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Welfare Reform and The Impact of Changes – February 2016

DUNDEE CITY COUNCIL

WELFARE REFORM AND THE IMPACT ON DUNDEE

1 Welfare Reform and the impact of changesWhen Welfare Reform comes into full effect it is estimated that more than £1.6bn a year will be taken out of the Scottish economy or around £460 a year for every working age adult. For Dundee City the estimation is £56m a year taken out of the economy and a reduction of £560 a year per working age adult. Table 1 shows that Dundee is expected to have the fourth highest losses in Scotland.

Table 1: Overall impact of welfare reform on Scotland

Local AuthorityEstimated Loss £m per Annum

Loss Per Working age adult per annum

Glasgow 259 620Inverclyde 32 600West Dunbartonshire 35 580Dundee 56 560North Ayrshire 49 560North Lanarkshire 119 540East Ayrshire 42 520Clackmannanshire 18 520Renfrewshire 58 510South Lanarkshire 101 490South Ayrshire 34 490West Lothian 55 470Fife 109 460Dumfries and Galloway

43 460

Midlothian 25 460Falkirk 46 450Argyll and Bute 23 420East Lothian 26 410Highland 59 400Angus 29 400Edinburgh 130 390Scottish Borders 28 390Perth and Kinross 35 380Eilean Siar 6 370Stirling 22 370East Renfrewshire 20 350Moray 20 340Orkney Islands 5 340East Dunbartonshire 22 330Aberdeen 50 310Aberdeenshire 48 290Shetland Islands 4 270Scotland 1,600 460Chief Executive’s Department, Information and Research Team Page 1


Within Dundee the East End Ward is expected to be most impacted with a loss of £730 a year, the 6 th

highest of all Wards in Scotland. The least impacted Ward is the West End with a loss of £360 a year for every working age adult. Six of Dundee’s 8 Wards are expected to have greater yearly losses per working age person than the Scottish average

Table 2: Worst Affected Wards in ScotlandAuthority Ward Overall financial loss per adult

of working age £ per yearGlasgow Calton 880Glasgow Springburn 780Glasgow North East 750Glasgow Drumchapel/Anniesland 740Glasgow Southside Central 730Dundee East End 730Glasgow Shettleston 720Fife Buckhaven, Methil and Wemyss

Villages700

Glasgow Canal 700Inverclyde Inverclyde East Central 690Glasgow Garscadden/Scotstounhill 690Glasgow Govan 690Glasgow Ballieston 680Glasgow East Centre 680Dundee North East 670Fife The Lochs 670Glasgow Linn 670Renfrewshire Paisley North West 660Inverclyde Inverclyde North 660West Dumbarton Clydebank Central 660Source: Sheffield Hallam estimates based on official data

Figure 1: Dundee City Wards

Chief Executive’s Department, Information and Research Team Page 2


Table 3: £ Loss per Working Adult per annum by Ward, DundeeWard Loss per working age adult

£ Per annum.Coldside 600East End 730Lochee 660Maryfield 600North East 670Strathmartine 580The Ferry 390West End 360Source: Sheffield Hallam estimates based on official data

The Welfare Reform Committee1 demonstrated that at the level of local authorities there is a clear relationship between the financial loss arising from welfare reform and the level of deprivation: as a general rule, the more deprived the local authority the greater the financial loss. Figure 2 confirms this relationship at the level of wards: the higher the average deprivation score of the ward, the greater the estimated loss per adult of working age.

Figure 2: Link between deprivation and welfare reform

Source: Welfare Reform Committee, 5th Report

The individual welfare reforms vary greatly in the scale of their impact, in the number of individuals or households affected, and in the intensity of the financial loss imposed on those affected. In Scotland the biggest financial impact comes from the reform of incapacity benefits2 an estimated loss in Scotland of £500m a year. Changes to Tax Credits and the 1 per cent up rating of most working-age benefits from April 2013 also account for substantial sums - £300m and £290m respectively.

Child Benefit changes affect the largest number of households, more than 600,000 in Scotland. This is because the three-year freeze in Child Benefit rates up to April 2014 (instead of up-rating with inflation) impacted on all recipients.

The household benefit cap impacts on fewer households in Scotland, 1,900 according to the latest figures, but the average financial loss for each of these households is relatively large (ref)1 1. Welfare Reform Committee, 5th Report, 20142 2. Welfare Reform Committee, 2nd Report, 2013Chief Executive’s Department, Information and Research Team Page 3


2 Key Changes to Benefits

Housing Benefit – Local Housing Allowance Changes to the rules governing assistance with the cost of housing for low-income households in the private rented sector. The new rules apply to rent levels, ‘excess’ payments, property size, age limits for sole occupancy, and indexation for inflation

Increases in the deductions from Housing Benefit, Council Tax Benefit and other income-based benefits to reflect the contribution that non-dependant household members are expected to make towards the household’s housing costs Household benefit cap New ceiling on total payments per household, applying to the sum of a wide range of benefits for working age claimants

Disability Living Allowance Replacement of DLA by Personal Independence Payments (PIP), including more stringent and frequent medical tests, as the basis for financial support to help offset the additional costs faced by individuals with disabilities

Incapacity benefits Replacement of Incapacity Benefit and related benefits by Employment and Support Allowance (ESA), with more stringent medical tests, greater conditionality and time-limiting of non-means tested entitlement for all but the most severely ill or disabled

Child Benefit Three-year freeze and withdrawal of benefit from households including a higher earner

Tax Credits Reductions in payment rates and eligibility for Child Tax Credit and Working Tax Credit, paid to lower and middle income households

1 per cent up-rating Reduction in annual up-rating of value of most working-age benefits

2.1 Universal CreditUniversal Credit has been gradually introduced across the UK since late 2013, and will eventually replace six of the main means-tested benefits. Phased implementation of this is due to begin in Dundee in November 2015

Jobseeker’s Allowance (income based) Employment and Support Allowance (income-related) Income Support Child Tax Credits Working Tax Credits Housing Benefit

The aim is to simplify the benefits system by merging together the six benefits above into a single payment. Currently, Jobseeker’s Allowance, Employment and Support Allowance and Income Support are all paid fortnightly to the claimant, while Tax Credits are paid weekly or four-weekly. Universal Credit is to be paid monthly, in arrears, to one person in the household, into a bank



account. This means that if a claimant is receiving help with their rent, the claimant will need to pay their landlord directly. At present, Housing Benefit can be paid direct to landlords only if the claimant permits it. Contribution based JSA and ESA will not be included within Universal Credit.

3 Who is affected by Welfare Reform?

Housing Benefit Local Allowance Low income households, mostly of working age, in the private rented sector Under-35s, often single men, in the private rented sector Families with large numbers of children in the private rented sector

Non-Dependent Deductions Low-income households with grown-up children living at home

Household Benefit Cap Large out-of-work families in high rent areas

Disability Living Allowance Less severely disabled of working age, mostly older, mostly out-of-work

Incapacity Benefits Out-of-work, mainly older adults with ill health or disability, except the most severely ill or

disabledChild Benefit

All households with children Households with higher earners

Tax Credit Low-to-middle income families with children, including workless households Part-time workers on less than 24hrs a week

1 per cent Uprating Everyone on the main working age benefits (JSA, IB/ESA, IS, HB(LHA), Tax Credits)

4 Dundee City Benefits Claimants

Figure 3: Total Claimants, November 2014

Coldside

EastEn

dLochee

Maryfield

NorthEa

st

Strath

martine

The F

erry

West En

d0

5001,0001,5002,0002,5003,0003,500

Source; Nomis June 2015

In Dundee, at August 2015 there were 17,540 benefit claimants. The area with the highest amount of claimants was Coldside followed by Lochee. Coldside has the highest amount of people claiming key out of work benefits overall, Employment Support Allowance and other out of work benefits.



Lochee has the highest amount of people claiming Job Seekers Allowance The East End ward shows the highest amount of people in receipt of Lone Parent benefits and Strathmartine ward the highest amount Carers and Disabled benefit recipients.

Table 4 Benefit Claimants by WardSource: Nomis August 2015

Area

tota

l cla

iman

ts

job

seek

ers

ESA

and

inca

paci

ty

bene

fits

lone

par

ents

care

rs

othe

rs o

n in

com

e re

late

d be

nefit

s

disa

bled

bere

aved

mal

e

fem

ale

age

- 16

to 2

4

age

- 25

to 4

9

age

- 50

and

over

out-o

f-wor

k be

nefit

s

Lochee 2,740 525 1,530 225 245 65 150 01,43

0 1,310 4151,42

5 900 2,345

West End 1,435 255 850 75 105 20 105 25 785 650 160 695 580 1,200

Maryfield 2,475 535 1,400 150 180 70 130 101,41

5 1,060 3351,26

0 880 2,155

Coldside 2,920 515 1,765 175 195 90 155 251,65

0 1,270 3551,46

51,10

0 2,545Strathmartine

2,445 380 1,275 210 345 30 175 30 1,095 1,350 330 1,19

0 925 1,895

East End2,700 445 1,435 255 315 70 175 5 1,28

5 1,415 380 1,350 970 2,205

The Ferry880 90 515 30 80 15 110 40 430 450 90 355 435 650

North East1,945 300 1,000 185 255 25 160 20 890 1,055 275 990 680 1,510

Dundee City17,54

0 3,045 9,7701,30

51,72

0 3851,16

015

58,98

0 8,5602,34

08,73

06,47

014,50

5

4.1 Duration of Benefit ClaimsTable 5 below outlines the duration of time claimants had been receiving each benefit in November 2014. It shows that for Carers and DLA benefits the largest majority had been in receipt for 5 years or more, for Job Seekers Allowance the majority had been in receipt for 6 months and under. Those in receipt of ESA/Incapacity benefits had 1150 in receipt for 6 months and under and just slightly lower, 1110, in receipt for 5 years or more.

Table 5: Benefit claimants by duration of claim, November 2014 Benefit claimants – Duration of Claim– working age client group (Nov 2014)



Up

to 6

m

onth

s

6 m

onth

s to

1 ye

ar

1 ye

ar &

up

to 2

yea

rs

2 ye

ars &

up

to 5

yea

rs

5 ye

ars a

nd

over

Carers Allowance 90 90 30 240 290

Disability Living Allowance

* * 40 240 920

Incapacity Benefit or ESA

1,150 620 690 710 1,110

Job Seekers Allowance

1,580 400 430 670 60

Income Support, Personal Credit and Carers Allowance

50 60 120 250 440

Other combinations 40 40 50 120 590

All benefits/all combinations

3,160 1,420 1,810 3,250 9,970

Source; Nomis June 2015

4.2 Children living in out of work benefit claimant households

Latest data available shows that there were 5,620 children aged under 16 living in out of work benefit claimant households in Dundee City. It also shows that there were 6,220 young people aged 0 to 18 years living in 3,600 out of work benefit claimant households. Dundee City proportions are higher than proportions for the whole of Scotland as shown in tables 6 and 7.

Table 6: Number of Children living in out of work benefit claimant households in Dundee City in May from 2010 to 2014

YearAge 0 - 4

Age 5 - 10

Age 11 – 15

Age 16 - 18

Age 0- 15

Age 0 - 18

No of households

2014 2,060 2,050 1,520 600 5,620 6,220 3,600% of age group 25.1% 23.4% 22.3% 10.8% 23.7% 21.2%

2013 2,230 2,250 1,600 710 6,080 6,790 3,9502012 2,310 2,330 1,750 620 6,380 7,000 4,0302011 2,300 2,360 1,830 610 6,490 7,090 4,0302010 2,280 2,400 1,850 640 6,530 7,170 4,040

Source: HRMC

Table 7: Number of Children living in out of work benefit claimant households in Scotland in Mayfrom 2010 to 2014



Year Age 0-4

Age 5-10

Age 11-15

Age 16-18 Age 0-15 Age 0-

18No of

households

2014 55,390 54,870 41,900 17,410 152,120 169,560 98,120% of age

group19.0% 16.0% 15.2% 9.4% 16.7% 15.5%

2013 59,810 58,800 45,400 18,660 163,970 182,690 105,8402012 62,040 62,260 49,400 18,120 173,690 191,800 111,2402011 62,080 63,160 51,280 18,900 176,600 195,470 112,9502010 62,050 64,900 53,680 19,420 180,630 200,040 115,170

Source: HRMC

4.3 Child Benefit and Tax CreditsChild Benefit is available to people who are responsible for a child under the age of 16, or under 20 if they are in ‘approved education or training’. Only one person can claim Child Benefit; usually the parent or guardian that the child lives with. Child Benefit should be claimed as soon as a child is born, or as soon as the child moves in with the claimant. The rate of Child Benefit is £20.50 a week for the eldest or only child, and £13.55 a week per additional child. This is usually paid four-weekly into a bank account; Child Benefit cannot be paid into children’s accounts, Child Trust Funds or building society accounts. From the beginning of 2013, Child Benefit was capped for families where one parent is earning over £50,000 a year, and stopped completely if one parent’s income reached £60,000. This could, however, mean that both parents could earn up to £40,000 each and still receive Child Benefit, despite having a net income of £80,000.

Table 8: Number of children in families receiving Child Benefit as at 31st August 2015Number of children in child benefit

By age of child By gender of child Total

Under 5

5 to 10 years

11 to 15 years

16 to 19 years Boys Girls

Unknown

All Children

7,430 8,870 6,560 3,160 13,265

12,725 0 26,020

Source: HMRC

Table 9: Number of families receiving Child Benefit as at 31st August 2015Number of families receiving Child Benefit

By Size of Family Total

One Child

Two Children

Three or more children All families

8,695 5,210 2,005 15,990Source: HMRC

Child Tax Credits (CTC)Child Tax Credits (CTC) are available to people who are responsible for children under the age of 16, or under 20 and in ‘approved education or training’. Responsibility for a child depends on whether they live with the claimant all the time, or the claimant is the main ‘carer’ for the child. Claimant’s do not need to be working to claim CTC, and will receive money for each child that is eligible. CTC will not affect the rate or amount of Child Benefit the claimant receives.

Working Tax Credit (WTC)Working Tax Credits (WTC) are available to people who are aged 16-24 and have a child or disability. For people without children, they can only claim WTC if they are 25-59, and must be



working at least 30 hours per week. People aged 60 or over must be working at least 16 hours to claim WTC. Single people with one or more children must be working at least 16 hours a week, while couples with one or more children need to work at least 24 hours a week between the two (one member of the couple must work at least 16 hours).

Table 10: Families in receipt of child or working tax Credit, Dundee City April 2015

Out of workWTC and CTC

CTC Only

Childcare Element

No Children

Families

Children Families

Children

Families

Children Families Families

3,900 7,000 4,600 7,300 1,600 3,100 1,300 1,900Source: HMRC

4.4 Housing Benefit and Council Tax Reduction

Housing BenefitHousing Benefit helps people on low incomes with the cost of their rent. It is only available to tenants, not people who own their home. To claim Housing Benefit you must:

live in the property you are claiming for be charged rent for this property Receive Income Support, Employment Support Allowance, Jobseeker's Allowance or Pension

Credit.

The benefit awarded is intended to help with the cost of rent, but not with living costs such as food and heating. Dundee City Council can pay some of, or the entire claimant’s rent, but cannot meet all the service costs that landlords might charge.There are two main types of Housing Benefit:

Rent allowance: claimed if you are renting from a private landlord or housing association Rent rebate: claimed if you are renting from Dundee City Council

Council Tax Reduction(CTR) was introduced to replace Council Tax Benefit (CTB) in April 2013. CTB has been abolished by the UK Government as part of the Welfare Reforms. Responsibility for assisting those who need help to pay their Council Tax in Scotland now sits with the Scottish Government and Scottish Local Authorities. CTR is paid to people on a low income to help with the cost of their Council Tax. To claim CTR, you must:

be liable to pay the Council Tax for the property, if not this reduction cannot’ be claimed live in the property

Table 11: Live Housing Benefit and Council Tax Reduction Claims, Dundee, June 2015

TotalPassporte

dNon-

PassportedHousing Benefit Claims 18,445 12,944 5,501Council Tax Reduction Claims 18,857 13,288 5,569

Source: Dundee City Council, Revenues Department

4.5 Scottish Welfare FundFrom April 2013, changes to the DWP Social Fund scheme meant that Crisis Loans and Community Care Grants have been replaced by the Scottish Welfare Fund (SWF) which is delivered by Local Authorities. The SWF is intended to offer grants or in kind support for two purposes:

Crisis Grants



Community Care Grants

The following two tables show a comparison of the total number of applications and the total number of people in receipt of the Scottish Welfare Fund during 2014 and 2015 received by Scotland and Dundee City residents. Table 12 shows that during the period January to September 2015 the number of applications in Dundee fell by 1,022 or 14% when compared to the same period of 2014. The number of applications in Scotland also reduced during this period by 859 applications or 1%.

Table 12 Total Applications to the Scottish Welfare Fund January 2014 to September 2015

2014 2015Change Jan to Sep 2015 compared to Jan to Sep 2014

Jan to Mar Apr to Jun Jul to Sep Jan to Mar Apr to Jun Jul to Sep Number %

Scotland 53,145 53,206 53,043 56,276 51,063 51,196 -859 -1%Dundee 2,365 2,440 2,526 2,269 2,072 1,968 -1022 -14%

Source: Scottish Government, Scottish Welfare Fund Statistics

Table 13: All people in households in receipt of Scottish Welfare Fund 2014

Total People

in Hholds

Total HholdsMar Apr May Jun Jul Aug Sep Oct Nov Dec

Scotland 13,375 12,750 13,265 13,500 14,435 15,830 17,115 19,045 16,980 16,525 239,415 134,595

Dundee 465

485

500

555

590

690

655

695

775

680

9,870

5,704

Source: Scottish Government, Scottish Welfare Fund Statistics

Crisis GrantsA Crisis Grant can help claimants that are in crisis because of a disaster like a fire or flood, or an emergency such as being robbed, burgled, or having lost their money. It may help with costs that have happened as a result of the disaster or emergency, to keep them or their family safe from harm.To qualify for a Crisis Grant, claimants must be in receipt of one of the ‘passported benefits’; Income Support, Jobseekers Allowance (Income Based), Employment and Support Allowance (income-related), Pension Credit Guaranteed Credit, and Child or Working Tax Credits. If qualified for a Crisis Grant, the help received will depend on the particular difficulties the claimant faces. Claimants may be given money or another form of support; for example, a voucher, fuel card, or travel ticket. Claimants are restricted to three successful Crisis Grant payments in a rolling 12-month period, and are prohibited from making applications within 28 days of an award being granted.

The tables below show a comparison of the total number of Crisis Grant applications and the application outcomes during the period January to September 2014 and 2015 received by Scotland and Dundee City residents. During the period January to September 2015, Dundee’s level of applications reduced by 12% when compared to the same period of 2014. During July to September 2015, the most common reason for application was ‘Emergency’; the average amount awarded was £90, £13 higher than the Scottish average.

Table 14 Crisis Grant Applications to the Scottish Welfare Fund January 2014 to September 20152014 2015 Change Jan to Sep

2015 compared to Jan to Sep 2014




Scotland 35,748 35,532 35,851 38,441 34,431 34,791 532 0%Dundee 1,573 1,715 1,783 1,599 1,482 1,391 -599 -12%Source: Scottish Government, Social Welfare Fund Statistics

Table 15 Crisis Grants Award Outcomes for Quarter: 1st July 2015 to 30th September 2015Crisis Grants

NumberAccepted

NumberRejected

Total Applications

% Accepted

Spend this

QuarterAverage Award

Scotland 24,735 10,155 34,885 71% £1,893,400 £77Dundee 1,000 385 1,385 72% £89,556 £90

Source: Scottish Government, Social Welfare Fund Statistics

Table 16: Reasons for applying for a Crisis Grant for Quarter: 1st July 2015 to 30th September 2015

Emergency Disaster Other Total

Scotland 33,120 220 1,450 34,790Dundee 1,385 5 - 1,390


Community Care Grants (CCG)A Community Care Grant may help claimants that are about to leave care or prison to live on their own in the community, or face going into care because they don’t have the support needed to continue living at home. A Community Care Grant may also be able to help if families face exceptional pressures and need an essential item like a cooker or washing machine but don’t have the money to buy it. To qualify for a Community Care Grant you must be in receipt of a ‘passported benefit.

The number of Community Care Grant applications in Dundee dropped by 19% in the period January to September 2015 when compared to the same period of 2014. During the quarter 1st July 2015 to 30th September 2015, 63% of applications were accepted; this was consistent with the overall Scottish figure. The average Dundee award of £700 was £134 higher than the overall Scottish award figure of £566.

Table 17 Community Care Grant Applications to the Scottish Welfare Fund January 2014 to September 2015

2014 2015Change Jan to Sep 2015 compared to Jan to Sep 2014


Scotland 18,108 18,419 17,854 18,580 17,157 16,961 -1,683 -3%Dundee 819 736 760 684 595 586 -450 -19%


Table 18 Community Care Grant Awards, for the Quarter: 1st July 2015 to 30th September 2015Community Care Grants

NumberAccepted

NumberRejected

Total Applications

% Accepted

Spend this

QuarterAverage Award



Scotland 10,880 6,290 17,175 63% £6,158,811 £566Dundee 360 215 575 63% £251,844 £700


Discretionary Housing PaymentsDiscretionary Housing Payments can be paid to those who receive housing benefit and require additional help to meet their housing costs (rent). The local housing benefit department assess and decide who will receive the payments. They will usually take into account any special circumstances that contribute to claimant’s financial difficulties, for example:

reductions in housing benefit or universal credit where the benefit cap has been applied reductions in housing benefit or universal credit following the removal of spare room subsidy in the

social rented sector (‘the bedroom tax’ or under-occupancy charge) reductions in housing benefit or universal credit as a result of local housing allowance (LHA)

restrictions rent officer restrictions such as local reference rent or shared room rate non-dependant deductions in housing benefit, or housing cost contributions in universal credit rent shortfalls to prevent a household becoming homeless whilst the housing authority explores

alternative options any extra heating costs because the claimant spends a lot of time at home because they are sick

or disabled additional travel costs because the claimant travels to a doctor or hospital or cares for a relative or

friend.

Table 19: DHP Applications and Outcomes for 2015/16 (as at 30thSeptember 2015)


Figure 4 below shows that Dundee City has the seventh highest average award payment in Scotland at £562 per year

Figure 4: Average Discretionary Housing Payments in Scotland for 2015/16 (as at 30th September 2015)


Local Authority Applications Determination

s Awards Total Award Value Average Award

Dundee City 3,651 3,651 3,470 £1,948,572 £562Scotland 99,785 97,381 92,384 £43,949,665 £476


Source: Scottish Government, Discretionary Housing Payments in Scotland

4.6 Local Housing Allowance Dundee CityThis is the maximum amount of weekly housing benefit Dundee City Council can pay towards the rent of claimants living in privately rented accommodation.

Table 20: Dundee Local Housing Allowance

RateAmount Maximum HB

Per Week (Paid 4 Weekly)*Shared

Room Rate £57.69 £230.76

1 Bedroom £79.24 £316.962 Bedrooms £103.85 £415.403 Bedrooms £128.19 £512.764 Bedrooms £189.07 £756.28

Source: Scottish Government

4.7 Disability Living AllowanceFrom April 2013, anyone aged between 16 and 64 can no longer claim Disability Living Allowance (DLA), and would need to claim Personal Independence Payment (PIP) instead. Those who were already in receipt of DLA in April 2013 will be transferred onto PIP from 2015. New claims for DLA will only be accepted by people aged 65 and over on 8th April 2013, or people caring for children under 16. DLA for children may help with the extra costs of looking after a child who is under 16, or has difficulties walking, or needs more looking after than a child of the same age who doesn’t have a disability. DLA has two main components; the Care component and the Mobility componentChief Executive’s Department, Information and Research Team Page 13


Table 24 shows that 72% of all those in receipt of DLA at November 2014 had been in receipt of that claim for a period of 5 years or over, this was slightly lower than the Scottish figure of 81%.

Table 21: Persons in receipt of care component, November 2014Total

CaseloadCare Award Type

Higher Rate Middle Rate Lower Rate Nil RateDundee City 11,350 2,900 3,980 3,050 1,420

Scotland 343,000 85,600 117,97 92,600 46,880Source@ DWP, Toolkit

Table 22: Persons in receipt of Mobility Award Type November 2014Total Mobility Award Type

Higher Rate

Lower Rate

Nil Rate

Dundee11,230 5,430 4,750 1,050

Scotland315,47

0 170.62 111,830 33,001Source@ DWP, Toolkit

Table 23: Amount of weekly payment, November 2014

Care Award TypeTotal Higher Rate Middle Rate Lower Rate Nil Rate

Average weekly Average weekly

Average weekly

Average weekly

Average weekly

amount of benefit

amount of benefit

amount of benefit

amount of benefit

amount of benefit

Dundee City £81.79 £122.76 £88.97 £51.79 £45.96

Table 24: DLA Claimants duration of current claim November 2014

TotalThousands

Duration of current claim (days)

Up to 3 months

3 months

up to

6 months

up to1 year and up

2 years and up

5 years and over6

months 1 year to 2 years

to 5 years

Dundee City 11.35 0.04 0.04 0.1 0.48 1.7 8.98

Scotland 334.73 1.26 1.3 2.57 12.09 46.48 271.0

4.8 Personal Independence Payment (PIP) PIP is gradually replacing Disability Living Allowance (DLA) and helps with extra costs caused by long-term ill-health or a disability for claimants aged 16-64. The rate depends on how a claimant’s medical condition affects them, not the condition itself, and is determined by an assessment. PIP claimants must have a long-term health condition or disability and have difficulties with activities related to ‘daily living’ or ‘mobility’ needs.Claimants may receive the mobility component of PIP if they need help with going out or moving around, while they may receive the daily living component of PIP if they need help with things like:

preparing or eating food washing, bathing and using the toilet dressing and undressing reading and communicating



managing your medicines or treatments making decisions about money engaging with other people

There have been recent criticisms of the transition between DLA to PIP3 with Citizens Advice Scotland reporting that claimants are waiting an average of six months between claiming PIP and receiving a first payment, causing severe hardship.

The following table shows a comparison of the total number of PIP claims in payment by Scotland and Dundee City. The number of claims continues to rise as this benefit replaces DLA. In September 2015 there were 1,934 PIP claims in payment, an increase of 1,551 from September 2014.

Table 25: Total Number of PIP claims Dundee and Scotland, September 2014 to September 2015

Sep-14

Oct- 14

Nov- 14

Dec-14

Jan-15

Feb- 15

Mar-15

Apr-15

May-15

Jun-15

Jul- 15

Aug-15

Sep-15

Scotland

17,748

20,945

24,338

28,329

32,559

36,866

40,684

44,934

48,399

52,033

55,369

58,226

61,447

Dundee 383 493 665 879 1,026 1,142 1,257 1,376 1,479 1,623 1,718 1,831 1,934

Source: DWP Stat-xplore

Table 26 outlines the age groups of those in receipt of PIP in September 2015, due to the nature of the benefit there are more older PIP claimants than in younger age groups. In Dundee City the highest amount of claimants were in the 55 to 59 age group, a similar picture is reflected in the Scotland wide figures.

Table 26: Age of those receiving PIP September 2015

Source: DWP Stat-Xplore

5 JSA Sanction DecisionsThere are three categories of JSA sanction: higher, intermediate and lower, all depending on the nature of the offence. The sanction period begins either on the first day of the benefit week in which the offence occurred, if the claimant has not been paid JSA for that week, or on the first day of the benefit week following the date the claimant was last paid JSA

Higher level sanctions, which can be invoked for leaving a job voluntarily, will lead to claimants losing all of their JSA for a fixed period of 13 weeks, for a first failure, 26 weeks for a second and 156 for a third and subsequent failure.

3 Citizens Advice Scotland, The Impact of Welfare Reform, 2013Chief Executive’s Department, Information and Research Team Page 15

Age of those receiving Personal Independence Payment, January 2015

16 to 17

18 to 24

25 to 29

30 to 34

35 to 39

40 to 44

45 to 49

50 to 54

55 to 59

60 to 64

65 and over

Dundee 54 133 117 154 150 217 237 283 326 244 22

Scotland 2,1783,67

2 3,006 3,9414,43

06,34

58,12

19,63

210,05

7 9,0391,03

0


Intermediate level sanctions last 4 weeks for a first failure and 13 weeks for a second and any further failures, and can be applied following a period of disallowance for not actively seeking employment.

Lower level sanctions will lead to claimants losing all their JSA for a fixed period of 4 weeks, followed by 13 weeks for any further failures.

5.1 JSA Sanction Decisions Made during the Period September 2014 to September 2015

During the period September 2014 to September 2015 there were 3,249 JSA sanction decisions made for residents of Dundee City. The table below shows the number of JSA sanction decisions made on a monthly basis during this period.

In September 2015 the number of JSA sanction represented 6.9% of JSA Dundee City claimants and 5.8% across Scotland.

Table 27 JSA sanction decisions made by month for period September 2014 to September 2015Sep 2014

Oct 2014

Nov 2014

Dec 2014

Jan 2015

Feb 2015

Mar 2015

Apr 2015

May 2015

Jun 2015

Jul 2015

Aug 2015

Sep 2015

Scotland 8,523 7,444 6,600 5,280 6,296 5,811 6,037 4,548 4,011 4,253 3,876 3,326 3,849

Dundee City 403 347 411 322 268 201 209 181 144 204 205 144 210


5.2 Reasons for JSA Sanctions July to September 2015

In the period July to September 2015, the three main reasons for JSA sanctions were: ‘failure to participate in a scheme for assisting person to obtain employment without good

reason – Work Programme’. (57% Dundee City, 36% Scotland) ‘failure to attend or failure to participate in an Adviser interview without good reason’. (11%

Dundee City, 21% Scotland) ‘Left employment voluntarily without good reason’. (9% Dundee City, 8% Scotland)

Table 28 shows the breakdown for all JSA Sanction reasons during July to September 2015 for both Scotland and Dundee City.

Table 28 Known reasons for JSA sanctions from July to September 2015Scotland Dundee City

Known reasons for JSA Sanctions July to September 2015 Month Number

% of month total Number

% of month total

Failure to attend or failure to participate in an Adviser interview without good reason

(Jul-15) 898 23% 21 10%(Aug-15) 727 22% 20 14%(Sep-15) 711 18% 22 11%

Refusal or failure to comply with a Jobseeker's Direction without good reason

(Jul-15) 39 1% 6 3%(Aug-15) 28 1% 5 4%(Sep-15) 25 1% 0 0%

Failure to participate in a scheme for assisting person to obtain employment

without good reason - Work Programme

(Jul-15) 1,406 36% 126 62%(Aug-15) 1,071 32% 89 64%(Sep-15) 1,447 38% 101 48%

Failure to participate in a scheme for assisting person to obtain employment

without good reason – Skills Conditionality

(Jul-15) 72 2% 0 0%(Aug-15) 26 1% 0 0%(Sep-15) 61 2% 7 3%



Failure to participate in a scheme for assisting person to obtain employment without good reasons – Other scheme

(Jul-15) 299 8% 15 7%(Aug-15) 398 12% 9 6%(Sep-15) 414 11% 14 7%

Not actively seeking employment(Jul-15) 488 13% 5 2%(Aug-15) 501 15% 5 4%(Sep-15) 480 12% 8 4%

Not being available for work(Jul-15) 47 1% 0 0%(Aug-15) 43 1% 0 0%(Sep-15) 42 1% 6 3%

Left employment voluntarily without good reason

(Jul-15) 329 9% 21 10%(Aug-15) 271 8% 0 0%(Sep-15) 284 7% 29 14%

Losing employment through misconduct(Jul-15) 112 3% 5 2%(Aug-15) 91 3% 6 4%(Sep-15) 118 3% 8 4%

Refusal or failure to apply for, or accept if offered, a job which an employment officer has informed him/her is vacant or about to

become vacant without good reason

(Jul-15) 55 1% 0 0%(Aug-15) 46 1% 0 0%(Sep-15) 65 2% 0 0%

Failure to participate in Mandatory Work Activity without good reason

(Jul-15) 106 3% 0 0%(Aug-15) 105 3% 6 4%(Sep-15) 182 5% 14 7%

Other referral reason(Jul-15) 12 0% 5 2%(Aug-15) 16 0% 0 0%(Sep-15) 20 1% 0 0%

Source: DWP Stat-explore



5.3 JSA Sanction Decisions within Dundee City

There were over 6,100 sanction decisions made in Dundee City during 2014. Map 1 shows how these decisions were spread over the residents of the Dundee City Intermediate Geography. The areas of Stobswell and Lochee had significantly higher amounts of sanction decisions than any other. City Centre, Ardler and St Marys, The Glens, Hilltown, Charleston, Menzieshill, Whitfield and Linlathen and Mid Craigie also had high counts all with over 300.

5.4 JSA Sanction by age GroupFigure 5 shows the age profile for those who had a JSA Sanction Decision made in 2014 for Scotland and Dundee City.Figure 5: Sanction Decisions Age Profile



Dundee City follows a similar pattern to Scotland with about a third of all sanction decisions being made on individuals aged 18 to 24.

5.5 JSA Sanction Decision OutcomesTable 29 shows that the decision to apply a sanction in Dundee City was at 40% in September 2014 and 51% in September 2015.

Table 29 Sanction Decision Outcomes September 2014 to September 2015Sep 2014

Oct 2014

Nov 2014

Dec 2014

Jan 2015

Feb 2015

Mar 2015

Apr 2015

May 2015

Jun 2015

Jul 2015

Aug 2015

Sep 2015

Scotland 8,525 7,442 6,602

5,269 6,295 5,813 6,030

4,553 4,007 4,249 3,877 3,322 3,852

Decision to apply a sanction (adverse)

51% 54% 56% 53% 55% 56% 54% 55% 55% 52% 50% 52% 53%

Reserved 8% 7% 6% 5% 5% 4% 4% 4% 4% 4% 4% 6% 6%Cancelled 20% 18% 16% 17% 17% 18% 17% 16% 15% 18% 18% 16% 16%Decision not to apply a sanction (non-adverse)

20% 22% 22% 25% 23% 23% 25% 25% 25% 26% 27% 27% 25%

Dundee City

403 344 403 320 268 199 209 181 143 205 205 143 209

Decision to apply a sanction (adverse)

40% 47% 44% 38% 58% 56% 55% 55% 57% 51% 35% 45% 51%

Reserved 11% 7% 6% 4% 3% 4% 2% 3% 5% 5% 2% 6% 6%Cancelled 24% 24% 22% 25% 13% 15% 17% 18% 16% 20% 25% 16% 11%Decision not to apply a sanction (non-adverse)

25% 22% 28% 33% 26% 25% 26% 24% 22% 24% 38% 34% 32%


5.6 JSA Sanction Decision Outcomes by LevelOf the 1,762 JSA Sanction Decisions made in Dundee City during the period January-September 2015, there were 915 decisions which resulted in a sanction being applied and 479 decisions which resulted in a sanction not being applied. The following tables display the level of sanction that were being decided upon in the period January-September 2015. Table 30 shows the level of the decisions to apply a sanction for Dundee City and Scotland. More than half of the sanctions were at the low level for both Scotland and Dundee City. The remaining sanctions were either at intermediate or high level.



Table 30: Decision to apply sanction January – September 2015Decision to apply a sanction (adverse) (V)

Low Level (XVIII)

Intermediate Level (XIX)

High Level (XVIII) Unknown Not Applicable

(Old regime)All

Decisions

ScotlandCount 12,566 7,353 2,682 10 0 22,611% 56% 33% 12% 0% 0% 100%

Dundee CityCount 611 194 110 0 0 915% 67% 21% 12% 0% 0% 100%


Table 31 shows the level of the decisions not to apply a sanction for Dundee City and Scotland during the period January – September 2015. Over 60% of the decisions not to apply a sanction were at the low level for both Scotland and Dundee City. The remaining decisions not to apply a sanction were shared between intermediate and high level.

Table 31: Decision to not apply sanction January-September 2015Decision not to apply a sanction (non-adverse) (IV)

Low Level (XVIII)

Intermediate Level (XIX)

High Level (XVIII) Unknown Not Applicable

(Old regime)All

Decisions

ScotlandCount 6,730 666 3,051 23 0 10,470% 64% 6% 29% 0% 0% 100%

Dundee CityCount 332 10 137 0 0 479% 69% 2% 29% 0% 0% 100%


6 Employment Support Allowance (ESA)ESA claimants placed in the ‘Work Related Activity Group’ (WRAG) who fail to meet requirements are subject to an open-ended sanction which is lifted when they re-comply. When the open-ended sanction is lifted, there will be an extra fixed-period sanction which is:

One week for a first failure Two weeks for a second failure Four weeks for a further failure within 52 weeks

The sanction amount is 50% of their entitlement, rising to 100% after four weeks. Claimants can be sanctioned if they fail to take part in a work focused interview or fail to comply with a work related activity direction. The sanction does not apply if they have “good cause”. They must notify the Job Centre of a “good cause” argument within 5 days of the failure that is at risk of being sanctioned. The term “good cause” can include issues such as

health or disability language or literacy problems transport problems conflicting appointments you could not reasonably rearrange attending a funeral attending a job interview



6.1 ESA Sanction Decisions Made During September 2014 to September 2015Table 32 below shows the number of ESA sanction decisions made on a monthly basis during the period September 2014 to September 2015. The numbers have fluctuated in Dundee City throughout this period with a high of 88 occurring in July 2015 to a low of 11 occurring in May 2015.

Table 32 Sanction decisions made September 2014 to September 2015Sep 2014

Oct 2014

Nov 2014

Dec 2014

Jan 2015

Feb 2015

Mar 2015

Apr 2015

May 2015

Jun 2015

Jul 2015

Aug 2015

Sep 2015

Scotland 600 552 606 497 458 415 466 381 323 418 407 444 548Dundee City

35 31 60 81 44 27 18 25 11 37 88 74 72


6.2 Reasons for ESA Sanctions July to September 2015Table 33 shows the referral reasons for ESA Sanctions for Scotland and Dundee City during the period July to September 2015. The table shows that in Dundee City in July and August 2015 all of the referrals for ESA sanctions came from the failure to participate in work related activity. In September 2015 in Dundee City 9% of the referrals for ESA sanctions came from failure to attend mandatory interview and 91% came from failure to participate in work related activity. At a Scottish level almost all of the referrals for ESA sanctions during the period July to September 2015 came from the failure to participate in work related activity.

Table 33 Known Reasons for ESA Sanction, Scotland and Dundee City, July-September 2015Scotland Dundee City

Failed to attend mandatory interview

Failure to participate in work related

activity

Failed to attend mandatory interview

Failure to participate in work

related activity

Jul-2015 5% 95% 0% 100%Aug-2015 4% 96% 0% 100%Sep-2015 8% 92% 9% 91%



Documents

Welfare Reform and The Impact of Changes – … · Web viewWelfare Reform and The Impact of Changes – February 2016 Chief Executive’s Department, Information and Research TeamPage