Spring 2012 Issue 09

Highlights Read on for some useful information about impacts of Welfare Reform; benefits changes since the last Bulletin; update on our new team plus some dates for your diary. Some impacts of Welfare Reform – a foreword Benefit Cap We understand that Department for Work and Pensions (DWP) have been working with Her Majesty’s Revenue and Customs (HMRC) to identify those people who may be affected by the Benefit Cap – i.e. the total benefit income limit which will be applied to certain claimants/households from April 2013. From 3rd May 2012, DWP proposes to write to all households likely to be affected. A Helpline for claimants is being set up to receive initial enquiries prompted by the letters and to offer support and information.

We are working with partners to ensure that front line staff have an awareness of the new rule and are prepared for any additional calls that they may receive as a result. Time limiting Contributory Employment and Support Allowance (ESA) From April 2012, the first cohort of claimants affected by this new rule will see their benefit change. For some it may be that they need help to ensure they have claimed income related ESA. For other claimants; particularly those who are unable to claim income related ESA (because they have a partner who works over 24 hours a week), it will be vital that they are encouraged to get a full benefit check. This could ensure they get increased help with Housing and Council Tax Benefit etc to reflect the reduction in income. Social Fund As many will be aware the Welfare Reform Act contains provisions which provide for the transfer of specific parts of the social fund i.e. Crisis Loans and Community Care Grants from DWP to top tier local authorities, i.e. County Councils. ECC are working on a plan,

looking at the legislation, potential impact, and exploring some options around delivery. We will be in contact with stakeholders when we have more to discuss. Welfare Reform - Working Group Given the complexity and volume of Welfare Reform changes, a group of County Council officers from across all directorates have formed a working group. Their task is to scope and analyse the changes and identify the potential impact on residents. We have also been working closely with partners in District and Borough councils to look at ways in which we can inform and support residents, staff and partners. It is more important than ever for those affected by changes to their benefit to seek a benefit check – in case the cessation or reduction of one benefit means they may be entitled to another. If you have any enquiries about this, Cathy Cunningham- Elliott can be contacted by email cathy.cunningham-elliott@essex.gov.uk Benefits Updates Housing Benefit & Local Housing Allowance – January 2012 A reminder that Local Housing Allowance (LHA) restrictions regarding the shared accommodation rate were extended to include single claimants under the age of 35 years. Transitional protection for existing claimants ended on 1st January 2012. Housing Benefit Payment Trials are taking place from June 2012. Under Universal Credit, it is planned that the

housing element for social housing will be paid directly to the claimant on a monthly basis. From April 2013, LHA upratings will be linked to Consumer Price Index (CPI) rather than the Retail Price Index (RPI). Additionally housing entitlements for those of working age will reflect family size. Help with mortgage interest – extended to January 2013 The temporary changes to support claimants entitled to help with mortgage interest have been extended until January 2013. These changes include reducing the waiting period to 13 weeks and increasing the eligible mortgage capital limit to £200,000. Council Tax Benefit Localisation From April 2013 Council Tax Benefit will be administered by Local Authorities own schemes and with less central government funding. We had an informative presentation from Rob Hawes from Chelmsford Borough Council on this subject at our recent Essex Benefit Network meeting. There is a ‘Pan-Essex’ working group including County, District and Boroughs and Unitary Authorities. Together they are working on the new scheme and beginning to model scenarios. The thinking is there will be a similar overall approach with individual variations. There will be a consultation period as part of the planning process. If you have any questions about this, Rob can be contacted by email robert.hawes@chelmsford.gov.uk Employment and Support Allowance (ESA) - April 2012 As previously mentioned, Contributory ESA claimants who are in the Work Related Activity Group (WRAG) will have their claim limited to one year. If they have entitlement to

income-related ESA after this time they can continue to claim, otherwise payments will cease. For Incapacity Benefit claimants who migrate to ESA and who are placed in WRAG, the time starts from their date of transfer. The ‘In Youth’ version of Contributory ESA is no longer available to new claimants. Those existing claimants in the WRAG will also have their claims limited to one year. Please note that those claimants of Contributory ESA who are in the Support Group (SG) are not subject to this restriction. From 1st May 2012, the 104 week ‘linking rule’ is being removed. Linking rules mean that someone may be able to return to their previous ESA award after a period of work. A linking rule of 12 weeks will now apply. It is planned that all Incapacity Benefit, Income Support on the grounds of disability and Severe Disablement Allowance claims will have undergone the migration to ESA by January 2013. Only those existing claimants of these benefits who are due to reach State Pension Age in 2014 will not go through the process. From March 2014, there are changes planned for the ESA Work Capability Assessment following the Harrington Review. Jobseekers Allowance April 2012 sees the introduction of a 3 year Jobseekers Allowance youth contract for those aged 18-24. It includes measures such as work experience, weekly signing cycles for claimants and incentives for employers.

From 23rd April 2012, Jobseekers Allowance claimants (JSA) who have been victims of domestic violence can be treated as meeting the Jobseekers conditions for an initial four week period. They will need to notify the Secretary of State in the required way that they have been threatened with, or subjected to domestic violence and the initial four week period is to provide time to do this. Working Tax Credit – April 2012 Couples with children now have to work at least 24 hours per week between them, with one partner working at least 16 hours in order to claim Working Tax Credit. There are exceptions to this including if one partner is a carer or the worker qualifies for the disability element. The ’50 plus’ element, which previously applied to those aged 50 and over returning to work following a benefit claim, has been withdrawn. People over 50 can still claim Working Tax Credits but would need to be working at least 30 hours per week unless they can access the 16 hours per week category by another route. Child Tax Credit – April 2012 There has been a change in the income limits for Child Tax Credit. Income limits may be different for some individuals based on their circumstances, for example if they have a disability. The following link will take you to the HMRC website which gives more detail about the change: http://www.hmrc.gov.uk/taxcreditsbudget/index.htm#1 The family element of Tax Credit is now withdrawn immediately after the Child element is withdrawn.

Tax credit claims and changes of circumstances can now only be backdated for one month instead of three months, giving less time to notify events like the birth of a child. Another important change is that the ‘in year’ falls in income disregard will reduce to £2,500. Unless income falls by more than this, Tax Credits will not be recalculated. From April 2013, the disregard for ‘in year’ increases in income will reduce from ₤10,000 to ₤5,000 It has been proposed that giro cheque payments for Tax Credits will only be for 4 weeks and will then cease until an account has been provided. From October 2012 no payments will be made unless an account has been provided. Child Benefit – 7th January 2013 The latest on Child Benefit is that a charge will be applied to taxpayers in relation to their or their partner’s child benefit claim where income exceeds £50,000. A levy will be applied to income between £50,000 and £60,000 up to the amount equal to Child Benefit received. It is debatable whether this will have an effect on providing evidence for child responsibility for certain claims, where being in receipt of Child Benefit offers access. An example of this could be Parent and Carer Credits (formerly Home Responsibilities Protection) which count towards contributions for State Pension and also child premiums in Housing Benefit.

Income Support – 21st May 2012 For some time we have been aware of the proposals to change the Lone Parent eligibility criteria in respect of the age of the youngest child. With effect from 21st May, Lone Parents whose youngest child is aged 5 or over will not be able to claim Income Support via this route. They will be expected to claim Jobseekers Allowance unless they meet the criteria for Income Support in another way, for example as a carer for a disabled person. From April 2014, it is proposed that remaining cases of pre-tax credit Income Support and income based Jobseekers Allowance which have child additions will no longer exist. Claimants may be eligible for other benefits. State Pension Age State Pension age for women continues to adjust to equalise with mens. This also has an effect on the age at which Pension Credit and Winter Fuel Payments claims can be made. In March 2015 State Pension age for men and women is set to increase to 66 and between the end of 2015 and end of 2017, State Pension age starts to rise in stages to 67. By October 2020, State Pension Age will be 67. Weekly Benefits Limit (Benefit ‘Cap’) From April 2013, a weekly benefits limit will apply. For lone parents and couples this will be £500 per week and for single claimants £350 per week. There are some exceptions to this, for example claimants of Working Tax Credits and Disability Living Allowance. The weekly limit does not include Social Fund loans, free school meals or Discretionary Housing Payments and Council Tax Benefit.

Universal Credit In April 2013, the Universal Credit (UC) Pathfinder will launch, with the intention of roll out nationally from October 2013. In the first phase, new claimants will receive UC in place of means tested, working age benefits (Income Support, income based Jobseekers Allowance, income related Employment and Support Allowance, Housing Benefit and Tax Credits). UC will be payable to those both in and out of work. Significant changes in circumstances will also see existing claimants transferred to UC. The second phase from October 2013 encompasses those households who could benefit from receiving UC will be transferred. From 2015 to the end of 2017, all those remaining on existing benefits will be transferred over to Universal Credit. Personal Independence Payments (PIP) and Disability Living Allowance From April 2013, Personal Independence Payments (PIP) will replace Disability Living Allowance (DLA) for working age claimants. It is planned that a ‘face to face’ assessment will be part of this process. There will be two components - ‘Daily Living’– ‘and ‘Mobility’. Each will have two rates, ‘Enhanced’ and ‘Standard’ At present we do not know amounts that might apply and finer details but hope to be able to share more information on the PIP process with you later in the year – either through our Essex Benefits Network or other usual channels. Those claimants of DLA aged over 65 will continue to claim DLA for the foreseeable future. Claimants of DLA aged under 16

and claimants of Attendance Allowance are not currently part of the PIP process. Motability Scheme From January of this year and for new applicants, drivers of motability cars can only be insured on the vehicle if they live within 5 miles of the Disability Living Allowance claimant. Social Fund As mentioned in the foreword, from April 2013 specific parts of the Social Fund i.e. Crisis Loans and Community Care Grants will be localised and will be administered by Local Authorities with their own schemes. Budgeting Loans will be replaced by an advance payments system for those waiting for their usual benefit to be paid. We are still working with the system in it’s current form. From April 9th 2012 Crisis Loans for non-householders in an emergency or disaster situation will be allowed a maximum award in relation to living expenses. This will be based on 30% of the appropriate benefit personal allowance rate, rather than the previous 60%. School Leaving Age It is proposed that during 2013, school leaving age will increase to 17 years followed by a rise to 18 from May 2014. Post Office Card Accounts (POCA) These were created to assist claimants without a bank account or who were unable to obtain one. POCAs were intended as a temporary measure and will now run until March 2015, with the possibility of an extension beyond that. Benefit cheque payments are being phased out. On this theme, the ‘Simple Payment’

service will be available from Summer 2012. It will be a contracted service provided by Citibank and Paypoint across the UK and is aimed at those who cannot use a mainstream account or Post Office Card Account. It is not intended for those who already have an account or would be able to open one. Claimants are sent a welcome pack which explains how the service works and they are issued with a card that allows them to access their benefit payments at Paypoint outlets. The card does not have any financial value or hold details of the claimant. Where a regular carer or family member collects payments on behalf of the claimant an additional card is issued. You can read more information by clicking on the link below and opening the PDF file: http://www.adviceuk.org.uk/filegrab/documents/1e27723a3fd6d183a78d65496e97537f/sig-factsheet-v-3.0-a.pdf This completes our Benefits round up for this issue. What’s in a name… You may have noticed that our name has changed, though this issue retains our old headers! As Information, Advice and Advocacy we are part of the Strategic Planning and Commissioning Team at Essex County Council. We are delighted to continue working with you and thank you for your support. Helpline Our Helpline remains open daily 9.30 to 4pm for benefit related enquiries and we look forward to hearing from you. Please remember that our Helpline is only for

your use as our partner organisations. The number should not be given out to members of the public. Training Our training courses continue at various venues around the County. Please visit our website for details www.essex.gov.uk/essexbenefitsplus/training Dates for this quarter have been released from April and are filling up fast. Currently one day courses on Introduction to Benefits, Employment and Support Allowance, and Disability Living Allowance are on offer. We will be releasing some new dates by the end of April. Courses will include our popular Out of Work benefits and also Benefits for Carers. Places are free to staff working with people in the Essex area. Disability Rights Handbook 2012/13 issue Previously we have been able to provide each of our training delegates with a copy of this useful handbook. Unfortunately this is no longer the case and your organisations may wish to purchase copies for frontline and office use. The handbooks are published by Disability Rights UK and retail at ₤28.50 each including postage and packaging. They can be obtained by ordering online through the Disability UK website: www.disabilityrightsuk.org . Contact phone number for Disability Rights UK is 020 7250 3222 Benefits Rates Guides We are no longer involved in the production of rates guides. Other organisations do produce these and they are available on the internet. An example is the LASA Benefit Rates poster, which can be found on their website and is downloadable: http://www.rightsnet.org.uk/pdfs/benefit_rates_poster_2012_2013.pdf

Dates for your diary Essex Benefit Network For those of you who couldn’t attend our recent well attended Updates session, our next Essex Benefit Network meeting will be held on Wednesday 18th July 2012. Usual venue of the Essex Records Office, Wharf Road, Chelmsford. Starting promptly at 9.30 a.m. with an estimated 12.30 finish. The topic for this session will be advertised nearer to the date. Invitations will be emailed to our distribution list by the beginning of July. If you would like to be added to our list please let us know. What do you think of our Bulletin? We appreciate your views on ways to improve our service. Please let us know your thoughts and any suggestions for improvement. Contact us Helpline 01245 434205 Mon-Fri 9.30-4pm benefits.helpline@essex.gov.uk Fax: 01245 436319 All other enquiries essexbenefitsplus@essex.gov.uk Information Advice and Advocacy Strategic Planning and Commissioning A5 County Hall Chelmsford CM1 1YS www.essex.gov.uk/essexbenefitsplus