Changes begin for disability benefit

7 April 2013 Last updated at 19:03 ET

People with disabilities will eventually all move over to the new PIP system

Major changes to disability benefits for new claimants are being introduced in the north of England.

The existing system of Disability Living Allowance (DLA) is being phased out and replaced by Personal Independence Payments (PIP).

The government says the existing model is outdated and needs to be reformed, and that benefits are not being cut.

But disability charity Scope says 600,000 people will eventually lose their financial support.

Other critics argue that those losing out will find it harder to be part of their communities.

PIPs will be introduced gradually for new claimants in Merseyside, north-west England, Cumbria, Cheshire and north-east England.

Figures from the Department for Work and Pensions show that more 70% of claimants get DLA for life.

But ministers believe the circumstances of some individuals can improve over time, so there is a case for more regular assessment.

Minister for Disabled People Esther McVey said the PIP would give more targeted support to those who need it most.

"Disability Living Allowance is an outdated benefit introduced over 20 years ago and needs reform to better reflect today's understanding of disability," she said.

"At the moment the vast majority of claimants get the benefit for life without any systematic reassessments and around 50% of decisions are made on the basis of the claim form alone - without any additional corroborating medical evidence.

"The Personal Independence Payment will include a new face-to-face assessment and regular reviews - something missing in the current system. This will ensure the billions we spend give more targeted support to those who need it most."

Phased introduction

New claimants in the north of England will now begin face-to face assessments with ATOS - one of two companies administering the process.

From June new claims will begin in the rest of the country and in October, some of those currently receiving will start moving to the new system, if there is a change in their circumstances or an existing award ends.

But it will be two years before most of the 3.3 million existing claimants begin moving over to PIP.

Scope says a "financial lifeline is being cut", but the government says it will continue to spend the same amount on the benefit in 2015 as it does now.

Richard Hawkes, chief executive of Scope, said: "In 2013 disabled people are struggling to make ends meet. Life costs more if you're disabled. But this year living costs are spiralling and income is flat-lining. Disabled people are getting into debt to pay for essentials.

"What's the government's response? It is cutting a financial life-line for disabled people, which helps them meet the extra costs of day-to-day living when you have a disability. The reform is fundamentally flawed.

"DLA needs reforming and could be better targeted to meet the extra costs people face. But disabled people are frightened by the government's plans. They believe it's just an excuse to cut their support."

Other changes to the benefits system include the Universal Credit scheme, which will replace benefits including income support and housing benefit with a single payment.

The first trial of the system begins on 29 April in Ashton-Under-Lyne, Greater Manchester.

Other changes came into place on 1 April, including a cap of £26,000 of benefits per household and payment reductions for those deemed to have a "spare bedroom".

View the original article here

Forces exempted from benefit change

12 March 2013 Last updated at 11:47 ET

The government says that the housing benefit bill has doubled to £20bn in the last decade

Foster carers and families of armed services personnel will be exempt from controversial changes to housing benefit, ministers have said.

They will not face deductions in rental support as part of plans to clamp down on under-occupied properties.

Support will also be available on a discretionary basis for others, such as those with long-term medical problems.

Ministers say the housing benefit bill must be curbed. Labour says the plans amount to a tax on the vulnerable.

Changes to benefits for tenants in council houses and social housing will come into force next month, with families deemed to have too much living space seeing their rental payments reduced.

David Cameron and Ed Miliband have been involved in a fierce war of words over the issue for weeks, with the Labour leader characterising the policy as a "bedroom tax".

The prime minister has insisted the proposals are not a tax and will, instead, see curbs on what he has called existing "spare room subsidies".

'Under control'

Amid a dispute about who will be affected by the changes, Work and Pensions Secretary Iain Duncan Smith has said the government will introduce new regulations to "clarify" the impact on two groups.

Continue reading the main story

HOW WILL THE CHANGES WORK

• The new rules will affect housing benefit, which is paid to less well-off tenants to help with rent. Typically claimants receive between £50 and £100 a week.
• From next month, families deemed to have too much living space by their local authorities will receive a reduced payment.
• Under the government's so-called "size criteria", families will be assessed for the number of bedrooms they actually need.
• If tenants are deemed to have one spare room, the amount of rent eligible for housing benefit will be cut by 14%. If they have two or more spare rooms, the cut will be 25%.
• The government estimates that 660,000 households will have their benefit cut, roughly a third of social sector claimants. Only those of working age will see reduced payments.

He said the 5,000 approved foster carers in the UK would continue to receive rent payments towards an "additional room" as long as they have fostered a child or become an approved foster carer in the previous 12 months.

This would apply irrespective of whether a child has been placed with them or they are between placements.

Families with adult children serving in the armed forces will also be exempt from the changes, even when on overseas deployment. They will be treated as if they were continuing to live at home.

Mr Duncan Smith said protections were being put in place for these two groups which were now "beyond doubt".

He also said he would advise local authorities that discretionary support should remain in place for other "priority groups" such as disabled people whose homes have had to be significantly adapted and those with long-term medical conditions which create difficulties in sharing a bedroom.

'Smoke and mirrors'

He said he would monitor how the policy was implemented and make changes if necessary. The Institute for Fiscal Studies is to carry out an evaluation of the policy in conjunction with the Cambridge Centre for Housing and polling firm Ipsos Mori.

But he added: "This policy focuses on the key aim of bringing housing benefit expenditure under control.

"Under the previous government, housing benefit almost doubled in 10 years to £20bn, with households living in homes which are too big for them while there are two million households in England on waiting lists and 250,000 families living in over-crowded accommodation."

Labour said the announcement did not address concerns about the position of reservists or others - including households with a disabled person - who were set to lose up to £700 a year from the changes.

"Ministers have said nothing to guarantee disabled children will be protected from this hated bedroom tax," shadow work and pensions secretary Liam Byrne said.

"The truth is there is only six weeks help available for everybody hit and David Cameron mustn't use smoke and mirrors about how this hated tax will hurt disabled children."

In a separate development, the BBC has learned that a government pilot project that pays housing benefit directly to recipients has seen rent arrears amongst tenants increase.

Paying housing benefit directly to recipients, rather than their landlords, will form a key part of the planned new Universal Credit. The government says lessons will be learned from the pilot projects.

It wants to pay recipients directly as they think it will increase their sense of responsibility over their own lives and make them better able to cope should they move into a job.

View the original article here

Benefit plans target new EU migrants

4 March 2013 Last updated at 00:43 ET

The restrictions on the movements of Romanians and Bulgarians expire at the end of 2013

Government plans to clamp down on "benefit tourism" could see both Britons and immigrants affected by changes to the rules on entitlement.

Ministers are looking to limit access to benefits, health care and housing when freedom of movement controls on Romanians and Bulgarians end.

But they believe that to comply with EU laws, any changes may need to apply to both immigrants and some Britons.

Council housing priority could be given to those with local connections.

BBC political editor Nick Robinson said the government was drawing up a package of measures designed to bring the UK into line with policies in other European member states already deemed legal by the European Court of Justice.

Councils will be urged to use new powers to give priority on council house waiting lists to those with local connections - whether born, educated or with relatives in their area - which could make it harder for outsiders to get housing.

Ministers are also examining the possibility of linking some benefits to contributions which would have the effect of excluding new arrivals from eligibility, our correspondent added.

'Forecasts difficult'

On Sunday, Foreign Secretary William Hague told the BBC people should not be attracted to the UK just by the benefits available and "benefit tourism" had to end.

He said ministers wanted to remove "artificial, perverse incentives" to come to the UK.

One immigration pressure group estimates 50,000 people will move to the UK every year from Romania and Bulgaria once the movement restrictions expire at the end of the year, but Mr Hague said any attempt to estimate the number would be "guesswork".

William Hague: "There is no magical secret [immigration] figure"

People from Romania and Bulgaria have been free to live in the UK and anywhere else in the EU since the countries joined the EU in 2007, but in the UK they have either had to apply for one of the limited work permits available, be self-employed, or work in specific jobs such as seasonal agricultural or as domestic servants.

Under EU rules, these temporary restrictions must come to an end at the beginning of 2014, after which Romanian and Bulgarian migrants will have the same rights to live and work in the UK as those of other EU countries, which will give them access to benefits and the NHS.

Ministers say the impact of the temporary work restrictions, and the fact that eight other EU countries are also ending their restrictions at the same time as the UK, make forecasting the number of Romanian and Bulgarian migrants who might come to the UK difficult.

View the original article here