Welfare BenefitsWelfare Benefits– a new regime– a new regime

Alan MarkeyHead of Welfare BenefitsCitizens Advice Specialist Support

Why reform welfare?Why reform welfare?

“The benefits system has shaped the decisions of the poorest in a way that has trapped generation after generation in a spiral of dependency and poverty…We are going to end the culture of worklessness and dependency that has done so much harm to individuals, families and whole communities.”

Iain Duncan-Smith MP, July 2010

Welfare ReformWelfare Reform Key aims:

◦ Simplify the social security system◦ Improve incentives to work◦ Fairness

Achieved by:◦ Universal Credit◦ Benefit uprating changes◦ Increasing support (and

conditionality)◦ A range of other benefit changes…

Welfare ReformWelfare Reform“Never again will work be the

wrong financial choice... We are finally going to make work pay for some of the poorest people in our society.”

David Cameron MP, Feb 2011

“The publication of the Welfare Reform Bill will put work, rather than hand-outs, at the heart of the welfare system.”

Iain Duncan-Smith MP, Feb 2011

Key changes (1)Key changes (1)CPI indexation (£5.8 bn)Tax Credit changes (£4.51 bn)Housing Benefit reform (£2.02

bn)Child Benefit (£2.42 bn)Contributory ESA time-limit

(£2bn)

Key changes (2)Key changes (2)DLA reform (£1.2 bn)Council tax Benefit (£0.49 bn)Benefits cap (£0.27 bn)End to ‘asset-based welfare’

(£0.6 bn)Social Fund reformsChanges to dispute proceduresAmending the Limitation Act

Some ‘winners’Some ‘winners’Older people (+ £1bn)Child Tax Credit (+ £2 bn)HB cuts for unemployed

abandoned

Universal CreditUniversal CreditA single working-age benefitAdministered via ‘real-time’ PAYE

systemOct 13 – new claimsApr 14 to Oct 17 – existing claimantsUniversal Credit “…will finally make

it easier for people to see they will be consistently and transparently better off for each hour they work and every pound they earn.”(Ian Duncan Smith, Nov 2010)

The current systemThe current system

Universal CreditUniversal Credit

Some issues and concernsSome issues and concernsCapital rulesChildcare costsCarersAssessment of housing costsCouncil Tax benefitWhat will count as earnings?Tougher sanctions regimeFuture of contributory benefitsIs it any simpler?

DLA reformDLA reform“Disabled people are at the heart of our welfare reform plans and severely disabled people who need extra help and support will always get it. That’s why we have spent the last few months working closely with disabled people and disability organisations to make sure we are making the right changes to DLA.”

Maria Miller MP, April 2011

Personal Independence Personal Independence PaymentPayment Daily living component:

◦ planning and buying food and drink◦ preparing and cooking a simple meal◦ taking nutrition◦ managing medication and monitoring health

conditions◦ managing prescribed therapies other than

medication◦ washing, bathing and grooming◦ managing toilet needs and incontinence◦ dressing and undressing◦ communicating with others

Mobility component:◦ planning and following a journey◦ moving around

Government plans for PIPGovernment plans for PIPintroduced from 2013 non means-tested and non-taxablepaid to people in and out of workretain ‘special rules’ for terminally illhave a 6-month qualifying period (3

months currently)assessed based on activities (like

ESA)assessed by health care professional

(like ESA)awarded for fixed periods

A new regimeA new regimeSimpler?Fairer?Helping those in need?