DGHP UPDATES

June 02, 2010 June 02, 2010

Extra help with fuel bills for pension Extra help with fuel bills for pension credit claimantscredit claimants

The Energy Rebate Scheme provides The Energy Rebate Scheme provides for pension credit claimants to receive for pension credit claimants to receive a one-off £80 'payment' towards their a one-off £80 'payment' towards their fuel bills.fuel bills.

Where at least one person is aged 70 Where at least one person is aged 70 or over, and in receipt of the guarantee or over, and in receipt of the guarantee credit element of pension credit on credit element of pension credit on 26 26 March 2010March 2010, will qualify for the extra , will qualify for the extra help, which will be 'paid' - by energy help, which will be 'paid' - by energy companies automatically subtracting it companies automatically subtracting it from the householder's bill – this is in from the householder's bill – this is in addition to the winter fuel payment.addition to the winter fuel payment.

April 2010April 2010

Changes to child maintenance Changes to child maintenance

Child maintenance payments are Child maintenance payments are now fully disregarded in the now fully disregarded in the calculation of income when claiming calculation of income when claiming Income Support, JSA and Income Support, JSA and Employment and Support AllowanceEmployment and Support Allowance

Single Parent:Single Parent:

Fiona has Child Tax Credits & Child Fiona has Child Tax Credits & Child Benefit for her 4 children aged 5,7,11 & Benefit for her 4 children aged 5,7,11 & 14 the oldest has just got Disability Living 14 the oldest has just got Disability Living Allowance and mum has recently claimed Allowance and mum has recently claimed Carers Allowance at £53.90 weekly. Carers Allowance at £53.90 weekly.

She has Child Support from her ex-She has Child Support from her ex-partner at £135 weekly.partner at £135 weekly.

She has a mortgage at £60 She has a mortgage at £60 weekly and pays Council Tax at weekly and pays Council Tax at £20 weekly. £20 weekly.

She did try for Income Support She did try for Income Support a few months ago but due to her a few months ago but due to her high income she was turned high income she was turned down.down.

Calculation before April changesCalculation before April changes

Income Support £ Income £Income Support £ Income £

Single person £65.45 Maintenance (£20 ignored) £ 115Single person £65.45 Maintenance (£20 ignored) £ 115

Carer Premium Carer Premium £30.05£30.05 Carers Allowance Carers Allowance £ 53.90£ 53.90

Total £95.50 £168.90Total £95.50 £168.90

Excess income £73.40 (£168.90 - £95.50 = £73.40)Excess income £73.40 (£168.90 - £95.50 = £73.40)

No Income Support dueNo Income Support due

Calculation after April changes?Calculation after April changes?

Income Support £ Income £Income Support £ Income £

Single person £65.45 Maintenance (All ignored) £ 00.00Single person £65.45 Maintenance (All ignored) £ 00.00

Carer Premium Carer Premium £30.05£30.05 Carers Allowance Carers Allowance £ 53.90£ 53.90

Total £95.50 £ 53.90Total £95.50 £ 53.90

Income Support due £41.60 weekly (£95.50 - £53.90 = £41.60)Income Support due £41.60 weekly (£95.50 - £53.90 = £41.60)

Income Support will also pay her Income Support will also pay her mortgage interest at £60 weekly and mortgage interest at £60 weekly and passport her to full help with her passport her to full help with her Council Tax at £20 weekly Council Tax at £20 weekly

Other passports include free Other passports include free prescriptions, dental treatment, prescriptions, dental treatment, school meals, school clothing grant school meals, school clothing grant etc, etc.etc, etc.

6 April 20106 April 2010

Adult dependent additions with Carers Allowance, Adult dependent additions with Carers Allowance, Maternity Allowance, Incapacity Benefit, Severe Maternity Allowance, Incapacity Benefit, Severe Disablement Allowance and Retirement Pension Disablement Allowance and Retirement Pension abolished from now. abolished from now.

Existing dependent additions in payment pre April Existing dependent additions in payment pre April 2010 continue till 2020.2010 continue till 2020.

It is still possible to backdate partner additions It is still possible to backdate partner additions three months before the change date, once three months before the change date, once included they will continue after April 2010included they will continue after April 2010

6 April 2010

Pension equalisation and pension age changes

Female Pension Age increases gradually from April 2010

If you are a woman and are reaching 60 after April 2010 you will have to work longer before you can claim your State Pension.

Other benefits for older people (Men & Women) will also be affected by these changes

The earliest age for claiming Pension Credit for both men and women will gradually increase from 60 to 65 in line with the above female retirement age.

Women will be able to continue to claim working age benefits like Income Support, Incapacity Benefit, Jobseekers Allowance or Employment and Support Allowance until they reach their new official retirement age

Winter Fuel Payments minimum age will also gradually increase from 60 to 65


New National Insurance CreditNew National Insurance Credit

This new credit replaces home This new credit replaces home responsibility protection for certain responsibility protection for certain Parents with children under 12 and Parents with children under 12 and Carers for certain disabled peopleCarers for certain disabled people

This new national insurance credit This new national insurance credit is available to people who provide is available to people who provide care for one or more disabled care for one or more disabled person(s) for a total of 20 hours or person(s) for a total of 20 hours or more each week, where they do not more each week, where they do not currently receive Carer's currently receive Carer's

Allowance.Allowance.

May 13th 2010 May 13th 2010

New government to end all existing welfare to New government to end all existing welfare to work programmes and replace with a single work programmes and replace with a single programmeprogramme

All existing welfare to work programmes are to All existing welfare to work programmes are to be ended and replaced by single programme be ended and replaced by single programme designed to help all unemployed people get designed to help all unemployed people get back into work, according to the Conservative back into work, according to the Conservative Party and Liberal Democrat Party coalition Party and Liberal Democrat Party coalition agreement.agreement.

22ndnd November 2009 November 2009 Lower capital limit in: Lower capital limit in:

Pension Credit (PC) Housing Benefit (HB) and Pension Credit (PC) Housing Benefit (HB) and Council Tax Benefit starts at £6,000 anything over Council Tax Benefit starts at £6,000 anything over this and they reduce your entitlements at £1 per this and they reduce your entitlements at £1 per £500 over the £6,000 lower limit. £500 over the £6,000 lower limit.

E.g £17,000 in savings would lose you £22 weekly E.g £17,000 in savings would lose you £22 weekly from PC, HB or CTB if claimed.from PC, HB or CTB if claimed.

This lower limit is increase for pensioners from This lower limit is increase for pensioners from £6,000 to £10,000 from 2£6,000 to £10,000 from 2ndnd November. November.

Case Study:Case Study:

John is 63. John is 63.

He has Incapacity Benefit at £91.40 weekly He has Incapacity Benefit at £91.40 weekly and £29,000 in savings. and £29,000 in savings.

He pays £55 rent and £15 Council TaxHe pays £55 rent and £15 Council Tax

Calculation (Pre Changes):Calculation (Pre Changes):

Income:Income:

Incapacity Benefit £91.40Incapacity Benefit £91.40Tariff from savings £46.00Tariff from savings £46.00(£29,000 - £6,000 = £23,000)(£29,000 - £6,000 = £23,000)

Total £137.40Total £137.40

Pension Credit Amount £132.60 wkly Pension Credit Amount £132.60 wkly

Nil Pension Credit due as income to high by £4.80Nil Pension Credit due as income to high by £4.80

As he As he does not getdoes not get Pension Credit Pension Credit Guarantee and as he has over £16,000 in Guarantee and as he has over £16,000 in savings he is not entitled to any help with his savings he is not entitled to any help with his rent at £55 weekly and Council Tax at £15 rent at £55 weekly and Council Tax at £15 weekly either.weekly either.

Calculation (Post Changes):Calculation (Post Changes):

Income:Income:

Incapacity Benefit £91.40Incapacity Benefit £91.40Tariff from savings £38.00Tariff from savings £38.00(£29,000 - £10,000 = £19,000)(£29,000 - £10,000 = £19,000)

Total £129.40Total £129.40

Pension Credit Amount £132.60 wkly Pension Credit Amount £132.60 wkly

Pension Credit now due at £3.20 weekly giving full Pension Credit now due at £3.20 weekly giving full help with the rent at £55 and council tax at £15 help with the rent at £55 and council tax at £15 weekly. Total extra weekly income £73.20weekly. Total extra weekly income £73.20


“Fit note” rolled out “Fit note” rolled out

A new “fit note” to replace the “sick note”. It A new “fit note” to replace the “sick note”. It asks GP’s to consider work their patient can asks GP’s to consider work their patient can do as well as what they can’t do. do as well as what they can’t do.

This is part of a package of proposals aimed This is part of a package of proposals aimed to keep people in work rather than long to keep people in work rather than long

periods away from workperiods away from work

From 6From 6thth April 2009 April 2009

People moving off Jobseekers Allowance (JSA) People moving off Jobseekers Allowance (JSA) after 26 weeks to start a business or self-after 26 weeks to start a business or self-employment will be eligible for a new “Self employment will be eligible for a new “Self Employment Credit”Employment Credit”

The new Credit, which will be administered by The new Credit, which will be administered by Jobcentre Plus, will be paid at the rate of £50 per Jobcentre Plus, will be paid at the rate of £50 per week for a period of up to 16 weeks to those who - week for a period of up to 16 weeks to those who -

End their claim to JSA by moving into self-employed work End their claim to JSA by moving into self-employed work of 16 hours or more of 16 hours or more

Provide information to their Jobcentre Plus personal Provide information to their Jobcentre Plus personal adviser on the self employed work they are to undertakeadviser on the self employed work they are to undertake

Show that the work will last at least five weeks Show that the work will last at least five weeks

Register with HMRC as self-employed and Register with HMRC as self-employed and

Not be claiming any other in-work credit payments, eg the Not be claiming any other in-work credit payments, eg the Return to Work Credit or the In-Work Credit. Return to Work Credit or the In-Work Credit.

The Self-Employment Credit is an extension of the existing The Self-Employment Credit is an extension of the existing Return to Work Credit and will therefore be disregarded for Return to Work Credit and will therefore be disregarded for HB/CTB purposes.HB/CTB purposes.


Permitted work rulesPermitted work rules extended to Housing and Council extended to Housing and Council Tax BenefitTax Benefit

Employment and Support Allowance, Incapacity Benefit Employment and Support Allowance, Incapacity Benefit and Severe Disablement Allowance claimants can work so and Severe Disablement Allowance claimants can work so long as they earn less than £93 a week. long as they earn less than £93 a week.

The problem has been that mostly, Housing Benefit and The problem has been that mostly, Housing Benefit and Council Tax Benefit still only ignored up to £20. Now these Council Tax Benefit still only ignored up to £20. Now these benefits will also ignore £93 a week for those on this level benefits will also ignore £93 a week for those on this level of permitted work.of permitted work.

However, Income Support will still only ignore £20 a weekHowever, Income Support will still only ignore £20 a week


Older young people can get Income Support whilst Older young people can get Income Support whilst in educationin education

Certain young people can get Income Support whilst in Certain young people can get Income Support whilst in full time non advanced education until their 20th full time non advanced education until their 20th birthday. birthday.

From now this increases to 21. From now this increases to 21.

This applies to ‘vulnerable’ young people who for This applies to ‘vulnerable’ young people who for example, are estranged from their parents or orphaned example, are estranged from their parents or orphaned and who started education before their 19th birthday.and who started education before their 19th birthday.

Social Fund (SF) Social Fund (SF)

Community Care Grant (CCG) & Crisis Loan (CL)Community Care Grant (CCG) & Crisis Loan (CL)

Until 1Until 1stst September 2008 you could not re-apply for September 2008 you could not re-apply for another CCG or CL for the same item within 26 another CCG or CL for the same item within 26 weeks (Unless there had been a change in weeks (Unless there had been a change in circumstances). circumstances).

From 1From 1stst September 2008 this rule has changed to September 2008 this rule has changed to 28 days rather than the previous 26 weeks.28 days rather than the previous 26 weeks.

This is something Inverness who administer the This is something Inverness who administer the SF for this area seem to have overlooked.SF for this area seem to have overlooked.

Employment Support Allowance (ESA)Employment Support Allowance (ESA)

ESA replaced Incapacity Benefit (IB) and Income Support ESA replaced Incapacity Benefit (IB) and Income Support (IS) paid on Incapacity grounds for most new claimants (IS) paid on Incapacity grounds for most new claimants from 27from 27thth October 2008. October 2008.

ESA continuesESA continues to be paid pending appeal. If you fail to to be paid pending appeal. If you fail to score the required 15 points to continue getting ESA? score the required 15 points to continue getting ESA?

As long as you submit a valid appeal and sick-lines you As long as you submit a valid appeal and sick-lines you remain entitled to ESA until the appeal is decided, this can remain entitled to ESA until the appeal is decided, this can take months. take months.

No requirement to repay anything if you lose at appeal. No requirement to repay anything if you lose at appeal.

JC+ confirm that 85%+ are failing the strict ESA test.JC+ confirm that 85%+ are failing the strict ESA test.

3131stst July 2009 July 2009

Working Tax Credits Working Tax Credits

This now continue for 4 weeks after stopping This now continue for 4 weeks after stopping work or hours dropping below 16.work or hours dropping below 16.

This has been added to in that from 31This has been added to in that from 31stst July July 2009 this 4 week run on will also include the 2009 this 4 week run on will also include the child care element as well if previously child care element as well if previously included.included.

2626thth October 2009 Income Support (IS) October 2009 Income Support (IS)

To be eligible for IS as a lone parent you must To be eligible for IS as a lone parent you must have a child under 12, this is reduced to under 10 have a child under 12, this is reduced to under 10 from 26from 26thth October 2009 (Under 7 from October October 2009 (Under 7 from October 2010)2010)

Many existing lone parents with a child Many existing lone parents with a child approaching 10 and claiming IS now may still be approaching 10 and claiming IS now may still be eligible for IS after this date under new grounds.eligible for IS after this date under new grounds.

Others will have to sign on for Jobseekers Others will have to sign on for Jobseekers Allowance after this date.Allowance after this date.

Making Housing Benefit payments direct to those Making Housing Benefit payments direct to those living in temporary accommodationliving in temporary accommodation

No longer considered to be a 'key priority', DWP No longer considered to be a 'key priority', DWP advises advises

The DWP has abandoned its plans to test the The DWP has abandoned its plans to test the impact of making Housing Benefit payments direct impact of making Housing Benefit payments direct to claimants living in temporary accommodation.to claimants living in temporary accommodation.

Thank the lord for this!Thank the lord for this!


Local Housing Allowance honeymoonLocal Housing Allowance honeymoon continues for nowcontinues for now

This allows claimants to keep the difference This allows claimants to keep the difference if their Local Housing Allowance is higher if their Local Housing Allowance is higher than their rent. This could be up to a than their rent. This could be up to a maximum of £15 a week. maximum of £15 a week.

This extra was to be stopped now but will This extra was to be stopped now but will

continue until April 2011.continue until April 2011.

What does this mean for people we are working with?What does this mean for people we are working with?

Example: David is on Income Support due to his learning Example: David is on Income Support due to his learning disability he has been on HB for years so is under the old disability he has been on HB for years so is under the old HB rule’s.HB rule’s.

He is single aged 54 and gets paid £58 weekly HB towards He is single aged 54 and gets paid £58 weekly HB towards his private rented property which costs him £70 weekly, so his private rented property which costs him £70 weekly, so he has to find the £12 weekly from his Income Support. he has to find the £12 weekly from his Income Support.

He is now facing eviction for rent arrears as he has not He is now facing eviction for rent arrears as he has not been able to afford the extra £12 weekly. been able to afford the extra £12 weekly.

Can you help David!Can you help David!

If only David could get LHA instead of hisIf only David could get LHA instead of hisexisting low HB under the old rules? existing low HB under the old rules?

He would get the May 2010 one bedroomHe would get the May 2010 one bedroomLHA rate under the new rules. LHA rate under the new rules.

So he would get £80.77 weekly that’s the full £70 So he would get £80.77 weekly that’s the full £70 weekly rent covered and he would keep the extra weekly rent covered and he would keep the extra £10.77 weekly to use towards his rent arrears to £10.77 weekly to use towards his rent arrears to hopefully stop him being evicted. hopefully stop him being evicted.

We contacted his landlord to explain that David was going We contacted his landlord to explain that David was going to stop his on-going HB for one week. to stop his on-going HB for one week.

This will allow him to change to LHA with future payments This will allow him to change to LHA with future payments direct to the landlord due to the arrears. direct to the landlord due to the arrears.

He will lose one weeks HB at £58 so his rent arrears will He will lose one weeks HB at £58 so his rent arrears will increase in the short term but he will then get the full £70 increase in the short term but he will then get the full £70 rent covered by LHA and be in a position to make rent covered by LHA and be in a position to make payments towards his arrears due to the extra £10.77 payments towards his arrears due to the extra £10.77 LHA weekly. LHA weekly.

The landlord was delighted.The landlord was delighted.

March 2009 March 2009

When request a DLA claim pack by phoning, When request a DLA claim pack by phoning, visiting, postal requests or on-line DWP staff visiting, postal requests or on-line DWP staff (Untrained medically) are now using a list of points (Untrained medically) are now using a list of points based questions and refusing a new claim pack if based questions and refusing a new claim pack if the required number of points is not reached.the required number of points is not reached.

You must insist that a pack is sent out in these You must insist that a pack is sent out in these circumstances.circumstances.

Disability Living Allowance (DLA)Disability Living Allowance (DLA) DLA renewals are now being sent out three months before DLA renewals are now being sent out three months before the expire date, previously this was six months before. the expire date, previously this was six months before.

This will mean many disabled people will not get then back This will mean many disabled people will not get then back quick enough and may have it stopped before a new quick enough and may have it stopped before a new decision is made. decision is made.

Many people with disabled cars, scooters or wheelchairs Many people with disabled cars, scooters or wheelchairs via motability will need to get the forms back very quickly or via motability will need to get the forms back very quickly or they might not have a new award to continue or renew a they might not have a new award to continue or renew a further motability vehicle.further motability vehicle.

January 21, 2010 January 21, 2010

Hundreds of DLA claimants to be contacted Hundreds of DLA claimants to be contacted under new 'Correctness Programme' initiativeunder new 'Correctness Programme' initiative

Enquiry forms are to being issued to hundreds Enquiry forms are to being issued to hundreds of DLA claimants where information received of DLA claimants where information received through its benefits fraud hotline, despite not through its benefits fraud hotline, despite not being strong enough for a full fraud being strong enough for a full fraud investigation.investigation.

January 26January 26thth 2010 2010

Carer's allowance earnings limit to Carer's allowance earnings limit to increase from April 2010increase from April 2010

Change expected to benefit 40,000 carers Change expected to benefit 40,000 carers says Minister for Disabled Peoplesays Minister for Disabled People

The increase from £95 to £100The increase from £95 to £100

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