spring edition 2021 welfare benefits tea m factsheet

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Spring Edition 2021

Welfare Benefits TeamFactsheet

In this edition we cover

The Over 75s...

Universal credit and the Budget

Major change for disabled people

Means-testing and non-means testing

Pensioners Missing Out…

Many married women (and other groups - please see below) who reached ‘state pension age’ (i.e. the age at which they could officially retire and receive a state retirement pension) before 6 April 2016, may have missed out on state retirement pension entitlements dating back many years.

They may now be owed many hundreds of pounds (in some cases thousands of pounds) in back pay.

The current estimate is that £2.7 billion in back pay in state retirement pension is owed and £90 million in ongoing entitlements is to be paid.

If a person reached state pension age before 6 April 2016 then they could claim the ‘old’ Retirement Pension. Under these rules a person could claim a

Category A Retirement Pension based

upon their

own National Insurance contributions record. To qualify for a full pension (currently worth £137.60 per week) a person needed to have a National Insurance contributions record of at least 30 qualifying years.

However, married women who did not have a complete National Insurance contributions record could apply for a Category B Retirement Pension (worth up to £82.45 per week or 60% of their husband’s full Retirement Pension entitlement whichever was the lesser figure) based upon their husband’s National Insurance contributions record once their husband had reached the then state retirement age of 65. In effect a woman could be paid whichever paid

the greater amount between the Category A Retirement Pension and the Category B Retirement Pension.

Continued on page 2

For further information contact: [email protected]

2 | Welfare Benefits Team Factsheet Spring Edition 2021

Pensioners Missing Out…Who may be affected? Continued from page 1

As stated this does not only affect married women. It also affects others. The people who may have missed out include:

Age 65 before 6 April 2016

Married women (or civil partners) who reached state pension age of 65 before 6 April 2016 whose Retirement Pension is less than £80.45 per week (£82.45 per week from 5.4.2021).

Age 65 before 17 March 2008

Married women (or civil partners) whose husband (or civil partner) reached the age of 65 before 17 March 2008 who failed to apply for any additional Retirement Pension, perhaps because they did not realise that they could.

Pension was not increased

Widows (or bereaved civil partners) whose pension was not increased when their husband (or civil partner) died.

Aged 80 Retirement Pension is less than £80.45pw

A person who is now aged 80 or over whose Retirement Pension is less than £80.45 per week (£82.45 per week from 5.4.2021) irrespective of their marital status.

Partner was underpaid and now deceased

If a woman (or civil partner) was underpaid but they are now deceased, then her widow (or bereaved civil partner) or surviving children may apply for the backdated payment that would otherwise have been paid to her.

The Pension Service have been aware of the issue since last year. It has taken on extra staff to identify and contact those who are owed money. Between August 2020 and January 2021 scans of old computer records took place to identify those potentially affected. Anyone who thinks that they may have missed out may contact the Pension Service on 0800 731 0469 to check.

The ‘new’ State Pension was introduced for people reaching state pension age on or after 6 April 2016. Qualification is dependent upon the contributions record of the claimant. How much is paid is ultimately determined by how complete a person’s National Insurance contributions record is. To qualify for a full pension (currently worth £179.60 per week) a person must have a National Insurance contributions record of at least 35 qualifying years. Anyone who is affected by this and receives a lump sum payment or an increase in their Retirement Pension should bear in mind that it could impact on any benefits that they are currently in receipt of.

Welfare Benefits Team Factsheet Spring Edition 2021 | 3

The Over 75s…Since 1 August 2020 the TV licencing laws were changed, and people aged over 75 no longer qualify for a free TV licence unless they are in receipt of Pension Credit or are blind (severely sight impaired) or live in a care home. Pension Credit is designed to provide people over state retirement age with a minimum income for day-to-day living. From 5 April 2021 the minimum income figures will be:• £177.10 per week

for a single pensioner• £270.30 per week

for a pensioner coupleThe principle is that if a single

pensioner’s total income or pensioner couple’s total income is less than these amounts, they can apply for Pension Credit as a top-up to their already existing income.

State retirement pension, private pensions and occupational pensions are all counted as income along with any earned income. Attendance Allowance, Disability Living Allowance and/or Personal Independence Payment are all fully disregarded but must be declared. Pension credit can be claimed over the phone or online.

Deadline to apply to EU Settlement Scheme 30 June 2021

The European Economic Area (EEA) and Swiss citizens and their family members living in the UK by 31 December 2020 will be able to claim or continue to receive benefits for as long as they continue to be lawfully resident in the UK and meet the eligibility requirements. To lawfully live in the UK, EEA and Swiss citizens and their family members (including children) must apply to the EU Settlement Scheme by 30 June 2021.

Depending on their circumstances, they will be either issued with pre-settled status or settled status. Those with settled status will be treated equally to British citizens and can claim benefits. Those with pre-settled status will need to pass the ‘right to reside test’ to get benefits. Irish citizens and their family members living in the UK will be able to claim or continue to receive the UK benefits to which they are entitled, without a need to register with EU Settlement Scheme.

Without a pre-settled or settled status, EEA and Swiss Citizens cannot claim benefits. It is important to apply to the EU Settlement Scheme.

Applications can be made online at www.gov.uk



Universal credit and related measures in the Budget The budget on 3 March 2021 included several announcements relating to benefits and COVID-19 support.

Universal credit uplift and working tax credit increase The temporary increase to the standard allowance in universal credit (UC), which was introduced in response to COVID-19, will not be removed in April 2021 as originally planned. It will be extended by six months until the end of September 2021. The uplift is worth £86.67 per month (£20 per week).

There is however no easement of the benefit cap, so some families will continue to fail to benefit, in part or full, from the uplift.

There will be a £500 lump-sum payment in April 2021 to people getting working tax credit for those in work who have not yet migrated to UC.

Advance payments People making a new claim for UC receive their first payment a calendar month and a week after the date of their claim. Claimants can request an advance payment of up to 100 per cent of what they are due to receive, in order to manage their finances in that period. Monthly deductions are then made from their UC payment to pay back the advance.

From April 2021, applicants will be offered the option to repay over a 24-month period instead of the previous 12 months allowed, to support with budgeting their money.

Deductions Deductions are made in UC to contribute to the reduction of priority debts such as rent and utility arrears. From April 2021, the normal maximum deduction rate for arrears will change from 30 per cent to 25 per cent of a claimant’s UC standard allowance. This will reduce the monthly deductions, to be repaid over a longer period.

Minimum income floor The minimum income floor (MIF) is a measure that assumes that, after a year of self-employment, someone who would otherwise have to look for work, will be earning the equivalent of the full-time national minimum wage. UC is then based on that assumed figure. The minimum income floor was suspended in March 2020 and this has now been extended until the end of July 2021. It will be gradually reintroduced from August 2021. DWP work coaches will have discretion to not apply the MIF on an individual basis, where they assess that claimants’ earnings continue to be affected by COVID-19 restrictions.


Shared accommodation rate exemptions for care leavers The shared accommodation rate applies to those who are under the age of 35, living alone and renting privately. It limits the housing costs that can be met by benefit, to the price of a certain standard of bedsit or a room in a shared house. There are some exemptions e.g. parents, couples and some people with disabilities and includes care-leavers, who are currently exempt from the shared accommodation rate until their 22nd birthday. From June 2021, it is the DWP’s intention to raise this to the 25th birthday.

Currently, those aged 25-34 who have spent three months in a homeless hostel for the purposes of rehabilitation/re-settlement are also exempt from the shared accommodation rate. This will be extended to those under 25 from June 2021.

Surplus earnings rule The surplus earnings rule is designed to ‘even-out’ the calculation of UC for people with high fluctuations in their income. An example would be people who get a regular low wage (and therefore a higher amount of benefit) but also get a large annual bonus, which would end or substantially reduce their UC but only for the month in which it is received. At present, the carry-over is limited to £2,500 per month, and this will be extended until 31 March 2022. It has come into force in the last year, when some low-income claimants received back-dated payments from the Self-Employed Income Support Scheme, and this may be repeated in 2021/22 as that scheme is expanded.

Support for employees The furlough scheme for employees affected by COVID-19 is being extended. The Coronavirus Job Retention Scheme helps employers to keep staff on their payroll when they have had to close or scale back due to COVID-19, rather than making them redundant. The scheme pays a percentage of employees’ wages, up to a certain amount per month. This was due to run until the end of April 2021 but has been further extended in the Budget to the end of September 2021. Employers will be asked to contribute 10 per cent in July and 20 per cent in August and September as the scheme is gradually phased out. More information is available at www.gov.uk

Self-Employment Income Support Scheme SEISSSupport for the self-employed is also extended. The Self-Employment Income Support Scheme allows self-employed people to claim a taxable grant if they have lost trading / partnership trading profits due to COVID-19. A fourth grant, covering the period between February and April 2021, will be available from late April. A fifth grant, covering the period from May to July 2021, will be available from late July. More information is available at gov.uk More changes are expected over the coming months.



Major change for disabled people moving to universal credit27 January 2021 saw the closure of what was known as the SDP gateway for working age people. People who receive the severe disability premium (SDP) in their legacy benefits such as income support (IS) or income-related employment and support allowance (IRESA) can now claim UC.

Severe disability premium was an additional premium awarded to top-up legacy benefits in recognition of the extra disability related costs that people living with severe disability incur, as long as they met the following criteria:• were in receipt

of disability living allowance, personal independence payment or Attendance Allowance at the relevant rate,

• no one was claiming Carer’s allowance for looking after them

• and they were the only adult living in the property.Before 27 January,

there was a two-year period where these claimants were protected from the move to UC and could remain on the legacy benefit with SDP. Now, if they have a relevant change of circumstances, they will have to move from legacy benefits and apply for UC.

Over half a million households on IRESA get SDP. There are also many households on HB who get the SDP as part of their HB calculation, and they were protected by the SDP gateway too. Some of the changes

of circumstances that will prompt a legacy benefit being closed and a claim for UC to be made are: • moving into, or out of,

employment (although that doesn’t always mean they need to stop claiming tax credits or claim UC through being unemployed)

• becoming responsible for a child for the first time, where a new claim for child tax credit would no longer be possible

• moving home to a new local authority and needing help with housing costs.

To make up for the loss of SDP when people move onto UC, the DWP has introduced SDP transitional payments, included in the UC award. They are only available to people who have received SDP within their IS, IRESA or IBJSA in the month before they claim UC and continue to meet the eligibility conditions for SDP. They are not available to people who are only receiving a SDP within their HB or council tax support, or to people claiming benefits for the first time.

The three different levels of transitional payments are:1. £405 a month where

joint claimants were receiving the higher couple rate SDP in their legacy benefits.

2. £285 a month for single claimants not in the UC limited capability for work-related activity (LCWRA) group. It is also paid to couples where only one member is eligible for SDP and they are not receiving the LCWRA component in UC.

3. £120 a month for single claimants who have LCWRA. This is lower because they will be receiving the LCWRA element of UC. It is also paid to couples where only one member is eligible for SDP and they are receiving the LCWRA component in UC.Households receiving

the SDP in their HB only will miss out on this protection, as will households who lose other elements of their

legacy benefits when they move to UC.

The SDP transitional element will decrease over time.

Anyone concerned about moving from existing benefits

onto UC can call our advice line for a benefit check first.


Appeal hearings by video linkDue to the COVID-19 pandemic, social security appeal tribunal hearings have been taking place by telephone rather than face-toface. Claimants and tribunal members (along with representatives, witnesses, carers and/or interpreters if participating) are all joined by teleconference. HM Courts and Tribunals Service are now putting measures in place to hold video hearings as an alternative option to phone hearings.

The latest version of the benefit appeal form asks appellants firstly whether they want to take part in an appeal hearing (as opposed to having the tribunal members make a decision based on the paperwork). If they want to take part in a hearing, it then asks which options they would accept out of a telephone hearing, video hearing or face-toface hearing. The tribunal, not the appellant, makes the final decision on which type of hearing to hold.

A copy of the benefit appeal form (SSCS1) and guidance on what to expect when joining a telephone or video hearing are available at gov.uk. People taking part in video hearings are asking to dress as if they were coming into a court or tribunal building, to have a plain background, and not to eat or drink anything except water during the hearing.

MotabilityUntil 31 July 2021, Motability customers who are in ‘temporary and exceptional financial need’ due to COVID-19 can apply for an advance of the £600 good condition bonus (GCB), which is usually only paid to customers at the end of the vehicle lease.The Motability Charity scheme is also now open for grant applications again. For more information, see www.motability.co.uk

UC Benefit rates from April 2021Monthly UC standard allowance

Up to April 2021 £20 included

April - Sept 2021 £20 included

October 2021 - April 2022 £20 remove

Single under 25 £342.72 £344.00 £257.33

Single 25+ £409.89 £411.51 £324.84

Couple under 25 £488.59 £490.60 £403.93

Couple 25+ £594.04 £596.58 £509.91

* Be aware these are illustrations of some basic amounts that are part of the UC calculation and that they can be lower or higher if for example, there are housing costs or extra elements to be added.See: www.gov.uk/government/publications/benefit-and-pension-rates-2020-to-2021



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What does means-testing and non-means testing mean?Mean Tested Benefits Means tested benefits are those benefits in the social security system that assess your personal circumstances (single, couple, disabled etc) income and savings/capital, to determine your entitlement to benefits. These benefits are to help meet the cost of basic living expenses.Examples of means-tested benefits are:• Universal Credit• Income-based Jobseekers Allowance (IBJSA)• Income-related Employment Support allowance

(IRESA)• Income Support (IS)• Housing Benefit (HB)• Pension Credit (PC)• Tax Credit (child tax credit & working tax credit)• Council tax support (CTS).Entitlement to these benefits can give access to the following support through the social fund:• Sure start maternity grant • funeral payment/ bereavement payment• cold weather payment. The amount of income/savings/capital affects your eligibility.

Non-mean Tested BenefitsYour income/savings/capital are largely ignored for the eligibility to non-means tested benefits, as long as claimants meet the criteria. Examples of some non-means tested benefits are:• state retirement pension• carer’s allowance• child benefit• personal independence payment (PIP)• attendance allowance (AA).

Welfare benefits advice line 020 8753 5566Advice line Morning Afternoon

Monday 9.30am–12.30pm 13.30pm–16.30pm

Wednesday 13.30pm–16.30pm

Friday 9.30am–12.30pm 13.30pm–16.30pm

Welfare benefits team: [email protected]

Welfare Benefit Officer Case StudyMiss M, aged 15 years old resided in a 3 bedroom LBHF property with her mother - who was our Tenant and her 2 younger brothers. Unfortunately, her mother passed away on 29/10/2018.

Miss M remained in the 3-bedroom property with her 2 younger brothers aged 7 & 9 years old. Miss M was made to succeed her mother’s tenancy, but as she was only 15 years old then, her Uncle became the Trustee of the property and Miss M the beneficiary. An interview was arranged for Miss M and her uncle A to visit our Housing Office at White City to complete the signup succession. Our WBO, Uyi was present at that interview to meet with Miss M and her Uncle A. Miss M was referred to Uyi by the Housing Officer for a benefit check and to identify other benefits and support Miss M might be entitled to, including assisting with her rent payment.

After the completion of the signup succession, Uyi completed a Pre-tenancy signup checklist with her. It emerged that Miss M had just turned 16. Uyi informed her that she would be entitled to claim Universal Credit (UC). With the assistance of her Uncle, Miss M visited her local job centre to apply for UC. UC was awarded and included help with housing costs for the rent. This cleared the arrears that had built up. Miss M’s rental income support officer (RISO) applied for the rent to be paid directly into the rent account (APA alternative payment arrangement). Her Uncle moved into the property as well, until Miss M turns 18. Everyone was happy with the outcome.

Uyi completed the Post signup checklist with Miss M, 4 weeks after the sign-up interview, via the telephone to further make enquiries. It emerged that her circumstances remained the same. The family expressed their appreciation of Uyi’s assistance received by text messages and verbally.

DOES THIS FEEL LIKE YOLIGHTS

U? Call our advice line 0208 753 5566

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