Introduction to Welfare Benefits

1. Introduction to Welfare Benefits Assert Tuesday 26th February 2019

2. By the end of today you will: • Understand how the benefits system is structured and the differences between contributory, non-contributory and means tested benefits • Know who can claim each of the benefits that make up the system • Know how the main working age benefits interact with each other • Have an awareness of how entitlement for the main working age disability and sickness benefits are calculated • Be able to advise people on how to make claims and how to challenge a benefit decision. • Have an awareness of welfare reform and how the benefits system is likely to change

4. Who is this rather defeated looking lady?

6. Means Tested benefits • Income related benefits that require a detailed assessment of your needs, circumstances, income and capital to work out entitlement • Affected by most other types of income (including the income of your partner if you live together) • The amount you will be paid is dependant on how much you have in savings and capital, and this can vary for each benefit • Most means-tested benefits are being replaced by Universal Credit: • Income-based JSA, Income Related ESA, Housing Benefit, Working Tax Credits, Child Tax Credit, Income Support • Pension Credit and the Social Fund are still unaffected

7. Non-Means tested Benefits • Not usually affected by other money that you or your household have • Some benefits are dependant on you earning a certain amount, or by your national insurance contribution record or by whether you have an occupational or private pension • 2 main types of non-means tested benefits: • Contributory • Non-Contributory

8. Contributory • You must have paid enough class 1 national insurance contributions to qualify • You can check your national insurance record here: https://www.gov.uk/check-national-insurance-record • Those marked * are affected by earnings or occupational or private pensions: • Bereavement Support Payment, Contribution Based JSA*, Contributory ESA*, New Style ESA*, State Pension (categories A & B), New Style State Pension Non-Contributory Benefits • Not dependant on your national insurance record, although for benefits marked ** additional conditions can apply • Armed Forces Independence Payment, Attendance Allowance, Carer’s Allowance**, Child Benefit, Disability Living Allowance, Personal Independence Payment, Statutory Sick Pay**, Statutory Mat/Pat/Guardian/Adoption/Shared parental Pay**, State Pension Category D, War Disablement Pension

9. Working out what you’re entitled to: 1. Check entitlement to non-means tested and Statutory Payments • Have they paid enough national insurance contributions or are they entitled to statutory payments? • Do they qualify for non-contributory benefits such as PIP, Attendance Allowance, Carer’s Allowance or DLA? 2. Check entitlement to means tested benefits • In most cases this will result in an application for Universal Credit • However there can be exceptions to this e.g. parents with more than 2 children, or if you receive the ‘Severe Disability Premium’ (or qualified for this in the last month) 3. Check if there is any other help available

10. Don’t Panic! You can use an independent benefits calculator to find out: • Your entitlement to means and non-means tested benefits • How to claim • How your benefits will be affected if you start or stop working • Warning: These may not be accurate if you are a student, if you are in hospital, residential care or prison, or if you are under 18 • Turn2us: https://benefits-calculator.turn2us.org.uk • Policy in Practice: https://www.betteroffcalculator.co.uk/#/free • Entitledto: https://www.entitledto.co.uk/

11. Disability Living Allowance • Non-contributory, Non means-tested benefit designed to help with the extra costs of raising a child with a health condition or disability. • Being Replaced by Personal Independence Payment for people aged 16-64. You can now only make a new claim if you are under 16 • If you are an adult in receipt of DLA (even if you have a lifetime award) this will end and the DWP will write to you when it is time to make a new claim for PIP • Entitlement to DLA does not automatically mean you will be entitled to PIP as the eligibility criteria and assessment process differ • Can be paid at the same time as most other social security benefits • Can entitle you to Housing Benefit, Child Tax Credits and Carer’s allowance • Not Taxed and Exempt from Benefit Cap

12. Personal Independence Payment • Non-means tested, non-contributory benefit designed to help adults between 16-65 with the additional cost of having a health condition or disability. • Not taxed or treated as income and exempt from benefit cap • Eligibility criteria: • aged 16-65 on the date of claim (you can claim PIP up to the date of your 65th birthday – if you are over 65 you must apply for attendance allowance) • must not be a person subject to immigration control (although there are some exceptions) • Must be ordinarily resident in the UK (not having been abroad for more than 4 weeks at a time in the last 2 years) • Must score at least 8 points in daily living or mobility section to qualify for standard rate. Must score 12 points or more in daily living or mobility tests to qualify for enhanced rate.

13. PIP: The claims process There are 3 stages to your claim: • Start by calling the DWP on 0800 917 2222 to complete a PIP1 form by phone. • requires your full name; national insurance number; the address and telephone of your GP and any other health professionals that know you, and bank details for the account you would like this benefit to be paid into • NB If you are unable to call, you can write to the DWP and ask for a PIP1 form in the post, although this process can take a long time. You’ll need to tell them why you (or someone else) can’t do the PIP1 form over the phone. • Fill in the claim form they send you (‘how your disability affects you’ aka PIP2 • Go to a face-to-face assessment - most people have to do this (but you won’t if you’re terminally ill or if you can provide evidence from a health or social care professional that doing so would cause you an unmanageable level of psychological distress)

14. Attendance Allowance • Non-means tested, non-contributory benefit designed to help people aged 65 or over to help if you have additional care needs or need supervision to stay safe • Ignored as income for means testing purposes, and exempt from benefit cap • Can be paid at the same time as most other social security benefits • You won't be able to get Attendance Allowance if you already get PIP or if you get the ‘care component’ of DLA. • If you apply for Attendance Allowance while getting DLA, the DWP will usually reassess your DLA award instead. If you were born on or after 9 April 1948, you’ll be moved from DLA to PIP, and you might get less money. • You can renew your PIP or DLA when the existing award ends as long as you still meet the eligibility criteria. • If your renewal is unsuccessful you can apply for Attendance Allowance instead.

15. Carer’s Allowance • Non means-tested non-contributory benefit for people who regularly spend at least 35 hours per week caring for a severely disabled person • Counted as income for means-testing purposes but exempt from benefit cap • You do not have to be related to or live with the cared for person • You are not prevented from receiving Carer’s Allowance if you are disabled yourself and also require care • Cannot be paid at the same time as ‘Severe Disability Premium’ for the cared for person • Cannot be paid at the same time as some means-tested benefits, see ‘overlapping benefits rule’ for more info • If you are entitled to means tested benefits, a ‘Carer Premium’ will be added to your award • If you receive universal credit, a ‘Carer Amount’ will be added to your UC payment

16. Employment and Support Allowance • Sickness benefit designed for people who are too unwell to work or work as much as they need to • 2 types: Income Related ESA and Contributory or “New Style” ESA • Income related ESA being replaced by Universal Credit. It is no longer possible to make a new claim for I-R ESA (unless you receive SDP!) • Contributory/’New Style’ ESA is dependant on your NI record, and unless you have been placed in the ‘Support Group’ you this is time limited to 12 months • To qualify you must: • Have Limited Capability for Work • Accept the ‘Claimant Commitment’ • Be over 16/Under state pension age • Not be in work or entitled to Income Support, JSA or Statutory Sick Pay

17. Universal Credit • Flagship project of the welfare reform: one monthly benefit payment for people on a low income or who are not in work • Digital-based service that requires claimants to set up and manage a Universal Credit account online • Being rolled out in stages, replacing the following means-tested benefits: • Housing Benefit • Working Tax Credits • Child Tax Credits • Income Support • Income-Related ESA • Income-based JSA • If you receive any of the above, you cannot make a claim for Universal Credit at the same time and an application for UC cancels your entitlement • You can’t claim Universal Credit if you are getting the Severe Disability Premium or if you received it within the last month and are still eligible for it.

18. Who can claim Universal Credit • You can claim UC if: • You have a low income or are out of work • You or your partner are 18 or over (there are some exceptions to this) and below state pension age • You and your partner have less than £16,000 in savings • You live in the UK and pass the habitual/ordinary residence tests • If you live with a partner their income, savings and capital will be taken into account and they will need to set up their own UC account and link this as a joint claim • Paid monthly in arrears: what you will be paid can change each month and depends on your circumstances and earnings • Made up of standard allowance and additional ‘elements’ depending on your circumstances

19. How benefits interact with each other • You can receive PIP, DLA or AA at the same time as any other means tested or contributory benefit • If you receive the middle or high rate ‘daily living’ component for DLA or any rate for PIP and you live on your own (or are treated as living on your own) you can qualify for Severe Disability Premium on top of your income benefit or working tax credits • If someone receives carers allowance for you, you no longer qualify for the Severe Disability Premium • If you receive carers allowance, there are limits to what other benefits you can apply for and you should see the ‘overlapping benefits’ rules • If you receive a means tested benefit you can qualify for help through ‘passporting’

20. PassportingBenefts • Some Benefits and tax credits can passport you to other benefits or schemes including: Income Support, Income based JSA, Income related ESA, Pension Credit (guarantee credit) and Universal Credit • If you, or your partner, are in receipt of one of the above benefits you will be eligible for Full housing benefit (based on your ‘eligible rent’) and full Child Tax Credit for children you receive Child benefit for • You will not need to provide proof of any other income or capital while you are entitled to a passported benefit but you must advise the DWP straight away if your claim for any of the benefits ends.You may also be entitled to: • help with health costs, including free NHS prescriptions, dental treatment, eye tests and help with cost of travel for NHS treatment or referral by a doctor or dentist • Housing Grants • Free School Meals • Energy Efficient Grants • Sure start Maternity Grants • Warm house Discount

21. How to challenge a benefit decision • If you want to change a DWP benefit decision, you first have to ask the DWP to look at this decision again: This is called amandatory reconsideration • You must normally ask for a mandatory reconsideration within 1 month of your original benefit decision • If you miss the deadline, it is still worth sending your mandatory reconsideration. For most benefits you can still request a MR within 13 or 14 months of the original decision • The decision letter will say whether a mandatory reconsideration applies and tell you how to ask for it. You can do this over the phone or in writing. It is best to apply in writing or to confirm your phone call in writing and this should be signed by the claimant • You can't appeal until you get a decision from the DWP on your request for a reconsideration. This is called a mandatory reconsideration notice. • If you disagree with the outcome of the reconsideration, you can then appeal to HM Courts and Tribunal Service. You must send a written appeal directly to HM Courts and Tribunal Service, not to the DWP. This is known as direct lodgement. • If you decide to appeal, your appeal request must arrive at the Tribunal Service within one month of the date on your mandatory reconsideration notice. This time limit can only be extended in special circumstances.

22. What fresh hell is yet to come? • The next phase of the Universal Credit Roll-Out (‘managed migration’) is set to begin in July 2019 and will start with the ‘managed migration test project’ • Transitional Protection Regulations have been drafted, which means that people who receive (or who have received in the last month and are still entitled to) SDP will have their benefit income protected (although this will be time limited) and will be the last people to move to Universal Credit • The Benefit Cap applies to most means tested and contributory benefits, and when calculating entitlement you should be aware of the current benefit cap limits for claimants outside of London

23. Useful Resources • https://www.understandinguniversalcredit.gov.uk/ • https://pipinfo.net/ • https://wcainfo.net/ • https://advicelocal.uk/ • https://universalcreditinfo.net/ • https://counciltaxhelp.net/