The Government has announced its plans for its Welfare Reforms Bill and ERoSH welcomes the attempt to simplify the welfare benefits system.
With the Government committed to phasing out the default retirement age of 65 years more older people are going to be of ‘working age’ for longer so it is useful for sheltered and retirement housing providers to be aware of the key changes in the Bill. These include:
- A single universal credit to come into force in 2013
- Tax changes to enable people to keep more income
- Changes to the Disability Living Allowance
- More details of the back-to-work programme
- Those refusing to work facing a maximum three-year loss of benefits
- Annual benefit cap of about £26,000 per family
- Review of sickness absence levels.
Given that, according to Age UK, more than £5bn of means-tested benefits are under claimed by older people each year, ERoSH welcomes simplifying the benefits system.
But, ERoSH does have concerns about the changes to the Disability Living Allowance which will be replaced from 2013 by a Personal Independence Payment. This might have implications for disabled older people as payments are targeted to those with the most severe conditions.
From 2013 the Government is also planning to cut Housing Benefit for working age people who it deems to be under-occupying homes which is likely to affect older people if they claim housing benefit. Conversely if older people have an adult living with them then they are likely to be affected by the increases to charges for non-dependents.
We will keep you posted as more becomes clear about the impact of the Welfare Reform Bill on older people’s housing and support.
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