Welfare Benefits News
Changes to the Welfare Benefits System
The June 2010 Emergency Budget, and the October 2010 Spending Review released some details on the planned changes to the welfare benefit system over the coming years. You will find below detailed information on some of these changes, as well as other previously announced changes.
Not all the changes you may have heard about in the media have been listed. This is because they may be subject to change before they are implemented.
Discretionary Housing Payment
Changes effective from April 2011
Due to the many changes to Housing Benefit over the coming years, such as the increase to non-dependant deductions in April 2011, The DWP has increased the budget for the Discretionary Housing Payments fund as they envisage an increase in applications. If you are receiving partial Housing Benefit you may be able to make an application to the DHP fund for financial assistance. If you are receiving full Housing Benefit, but at one time you were only receiving partial HB payments, even if this was several years ago, you may also be able to make a claim to this fund if you are struggling financially. Please contact us if you would like assistance with this.
Health in Pregnancy Grant
Changes effective from January 2011
Previously this lump sum payment of £190 could have been claimed by every expectant mother who had received health related pregnancy advice from a midwife. However, this change means that this grant no longer exists.
Housing Benefit
Changes effective from April 2011
Currently if you have a non-dependant adult who lives with you and you are in receipt of Housing Benefit (HB), then your HB may be have deductions applied for each adult that lives with you. This is called a ‘non-dependant deduction’. The rate of these deductions has stayed the same since 2001. As an example, the lowest deduction that could be applied in 2001 was £7.40, and this is the same rate today.
The non-dependant deductions will no longer stay at the low rate they have been since 2001. Instead they will gradually increase over 3 years until they reach the rate they would have been had they been increased since 2001. This gradual increase starts in April 2011. The lowest deduction of £7.40 per week will increase to £9.40, and the highest deduction of £47.75 will increase to £60.60. There are other amounts in between. This means you may have to increase the extra payments you make to Muir in order to make up the difference. You will need to speak with your Income Management Officer regarding this.
Due to the many changes to Housing Benefit over the coming years, such as the increase to non-dependant deductions in April 2011, The DWP has increased the budget for the Discretionary Housing Payments fund as they envisage an increase in applications. If you are receiving partial Housing Benefit you may be able to make an application to the DHP fund for financial assistance. If you are receiving full Housing Benefit, but at one time you were only receiving partial HB payments, even if this was several years ago, you may also be able to make a claim to this fund if you are struggling financially. Please contact us if you would like assistance with this.
Incapacity Benefit
Changes effective from February 2011
New claims to Incapacity (IB) ceased in October 2008 and were replaced with Employment Support Allowance (ESA). Persons who were unfit for work could only make a new claim to Employment Support Allowance from October 2008. Persons who were already in receipt of IB continued to be entitled to this benefit. However, between October 2010 and 2014 IB claimants* will be re-assessed and considered for ESA. IB and some other benefits* will cease to exist.
During the re-assessment you will be required to complete a medical questionnaire, and most will also be required to attend a medical assessment/interview. If you do not complete these on time you will be at risk of losing your benefit.
Once you have been re-assessed The DWP will phone you to advise you if you are entitled to ESA. They will also write to you. If they have decided that you are not entitled to ESA you will have the option of claiming Jobseekers Allowance during the same phone call. This will mean your Housing Benefit will have a smooth transition and not have any gaps in that claim. If you disagree with their decision you may choose to appeal. If so you may be paid ESA at a reduced rate, or may choose to claim Jobseekers Allowance while you await the outcome of your appeal (whichever you choose the amount you receive should be the same). Your HB may then be suspended until you provide them with evidence of your income during your ESA appeal.
If you are entitled to ESA after this assessment then you will be entered into that claim in what is called the ‘main phase’ and placed into one of the following categories:
- Work Related Activity Group – this means you will get support to help you prepare for suitable work. Your benefit (including any Housing Benefit) may be affected if you do not take part in the work-related support.
- Support Group – if you are severely disabled or have the most severe health conditions you will be placed in this group. You will not be expected to look or prepare for work.
Your ESA will be the same as or higher than your IB payments.
You will not be affected by these changes if you are due to reach State Pension age by 6th April 2014.
*Those benefits affected by this include: Incapacity Benefit, Severe Disablement Allowance, Income Support paid due to illness or disability.
Sure Start Maternity Grant
Changes effective from January 2011
Previously a person may have been able to claim a SSMG lump payment of £500 if you met certain criteria and were in receipt of certain benefits. Previously this could have been claimed for every pregnancy 11 weeks before your due date. However, this change means that you can no longer claim a SSMG if you received one in the past.
Working Tax Credits
Changes effective from April 2011
From April this year there is a new route that may mean you could claim Working Tax Credits. If you are aged 60 years or over and work for 16 hours or more per week then this means you may be able to claim. You do not need to have any children and any savings you have will not normally affect your claim. Previously if you were aged 60 you could only have claimed WTC if you worked 30hrs or more per week, or if you passed the disability test.
