Older People Welfare to Work Measures Universal Credit Welfare

Welfare Reform (cont) Older people l Retirement age for women is increasing from 60 to 65 (by 2018), then to 66 (from 2020) and 67 from 2026 (eight years earlier than previously announced). l This ‘pension age’ rise applies to other help that people used to be able to get when they turned 60 – such as Winter Fuel Payments and Pension Credit where they will have to remain on their working age benefit and wait for their pension age benefit longer, resulting in a loss of: n £3,632 a year – single person n £5,395 a year – couple This is the difference between Jobseekers Allowance and Pension Credit. Welfare to work measures l The Work Programme replaces many other schemes like New Deal, with organisations paid by results – after some months of work or training. l There is more compulsory work and training for both jobseekers and sick claimants, such as four weeks work activity, youth contract (subsidised placements for 18 – 24 year olds) and mandatory work activity. l Non-compliance with such schemes means sanctions, where benefit is stopped for up to 26 weeks. The Government will increase this to three years. Only if the claimant is classed benefits and some on Universal Credit. The exempt, the housing element (which as vulnerable or in hardship will process will affect 19 million people. replaces Housing Benefit) will be paid they would get a reduced hardship to the tenant rather than the landlord. It will be simpler due to the single payment. For example, a single 20 calculation incorporating housing costs l The plan is to pay Universal Credit to year old may only get £33.75 a week and it will avoid moving to different one in a couple, which is of concern to based on a 40% reduction of the basic benefits when circumstances change. women’s groups. rate for that age. However, other benefits, such as DLA and There will be winners and losers. The l 2010 saw an average of 57,000 PIP, will continue to interact with it and Children’s Society is concerned that adverse sanctions per month! 18-24 there is great concern about the following removal of the severe child disability year olds being the most affected. aspects: element may lead to 25,000 people l Even though claimants can appeal, l The Government expect people to losing up to £3,500 a year (£70 a week). there may be a long period with little claim and manage it online, like online And pensioner couples will have to remain or no benefit, where soup kitchens, banking. The obvious concern is that on Universal Credit if one of them is charities and friends have been the some people may have difficulties under pension age. It will, therefore, be only option. with computers, and some cannot important for such people to get such l Another change has been that afford them. extra amounts before it is too late under jobseekers lose their mortgage help l Organisations are concerned that the Universal Credit. after two years. ‘real time’ system, where changes in The Government are expecting local wages automatically amend Universal authorities to help and advise people Universal Credit Credit, will not work. Will small with Universal Credit, particularly the employers and the self-employed 12 From October 2013 to 2017, Universal vulnerable. cope? Credit will replace these working age 11. www.dwp.gov.uk/docs/dla-reform-wr2011- l Universal Credit will be paid monthly means-tested benefits: Income Support, ia.pdf Tax Credits, Housing Benefit, Income- in arrears, making it more difficult to 12. www.dwp.gov.uk/newsroom/press- based JSA and Income-related ESA. During budget. releases/2012/apr-2012/dwp043-12. this time we will have people on the ‘old’ l Landlords are concerned that, unless shtml 12 QUARTERLy ACCOUNT autumn 2012 .

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