the reforms are

introduced will continue to receive their State Pension in line with

current rules.

State Pension Reform


• Around 7 million people are not currently saving enough for their retirement and many face significant barriers to starting to save.

• Millions of workers started to get enrolled on a workplace pension from October 2012.

• Those working for the largest employers are being enrolled first.

• The aim is that all firms will have implemented a workplace pension by 1st April 2017.

• DWP has launched a campaign to give people support and information about automatic enrolment to help them understand the benefits and what it means for them.

• Individuals looking for information on what automatic enrolment means for them should go to gov.uk/workplacepensions.

• There is a call centre available for those without internet access.

Auto-Enrolment


Thank You – Please remember you can access updates from the GOV.UK website and sign up for the monthly DWP Touchbase e-zine

Documents

DWP Update South Tyneside New Horizons Partnership Welfare Reforms Workshop Name: John Moiser Specialist Partnership Manager Date: 12 th February 2013