Published on:
25
March 2013
Some of the biggest changes to the Welfare Benefits system in over 60 years will come into effect on 1st April. - but what does it mean to the people of Clackmannanshire?
The UK Government's Welfare Reform includes reductions to Housing Benefit, new ways to apply for help in a crisis, and the replacement of Council Tax Rebate. One in five people living in Clackmannanshire receive benefits and the Council's analysis is that many residents will see a reduction in the support provided to them.
Changes include the Council Tax Reduction Scheme replacing the existing Council Tax Benefit scheme. All current recipients of Council Tax Benefit will continue to receive the same level of support. This is being maintained by the Council, despite the cut in funding for the scheme by over 12 per cent.
Deputy Council Leader, Councillor Craig Holden said: "Currently the Council pays out £4 million per annum to over 6300 households in Council Tax Benefit."
Parts of the Social Fund, Crisis Loans and Community Care Grants, which used to be administered by the Department for Works and Pensions are being replaced by the Scottish Welfare Fund which is now administered by the Council.
Councillor Holden went on: "It is anticipated that around 4000 applications will be made per year from the fund and the Council will distribute over £350,000 over a 12 month period."
Over 1000 tenants of Clackmannanshire Council and housing associations will be affected by the Under Occupation Reductions in Housing Benefit for working age customer who are deemed to have properties in excess of their needs. Reductions of 14 per cent and 25 per cent come into force from 1st April.
Councillor Holden said: "The Council wrote to everyone potentially affected and has updated relevant policies to try to assist. The Council is taking action to try to mitigate the effects on our residents on some of the reforms."
Over 1100 tenants, 750 Council tenants and over 300 Housing Association tenants will lose an average of £13 per week.
There will be a total reduction in Housing Benefit payments of over £500,000 per year.
An overall Benefit Cap will be applied to working age customers during 2013. This will limit support to £350 per week for single people and £500 per week for couples and lone parents.
Councillor Holden added: "This affects 96 customers in Clackmannanshire who currently live in temporary accommodation."
Universal Credit will be introduced between October 2013 and 2017. This will see customers' different benefits being replaced by a single monthly payment.
Around 10,000 customers in Clackmannanshire who currently claim Job Seekers, Employment Support Allowance, Income Support, Tax Credits and Housing Benefit will be invited to claim Universal Credit between October 2013 to 2017.
Features of Universal Credit are that working age customers, not pensioners, will receive a single monthly payment, in arrears, to mirror how salaries are normally paid.
Customers will have to budget over longer periods and payments of assistance with rent will no longer be paid direct to landlords.
Personal Independence Allowance (PIP) will replace existing Disability Living Allowance for new customers in April 2013 and then be rolled out to existing customers over the next 3 years.
There are around 3650 current DLA customers in Clackmannanshire, most of whom will have to transfer to PIP.
The DWP expects that new rules will mean 20 per cent will lose benefit or receive reduced amounts. This will remover over £2 million per annum in DLA payments.