Story:Douglas Johnson
Major Government cuts will take effect in April. Because Burngreave has many poor families, it will be harder hit than most areas of the country.
The Government will pass the job of implementing many of the cuts to the Council but will cut the amount of money coming to the city by an estimated £180 million a year, putting yet more pressure on social services. But it is families with children who will face most hardship. We summarise some of the main cuts below.
“Bedroom tax”
Council and Housing Association tenants will have their housing benefit cut if they could live in a smaller home. You are allowed:
One bedroom for a couple
One bedroom for anyone aged 16 or over
One bedroom for two same-sex children under 16
One bedroom for two children under 10
One bedroom for any other child.
Where parents separate and have shared care, children will only count as living with the parent who gets child benefit.
For example, a couple with two teenage girls, aged 14 and 15, and two sons from a previous marriage who stay at weekends,will qualify for a 2-bedroom home.
It won’t apply to private tenants or people over pension age but about 13,000 people in Sheffield will lose either 14% or 25% of their housing benefit..
Overall Benefits Cap
This cut is to restrict total benefit payments to a fixed level, regardless of need. It targets large families and an estimated 400 families in Sheffield will be affected.
An out-of-work couple with 6 children will no longer receive any help to pay for rent if they claim the benefits they are entitled to. Families with 3, 4 or 5 children living in average cost accommodation could have their benefits reduced.
For example, a woman moves to a 3-bed council house with her 6 children after her husband leaves her. She looks after her elderly mother and gets carers allowance, child benefit, child tax credit and income support. She will not be entitled to any housing benefit.
An unemployed couple with 4 children in a private-rented house at average rent will have £62.43 a week in rent not covered by housing benefit. They will also have to pay an extra £3.76 in council tax.
Families getting DLA or working tax credit will be exempt.
Council tax benefit abolished
Instead of a national benefit, the council has to draw up a local scheme, but with £5 million less money from the Government.
Under the council’s proposals, anyone currently on council tax benefit will have to pay an extra 20% on their council tax bill – about £150 a year for a single person, £200 for a couple in a Band A property. Pensioners will be exempted, although for a couple, both people have to be over pension age.
Rent increase
Council tenants can expect a rent increase in April. The amount of the increase is unknown but last year's was 7.8%.
Social Fund
Community Care Grants – which often pay for white goods and furniture to support vulnerable people in a new home – will be administered by the council instead of the Department of Work and Pensions. Budgeting loans ( small amounts which are repaid by deductions from benefits ) will still come from the DWP.
Crisis Loans, paid in emergencies, will be abolished. Instead, the DWP is to provide emergency advances where people are waiting for benefits to be processed. The Council will ask the Credit Union to administer another scheme for other emergency situations.
Having to apply to different offices will be more difficult for people in emergency situations. As research by the Social Fund Commissioner says,
“some of the most vulnerable citizens are sometimes ill-equipped to seek out the right level of support which they need.”
Advice services
From April 2013, legal aid will no longer provide advice on welfare benefits from solicitors, CABx or advice centres.
What you can do
Because there are so many different cuts, families will be affected in individual ways, but here are some ideas if the Government’s suggestion of finding work isn’t possible.
Your landlord may have written to you already. If so, ask them what they can offer.
Get advice sooner rather than later – before further cuts in advice services in April. Ring the Advice Sheffield number – 0844 411 3111 or see http://www.advicesheffield.org.uk
Consider any possible claims for disability benefits in particular and benefits generally.
Consider moving to smaller or cheaper housing – ask the Council for priority if you want to ‘downsize’.
Ask the Council for a discretionary housing payment (DHP) for any shortfall in housing benefit – ring 2736983 or see http://www.sheffield.gov.uk/dhp.
Claim any council tax discounts or exemptions, even if you have been getting full council tax benefit up to now. Ring 273 6633 or see http://www.sheffield.gov.uk/counciltax/reducing-your-bill
Tell us – we want to know what people are doing to tackle the cuts.