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Welfare reform, state pension and (injury)benefit changes

Welfare reform, state pension and (injury)benefit changes. Nicola Lee Employment Relations Adviser. Welfare benefits – key triggers. Ill health / disability Unemployment Family (school aged children) Low income Pensioner Carer Pregnancy Widow Passported benefits Contributory

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Welfare reform, state pension and (injury)benefit changes

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  1. Welfare reform, state pension and (injury)benefit changes Nicola Lee Employment Relations Adviser

  2. Welfare benefits – key triggers • Ill health / disability • Unemployment • Family (school aged children) • Low income • Pensioner • Carer • Pregnancy • Widow • Passported benefits • Contributory • Means tested http://www.rcn.org.uk/__data/assets/pdf_file/0006/403548/Factsheet_15_-_A_quick_guide_to_benefit_poster.pdf

  3. Welfare reform - headlines • Cuts totalling £18 billion over the next three years • Main impact on families and disabled people and those in high rent areas • Increased conditionality • Benefit cap

  4. Main changes • Universal Credit to replace 6 existing means tested benefits and tax credits for working age people (Oct 2013 – 2017) • Personal Independence Payment (PIP) to replace DLA(2013/4) • 12 mth time limit for contributory Employment and Support Allowance (April 2012) • Housing benefit caps (April 2013) • Abolition of Social Fund payments (April 2013)

  5. Who will be affected • Lower paid – reliant on childcare element of tax credits • Long term sick • Disabled employees • Tenants in high rent areas • Under 35s in rented accommodation

  6. State Retirement Pension changes • Change in contribution requirements – 30 years • Change in pension age • 66 by 2020 • 67 between 2034 and 2036 • 68 between 2044 and 2046 • Auto enrolment - NEST

  7. Other benefit issues • Tax credits – freeze elements and reduced childcare payments (from April 2011) • Migration of Incapacity benefit claimants to Employment and Support Allowance • Change to Work Capability Assessment • Work Programme

  8. Signpost members for help • RCN Welfare Rights and Guidance service • 0345 408 4391 • wrg@rcn.org.uk • www.rcn.org.uk/mss

  9. NHS Injury Benefits • Current arrangements • Temporary Injury Allowance • Permanent Injury Benefit • Death Benefits • Wholly or mainly attributable to NHS employment • Permanent loss of earning ability (PIB)

  10. NHS Injury Benefit review • Review recommendations • Repeal current regulations (no detriment to existing beneficiaries) • Replace with provision in AfC handbook • Limited to employment contract • New allowance similar to TIA • More generous offsetting rules • Paid also during phased return • Pay protection

  11. NHS Injury Benefit – next steps • Ratification from NHS Staff Council 21/10/11 • Seek approval from Health Departments and clarify position in Northern Ireland • Consultation and then repeal of current regulations • Implement new AfC handbook section • Hopefully by 1/10/12!

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