Facts and statistics on the impact of welfare benefits cuts on Disabled people / 2
Contents
1. Introduction 3
2. Disability Living Allowance/Personal Independence Allowance 5
3. Housing Benefit 9
4. Employment Support Allowance and the Work Capability Assessment 14
5. Universal Credit 20
6. Overall benefit Cap: 22
7. Impact of multiple welfare benefit losses. 23
8. Cumulative impact of all cuts 24
1. Introduction
Disabled people face the impact of combined cuts to welfare benefits as well as cuts to care and support and other services. These cuts will have a profound negative impact on Disabled people’s independent living and participation in the wider community. Inclusion London has collated some key facts to illustrate the scale of the cuts that Disabled people are facing.
This fact sheet contains key facts and statistics on the impact of welfare benefit cuts.
The statistics are obtained from research reports that include A Fair Society[1] and The Destination Unknown report, by Demos[2] as well as government’s own figures.
Overview: Disabled people
There are:
· 11.5 million people in the UK who are covered by the disability provisions set out in the Equality Act. This is 19% of the population[3].
· Approximately 1.4 million Disabled people are living in London[4]
· Just under 1.3 million Disabled people aged 16 to 64 years resident in the London.[5]
· In London women are slightly more likely (55.1%) to be Disabled than men (44.9%)[6].
Overview: Welfare Benefits
Currently only around half (6 million) of the 11.5 million people covered by the disability provision in the Equality Act are in receipt of disability-related benefits[7]. It is likely that many Disabled people eligible for welfare benefits are not claiming them: In a poll of 350 welfare benefit advisors nine in ten, (90 per cent) said that too many Disabled people are slipping through the net and are left without adequate support by the welfare system[8].
Welfare Benefit Reform
The Welfare Reform Act 2012 brought in multiple welfare benefit changes, which include:
· The end of Disability Living Allowance, which is being replaced with Personal Independence Payment
· Time-limiting and means-testing Employment Support Allowance
· Universal Credit a new benefit that will replace 6 other benefits.
· Changes to Housing Benefit, including the Bedroom Tax or spare room subsidy
· The over-all benefit Cap
Information provided by the government about the benefit changes brought in by the Welfare Reform Act Welfare 2012 is available at: https://www.gov.uk/government/policies/simplifying-the-welfare-system-and-making-sure-work-pays
2. Disability Living Allowance / Personal Independence Allowance
Disability Living Allowance (DLA) Nearly 9 in 10 (87 per cent) Disabled people said their everyday living costs are significantly higher because of their condition[9]. Disability Living Allowance is a welfare benefit, which assists with the extra costs caused by being Disabled. In total 3.2 million people are in receipt of Disability Living Allowance (DLA)[10]
· 2.02 million of DLA recipients are of working age.
· 14 percent of those aged 16-64 in receipt of DLA are in work[11].
· 340,000 are children[12]
· 870,000 people aged over 65[13].
Contrary to the media portrayal of Disabled people as frauds and scroungers, Government figures show that a mere 0.5% of expenditure on Disability Living Allowance went on fraudulent claims.[14]
DLA replaced by PIP
From April 2013 for those aged between16-64 Personal Independence Payment (PIP) is gradually replacing Disability Living Allowance. More information is available at: https://www.gov.uk/pip/overview
According to the government not all those in receipt of DLA will be eligible for PIP:
· 607,000 fewer people will receive PIP than would have got DLA – a 28% reduction in the caseload, according to government’s own figures[15].
· By October 2015, the DWP will have reassessed 560,000 claimants. Of those, 160,000 will get a reduced award and 170,000 will get no award, but 230,000 will get the same or more support[16].
The Tipping Point research report indicates that:
· 8 in 10 (85 per cent) of Disabled people claim losing their Disability Living Allowance (DLA) would drive them into isolation, and would leave them struggling to manage their condition.[17]
· 9 in 10 (95 per cent) fear that losing DLA would be detrimental to their health.[18]
PIP daily living and mobility components
PIP has two components, which are the daily living and the mobility components. Each component has two rates: Standard and Enhanced. Government has said that 428,000 people will be removed from the enhanced rate of the PIP mobility component[19].
More information is available at: http://bit.ly/1aDgS4J Personal Independence Payment Regulations 2013 ... Parliament www.parliament.uk/briefing-papers/SN06538.pdf
http://www.nidirect.gov.uk/personal-independence-payment-rates-how-to-claim
Change in eligibility for enhanced rate mobility component
Under the Disability Living Allowance regulations a claimant would receive the enhanced rate if they were unable to walk 50 metres or more. But under PIP a more stringent eligibility criteria for the enhanced rate mobility component was confirmed in October 2013,[20] so only those that cannot stand and then walk 20 metres or more are eligible. As a result an extra 148,000 people will lose out on the enhanced rate and potential access to a Motability vehicle[21]. This will have a severe impact on the independent living of those affected.
For information about the impact of the new criteria see Inclusion London’s response to the government’s ‘Moving Around’ consultation at:http://www.inclusionlondon.co.uk/Inclusion%20London%20response%20to%20PIP%20moving%20around%20consultation%20%E2%80%93%20keep%20the%20DLA%20criteria
According to the government there are those that benefit under PIP as almost a quarter of PIP recipients will get both of the highest rates, worth £134.40 each week, compared with only 16% on DLA[22].
Inclusion London’s position
Inclusion London opposed the introduction of PIP. We recommended that access to DLA was improved.
3. Housing Benefit
Housing Benefit is available to help you pay your rent if you’re on a low income. Housing Benefit can pay for part or all of your rent. How much you get depends on your income and circumstances[23].
Government and the media tend to present those on benefits as work-shy[24] yet:
· 93 per cent of new housing benefit claims made between January 2010 and December 2011 were made by households containing at least one employed adult.[25]
· In December 2011, almost one in four households who rented their accommodation and were in employment received Housing Benefit.[26]
‘Bedroom Tax’ or spare room subsidy The Welfare Reform Act 2012 brought in new rules for the size of accommodation that Housing Benefit will cover; the size criteria only allows one bedroom for each person or couple living as part of the household. Those with one ‘extra’ bedroom will have a 14 per cent reduction in their housing benefit while those with two or more extra bedrooms will have a 25 per cent reduction. Government calls this the ‘removal’ of ‘the spare room subsidy’, but is more commonly known as the bedroom tax. Information on ‘the spare room subsidy’, including information about the exceptions is available at http://www.dwp.gov.uk/adviser/updates/size-criteria-social-rented/
Disabled people are disproportionally hit by the bedroom tax: 72% of households affected by the bedroom tax include someone with a disability or major health concern.[27] 420,000 Disabled people will lose on average £14 per week in housing benefit due to the so-called ‘bedroom tax’.[28]
Disabled people can need an ‘extra’ bedroom to store equipment or to sleep in because sharing a bed with a partner is not possible due to an impairment or health condition. Yet many Disabled people will not be able to pay the increased cost of an ‘extra’ but much needed bedroom, particularly in London where rents are high. As a result the ‘bedroom tax’ is likely to force Disabled people to move to somewhere smaller, with the likely loss of employment, care packages and support networks.
Due to a Court of Appeal judgment in the cases of Burnip, Trengove and Gorry, parents of children said to be unable to share a bedroom because of severe disabilities will be able to claim Housing Benefit for an extra room from the date of the judgment, 15 May 2012.
Legal challenges
There has been a series of legal challenges by Disabled people. Habinteg’s report ‘What price Independent Lives?’ on Benefit cuts and Disabled tenants lists the challenges as follows:
· A tribunal found against Westminster Council in September 2013 by deciding that a bedroom used to store disability-related equipment should not make the tenant eligible for the bedroom tax. A report can be found here: http://www.theguardian.com/society/2013/sep/26/bedroom-tax-westminster-council-defeat
· A tribunal in Glasgow, in September, found in favour of a Disabled woman who appealed against Glasgow Council’s decision to deduct housing benefit for the ‘spare’ bedroom used by her husband. A copy of the judgement can be found here:
http://www.govanlc.com/CaseF.pdf
· A Tribunal in Fife, in September, found in favour of four out of five appeals brought with the assistance of Fife Law Centre. Three out of the four successful cases involved Disabled people. More information can be found here:
http://www.thecourier.co.uk/news/local/fife/size-matters-fife-rulings-could-have-national-implications-for-future-of-bedroom-tax-1.129061
· A Disabled woman in Redcar won an appeal in October when the Tribunal found that she and her partner needed a bedroom each for reasons related to her disability. More information can be found here:
www.bbc.co.uk/news/uk-england-tees-24388915
All the above cases were held in lower courts and can be appealed. On 23 September the DWP issued a statement saying it would seek permission to appeal against decisions involving judgements as to space standards and classification of rooms.[29]
Discretionary Housing Payment
Discretionary Housing Payment (DHP) can be paid when claimants are facing reductions in Housing Benefit or Universal Credit following the removal of spare room subsidy in the social rented sector or reductions in Housing Benefit or Universal Credit where the benefit cap has been applied.[30] But many Disabled people are being refused DHP according to research by the Papworth Trust:
· 1 in 3 Disabled people are being refused a Discretionary Housing Payment (DHP).[31]
· Local Authorities have rejected DHP applications from Disabled people living in adapted properties and are unable to downsize in the short term.[32]
To cover the increase in rent Disabled people are cutting back on other daily living costs:
· 9 in 10 (90%) Disabled people are cutting back on food or bills to pay the bedroom tax if they are refused a safety-net housing payment.[33]
· Nearly four out of ten (37%) are cutting back on specialist mobility transport.[34]
· More than a quarter (27%) are cutting back on medical expenses such as medication, therapies and monitoring health conditions.[35]
Changes to Local Housing Allowance will result in 827,000 losing £2,43 billion by 2018.[36]
Carers and bedroom tax
· Three quarters (75%) of carers having to pay the ‘bedroom tax’ are being forced to cut back on essential spending on food, electricity and heating.[37]
· One in six (17%) carers are falling behind on their rent and face eviction.[38]
Inclusion London’s position
Inclusion London recommends that the bedroom tax is abolished.
4. Employment Support Allowance and the Work Capability Assessment
Employment Support Allowance
From 27 October 2008 Employment and Support Allowance (ESA) replaced Incapacity Benefit and Income Support paid on incapacity grounds for new customers. All those wishing to claim ESA have to undergo the ‘Work Capability Assessment’ (WCA) undertaken by the company Atos.
2.3 million people are in receipt of Incapacity Benefit/Employment and Support Allowance.[39]
Time Limited ESA
If you receive contributory Employment Support Allowance and you are placed in the ‘work-related activity group’, your contributory ESA is now time limited.
This means that your contributory ESA is payable for only 52 weeks. This can be in one go, or in several spells of ‘limited capability for work’, where each period is separated by no more than 12 weeks.
You might be able to claim income-related ESA if your contributory ESA is terminated. Income-related ESA is not time limited. But, depending on your circumstances, this payment might be less than you get at the moment.
If you're in the ESA ‘support group’, your contributory ESA is not time limited.
Tougher sanctions
The Welfare Reform Act brought in tougher sanctions if claimants do not comply with conditions, below is an excerpt from a DWP guidance document:
‘From 3rd December 2012 a revised sanctions regime for Employment and Support Allowance (ESA) claimants who are in the Work Related Activity Group (WRAG) was introduced.
Under the new rules ESA claimants in the WRAG who fail to comply with the conditions for receiving benefit receive an open ended sanction, followed by a fixed period sanction when they re-comply. The fixed period sanction will be one week for a first failure, two weeks for a second failure and four weeks for a third and subsequent failures in a 52 week period.
Claimants who are sanctioned will lose all of their personal allowance, but their work related activity component will not be affected’.
There are also stricter sanctions for those on Jobseekers allowance from 22nd October 2012 for instance:
‘Higher level sanctions (for example for leaving a job voluntarily) will lead to claimants losing all of their JSA for a fixed period of 13 weeks for a first failure, 26 weeks for a second failure and 156 weeks for a third and subsequent failure (within a 52 week period of their last failure)’.
If you receive contributory ESA and are placed in the ‘work-related activity group’, your contributory ESA is now time limited to one year. 700,000 Disabled people will lose £4,4 billion by 2018 of ESA due to this new regulation[40].
More information is available at:
https://www.gov.uk/government/publications/jobseekers-allowance-and-employment-and-support-allowance-sanctions-decisions-made-to-june-2013
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/255176/sanctions-nov-2013.pdf
Inclusion London’s response to the inquiry on Jobseekers Allowance sanctions is available at:
http://www.inclusionlondon.co.uk/Jobseekers-Allowance-sanctions-Inclusion-Londons-views?device=web
Work Capability Assessment
Flawed assessment
There are serious concerns regarding the WCA as Disabled people who have undergone the assessments do not find them fair or accurate: Two thirds (65 per cent) of Disabled people surveyed felt that ESA assessors did not understand their condition.[41]