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January 6, 2018 | Author: Anonymous | Category: Business, Economics, Macroeconomics
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Landlords Forum 15th September 2011

LHA changes and Universal Credit Mick Bullock

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Agenda • Changes to LHA from April 2011 • Shared Accommodation rate for under 35’s from January 2012 • Universal Credit • Any questions? www.walsall.gov.uk

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April 2011 changes Local Housing Allowance • removal of £15 top up • Removal of 5 bed rate • Weekly cap on LHA rates • LHA rates set at 30th percentile • Transitional protection/direct payment safeguard

www.walsall.gov.uk

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More April 2011 changes • Size criteria – additional room for non resident carer. • Start of the staged increase in non-dependant deductions (affects all claimants with non dependant deductions)

www.walsall.gov.uk

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Impact on Walsall customers (refer to handout 2) • Removal of top up – 1355 customers • 5 bed rate removal – 45 cases --biggest individual impact -- £68.08 • LHA 30th percentile –reduction of between £5 - £68.08 per week – 4659 customers affected. • Non dependant deductions – 2245 customers

www.walsall.gov.uk

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Impact on Walsall • Decrease in Housing and Council tax Benefit payments • Possible impact on rent arrears, council tax collection rates • Increase in enquiries from customers and landlords • Increase in Discretionary Housing Payments • Increased demand on housing support (homelessness service) www.walsall.gov.uk

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Communication with Customers • All existing customers have been made aware of the changes (letter sent in March) • Further notification to be sent before change impacts and when change takes affect • Advice from staff for new and existing customers • Website updates

www.walsall.gov.uk

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Shared Accommodation Rate for under 35’s • Currently applies to single claimants under 25 • From 1st January 2012 will apply to under 35’s • New claims from 1st January 2012 will go straight onto SAR • Existing claims will have some protection www.walsall.gov.uk

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Shared Accommodation Rate for under 35’s DWP reasons for change • Projected £215m a year savings to be made • Part of its policy of encouraging a return to work • Those on benefit should not be better off than in work. • “Reasonable and fair …as many of their contemporaries in work would be living in shared accommodation ”

www.walsall.gov.uk

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Shared Accommodation Rate for under 35’s DWP estimates as at March 2011, • 54,000 claimants under 25 and 93,000 aged 25 and over being paid LHA at the SAR. • This is within a total LHA caseload of just over one million • 65,000 in UK will be affected by this measure with an average UK loss in HB entitlement of £41/week/claim. (West Midlands 5,240 average loss £32) • Level of losses vary greatly between regions and even within Local Authorities (Black country £30 Birmingham £40)

www.walsall.gov.uk

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When does it take affect? Claims made before April 2011 • Existing claimants who, on or after 1 January 2012 are in a TP period from the April 2011 LHA changes will move to the SAR at the same time as their TP ends;

Claims after 1 April 2011 but before 1 January 2012 • Existing claimants not receiving TP or who have lost it because of a change of circumstances before January 2012 will move to the SAR on the anniversary date of their claim;

Claims made before April 2008 • Existing pre pre-LHA cases will move to the SAR (previously known as the single room rent) on the annual review of their case.

www.walsall.gov.uk

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Exemptions to the SAR Regs add two new exemptions to the SAR rules • Homeless people who have slept rough or who are at risk of sleeping rough, and • Ex Ex-offenders who could pose a risk of serious harm to the public Exiting exemptions to SAR continue to apply • LA and RSL tenants. • Tenants in exempt accommodation (old reg 11 claims) • Claimants on middle or highest rate care component of DLA • Claimants who have a non non-dependant residing with them. • Claimants entitled to an extra bedroom to allow for a non non-resident carer to sleep over where overnight care is required. • Claimants under the age of 22 who were formerly in care. www.walsall.gov.uk

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Preparing for the change • Estimating the impact of the SAR change on existing claims (level of loss, dates etc) • Alerting other local services and plan for coordinated approach • Identifying and notifying those affected and the date they will be affected • Publicity including what help and support is available from the LA • Impact on provision of debt/hardship advice, housing advice, homeless etc • Impact on DHP budgets www.walsall.gov.uk

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Universal Credit Welfare Reform Bill • Due to become law later this year • Introduces Universal Credit • Universal Credit will replace housing benefit

www.walsall.gov.uk

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Universal Credit Why change? • • • •

Complex system Too many different types of benefits Welfare Benefit expenditure out of control Culture of worklessness

www.walsall.gov.uk

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Universal Credit • One payment to replace most working age benefits (including housing benefit) • Simplification of benefit system • Housing Benefit for claimants of Pension age will be made with Pension credit payments

www.walsall.gov.uk

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Key dates 2011 - Welfare reform bill 2012 - LHA single room rate to apply to under 35’s (currently under 25’s) 2013 – LHA rates set by Consumer price index 2013 - Council Tax Benefit replaced by local scheme 2013 - Universal credit introduced for new claims (replacing housing benefit) 2013 – Size restriction for social landlords By 2018 – universal credit replaces housing benefit, www.walsall.gov.uk

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Any questions? Mick Bullock 01922 - 652673 [email protected] mobile - 07983612596

www.walsall.gov.uk

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