Poverty Fact Book Data, Information and Analysis for Leeds Financial Inclusion Team December 2015
About the Poverty Fact Book The Poverty Fact Book was developed to be a useful document to share widely across the council and with partners in order to understand the levels of poverty in Leeds; inform policies and assist in the City s antipoverty agenda. This resource contains national and locally sourced data and information to help define and analyse the different themes of poverty. Most of the data discussed is at the Leeds district level. Some data is only available at a national level, where this is the case; an estimate for Leeds can been calculated using nationally informed assumptions against the Leeds population figure. For example it is reported by the DWP that there are 14.5million people living in absolute poverty in the UK. This was 23% of the UK population in 2013. Therefore, because Leeds is statistically considered to mirror the UK demographically, it can be assumed that approximately 23% of the Leeds population in 2013 was living in absolute poverty. This equates to 175,000 people in Leeds. The Poverty Fact Book will be published as an online resource which includes a glossary of terms and a referenced list of all data sources, where to access them, how often the data is available and whether the data can be drilled down below the Leeds district level. The book is split into 10 Sections to help quickly access required information by theme. There is a wide range of data which is published at various intervals throughout an annual period. This means a hardcopy book may contain aspects of out of date information. To overcome this, the references section at the back of the book contains links on where to access the data and information on how frequently the data is available. There is also a data refresh date to inform the reader of when the data is estimated to be refreshed by the Financial Inclusion Team. 2 P a g e
Headline facts from the Poverty Fact book December 2015 People in Poverty 14.5 million people in the UK are in Absolute Poverty in 2013/14 Absolute Poverty is estimated to affect 175,000 people in Leeds A couple with 2 children are in poverty if they earn 375/week or less (after housing costs) A single adult with no children is in poverty on earnings of 134/week or less (after housing costs) Children in Poverty 28,000 children in Leeds are in poverty in 2013/14 64% of children in poverty are from a working family Therefore 18,000 of the Leeds children in poverty are from working families. In-work Poverty and Worklessness 5 million UK adults that are in poverty are from households where at least 1 person is in work. This is affecting over 13% of all working age adults in the UK in 2013/14 Over 80,000 households in Leeds were claiming one or more local authority welfare benefit in 2015. Of this figure, almost 15,000 householders were of a working age and in work. This is almost 20% of Leeds households impacted by in-work poverty. Almost 54,000 people in Leeds were claiming one or more of the DWP s Out-of-work benefits in 2015 In 2013, a total of 7.7 million children in the UK are from families in receipt of a form of tax credits, 95,600 of which are in Leeds. This figure has fallen by 15,200 Leeds children between 2012 and 2013. These large reductions of recipients of tax credits have come about due to policy changes implemented from April 2012. Wages and Employment The UK Living Wage for outside of London is set 8.25/hour from April 2016 The national minimum wage is 6.70/hour from Oct 2015 An estimated 61,000 Leeds residents earn less than the Living Wage in 2014 An estimated 29,000 Leeds residents earn less than the Minimum Wage in 2014 It is estimated that almost 8,000 Leeds workers are on zero hour contracts Welfare Reform The new under occupancy changes under Welfare Reform affected over 6000 Leeds households in Sep 2015 The Benefit Cap effected almost 300 Leeds households Over 25,000 households in Leeds now have to pay 25% of their council tax due to changes to Council Tax Support. This is an average of 160 owed per year in Council Tax by effected households. Food Poverty Over 20,000 people in Leeds have received food through a foodbank or food parcel provider in 2014 Fuel Poverty 38,000 Leeds households were in fuel poverty in 2013 Over 8,000 fuel poor Leeds householders paid their fuel bills via a pre-payment meter Debt Almost 65% of StepChange clients struggling with credit card debts in 2014 had 2 or more credit cards, while 60% of clients with payday loan debt had 2 or more payday loans. 10.2 million payday loans were loans issued in 2012/13 of which 121,000 are estimated to be to Leeds residents. Leeds City Credit Union Membership stands at 32,000 as of Sep 2015 10 year growth of 140% Loan book value of 8.5 million Index of Deprivation In the 2015 index, 164,000 people in Leeds lived in areas that are ranked amongst the most deprived 10% nationally, the corresponding figure in the 2010 Index was 150,000 people 3 P a g e
Contents Page Section 1: Relative and Absolute Poverty 8 Table 1.1: Relative Poverty number of people effected in the UK 8 Table 1.2: Absolute Poverty number of people effected in the UK 8 Table 1.3: Relative Poverty number of households effected in Leeds 8 Table 1.4: Poverty Thresholds - Income Before Housing Cost 9 Table 1.5: Poverty Thresholds - Income After Housing Costs 9 Table 1.6: Poverty Estimates for Leeds 9 Section 2: Children in Poverty 10 Table 2.1: Children in relative low income, United Kingdom 10 Table 2.2: Children in absolute low income, United Kingdom 10 Table 2.3: Children in working and workless households in relative poverty 10 Table 2.4: Children in Low-Income Families Local Measure, Leeds and England 11 Table 2.5: Local child poverty proxy measure 11 Table 2.6: Free School Meals Take Up 12 Section 3: In-work poverty and Worklessness 13 Table 3.1: In Work and Workless Households in Relative Poverty 2012/13 UK Snapshot 13 Table 3.2: In Work and Not Working Households, claiming Welfare Benefits, Leeds Snapshot 13 Table 3.3: Leeds DWP Benefit Claimants 13 Table 3.4: Leeds DWP Out-of-work Benefits 14 Table 3.5: Leeds DWP In-work Benefits 14 Table 3.6: Families in receipt of tax credits 14 Table 3.7: Number of Children from Families in receipt of tax credits 15 Section 4: Wages and Employment 16 Table 4.1: Living Wage Gap 16 Table 4.2: Leeds hourly wage rates 16 Table 4.3: People in Leeds earning below the Living Wage 17 Table 4.4: People in Leeds earning below the Minimum Wage 17 Table 4.5: Leeds Weekly Wages 18 Table 4.6: Leeds Annual Salaries 18 Table 4.7: Employment Trends 18 Table 4.8: People on Zero Hour Contracts 19 Table 4.9: Unemployment Trends 19 Section 5: Welfare Benefits and Impact of Reforms 20 Table 5.1: Housing Benefit and Council Tax Support 20 Table 5.2: Welfare Reform Impacts on Housing Benefits 20 Table 5.3: Welfare Reform Impacts on Housing Benefits Discretionary Housing Payments 21 Table 5.4: Local Welfare Support Scheme 22 Table 5.5: Welfare Reform Impacts on Council Tax 22 Section 6: Food Poverty 23 Table 6.8: Foodbanks 23 Section 7: Fuel Poverty 24 Table 7.1: Fuel Poverty Low Income High Cost Definition 24 Table 7.2: Fuel Poverty 10% Definition 24 Table 7.3: Fuel Poverty and Payment Methods 25 Section 8: Debt Levels and High Cost Lending 26 Table 8.1: UK Average Debt Statistics 26 Table 8.2: Local and National Insolvency Statistics 26 Table 8.3: Local and National Repossession Statistics 27 4 P a g e
Table 8.4: Local Lending Data 27 Table 8.5: Various sources of headlined High Cost Lending Facts 28 Table 8.6: StepChange Debt View Data 29 Table 8.7: StepChange Payday Lending Data 29 Table 8.8: StepChange Rent-to-own data 30 Table 8.9: StepChange Guarantor Loan Data 30 Table 8.10: StepChange Multiple Debts Data 30 Table 8.11: Debt Advice provided in Leeds 30 Section 9: Affordable Credit 31 Table 9.1: Leeds City Credit Union 10 year analysis 31 Table 9.2: Leeds City Credit Union Latest analysis 31 Table 9.3: Headrow Moneyline 31 Section 10: Leeds Deprivation Areas 32 Table 10.1: Index of Multiple Deprivation 2015 32 References: Data Sources, frequency and availability 33 Abbreviations AHC APR APS ASHE BBA BHC CDFI CML CT CTB CTC CTS DHP DMP DRO DWP ESA FSM HB HBAI HML IB IMD IS IVA JSA LCC LCCU LFS LIHC LP LSOA ONS RPI SDA SOA WTC After Housing Costs Annual Percentage Rate Annual Population Survey Annual Survey of Hours and Earnings British Bankers Association Before Housing Costs Community Development Finance Institution Council for Mortgage Lenders Council Tax Council Tax Benefit Child Tax Credit Council Tax Support Discretionary Housing Payment Debt Management Plan Debt Relief Order Department of Work and Pensions Employment Support Allowance Free School Meals Housing Benefit Households below average income Headrow Moneyline Incapacity Benefit Index of Multiple Deprivation Income Support Individual Voluntary Arrangements Jobseekers Allowance Leeds City Council Leeds City Credit Union Labour Force Survey Low Income High Cost Lone Parents Lower Super Output Area Office for National Statistics Retail Price Index Severe Disablement Allowance Super Output Area Working Tax Credit 5 P a g e
Glossary of Terms Absolute Poverty Absolute low income measures the proportion of individuals who have household incomes 60% below the median average in 2010/11, adjusted for inflation. It is used to look at how changes in income for the lowest income households compare to changes in the cost of living. The year 2010/11 is used in order to measure absolute low income in line with the Child Poverty Act 2010. Absolute poverty falls if individuals with the lowest incomes see their income rise more than inflation. After Housing Costs Income trends over time after deducting housing costs are useful where rents have increased for a given quality of accommodation, otherwise, for example a rise in housing benefit to offset higher rents would be counted as an income rise. Bankruptcy is a form of debt relief available for anyone who is unable to pay the debts they owe. Any assets owned will vest in a trustee in bankruptcy who will sell them and distribute the proceeds to creditors in accordance with the order laid down by statute. Before Housing Costs Income trends over time before deducting housing costs are useful where there has been an increase in housing costs because of better quality housing, and so living standards have improved. Benefit Cap limits the total amount of benefit received by working age people who are not in employment. Council Tax Support is a scheme introduced in 2013/14 for which government provide Local Authorities with a limited sum of money unlike the previous scheme of Council Tax Benefit which was demand led, and expenditure incurred by Local Authorities was reclaimed by them from the government. Debt Relief Order (DRO) is a form of debt relief available to those who owe 15,000 or less and have little by way of assets or income. There is no distribution to creditors, and discharge from debts takes place 12 months after the DRO is granted. Discretionary Housing Payments (DHP) The DHP scheme provides support to tenants affected by the welfare changes. Individual insolvency procedures include bankruptcy, debt relief orders and individual voluntary arrangements. Individual Voluntary Arrangements (IVAs) are a voluntary means of repaying creditors some or all of what they are owed. Key in-work benefits consists of: Carers Allowance (Carers), Disability Living Allowance, Attendance Allowance or Industrial Injuries benefits (Disabled) and Widow s Benefit, Bereavement Benefit or Industrial Death Benefit (Bereaved) Key out-of-work benefits consist of the groups: Job Seekers Allowance (JSA), Employment Support Allowance (ESA) and Incapacity Benefits (IB), lone parents (LP) and others on income related benefits. Others on income related benefits are out-ofwork benefits which combine Other Income Support (such as IS Disability Premium) or Pension Credit. Local Welfare Support Scheme The Local Welfare Support scheme provides goods and services rather than cash for those in need, impacted by welfare reform. Median Average Income Median household income divides the population, when ranked by equivalised household income, into two equal-sized groups. Equivalisation adjusts incomes for household size and composition, taking an adult couple with no children as the reference point. For example, the process of equivalisation would adjust the income of a single person upwards, so their income can be compared directly to the standard of living for a couple Relative Poverty Relative low income measures the number and proportion of individuals who have household incomes below 60% of the median average in that year - and is used to look at how changes in income for the lowest income households compare to changes in incomes near the average. The population in relative low income falls if income growth at the lower end of the income distribution outstrips average income growth. Super Output Areas (SOAs) - SOAs were introduced by ONS to facilitate the analysis of statistics at the small area level. LSOAs have a minimum of 1,000 residents and 400 households (but with an average population of 1500). For the IMD 2015, this has resulted in the creation of 482 lower level areas in Leeds (England contains 32,844 LSOAs). Under Occupation Housing Benefit paid to working age tenants who live in council or housing association properties will be reduced where they have more bedrooms than the family needs. 6 P a g e
Additional Notes to the Data Child Poverty -the principal measure of child poverty has, for many years, been based on relative income. In the recent recession there has been a reduction in median earnings. Therefore, this has had the effect of reducing the value of the relative poverty line which is measured against the median earnings figure. This has resulted in people being taken out of the relative poverty figures even though their earnings position may not have changed. The latest national figures showed that 300,000 fewer children were in relative income poverty between 2009-10 and 2010-11 largely due to reductions in median incomes. At the same time absolute poverty remained unchanged, implying that the living standards of children did not improve over this period. The Children in Low-Income Families Local Measure shows the proportion of children living in families in receipt of out-of-work (means-tested) benefits or in receipt of tax credits where their reported income is less than 60% of UK median income. This measure provides a broad proxy for relative low-income child poverty as set out in the Child Poverty Act 2010 and enables analysis at a local level. Fuel Poverty is a partially devolved matter and currently the Low Income High Cost (LIHC) measure is only used in England. Therefore for other countries in the UK, fuel poverty is measured under the 10% definition, whereby a household is said to be in fuel poverty if it needs to spend more than 10% of its income on fuel to maintain an adequate level of warmth. Under this indicator, increasing household income helps to remove households from fuel poverty as, with everything else unchanged, their fuel poverty ratio would fall, making them no longer fuel poor. Reducing income has the opposite effect, by potentially increasing the fuel poverty ratio and pushing households into fuel poverty. The LIHC headcount indicator is a relative measure and is believed to provide a steadier trend in the number of fuel poor households over time compared to the 10% indicator. Whereas a change in income is likely to directly affect the extent of fuel poverty under the 10% indicator; under the LIHC indicator, a change in income will only have an impact on fuel poverty if households with low incomes and high fuel costs see relatively larger income changes (increases or decreases) compared to those in the overall population. The 10% indicator was very responsive to changes in fuel prices, such that these usually dominate the indicator and outweigh other factors such as income and energy efficiency. Under the LIHC indicator, the fuel poverty gap is the element that is more responsive to fuel prices. LCCU and Headrow Money Line In November 2012 LCCU Established a CDFI (Headrow Money Line). LCCU does not charge additional fees if payments default. Their interest rates are capped by Credit Union legislation. As of April 2014, credit unions can charge a maximum of 42.6% and LCCU have begun charging this rate for new small loans below 1000, however the standard APR for a LCCU loan is 26.8%. If people are declined an LCCU loan due to a marginal credit rating, they are asked if they would like to be referred to Headrow Moneyline. Headrow Moneyline is a CDFI, they are a sister company to LCCU and do not charge fees if payments default. With an APR of 79%, they are able to provide loans to more people and help them re-build a credit history so that if they need to borrow again, they can be referred to cheaper options of credit, such as being referred back to the credit union. Median Income used for the relative poverty calculation in 2013/14 BHC was 453 per week. and AHC was 386 per week. Median income used for the absolute poverty calculation in 2010/11 BHC 467 was and AHC was 404 Tax Credits Tax credits are a flexible system of financial support designed to deliver support as and when a family needs it, tailored to their specific circumstances. They are part of wider government policy to provide support to parents returning to work, reduce child poverty and increase financial support for all families. Tax credits are based on household circumstances and can be claimed jointly by members of a couple, or by singles. Entitlement is based on age, income,hours worked, number and age of children, childcare costs and disabilities. Zero Hours Contracts National figures from the Labour Force Survey (LFS) show the number of people who report that they are on a zero-hours contract in their main employment. The figures are calculated from responses to the Labour Force Survey (LFS). As part of the survey the LFS asks people in employment if their job has flexible working and if so to choose from a list of employment patterns those which best describe their situation. Only those people who select "zero hours contract" as an option are included in the analysis. The number of people who are shown as on a zero hours contract will therefore be affected by whether people know they are on a zero hours contract and will be affected by how aware they are of the concept. The increased coverage of zero hours in the latter half of 2013 and are likely to have affected the response to this question. 7 P a g e
SECTION 1: RELATIVE AND ABSOLUTE POVERTY Table 1.1: Relative Poverty number of people effected in the UK Relative low income measures the number and proportion of individuals who have household incomes below 60% of the median average in that year - and is used to look at how changes in income for the lowest income households compare to changes in incomes near the average. People in poverty in the UK 2013/14 2008/09 2003/04 5 year change No of People in Relative Poverty BHC(m) 9.6m 10.8m 10.2m People in Relative Poverty BHC % 15% 18% 17% -1.2m No of People in Relative Poverty AHC(m) 13.2m 13.5m 12.5m People in Relative Poverty AHC % 21% 22% 21% -0.3m Source: DWP, Households below average income (HBAI), June 2015 10 year change -0.6m +0.7m 9.6 million people (15% of the UK) are living in relative poverty Before Housing Costs (BHC ). The percentage of individuals in relative low income has been decreasing gradually since 2008/09, and is at its lowest level since the 1980s, at 15% in 2013/14 BHC. 13.2 million people (21% of the UK) are living in relative poverty After Housing Costs (AHC). AHC, the percentage in relative low income fell in 2010/11 but has remained broadly stable since, staying at 21% in 2013/14. Table 1.2: Absolute Poverty number of people effected in the UK Absolute low income measures the proportion of individuals who have household incomes 60% below the average in 2010/11, adjusted for inflation. It is used to look at how changes in income for the lowest income households compare to changes in the cost of living. People in poverty in the UK 2013/14 2008/09 2003/04 5 year change No of People in Absolute Poverty BHC(m) 10.4m 10.2m 10.6m People in Absolute Poverty BHC % 17% 17% 18% +0.2m No of People in Absolute Poverty AHC(m) 14.5m 12.5m 12.3m People in Absolute Poverty AHC % 23% 21% 21% +2.0m Source: DWP, Households below average income (HBAI), June 2015 10 year change -0.2m +2.2m 10.4 million people (17% of the UK) are living in absolute poverty BHC. Absolute low income BHC showed steady falls from 1998/99 to 2004/05, followed by a period of increases between 2009/10 and 2011/12. Over the last 10 years, the number of people in absolute poverty has fallen by 200,000. However over the last 5 years the figure has increased by 200,000. As with relative low income, neither of these numerical changes was considered statistically significant by the DWP. 14.5 million people (23% of the UK) are living in absolute poverty AHC. AHC absolute poverty increased by 2 million people over the last 5 years. This may have been due to rising housing costs for some of those who rent, but this change was not considered statistically significant by the DWP. Table 1.3: Relative Poverty number of households effected in Leeds People in poverty, local estimates Leeds Count Leeds Proportion England Proportion Households below 60% of the median income, AHC (2008) 65,533 21.7% 21.5% Source: ONS Model-based estimates Households in poverty, Nov 2010 (one off analysis) The latest year for which there is local analysis is using model based estimates published by the ONS in 2010, which aggregates small area level data from 2008. Using the model based data from ONS, it is estimated that in 2008, 65,500 (21.7%) households in Leeds were in poverty, this compared to 21.5% for England. 8 P a g e
Table 1.4: Poverty Thresholds, Income Before Housing Costs Income trends over time before deducting housing costs are useful where there has been an increase in housing costs because of better quality housing, and so living standards have improved. 60% of UK Median Weekly Income 2013/14, per week 2010/11, per week 2008/09, per week 2003/04, per week 5 year change Couple with no children 272 280 287 277-15 -5 Single with no children 182 188 192 186-10 -4 Couple with two children aged 5 and 14 416 428 439 424-23 -8 Single with two children aged 5 and 14 326 336 344 333-18 -7 Source: DWP, Households below average income (HBAI), June 2015 10 year change The relative poverty threshold for a couple with no children was 272/week in 2013/14 BHC. This is the threshold used when estimating the number of people in relative poverty BHC in 2013/14. A single person with no children is in poverty if they earn 182/week or less BHC. The trend in relative poverty BHC over 5 and 10 years shows a fall in wages over time. The absolute poverty threshold for a couple with no children is 280/week. This figure is based on the 2010/11 figure and was used to estimate the numbers in absolute poverty BHC in 2013/14. Table 1.5: Poverty Thresholds, Income After Housing Costs Income trends over time after deducting housing costs are useful where rents have increased for a given quality of accommodation, otherwise, for example a rise in housing benefit to offset higher rents would be counted as an income rise. 60% of UK Median Weekly Income 2013/14, per week 2010/11, per week 2008/09, per week 2003/04, per week 5 year change 10 year change Couple with no children 232 242 250 244-18 -12 Single with no children 134 140 145 141-11 -7 Couple with two children aged 5 and 14 375 392 405 394-30 -19 Single with two children aged 5 and 14 278 291 300 292-22 -14 Source: DWP, Households below average income (HBAI), June 2015 The relative poverty threshold for a couple with no children was 232/week in 2013/14 AHC. This is the threshold used when estimating the number of people in relative poverty AHC in 2013/14. A single person with no children is in poverty if they earn 134/week or less AHC. The trend in relative poverty AHC over 5 and 10 years shows a fall in wages over time. The absolute poverty threshold for a couple with no children is 242/week. This figure is based on the 2010/11 figure and was used to estimate the numbers in absolute poverty AHC in 2013/14. Table 1.6: Poverty Estimates for Leeds Poverty Measure National Proportion Leeds Estimate People in Relative Poverty BHC 15% 114,225 People in Relative Poverty AHC 21% 159,915 People in Absolute Poverty BHC 17% 129,455 People in Absolute Poverty AHC 23% 175,145 Source: DWP, Households below average income (HBAI), June 2015 The DWP s estimates for Absolute and Relative Poverty are only available at a national level. Therefore; an estimate for Leeds can be calculated using nationally informed assumptions against the Leeds population figure for the same year. As the latest DWP data refers to 2013/14 the ONS Mid-year Population estimates for Leeds at 2013 of 761,500 have been used in the estimates above. For example it is reported by the DWP that there are 14.5million people living in absolute poverty in the UK, after housing costs. This was 23% of the UK population in 2013. Therefore, because Leeds is statistically considered to mirror the UK trend, it can be assumed that 23% of the Leeds population in 2013 was living in absolute poverty. This equates to 175,145 people in Leeds. 9 P a g e
SECTION 2: CHILDREN IN POVERTY Table 2.1: Children in relative low income, United Kingdom The proportion of children living in households where income is less than 60% of median household income All dependent children under the age of 20 2013/14 2008/09 2003/04 5 year change 10 year change No of Children in Relative Poverty in the UK BHC(m) 2.3m 2.8m 2.8m Children in Relative Poverty in the UK BHC % 17.0% 22.0% 22.0% -0.5m -0.5m No of Children in Relative Poverty in the UK AHC(m) 3.7m 3.9m 3.7m Children in Relative Poverty in the UK AHC % 28.0% 30.0% 28.0% -0.2m 0.0m Source: DWP, Households below average income (HBAI), 1 June 2015 Latest figures BHC show 2.3 million children experience relative low income poverty (17% of children in the UK). The 5 year trend show a fall of 500,000 children, but the figure has remained flat over the last year. The percentage of children in relative low income BHC, also remained flat at 17% in 2013/14 compared to the previous year. There are 3.7 million children in relative low income poverty AHC (28% of children in the UK). The number of children in relative low income AHC remained flat in the last 10 years but fell by 200,000 in the last 5 years. Table 2.2: Children in absolute low income, United Kingdom The proportion of children living in households where income is less than 60 per cent of median household income in 2010/11 uprated by RPI inflation. All dependent children under the age of 20 2013/14 2008/09 2003/04 5 year change No of Children in Absolute Poverty in the UK BHC(m) 2.6m 2.7m 2.9m Children in Absolute Poverty in the UK BHC % 19.0% 20.0% 22.0% -0.1m 10 year change -0.3m No of Children in Absolute Poverty in the UK AHC(m) 4.1m 3.6m 3.6m Children in Absolute Poverty in the UK AHC % 31.0% 28.0% 28.0% Source: DWP, Households below average income (HBAI), June 2015 +0.5m +0.5m There are 2.6 million children under the absolute low income measure of poverty BHC. The percentage of children in absolute low income BHC, remained at 19% in 2013/14. The figures have been falling slightly over the last 10 years. There are 4.1 million children under the absolute low income measure of poverty AHC. The percentage of children in absolute low income AHC, remained flat at 31% in 2013/14. The figures have been gradually rising over the last 10 years. Table 2.3: Children in working and workless households in relative poverty Economic status of household UK Total number of children BHC AHC No % No % At least one adult in work 11.2m 1.5m 13 2.4m 21 Workless households 2.2m 814,000 37 1.4m 64 Source: DWP, Households below average income (HBAI), June 2015 A higher percentage of children in workless families are in relative poverty, compared to children in families where at least one adult is in work. In 2013/14, 64% of children in workless families were in relative poverty AHC (affecting an estimated 1.4m children). In contrast, 21% of children with at least one adult in work were in relative poverty (affecting an estimated 2.4m). The DWP have stated that the fact that the majority of children in the population in poverty are from in-work families should be viewed in the context that the large majority of children are from families with at least one adult in work (84%). 10 P a g e
Table 2.4: Children in Low-Income Families Local Measure The Children in Low-Income Families Local Measure shows the proportion of children living in families in receipt of outof-work (means-tested) benefits or in receipt of tax credits where their reported income is less than 60 per cent of UK median income. This measure provides a broad proxy for relative low-income child poverty as set out in the Child Poverty Act 2010 and enables analysis at a local level. All dependent children under the age of 20 2013 2012 Annual Change 2012-13 Total No of Leeds children under 20 156,265 160,435-4,170 No of children in Low income families Leeds 33,160 33,205-1,330 Leeds Rate 20.4% 20.7% -0.3 England Rate 18.0% 18.6% -0.6 Children under 16 2012 3 2012 Annual Change 2012-13 Total No of Leeds children under 16 138,200 135,950 +2,250 No of children in Low income families Leeds 29,805 30,590-785 Leeds Rate 21.6% 22.5% -0.9 England Rate 19.2% 20.6% -1.4 Source HMRC Children in Low-Income Families Nov 2015 In Leeds, 20.4% of all dependent children under the age of 20 (33,160 children) live in poverty, compared to 18% (2.1m children) in England. With regards children under 16 in Leeds, 21.3% (29,810 children) live in poverty, compared to 18.6% (1.9m children) in England. Although the figures are falling slightly both nationally and locally, year on year, it is important to remember this is a result of relative poverty not factoring in the impact of the cost of living in the way the absolute poverty measure could. The absolute poverty measure is not available at a local level. Table 2.5: Local child poverty proxy measure The local child poverty proxy measure estimates the proportion of children living in families in receipt of out-of-work benefits. The out-of-work benefits are Income Support, Jobseekers Allowance, Incapacity Benefit/Severe Disablement Allowance, Pension Credit and Employment Support Allowance. The proportion of children in poverty is calculated using the out-of-work benefits data and ONS mid-year population estimates. Children under 16 in Poverty 2014 2013 2012 Annual Change 2013-14 ONS mid-year estimates, Leeds under 16s 143,600 141,300 139,300 +2,300 Leeds 28,060 29,600 30,220-1,540 Leeds % 19.5% 21.0% 21.7% -1.5 England % 16.2% 18.0% 19.3% -1.8 Source DWP Children in out-of-work benefit households, July 2015 In Leeds, 19.5% of children under the age of 16 (28,060 children) live in poverty, compared to 16.2% (1.7million children) in England. The 28,060 children in poverty represented 16,300 households across Leeds. 11 P a g e
Table 2.6: Free School Meals Take Up: School Meal Tracker The school meal tracker contains data for the number of pupils on roll and the number eligible for free school meals (FSM), taken from the January School Census. Other data is submitted voluntarily by schools to LCC. This is a nonstatutory return and over 220 schools submitted take up data. Free School Meals Take up 2013-14 2012-13 Annual change No % No % No % points All schools 12,564 76.4% 13,695 72.3% -1,131 +4.1 Primary 8,849 78.6% 10,155 73.1% -1,305 +5.5 Secondary 3,519 73.5% 3,496 71.1% +23 +2.4 Specialist Inclusive Learning Centres (SILC) 195 48.5% 45 62.4% +150-13.9 Source: LCC School Meal Tracker and January Census Data, Nov 2014 42 schools were not included in the 2013/14 submission, 36 due to non-submission and 6 due to the quality of submission. Therefore caution is urged when analysing year on year data of pupil figures. In 2013-14, 12,564 pupils were taking up the FSM entitlement. This equates to 76.4% of all eligible pupils. In percentage terms this figure has risen by 4 percentage points on last year. FSM take up is slightly higher in primary schools than in secondary. As of April 2015, 18,800 pupils were eligible for a FSM across all schools in Leeds. 12 P a g e
SECTION 3: IN-WORK POVERTY and WORKLESSNESS Table 3.1: In-Work and Workless Households in Relative Poverty 2012/13 UK Snapshot Economic status of household BHC AHC No % No % All adults in work 1.4m 6% 2.1m 9% At least one adult in work, but not all 2.0m 20% 2.9m 29% Workless households 2.0m 44% 2.8m 63% Source: DWP, Households below average income (HBAI), June 2015 Before Housing Cost (BHC), 6% of working age adults in the UK live in households where everyone is in work yet they are still in relative poverty. This affects an estimated 1.4m adults in the UK. After Housing Cost (AHC) this figure moves up to 2.1m adults being affected. BHC, 20% of working age adults in the UK live in households where at least one adult is in work and live in relative poverty. This affects an estimated 2m adults in the UK. AHC this figure moves up to 2.9m adults being affected. BHC, 44% of working age adults in the UK live in households where no adults are in work and live in relative poverty. This affects an estimated 2m adults in the UK. AHC this figure moves up to 2.8m adults being affected. Table 3.2: In-Work and Not Working Households, claiming Welfare Benefits, Leeds Snapshot The DWP HBAI In-work and Workless Relative Poverty data is not available at a Leeds level. As a proxy indicator for inwork poverty, the table below provides a snapshot of LCC s Welfare Benefits data, broken down into households which are in-work and claiming Housing Benefits and or Council Tax Support. Household Type In Work Not working Households % Households % Working age households 14,763 17.8% 37,236 44.8% Pensioner Households 556 0.7% 30,530 36.7% Source: LCC Welfare Benefits Snapshot January 2015 83,085 households in Leeds were claiming one or more local authority welfare benefit. Of this figure, 14,763 householders were of a working age and in work. This is almost 18% of all Leeds households in receipt of a welfare benefit and in-work. Table 3.3: Leeds DWP Benefit Claimants The DWP HBAI In-work and Workless Relative Poverty data is not available at a Leeds level. As a proxy indicator for inwork poverty, the table below provides DWP s Benefits data, broken down into households which are in-work and claiming Housing Benefits and or Council Tax Support. DWP Benefits May-15 May-14 Annual Change Out of Work Benefits 53,700 57,510-3,810 Out of Work Benefits % 10.6% 11.4% -0.8 In-work Benefits 12,460 11,920 +540 In-work Benefits % 2.5% 2.4% +0.1 Source DWP Benefits via NOMIS, Nov 2015 There were 53,700 claimants of out of work benefits in Leeds in May 2015. These figures indicate the number of working-age people who are claiming one or more DWP out of work benefits such as JSA, Lone Parent and ESA. The figure has fallen by 3,810 claimants over the past year. The Leeds rate is 10.6% of the working age population. The In-work figures indicate the number of working-age people who are claiming one or more of the DWP s other benefits, in which claimants are likely to be in-work, but requiring benefits to supplement their income. These claimants include Disability claimants, Carers and Bereavement claims. There were 12,460 in-work claimants in Leeds in May 2015. The figure has risen by 540 claimants over the past year. The Leeds rate is 2.5% of the working age population. 13 P a g e
Table 3.4: Leeds DWP Out of Work Benefits Local Proxy for Worklessness Key out-of-work benefits: consists of the groups: Job Seekers Allowance (JSA), Employment Support Allowance (ESA) and Incapacity Benefits (IB), lone parents (LP) and others on income related benefits. Others on income related benefits are out-of-work benefits which combine Other Income Support (such as IS Disability Premium) or Pension Credit. DWP Benefits May-15 May-14 Annual Change JSA 13,060 17,780-4,720 IB/ESA 32,380 30,870 1,510 LP 6,650 6,880-230 Others 1,610 1,980-370 Source: DWP Benefits via NOMIS, Nov 2015 Of the 53,700 Out of Work claimants in Leeds: 24% (13,060) are claiming JSA; 60% (32,380) are claiming IB/ESA; 12% (6,650) are Lone Parent claimants and 3% (1,610) are claiming other income related benefits. Table 3.5: Leeds DWP In-Work Benefits Local proxy for in-work poverty Key in-work benefits: consists of: Carers Allowance (Carers), Disability Living Allowance, Attendance Allowance or Industrial Injuries benefits (Disabled) and Widow s Benefit, Bereavement Benefit or Industrial Death Benefit (Bereaved) DWP Benefits May-15 May-14 Annual Change Carers 6,680 5,990-370 Disabled 4,980 5,090-110 Bereaved 800 840-40 Source: DWP Benefits via NOMIS, Nov 2015 Of the 12,460 In-work claimants in Leeds, 54% (6,680) are claiming Carers Allowance; 40% (4,980) are claiming a Disability Allowance; 6% (800) are Bereaved claimants. Table 3.6: Families in receipt of tax credits Families in receipt of Tax Credits UK Leeds Leeds Annual 2013 2013 2012 Change Total out-of-work families 1.48m 18,700 17,900 +800 In work, with children, receiving WTC and CTC 1.78m 22,700 24200-1,500 In work, with children, receiving CTC only 841,600 9,700 20200-10,500 In work, lone parent 1.11m 14,700 15800-1,100 In work, no children, receiving WTC only 512,000 6,600 6900-300 Total in receipt of WTC and/or CTC 4.62m 57,700 69,300-11,600 Source: HMRC Child and Working Tax Credits, Finalised Annual Awards, released Dec 2014 A total of 4.62 million (in-work and out-of-work) families in the UK are in receipt of a form of tax credits, 57,700 of which are in Leeds. This figure has fallen by 11,600 Leeds families between 2012 and 2013. These large reductions of recipients of tax credits have come about due to eligibility criteria and policy changes implemented from April 2012. The main change came about due to the removal of the second income threshold of 40,000. This means entitlement dropped for families earning 15,860 or more rather than 40,000. Leeds families in receipt of tax credits are broken down as described below: 18,700 Leeds families are out-of-work and in receipt of HMRC administered CTC or child benefit through the DWP (the DWP child support cases will soon be migrating to HMRC CTC). This figure has increased by 800 out-of-work families over the year to 2013. 22,700 Leeds families with children are in-work and in receipt of WTC and CTC. This figure has fallen by 1,500 families. 9,700 Leeds families are in work, with children and in receipt of CTC only. This figure has fallen by 10,500 families. Amongst the 32,400 families in work and in receipt of tax credits, 14, 700 are in-work lone parents. Working lone parents in receipt of tax credits have fallen by 1,100. 14 P a g e
Table 3.7: Number of Children from families in receipt of tax credits Children from Families in receipt of Tax Credits UK Leeds Leeds Annual 2013 2013 2012 Change No of Children in out of work families 2.83m 36,000 34,100 +1,900 No of Children in working families receiving WTC and CTC 3.17m 40,500 43,300-2,800 No of Children in working families receiving CTC only 1.70m 19,100 33,400-14,300 Total number of children in recipient families 7.70m 95,600 110,800-15,200 Source: HMRC Child and Working Tax Credits, Finalised Annual Awards, released Dec 2014 A total of 7.7 million children in the UK are from families in receipt of a form of tax credits, 95,600 of which are in Leeds. This figure has fallen by 15,200 Leeds children between 2012 and 2013. These large reductions of recipients of tax credits have come about due to policy changes implemented from April 2012. Children from families in receipt of tax credits are broken down as described below: 36,000 Leeds children are from families that are out-of-work and in receipt of HMRC administered CTC or child benefit through the DWP (the DWP child support cases will soon be migrating to HMRC CTC). This figure has increased by 1,900 children over the year to 2013. 40,500 Leeds children are from families in-work and in receipt of WTC and CTC. This figure has fallen by 2,800 children. 19,100 children are from families receiving CTC only. This figure has fallen by 14,300 since the 2012 policy changes. 15 P a g e
SECTION 4: WAGES and EMPLOYMENT Table 4.1: Living Wage Gap The UK rate is set annually by the Living Wage Foundation and calculated by the Centre for Research in Social Policy at Loughborough University (and is informed by the Minimum Income Standard). The figure is announced every November, but applied the following April. Year National Living Gap between National Minimum National Minimum Wage Wage Wage and the Living Wage 2015 8.25 6.70 + 1.55 2014 7.85 6.50 + 1.35 2013 7.65 6.31 + 1.34 2012 7.45 6.19 + 1.26 2011 7.20 6.08 + 1.12 Source: Living Wage Foundation, Nov 2015 From April 2016, the UK Living Wage for outside of London is 8.25 per hour. The London Living Wage is 9.40 per hour; this figure is set annually by the Greater London Authority and covers all boroughs in Greater London. From October 2015 The National Minimum Wage is 6.70 per hour for workers aged 21+. These are set by the Government funded Low Pay Commission. Although the minimum wage has increased over time, the gap between the minimum wage and the living wage has also increased over time. This gap indicates that workers on the minimum wage are not earning enough to cover the basic living costs in the UK. The Living Wage Foundation announced that there are now more than 2,000 accredited Living Wage employers across the UK. This doubles the number of accredited businesses from November 2014. Accredited Living Wage employers will pay their staff at least the new voluntary Living Wage rate of 8.25 per hour, rising from 7.85; significantly higher than the national minimum wage of 6.70 per hour. In July 2015 the Chancellor announced that the UK Government will introduce a compulsory national living wage. This new government rate is a minimum wage premium rate for staff over 25 years old. It will be introduced from April 2016 and the rate will be 7.20 per hour. The rate is separate to the Living Wage rate calculated by the Living Wage Foundation. The government rate is based on median earnings while the Living Wage Foundation rate is calculated according to the cost of living. Table 4.2: Leeds hourly wage rates 2015 Lower 10% Lower 20% Lower 25% Lower 30% Lower 40% Median Top 10% Job count Residents Earners Earners Earners Earners Earners Earners Earners FTE 311,000 6.89 7.88 8.42 9.02 10.23 11.51 24.79 Full Time 227,000 7.66 8.93 9.41 10.03 11.34 12.90 25.77 Part-time 84,000 6.50 6.72 6.88 7.10 7.64 8.44 20.11 2015 Lower 10% Lower 20% Lower 25% Lower 30% Lower 40% Median Top 10% Job count Workers Earners Earners Earners Earners Earners Earners Earners FTE 371,000 7.00 8.15 8.79 9.37 10.70 12.26 25.32 Full-time 283,000 7.81 9.11 9.78 10.43 11.77 13.50 26.69 Part-time 88,000 6.50 6.74 6.91 7.12 7.73 8.62 n/a Source: ONS Annual Survey of Hours and Earnings (ASHE), Nov 2015 The ASHE data provides earnings data from the period of November 2014 to November 2015 and splits the job count sample into percentiles which provides insight into the lowest and top earning residents and workers in Leeds. The ONS state that the job count figures are intended to provide a broad idea of the numbers of employee jobs but they should not be considered accurate estimates and caution should be applied when using these numbers. Therefore the same caution should be applied when referencing the estimates for Leeds. For Leeds residents, the median average full-time equivalent (FTE) wage is 11.51, the median full time wage is 12.90 per hour; the median average part time wage is 8.44 per hour. With regards people who work in Leeds (not necessarily residing in Leeds); the median average full-time equivalent wage is 12.26, the median full time wage is 13.50 per hour; the median average part time wage is 8.62 per hour. 16 P a g e
Table 4.3: People in Leeds earning below the Living Wage 2014 (LW = 7.85) 2013 (LW= 7.65) Annual Change Residents Job count No % Job count No % Job flow No % FTE 311,000 61,258 19.7 304,000 62,667 20.61 7,000-1,409-0.91 Full Time 227,000 26,096 11.5 218,000 26,803 12.3 9,000-707 -0.8 Part-time 84,000 35,805 42.63 86,000 35,802 41.63-2,000 3 1 Workers Job count No % Job count No % Job flow No % FTE 371,000 64,522 17.39 366,000 69,427 18.97 5,000-4,905-1.58 Full-time 283,000 29,171 10.31 268,000 29,565 11.03 15,000-394 -0.72 Part-time 88,000 36,387 41.35 98,000 39,404 40.21-10,000-3,017 1.14 Source: ONS Annual Survey of Hours and Earnings (ASHE), Nov 2015 Estimates for people earning below the Living Wage in 2014 have been calculated using the 2014 Living Wage figure of 7.85 which was in place during the survey period of the latest ASHE 2015 data. Similarly, estimates for people earning below the Living Wage in 2013 have been calculated using the 2013 Living Wage figure of 7.65 which was in place during the survey period of the ASHE 2014 data. These estimates have been made using the ASHE survey sample of job counts. The ONS state that these are intended to provide a broad idea of the numbers of employee jobs but they should not be considered accurate estimates and caution should be applied when using these numbers. Therefore the same caution should be applied when referencing the estimates for Leeds. For Leeds residents and workers, the estimated job count figures suggest that more people have moved into full-time work in 2014 since 2013, as the part time job count figures have shown a decline, while the full time figures have shown an increase. Although the changes are very small, the overall annual picture indicates that more Leeds residents and workers are being paid the Living Wage than in 2013. However, due to the margin of error associated with this data, these figures should not be seen as a definitive trend. It is estimated that just fewer than 20% of all Leeds working residents earned less than the Living Wage in 2014, affecting over 60,000 FTE residents. When this figure is broken down it becomes clearer that Almost 12% of full time working residents (26,000) and 43% of part time working residents (35,000) are earning below the Living Wage in Leeds. With regards workers in Leeds, 17% earn below the living wage, impacting almost 65,000 FTE workers. This affects over 10% (29,000) full time workers and 41% (36,000) part-time workers. Table 4.4: People in Leeds earning below the Minimum Wage 2014 (MW = 6.50) 2013 (MW = 6.31) Annual Change Residents Job count No % Job count No % Job flow No % FTE 311,000 29,339 9.43 304,000 29,020 9.55 7,000 319-0.12 Full Time 227,000 19,261 8.49 218,000 18,663 8.56 9,000 598-0.07 Part-time 84,000 8,392 9.99 86,000 8,586 9.98-2,000-194 0.01 Workers Job count No % Job count No % Job flow No % FTE 371,000 34,449 9.29 366,000 34,062 9.31 5,000 387-0.02 Full-time 283,000 23,552 8.32 268,000 22,486 8.39 15,000 1,066-0.07 Part-time 88,000 8,791 9.99 98,000 9,769 9.97-10,000-978 0.02 Source: ONS Annual Survey of Hours and Earnings (ASHE), Nov 2015 Estimates for people earning below the Minimum Wage in 2014 have been calculated using the 2014 Minimum Wage figure of 6.50 which was in place from Oct 2014 to Sep 2015 and covers the April 2014 survey period of the latest ASHE 2015 data. Similarly, estimates for people earning below the Minimum Wage in 2013 have been calculated using the 2013 Minimum Wage figure of 6.31 which was in place from Oct 2013 to Sep 2014 during the survey period of the ASHE 2014 data. These estimates have been made using the ASHE survey sample of job counts. The ONS state that these are intended to provide a broad idea of the numbers of employee jobs but they should not be considered accurate estimates and caution should be applied when using these numbers. Therefore the same caution should be applied when referencing the estimates for Leeds. For Leeds residents and workers, the estimated job count figures suggest that more people have moved into full-time work in 2014 since 2013, as the part time job count figures have shown a decline, while the full time figures have shown an increase. Due to the margin of error associated with this survey, the annual change figures were deemed too small to inform a reliable analysis. What the figures do suggest is that just fewer than 10% of all Leeds working residents and workers were earning less than the Minimum wage, affecting around 30,000 FTE residents and 34,000 FTE workers in 2014. 17 P a g e
Table 4.5: Leeds Weekly Wages ASHE (2014) Median Lower 10% Top 10% Median Annual Change % Leeds Residential 419 133 874 + 7.00 1.7% Leeds Workplace 446 153 912 + 25.00 5.9% Source: ONS Annual Survey of Hours and Earnings (ASHE), Nov 2014 Median weekly earnings for people working in Leeds were 446 a week compared with 419 for Leeds residents in work. For the bottom 10% of earners, earnings of people working in Leeds was 153 a week compared with 133 for working residents. Median earnings have risen 5.9% on 2014 for people working in Leeds, and 1.7% for Leeds residents Table 4.6: Leeds Annual Salaries ASHE (2014) Median Lower Top Median Annual Change 10% 10% % Leeds Residential 22,132 7,628 45,651 + 302.00 1.4% Leeds Workplace 23,380 8,719 47,458 + 961.00 4.3% Source: ONS Annual Survey of Hours and Earnings (ASHE), Nov 2014 Median annual earnings for people working in Leeds were 23,380 per annum compared with 22,132 for Leeds residents in work. For the bottom 10% of earners, earnings of people working in Leeds was 8,719 a year compared with 7,628 for working residents. Median earnings have risen 4.3% on 2014 for people working in Leeds, and 1.4% for Leeds residents. Table 4.7: Employment Trends Leeds UK Year No % No % 2008 355,800 71.5 28,735,700 72.1 2009 345,400 69.7 28,259,200 70.6 2010 343,700 69.2 28,245,900 70.1 2011 338,300 67.8 28,324,300 69.8 2012 344,000 68.6 28,535,500 70.5 2013 342,800 68.2 28,850,800 71.2 2014 347,200 68.9 29,352,100 72.2 Source: ONS Annual Population Survey, (Jan-Dec 2014),quarterly release, April 2015 In the year to December 2014, employment in Leeds was estimated at 347,200. This is a rate of 68.9%, up 0.7 percentage points on the previous year. This is still below pre-recession figures unlike the UK rate which is now higher. The UK rate is 72.2%, up 1.0 percentage point on last year. 18 P a g e
Table 4.8: Estimates of people on Zero Hour Contracts % on zero hour UK employees on zero hour Leeds employees on zero hour* 2008 0.5% 143,000 1,779 2009 0.6% 189,000 2,072 2010 0.6% 168,000 2,062 2011 0.6% 190,000 2,030 2012 0.8% 252,000 2,752 2013 1.9% 586,000 6,513 2014 2.3% 697,000 7,986 Source: ONS Labour Force Survey, Oct-Dec 2014, Zero Hours Analysis, released February 2015 *Leeds figures are estimated using the national percentage rates on Employment figures from the APS National figures from the Labour Force Survey (LFS) show the number of people who report that they are on a zero-hours contract in their main employment. In Dec 2014, 2.3% of those surveyed reported being on a zero hour contract. This equates to 697,000 people in the UK. On the assumption 2.3% of people in employment are on zero contracts in Leeds, using Employment figures for Leeds (Jan-Dec 2014), it is estimated that 7,986 workers are on zero hour contracts. According to ONS s wider analysis of the LFS survey, people on zero-hours contracts are more likely to be women, in fulltime education or in young or older age groups when compared with other people in employment. On average, someone on a zero-hours contract usually works 25 hours a week. Around a third of people on a zero-hours contract want more hours, with most wanting them in their current job. Table 4.9: Unemployment Trends Leeds UK Year No % No % 2008 25,300 6.6 1,633,300 5.4 2009 30,200 8.0 2,275,800 7.4 2010 35,100 9.2 2,383,500 7.8 2011 34,500 9.2 2,472,100 8.0 2012 37,100 9.9 2,510,700 8.1 2013 36,400 9.5 2,486,200 8.0 2014 35,700 9.4 2,088,100 6.7 Source: ONS Annual Population Survey, (October-September 2014),quarterly release, January 2015 Unemployment figures have been gradually falling since 2012. Since the recession in 2008, unemployment peaked at 9.9% (37,000 people) in 2012. In Leeds 35,700 people were unemployed in 2014, which is a rate of 9.4%, this compares to 6.7% nationally. 19 P a g e
SECTION 5: WELFARE BENEFITS AND IMPACTS OF REFORM Table 5.1: Housing Benefit (HB) and Council Tax Support (CTS) Caseloads Sept 2014 Sept 2013 Oct 2009* 5 yr change Annual Change Total CTS Claimants** 76,357 78,085 70,791 +5,566 1,728 Total HB Claimants 70,090 70,191 61,149 +8,941-101 Total combined caseload for HB&CTS*** 84,966 85,790 77,621 +7,345-824 Expenditure 2014/15 2013/14 2009/10 5 yr change Annual Change CTS claimed 48.1m 50.3m 50.9m** n/a - 2.2m HB claimed 292.3m 286.9m 223.4m + 68.9m + 5.4m Source: LCC Welfare Benefits, November 2015 *No caseload figures for Sept 2009, October figures used. ** Benefit paid in respect of CT has been Council Tax Support, not Council Tax Benefit, with effect start of 2013/14 *** Where a customer receives both HB & CTS, this will count as one claim (to avoid double counting). Similarly if a claim has only HB, it is counted as one claim, or if a claim is receiving CTS only, this would count as one claim 76,357 households claimed CTS in Sep 2014. The number of claims for CTS increased by 5,566 in the 5 years to Sept 2014. Over the year to Sep 2014, claims dropped by 1,728. 70,090 households claimed Housing Benefit in Sep 2014. The number of HB claims increased by 8,941 over the 5 years to Sep 2014 but fell by 101 claimants in the year from Sep 2013-14. Combined, there are 84,966 households in Leeds requiring a t least local authority benefit. The caseloads for CTS in Sep 2014 resulted in expenditure for Sept 2014/15 of 48.1m across Leeds. The caseloads for HB in Sep 2014 resulted in expenditure for Sept 2013/14 of 292.3m across Leeds. This figure increased by 68.9m in the 5 years from 2009/10 and by 5.4m in the last 12 months. CTB was a national scheme where the Local Authority received subsidy from Central Government on what was paid out. CTS are a local scheme where the Local Authority receives a fixed amount of money from Central Government each year. In Leeds, for the first two years of the scheme, in order to meet the reduced budget, the value of entitlement for each customer was reduced by a fixed percentage. This reduction in entitlement means that trying to compare the expenditure of the two schemes is not appropriate. Therefore a 5 year analysis has not been carried out on this data. Table 5.2: Welfare Reform Impacts on Housing Benefits Housing Benefit Monthly Change since Sep-15 Aug-15 Apr-14 Change April 2014 No of claims affected by under occupation 6,314 6,329 7,053-15 -739 Weekly loss in HB, affected by under occ 83,149 82,850 90,471 299-7,322 No of under occ claims clients w/rent arrears 2,725 2,831 2,634-106 91 No of claims affected by the Benefit Cap 277 317 304-40 -27 Total weekly reduction (due to Benefit Cap) 13,195 15,390 17,688-2,195-4,493 Source: LCC Welfare Benefits monthly reporting September 2015 The number of households claiming housing benefit affected by the under-occupancy changes as at 30th September 2015 is 6,314. This figure has remained relatively stable for the last 6 months. The 6,314 households affected by the under occupancy rule are losing a total of 83,149 a week. This is an average of 13.17 cut from each household a week. Of the 6,314 claims, 2,725 households are in rent arrears. This figure has increased by 91 claims since April when the changes were first implemented. This appears to suggest more households went into arrears due to welfare reforms. However the arrears figure has fallen by 106 claims in the month between August and September. The overall number affected in Leeds by the Benefit Cap was 277 in September 2015. This is broken down in tenure type: 169 Private tenants with an average weekly loss of 52.24 88 Housing Leeds tenants with an average weekly loss of 40.12 19 Housing Association tenants with an average weekly loss of 37.15 The total weekly reduction for claims affected by the Benefit Cap in Leeds was 13,195 in September 2015. This means an overall average of 47.63 is being reduced across 277 households in Leeds. 20 P a g e