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Benefit Cap impacts

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stevejohnsontrainer
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It would appear that the new Benefit Cap limits will come on stream from some point between the Autumn and the end of 2016. A non-working couple with 4 children would expect to receive £400.51pw in IBJSA/CTC/CB during 2016/2017. I reckon that on that basis their available HB in London will be around £41.80pw once the new limits come in, and nil outside London (due to the £20K Cap). When UC applies, those outside London would lose an extra £15.89pw or thereabouts.

For London this makes the already impossible a bit more impossible. Outside London, more of a new disaster.

I have just received a FOI response from the DWP Labour Market Programme Stakeholder Engagement and Communications Team in relation to a number of queries relating to this change. They have confirmed there will be no transitional protection (as predicted). The response repeated the standard suggestions that employment or better budgeting or moving to cheaper accommodation are the likely potential responses from claimants.

Affected claimants will receive advanced notice of the change.  The increase in DHP allocation was pointed out.

I still can’t figure out who will house a family with 4 children who will have almost no HB in London and none at all outside London. How many housing association affordability officers would accept such an application?  Who pays the piper?

stevejohnsontrainer
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I am afraid this is not an April Fool!

Rehousing Advice.
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There is a bit of a myth, on all sides of the debate, that only large families are impacted. In actual fact couples with two children will be topping up at levels which mean that it is going to be very difficult for them to sustain private sector accommodation in many parts of the country….......

In my area (south coast) we think this is going to be around £33.00 per week from other benefits towards housing costs.

With LHA at 30 centile and frozen…......and rent rises at 4-6% annually we are really seeing the start of the end of renting to those non working average sized families.

Gareth can probably prove me wrong as he has actually modelled this.

So its just my personal view. We are at a tipping point.

 

Paul_Treloar_AgeUK
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The attached graphic from Shelter makes for grim viewing, showing the areas of the country where a couple with two young or same gender children will be unable to afford a two-bedroom property.

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Picture1.gif

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Jon Blackwell
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stevejohnsontrainer - 01 April 2016 07:17 PM

...
For London this makes the already impossible a bit more impossible. Outside London, more of a new disaster.  ..

I think that’s a good way of putting it, Steve.

I’ve done some sample calculations for various households.

See: https://www.lgbp3.co.uk/bcap2016/bcap2016.html

- the results are depressingly predictable.

 

Rehousing Advice.
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Thank you for this interesting piece of work.

It looks like, unless the “predicted”  behaviour change come about, then it is bad news for both average and large workless families.

 

 

Daphne
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letters going out to claimants likely to be affected by the cap between 24 May and 10 June - local authorities have been told not to contact claimants till after then -

The DWP has identified all households likely to be affected by the new cap and has passed details on to councils. Local authorities have been asked not to make contact with individual tenants until after the last of the official notification letters have been received. They are also not permitted to share information as to which tenants are affected with partners, including housing associations, until after 10 June, and then will only do so if local data sharing protocols are in place.

http://www.housing.org.uk/latest-updates/tenants-are-being-notified-about-the-impact-of-the-benefit-cap/

Rehousing Advice.
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Just in case folks were wondering… as the NHF headline is…“Tenants are being notified about the impact of the Benefit Cap”. I don’t think the DWP letter actually mentions the impact on their household (in the sense of providing a worse off calculation), it tells the claimant their housing benefit may change (you might be impacted) and directs them to seek advice and gives them details of a benefit cap calculator, to further understand the exact level of the impact on their household.

So if someone calls and asks how much worse off they are…......

samiam
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MartinB - 24 May 2016 10:40 AM

Just in case folks were wondering… as the NHF headline is…“Tenants are being notified about the impact of the Benefit Cap”. I don’t think the DWP letter actually mentions the impact on their household (in the sense of providing a worse off calculation), it tells the claimant their housing benefit may change (you might be impacted) and directs them to seek advice and gives them details of a benefit cap calculator, to further understand the exact level of the impact on their household.

So if someone calls and asks how much worse off they are…......

Do you (or does anyone) have a copy of the letter which you’re able to share (sensitive info removed obvs)?

Jon Blackwell
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LAs have now been informed that the reduced HB cap will ‘start to be implemented’ from 7 November 2016 (and the new carer’s and guardian’s allowance cap exemptions will take effect from that date.)

I’m not sure if the UC cap reduction will happen at the same time - anyone heard anything?

shawn mach
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Cheers Jon .. had seen the date mentioned but nothing definitive .. where did you come across it?

Cheers - Shawn

samiam
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My understanding is November 16 for existing cap cases and Jan 17 for newly affected households. Not sure about UC.

Jon Blackwell
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shawn - 25 July 2016 01:07 PM

Cheers Jon .. had seen the date mentioned but nothing definitive .. where did you come across it?

Cheers - Shawn

It was mentioned on HBInfo - I’ve not found a public domain copy but there was a letter from DWP to LA chief execs on 21/7/2016.

“This letter is to confirm that the benefit cap changes will start to be implemented from 7 November 2016 and this will be managed over a number of weeks…”

Hopefully someone from a LA can post a copy?

 

hbinfopeter
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I can confirm that DWP wrote to advise

“that the benefit cap changes will start to be implemented from 7 November 2016 and this will be managed over a number of weeks… “

The letter also contains admin information on scans and funding etc. specific to local authorities (and of little interest to others I guess).

ElaineS
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Can anyone just confirm that when the new Cap comes in there will still be a £0.50 entitlement for those otherwise with no entitlement so that a DHP application will be made.

Paul_Treloar_AgeUK
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ElaineS - 27 July 2016 09:36 AM

Can anyone just confirm that when the new Cap comes in there will still be a £0.50 entitlement for those otherwise with no entitlement so that a DHP application will be made.

Regulation 75D Housing Benefit Regulations 2006, introduced by the Housing Benefit (Benefit Cap) Regulations 2012 still applies.

The new lower limits for the cap were introduced by section 8 of the Welfare Reform Act 2016 but other provisions remain unchanged.