Welfare reform – impact on Enfield Senior Managers Conference Kate Robertson Striving for excellence www.enfield.gov.uk
Agenda for tonight • Overview of changes • Impact of benefit cap – data analysis conducted so far • Impact of migration • National research • Service mapping • Recommended approaches in Enfield • Other benefit changes
Overview of welfare reform • Scrapping of 5 bedroom rate • Under 35 single people • Removal of £15 excess and payment rules • Changes to income support for lone parents • Under-occupation in social rented sector • Personal independence payments • The benefit cap • Universal Credit • Social Fund • Council Tax Benefit
Benefit Cap Data analysis – who’s affected • 2308 households, 2017 have children totalling nearly 6000 • 99 Enfield Homes tenants • 186 RSL tenants • 280 temporary accommodation tenants • 140 placed in Enfield from other boroughs • 1434 in private rented • 166 not known to us
Benefit Cap data analysis continued Within these figures: • 11 are ASC clients (no supporting people clients) • 63 are active children social care cases with 203 children (740 are known but inactive with 2200 children) • 27 are known as troubled families • 28 are in TA waiting to be rehoused • 24 have TA rent arrears • 1505 are lone parents with 4471 children (over 700 losing over £100/week) • 445 are on job seekers allowance so eligible for WP • 1456 on income support, 135 on Employment Support Allowance and 245 are not in receipt of other benefits so likely to be low paid working
Financial losses <£50/week£50-100 £100-200 £200-300 £300-400 £400-500 £500-600 £600-700 £700-800 all claimants 623 589 721 218 99 33 11 13 1 lone parents 400 387 485 135 61 21 8 8 0 private rented 419 352 442 125 57 22 7 9 1 EH 34 29 23 6 6 1 0 0 0 TA 28 79 98 47 19 5 2 2 0 RSL 69 56 50 7 3 1 0 0 0
Future financial risk and impact on council services • Non-payment of rent to Enfield Homes • Mass evictions – possible difficulty in tenants and council finding sustainable property to rent • Question of whether they would be deemed to be intentionally homeless? Either way, the Council pays. • If a family with children is deemed to be intentionally homeless, costs fall to children social care to assess and fund deposits and first month rents. If not, the assessment and costs fall to community housing. • If 10% of families (201) became homeless and deemed to be intentionally so, estimated cost to the Council would be £546,800. • If 10% of known but inactive childrens social care cases (70) become active again due to the stress, total cost of £1.75m for six months foster care and assessment • Unknown costs of behavioural or mental health problems, increased drug and alcohol or domestic violence issues as a result of increased stress on families, increased illegal activity as families try to bridge the gap or truanting as a result of older children caring for young children
Impact of migration into the borough • Analysing benefit figures for past year, average net migration into the borough is 98 new claimants a month, averaging 97 children – 1164 additional children a year (excludes children moving into Enfield who are not in receipt of benefits) • Additional school places and children would need to be registered before FSM headcount in January 2013 for schools to benefit from pupil premium • 147 are likely to have learning difficulties, 168 SEN, 39 long term illness, 29 may be/become known to children’s social care, 6 may be involved in youth offending * • In terms of adults, additional 1176 adults – possible 192 of which will have a disability and of these, 9 may have physical disabilities, 9 may have/develop mental health problems and 5 may have learning difficulties that require adult social care support. * * Based on existing percentages of our borough population
National research • Landlords in London 3 times more likely to evict or not renew tenancy agreements (37%) than to lower rent (11%) 40% would stop letting to HB tenants • 33% of tenants tried to renegotiate rent but less successful than elsewhere – just 6% of London landlords said they would negotiate with a current tenant • 45% would cut back on essentials such as food and heating, 35% would look for a job and 30% would borrow money, either from family, friends or credit card/loan • 58% would seek help from council, 28% would consider moving within the local area but just 18% would consider moving away from local area • National Equality Impact Assessment makes clear that those most affected will be families with three or more children in private rented in greater London. Those ethnicities (mainly African) that are more likely to have higher numbers of children are more likely to be affected • Where Enfield differs is in impact on lone parents and financial loss. In Enfield 63% are on IS (compared to 38% nationally), 65% are lone parents (52%), 26% lose <£50/week (45%), 48% lose > £100/week (29%), 62% are in private rented (56%)
Service mapping • Mapped all voluntary organisations funded by the Council, 14 VCS commissioned to provide welfare advice plus CAB are commissioned to help 4000 people a year including 16x4 week managing your money and 30 121 sessions a week for complex cases plus provide IAG in 7 children’s centres • Enfield Homes has 3 benefit advisors, whilst at the Council there are 2 in community housing, one in children’s centres and adult social care’s income assessment team advise on benefit take-up. • Complicated range of ‘routes into employment’ offered by JCP, Reed in Partnership, work programme providers and through new ESF funded projects including support into self-employment • In addition there is the Job Centre Plus and the Council’s Jobsnet. • ESF Families Programme aims to provide advice to 900 families on benefits up to 2015 • North London hub – 20 referral a month + 13 a month for under 35 rule
Recommended approaches in Enfield • Series of briefing sessions this summer and Autumn for social care staff, RSLs, Enfield Homes and voluntary sector with clear advice messages • RSL and Enfield Homes advise and support their own tenants using own welfare and money advisors • Social care staff support individuals/families already known to them as part of normal case work • Temporary accommodation team support their own tenants • Boroughs placing people in Enfield advised by DWP this October • Those losing less than £100 a week advised to resolve problem themselves – general signposting to JCP/CAB/Money Advice service etc • Reprioritise the work of CAB and other VCS organisations receiving funding to support these groups? • We prioritise 27 troubled families, those previously known to children’s social care losing more than £100/week and other high risk categories. • Review criteria for discretionary housing payments – can use to provide temporary support to facilitate move etc
Messages for affected claimants • Don’t panic, but don’t bury your head in the sand • Get advice today on whether your benefits are being cut by the Government • You will be better off working. Explore your opportunities for work or self employment • Qualify for working tax credit and you are not affected by the cap • Get advice on managing your money more effectively. • Prioritise your spend to stay in your home and out of debt • Plan ahead and explore all your options. We will offer you advice and assistance if you need to consider moving to alternative affordable accommodation
Other benefit changes • Under-occupation – comes into effect April 2013. Writing to all RSLs for information on accommodation in August. Writing to tenants to advise likely impact from October and sharing data with RSLs • Council Tax Benefit – initial options go to Cabinet 18 July and then out to consultation until 11 October 2012. Funding gap of £5.1m. Decisions in November and December. New scheme has to be agreed by 31 January 2013 to operate from 1 April 2013. • Social fund – the community care grants and crisis loans are being devolved to local authorities from 1 April 2013 – but only given 2005/6 money. Will need to define our criteria and working model alongside other discretionary payment/hardship schemes. • Universal Credit is still unclear. New working age out of work claims from October 2013, new working, working age claims from April 2014, transfer of existing claims on change of circs or through planned migration. • The delivery model remains DWP phone and online until April 2015. Authorities funded to continue support for HB claimants only. Private companies interested in bidding for post 2015 work but role of face to face offer will be determined through local authority pilots starting April 2013. No news on migration or funding plans
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