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IMPACT OF WELFARE REFORMS - Do you understand the changes?

14 Mar 2013 - 15:13 by fiona.mark

The Manchester Black and Minority Ethnic Network (MBMEN) at its February networking event heard from speakers about the changes that are coming to the Welfare system. Participants expressed great concern about the need for more information and worried about the impact of the changes on families, friends, children and vulnerable communities.
The Government says it has instituted welfare reform to:
• save £19b or more on the country’s benefits bill
• simplify, streamline and reform the welfare system
• make it more beneficial to be in work
The changes coming apply to many people including those out of work, in-work, on Housing Benefit and in receipt of incapacity and disability benefits. They do not apply to pensioners.
Universal Credit will start from October 2013 and the benefits cap will take effect from the summer of 2013.  Some changes start from April 2013.
Manchester City Council is sending information out this month to everyone affected by the changes with information of any support and help available.
Look out for the following changes (as identified by Manchester City Council):
• Working Capacity Assessment
This relates to everyone on Incapacity Benefit. The process of reassessment has been on-going since 2010.  The difference in benefits from IB to Job Seekers Allowance can be as much as £28-42 per week.
• Benefits Cap
Families - a cap of £500 per week (£26,000 per year) irrespective of the size of the family
Single person - a cap of £350 per week (£18,000 per year)
• Under Occupancy
If you have more bedrooms than you need your housing benefit will be reduced.
• Disability Living Allowance
It is estimated by the Council that 20% of claimants in Manchester could lose their allowance
• Council Tax
About 40,000 residents in Manchester will be sent bills for Council Tax for the first time, pensioners excluded.  All those households affected should have received a letter in March.
• Universal Credit
Comes into effect from October 2013 and collapses a number of unemployment and in work benefits and creates one single payment, paid once a month into a bank account.

Need help?  A number of our members are hoping to set up advice sessions to help people affected.  Please call or email our Administrator on 07811 531160 or [email protected] for more details.
 

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