Universal Credit - East Renfrewshire Council

ACCREDITED INFORMATION AND ADVICE PROVIDERS
East Renfrewshire Council Money Advice and Rights Team
Money Advice
and Rights Team
Welcome to Adviser, The Money Advice and Rights
Teams social inclusion magazine. The remit of the
bulletin has changed slightly and I am delighted to
announce that the Welfare Rights Team are now fully
integrated with the Income Maximisation and Money
Advice services, under the heading of Money Advice
and Rights Team (MART). The magazine provides
relevant and updated information regarding appeals
and representation, money advice and practicalities
regarding claiming benefits. The team will continue to
focus on common issues for staff and their service users
as well as issues which have a wider impact on teams,
departments and the council.
With a new team there comes a change in living
arrangements and the Welfare Rights Team have
moved home. They have now taken up residency
within the integrated service within the Corporate and
Community Services at Barrhead Council Office. The
benefits of a fully integrated service are highlighted by
convener for corporate services Councillor Ian McAlpine
who states, “We are highlighting to residents that free
advice is available to all residents who need support
to resolve their financial problems. Our welfare rights
and money advice staff are experts in their area and
will offer free, confidential, impartial and independent
welfare rights and debt advice”.
Whatever your role, we hope you find the Adviser
both useful and easy to read. Contact 0141 577 8609.
Linda Wilson
Customer Services Manager
Promoting social inclusion and keeping you informed
August 2015
Inside this issue:
Universal Credit
Universal Credit – Making a claim for Jobseekers Allowance
Universal Credit – Tax Credit and Child Care Costs
Universal Credit and Carers – Questions and Answers
Child Poverty update
Devolution of welfare benefits
Welfare Advocacy Project
Money Advice
Winter Fuel Payment
Income Maximisation – Council Tax Reduction
Meet the Team
Welfare Rights Team
Making Links
2
2
2
3
4
4
4
5
6
7
7
8
8
Budget 2015
From April 2016, the government will reduce the level of earnings at which
a household’s tax credits and Universal Credit award starts to be withdrawn
for every extra pound earned. In tax credits, this point (known as the
income threshold) will be reduced from £6,420 to £3,850. The equivalents
in Universal Credit (work allowances) will be reduced to £4,764 for those
without housing costs, £2,304 for those with housing costs, and removed
altogether for non-disabled claimants without children. The government will
also increase the rate at which a person’s or household’s tax credit award is
reduced as they progress in work, by increasing the taper rate in tax credits
from 41% to 48%.
The Budget will limit support provided to families through tax credits to
2 children, so that any subsequent children born after April 2017 will not be
eligible for further support. An equivalent change will be made in Housing
Benefit to ensure consistency between both benefits. This will also apply in
Universal Credit to families who make a new claim from April 2017.
In addition, those starting a family after April 2017 will no longer be
eligible for the Family Element in tax credits. The equivalent in Universal
Credit, known as the first child premium, will also not be available for new
claims after April 2017. In Housing Benefit, the family premium will be
withdrawn for new claims from April 2016, to ensure fairness between
those who receive Housing Benefit and those who do not.
Other changes include the following:
adviser AUGUST 2015
•ESA for those in the work group will be equalised with JSA, this means
the removal of the WRAG component payment of £29.05 per week (a
loss of 28%).
•A new national wage is to reach £9 per hour by 2020. It will start at
£7.20 from April 2016. The current minimum wage is £6.50
• The tax free allowance will be raised from £10,600 to £11,000
• Outside London the benefit cap will be cut from £23,000 to 20,000
•Working age benefits will be frozen for four years, including Tax Credits
and Housing Benefit.
Page 1
Universal Credit
Universal credit is a new benefit that replaces the current system
of means tested benefits and Tax Credits. The guiding principle
of Universal Credit is to merge working age benefits into one
streamlined “simpler benefit”. Universal Credit is therefore a
single integrated means tested benefit payable to people of
working age. You can claim Universal credit if you are:
•
•
•
•
•
looking for work
unable to work through sickness or disability
a lone parent
caring for someone
on low wages
Universal Credit can be paid to single people, couples and for
children if you have a family. Under Universal Credit the following
benefits will be abolished for new claims.
• Income support
• Income based jobseekers allowance
• Income related employment and support allowance
• Housing Benefit
• Child Tax Credit
According to the national roll out guidelines Universal Credit will
be introduced within East Renfrewshire in Feb 2016. This however
is not a definitive timescale and there may well be exceptions.
For any further advice please contact
the Money Rights Advice Team.
Details on page 7.
Universal Credit Making a claim for
Jobseekers Allowance
(Income Based)
As mentioned in previous Adviser article Universal
Credit will be rolled out in Feb 2016 as per the
National guidelines. The roll out of Universal Credit
demands that working age means tested benefits
will be merged into one ‘simpler payment’ . For new
claims to Job Seekers Allowance the roll out will
initially apply to claims for single claimants only, with
the expectation that by 2017 it will be introduced
throughout Britain. In effect clients who are eligible
to make a claim for universal Credit will not be able
to make a new claim for income based Job seekers
Allowance. If clients are receiving contribution based
JSA the rules are different.
Please contact the Team on 0141 577 8609 for any
further advice/assistance.
Universal Credit,
Tax Credits and
Childcare costs
The main difference with Universal Credit are as follows
• Clients must be working regardless of amount of hours worked
• If part of a couple, both need to be working, unless 1.the non disabled partner has been assessed as having limited
capability for work
2. is a carer
3. Temporarily absent from home
Tax Credits are the primary source of help with child care
costs for working families. There are two types of Tax Credit, 4.With Universal credit it does not matter how many hours are
Child Tax and Working Tax. Working Tax Credit also includes
worked, although the amount of childcare cannot be excessive.
a childcare element to help towards the cost of paying a
registered or approved childcare provider. Clients are eligible
for the child care element if,
• Lone parent and work at least 16 hours per week
• Part of a couple and both work 16 hours or more
per week
• Part of a couple and one works at least 16 hours and the
other is disabled or a carer or in prison
Tax Credits are gradually being replaced with Universal
Credit. Clients can still claim Tax Credits if they are not
entitled to Universal Credit. You cannot get Tax Credits
and Universal Credit at the same time. The process of
transferring people from Tax Credits to Universal Credits is
not expected to begin before 2016.
Page 2
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Universal Credit and Carers –
Questions and Answers
Q. Could you sum up Universal Credit in very simple terms?
A.Universal Credit is a new means tested benefit for people of
working age, payable in or out of work and includes amounts
for adults , children and housing costs.
Q. What rate?
A.Disability Living Allowance (middle or highest rate of care)
or Personal Independence Payment (daily living component,
either rate) or Attendance Allowance (either rate).
Q. Can I claim Universal Credit as a Carer?
A.No, unless your only caring responsibilities are part of your paid
or voluntary employment.
Q.Is this the only way I will be recognised as a carer when
claiming Universal Credit?
A.No. You maybe recognised as a Carer even if you do not get
Carers Allowance.
Q.What happens if I am claiming Universal Credit and then
become a Carer?
A.You will then remain on Universal Credit.
Q.Would I then receive any additional monies for being
a Carer?
A.Before the introduction of Universal Credit an award of
Carers Allowance meant Carers received the Carers Premium
on their means tested benefits. The Carers premium will
now be replaced with the Carer Element in Universal Credit
Calculations.
Q. How do I get the Carer Element?
A. You will receive the Carers Element if you meet the entitlement
conditions for Carers Allowance. Importantly, you don’t have
to be paid Carers Allowance in order to receive the Carers
Element.
Q.What are the entitlement conditions?
A. As per qualifying conditions for Carers Allowance.
Q.What does substantial caring responsibilities mean?
A.In this context it means providing care for at least 35 hours
per week.
Q. Is there any particular definition of what care means?
A.No. Can be both physical, (assistance with personal hygiene,
lifting moving handling) or emotional (prompting, assuring,
encouraging).
Q.Will the impact of Welfare Reform continue to affect
different aspects of being a Carer whilst claiming
Universal Credit?
A. Yes. See article on page 2.
Q. The rules regarding being a Carer seem complex.
A.Yes. If in doubt contact the Money Advice and Rights Team
(MART).
Q. Where are they and how do I access help?
A. Contact details are on page 7.
Q.If I become a Carer after claiming Universal Credit, would
this help in any way?
A.In order to qualify for Universal Credit clients have to meet
certain work related conditions or requirements.
The requirements are as follows
• Work focused interview requirement
• Work preparation requirement
• Work search requirement
• Work availability requirement
In some circumstances none of these work related
requirements will apply. One such example is having caring
responsibilities.
Q. Is there a definition regarding being a Carer?
A.You are defined as a Carer if you have caring responsibilities for
a severely disabled person and you are not paid to provide care
Q. What is recognised as a “severely disabled person”?
A.To be recognised as severely disabled person, the person you
look after must get Disability Living Allowance or Personal
Independence Payment or Attendance Allowance at a
specific rate.
adviser AUGUST 2015
Page 3
Child Poverty
update
The government has announced that it will introduce a new approach
to tackling the poverty of disadvantaged children throughout Britain.
The current child poverty measure which is defined as 60% of median
income will be replaced with new measures focused on levels of
work within families and improvements in education attainment. The
government has been accused of moving the emphasis away from
addressing root causes of poverty as the targets previously set are
unlikely to be met. Allison Graham, Chief executive of Child Poverty
Action Group said, “If Child Poverty is rising as a result of government
policies, then it’s a rethink of government decisions not definitions
that’s needed“. Envor Solomon, Chair of the End Child Poverty
Coalition states, “a child’s family income is fundamental to their future
life chances. While a holistic approach to tackling child poverty is
important, income will always be vital for ending child poverty.“
For further information regarding supporting vulnerable children
please contact the Healthier Wealthier Children service on
0141 577 4029.
Welfare
Advocacy
Project
With the continuation and extension of more
objective, rigorous assessments through Employment
and Support Allowance and Personal Independence
Payments, the nature of these assessments and the
correspondence that is generated continues to cause
significant degree of stress and anxiety to vulnerable
clients. The importance of support in this area cannot
be overstated. The Welfare Advocacy Project aims to
support clients in this very difficult area.
The service aim to assist with the following:
•Assistance to understand, prepare and take part in
meetings, assessments etc regarding PIP and ESA
•Support in attending meetings, assessments etc.
Devolution of
welfare benefits
The new Scotland Bill is currently working its way through the
Westminster Parliament. There is likely to be a number of changes
along the way, but it is clear a number of welfare benefits currently
administered by the DWP on behalf of the UK Government will be
devolved to the Scottish Parliament at Holyrood.
It is still to be decided how these benefits will be administered
and whether there will be any changes to the rates or rules for
claiming. The Scottish Government is currently carrying out a
consultation exercise on this matter and anyone wishes to express
a view can do as at:
•Support to engage with specialist welfare agencies
for appropriate advice. This can include supporting
people to attend these appointment with these
agencies if necessary
The underlying principles of the service relate to
consultation, inclusion and dignity. The support is
targeted at the following people
• People with mental health condition
• People with learning difficulties
• People with Physical disability
• People with neurological conditions
http://www.scottish.parliament.uk/parliamentary
business/CurrentCommittees/90713.aspx
Among the benefits which will be devolved to Scotland are:
Disability Living Allowance (DLA)
Personal Independence Payment (PIP)
Carers Allowance (CA)
Attendance Allowance (AA)
Industrial Injuries Disablement Benefit (IIDB)
Severe Disablement Allowance (SDA)
Discretionary Housing Payments (DHP)
The regulated Social Fund
Linked to the above is the future of social security in Scotland. It’s
important that community and frontline organisations get involved
to help shape the future of benefits due to come to Scotland. View
further info at
[email protected]
Page 4
The Welfare Advocacy Project
can be contacted on 0141 420 0961
to make referral or discuss any
aspect of the referral process
adviser AUGUST 2015
Money Advice – what you should know
The first step is to arrange an appointment with a Money Adviser
who will assess the clients financial situation including after:
• Maximising your benefit
•Completing an income and expenditure statement (we ask
for proof of income and outgoings ie wage slips and bank
statements)
• Checking for PPI insurance
•Discussing if you have any assets eg house, car, savings,
bonds, insurance policies
• Checking liability for the debt
Depending on whether the client has a disposable income or not
and depending on what assets they have will produce possible
options to discuss with the client.
Statutory debt solutions
There are three statutory debt solutions. They are formal
solutions which provide legal options for people who
cannot pay their debts.
Money advice is compulsory for all
three statutory debt solutions and
your money adviser will help you to
understand what option is best for
you and why.
2
Debt Arrangement Scheme
Bankruptcy
(Sequestration)
Trust deed
You can arrange a trust deed for
your creditors. This is a legally
binding agreement between the
client and their creditors. Client’s
assets and property are passed to
a trustee who will manage your
financial affairs. Client will usually
be expected to make regular
payments towards your debts for
at least 4 years. After 4 years, if
they have met their obligations
under the trust deed, they will be
discharged and most remaining
debts will be written off.
MAP If client is on a low
income (with no disposable
income) or are in receipt of
benefits and assets of less
that £2,000 and you owe
at least £1,500 and no
more than £1700. This route
is called the Minimal Asset
Process (MAP).
Other options
In addition to statutory debt solutions money advisors can also look at
other options depending on the client’s situation:
• Token payment arrangement
• Court Representation
• Prescription – a debt cannot be enforced after a certain period of time
• Asking for a write off in exceptional circumstances
• Complaints and possible compensation where the lender has
provided credit irresponsibly
• Charity applications
The team are also involved in preventative work such as budgeting
training and talks.
adviser AUGUST 2015
1
The Debt Arrangement Scheme (DAS) is a scheme
set up by the Scottish Government
to help people manage their
debts. Once your Debt Payment
Programme has been approved
you make one regular
payment to a payment
distributor, who sends the
money to your creditors.
If you have no money left
over to pay your debts,
or you have so little that
it will take many years
for you to re-pay your
debt then bankruptcy
(sequestration ) may be
an option.
3
There are two route’s
to sequestration
A Full Bankruptcy where
you owe at least £3,000 and
have some disposable income
to pay towards your debts.
A common financial tool
will be used to determine
the surplus income and
this contribution will be
paid for 4 years.
Page 5
Winter Fuel Payment . . . already!
Discussing winter fuel payments so soon can only
mean we’re in the middle of a rubbish Scottish summer,
again!!!! Anyway, we need to be prepared, so here goes.
Winter Fuel Payment or Winter Fuel Allowance is
an annual payment to help with heating costs, made
to households with someone over Pension Credit age.
Not heating our homes properly puts us at risk of
cold-related illnesses such as a heart attack or even
hypothermia. So make sure you’re getting your
Winter Fuel Payment.
Who can claim Winter
Fuel Payment?
This information applies to the coming winter
of 2015-2016.
You will normally qualify and get paid for Winter Fuel
Payment provided that you were born on or before
the 5 January 1953. Therefore you will have to be at least 62 years
and 6 months old. You will also have to be living in the UK for the
week of 21 to 27 September 2015.
The Winter Fuel Payment is to help with the ever-increasing cost
of keeping warm in the winter months. The sum depends upon
what your circumstances will be or were during the qualifying
week of 21 to 27 September 2015.
2015/16 payments
If you’re under 80£200
If you’re over 80£300
Cold weather payment
Cold Weather Payments are made to eligible people
when the weather is very cold. You get £25 a week
when the average temperature has been‚ or is
expected to be‚ 0°C or below for 7 days in a row
(between 1 November and 31 March).
Who can claim Cold Weather Payment?
You’ll usually get less if you live with other people who also qualify.
How to claim Winter Fuel Payment
To make a claim or to ask about your payment, call the Winter Fuel
Payment Helpline on 0845 915 1515. You only need to claim once.
After this, you should get it automatically each year, as long as your
circumstances do not change. The payment is made directly into
your bank account in November or December.
You will automatically receive the payment, if
you get income-related Employment & Support
Allowance, income-based Jobseeker’s Allowance,
Pension Credit or Income Support. Contact the DWP
or Pension Service if you think you should have
received a Cold Weather Payment but didn’t.
The Winter Fuel Payment is to help with the
ever-increasing cost of keeping warm in the
winter months.
Please contact Money Advice and Rights Team for any further advice.
Contact details are on page 7.
Page 6
adviser AUGUST 2015
Income Maximisation –
Council Tax Reduction
Among many important aspects of supporting vulnerable clients
is the issue of income maximisation. Income maximisation offers
a valuable, practical support in identifying any shortcoming in
a client’s income. The support can range from benefit checks
to assisting with a complex interaction between means tested
and non means tested benefits. For the moment we will give a
brief account of Council Tax Reduction schemes but the practical
support from Income maximisation officers will be extremely
important as the introduction of Universal Credit gathers pace.
There are four ways to reduce council tax bills:
1. Disability Reduction scheme
2. Discount scheme
3. Council Tax Reduction scheme
4.Exemptions
1. Disability Reduction scheme
You or any other resident have a substantial and permanent
disability, of adult or child
And one of the following:
• Additional bathroom/kitchen for disabled person
• Use of the room for disabled person
• Space in the house for person to use a wheelchair/Equipment
• The Council Tax is reduced one band
Meet the team
Lisa Rennie
Welfare Rights Team Manager
Lindsay Kay
Financial Inclusion Officer
Welfare Rights Officers
Frances Brown, Brian Dunigan, Douglas Grant,
Lisa MacLeod, Claire Reilly and Jane Smith
Nicola Birrel
Senior Money Adviser
Money Advisers
Derek Patterson, Aimee O’Connor, Jill Slaven,
Rona Rodgers
Income Maximisation Officers
Linda Foster, Geraldine Cuthbert, Lorraine Lucas
2. The Discount scheme
Where there is fewer than two people in the house the council
tax liability is reduced by 25%. There are groups of people who
are disregarded for council tax purposes
•People who are severely mentally impaired (Please see
separate article entitled, Severe Mental Impairment)
• Carers (Please see article entitled Carers/ Welfare Reform)
•People whose sole residence is hospital or a care home or
certain kinds of hostel
• Students apprentices
The above is important in that Council Tax discount can be
achieved if there is anyone in the house who can be disregarded.
3. Council Tax Reduction
As part of the Welfare Reform agenda Council Tax benefit was
abolished in April 2013 and was replaced by the “Council Tax
Reduction Scheme”. This came with a 10% drop in UK funding
which has been protected by the Scottish parliament.
East Renfrewshire Council Welfare Rights Team is accredited by
the Scottish Government to provide advice and representation
at type III in all nineteen areas of social and welfare law.
East Renfrewshire Council Welfare Rights Team is members
of The National Association of Welfare Rights Advisers which
represents welfare rights professionals from local authorities
across the United Kingdom. The Money Advice Team is
accredited by the Scottish Government to provide money
advice at type 2 in all areas of money advice.
East Renfrewshire Council Welfare Rights Team are members
of Rights Advice Scotland which represents welfare rights
professionals from local authorities across Scotland.
4. Exemptions
The next article of Adviser will have fuller outline of exemptions
including Severe Mental Impairment. For further information
regarding exemptions please contact Money Advice and
Rights Team.
For any further information about entitlement to council tax
discount please contact the Money Rights Advice Team to discuss
more fully.
adviser AUGUST 2015
ACCREDITED INFORMATION AND ADVICE PROVIDERS
0141 577 8609
Page 7
How can the Money Advice
and Rights Team assist you?
DUTY SERVICE
The team provides a duty service for staff and partner
agencies. The service is designed to support staff working
with service users. You can contact the service Monday-Friday
on 0141 577 8609 or alternatively on e-mail at
[email protected]
MART are there
to advise and ass
ist
staff across the co
uncil
and our external
partners in all ma
tters
relating to the sta
te
benefit system.
REPRESENTATION
The team will represent any resident of East Renfrewshire
wishing to appeal against a benefit decision made by the
Department for Work and Pensions, Her Majesty’s Revenue
& Customs or decisions of the council relating to housing or
council tax reduction.
BENEFIT TRAINING/BRIEFINGS
We will also provide training/briefings to staff and partners in
the following areas: state benefits,welfare reform, legislative
change. We will also provide training briefing on Money
advice and income maximisation. We are happy to meet with
teams if they are experiencing any difficulties with the benefit
system or would benefit from specific input in relation to
money advice or income maximization.
CANCER
Income Maximisation Officers will offer a direct service to any
service user who has been affected by a cancer diagnosis.
HEALTHIER, WEALTHIER CHILDREN
The CHCP has linked with the NHS to employ a financial
inclusion officer who will work directly with any family where
there is a child eight-year-old or under in the household.
Healthier, wealthier children will provide
a full income maximisation service
offering advice, benefit calculations
and help with claim forms.
Making Links
Benefit claim forms www.dwp.gov.uk/publications/claim-forms/
Chest, heart and stroke www.chss.org.uk/community_support/welfare/index.php
Child benefit www.hmrc.gov.uk/childbenefit/index.htm
Child poverty action group www.cpag.org.uk/
Direct gov benefit information www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/index.htm
DWP publications and claim forms www.dwp.gov.uk/publications/claim-forms/
Local housing allowance www.eastrenfrewshire.gov.uk/localhousingallowance
MacMillan cancer support www.macmillan.org.uk/Home.aspx
The pension service www.thepensionservice.gov.uk/
Tax credits information www.taxcredits.hmrc.gov.uk/HomeNew.aspx
Page 8
adviser AUGUST 2015