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.