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Benefit Cap impacts

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ElaineS
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Welfare benefit advisor - MHS Homes, Chatham

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Thank you.  I thought so but just wanted to make sure

Jon Blackwell
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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.

I think the 50p rule is almost certain to stay - there’s been no suggestion that it will be removed.

In the benefit cap (reduction) impact assessement DWP said:

“A total of £800m in Discretionary Housing Payments are being provided over the next 5 years (from 2016/17) which are available to vulnerable people who need extra support.In circumstances where the HB weekly payment would reduce to below £0.50 – a weekly amount of £0.50 remains in payment to enable access to the DHP Scheme and passported benefits”

( http://www.parliament.uk/documents/impact-assessments/IA15-006.pdf )

 

 

shawn mach
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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).

Still nothing more specific than ‘autumn’ on gov.uk: https://www.gov.uk/benefit-cap

Anyone got a copy of the letter they can attach here?

robverco
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samiam - 25 July 2016 01:18 PM

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

Have you got a link to where you got the different dates for existing and new please?

samiam
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In actual fact I think it’s going to vary from area to area. Starting with smaller local authority areas and working through to the larger ones. I think the January date from my previous post only applies in Bristol as one of the largest LA areas. The cap may arrive earlier for newly affected households in your area depending on its size.

I don’t have anything I can share which confirms this info I’m afraid - it was just in an internal email.

robverco
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No probs. Thanks.

hbinfopeter
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The dwp have advised that the new regs will come into effect on 7 November 2016. Hb does not have to take effect until a later date though; after the local authority receives notification from dwp etc. I don’t know why dwp have been so slow to advise on this in a public forum. Maybe because the new sec of state has to be briefed? Or maybe because there are so many cases affected they are struggling with implementation. Hbinfo have asked dwp to push it all back until the new year. How can anyone move in December to cheaper accommodation….even if that exists? But I doubt they will.

shawn mach
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HB G8/2016 confirms that -

DWP will issue a second direct mail in September 2016 to HB claimants who are likely to be impacted by the changes to the benefit cap levels from 7 November 2016.

Not on gov.uk yet, but will appear here: https://www.gov.uk/government/collections/housing-benefit-for-local-authorities-bulletins

shawn mach
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here we go ... new commencement order, in force from 7 November 2016:

Introduction of lower benefit cap from 7 November 2016 

shawn mach
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Stuart
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HB G9/2016 provides timetable for implementing new cap levels on claims not subject to existing cap -

‘15. As per existing benefit cap processes, DWP will undertake a manual check of benefit awards and exemptions. This is expected to be completed during a 12 week period commencing from the 7 November 2016 and completing by the end of January 2017. All Universal Credit claimants are to be reassessed by the end of January 2017.

16. Following consultation with LAs the agreed implementation order will be ’low to high’, i.e. those LAs with the lowest volume of new claims will be processed at the beginning of the 12 week period. The LAs with the highest volumes will be processed at the end of the 12 week period.’

Not on gov.uk yet, but will appear here: https://www.gov.uk/government/collections/housing-benefit-for-local-authorities-bulletins

davidsmithp1000
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Hi. I’ve read, and I’m not sure if I’m overlooking this, but this is going to make large swaths of 3 bed and larger properties unavailable to those not exempt from the cap.

Should exemption be work, then loss of this work, meaning loss of your home.

It’s also been mooted that long term provision as a result, maybe families housed in temporary accommodation, permanently, or at least until they can secure a solid exemption that will not likely lead to homeless down the road.

HB Anorak
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Yes, and being in temp acc does not exempt you from the cap either but the Council will still have its 1996 Act duty.  This will transfer much of the cost of providing temp acc from central to local government: no HB, no HB subsidy!

Example: the Council has leased temp acc from a private landlord for £300 a week and this cost is passed on to the homeless claimant as an accommodation charge (perhaps with a bit added on for admin costs).  As a result of the cap the claimant is entitled to 50p a week of HB.  The Council claims from the government ... 50p a week of HB subsidy and that is their lot.  The claimant is in no position to contribute anything towards the cost.  For some London authorities this will add millions to the temp acc bill.

This will be partially offset by separating out the so-called “management fee” element of HB subsidy as a block grant next year, but that is only a small part of the cost.

Daphne
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New briefing from the House of Commons Library on the benefit cap -

This House of Commons Library briefing paper explains how the household benefit cap operates and considers evidence of its impact to date. It also covers the reductions in the benefit cap being phased in from 7 November 2016, and their likely impact.

http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN06294

davidsmithp1000
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Brighton Unemployed Centre Families Project

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To what extent is this cause and effect?

Number of homeless children in temporary accommodation rises 37%

https://www.theguardian.com/uk-news/2017/jul/22/number-of-homeless-children-in-temporary-accommodation-rises-37?CMP=Share_AndroidApp_Copy_to_clipboard