welfare reform and you

1

welfare reform guide

Index:

Main Changes to Benefitsand Tax Credits ....................2

Disability Living Allowance(DLA) ....................................3

Universal Credit ....................4

How Link can help you ... ....6

Under-Occupation andthe Bedroom Tax ..................8

Working Tax andChild Tax Credit ................10

Benefit cap..........................11

Social Fund ........................12

Non DependantDeductions ........................13

Employment andSupport Allowance ............14

Incapacity Benefitand Severe DisablementAllowance ..........................15

Housing Element andpaying your rent ................16

Changes to the Benefits and Tax CreditsSystem – How will you be affected?The UK Government’s Welfare Reform Act became law onMarch 8 2012 and is the biggest overhaul of the benefits andwelfare system since the 1940s. This guide gives you thedetails of the main changes which have been introduced andmore importantly lets you know how you will be affected.

It is important that you take time to read the articles in this guideand to think about whether you will continue to be entitled to thebenefits you currently receive or if you are not receiving anybenefits whether you may qualify for new benefits in the future.You also need to think about how you will manage your claims andthat you are prepared for any changes. Ask yourself ...

● Do I have a bank, building society or credit union account thatmy benefits can be paid into?

● Do I have access to the internet?● How will I pay my rent?● What will I do if I am under-occupying my home?● What will I do if the benefit cap applies to me?● Can I manage my money on a monthly basis?

These are just a few questions that you may need to answer andthere will be many more. It is therefore important that you knowwhere to get relevant information and advice so you can pay yourrent on time and keep your home.

PLEASE READ AND KEEP THIS GUIDE TO HELP YOUTHROUGH THE CHANGES

This newsletter can be provided in Braille, Audio Tape, Large Printand Community Languages. If you require a copy in any of theseformats please contact 08451 400 100.

Some of the information in this guide has been sourced from thefollowing websites:www.direct.gov.uk and www.disabilityrightsuk.org

PLEASE NOTE THAT THE INFORMATION CONTAINED IN THISGUIDE MAY BE SUBJECT TO CHANGE.

SEPTEMBER 2012

Link Housing – 08451 400 100 or 0330 303 0013 or [email protected]

2

Main Changes to Benefits and Tax Credits

You may start to receive letters over the coming months from the Department for Work and Pensions(DWP) and your local council. It is very important you do not ignore these letters and you should readthem carefully. If you do not understand the contents of these letters or want more information about youroptions or the decisions you need to make you should seek help or advice immediately.

The table below shows the main changes to benefits and tax credits.

Date Benefit Change

April 2012 Housing and Council Tax Benefit Bigger reduction in your benefit if you haveother adults living in your house.

April 2012 Tax Credits Couples will have to work 24 hours a week.

April 2012 Incapacity Benefit Existing claimants will have to claimEmployment and Support Allowance (ESA),and have a medical assessment.

April 2012 Employment andSupport Allowance

Contributory ESA for work relatedcomponent paid for one year only.

April 2013 Housing Benefit

Paid in relation to number of bedroomsappropriate to the size of your family. Anyspare bedrooms will reduce the amount ofHousing Benefit you receive.

April 2013 Housing Benefit Cap on total benefit income.

April 2013 Social Fund Replaced by a local scheme(still to be decided).

April 2013 Disability Living Allowance Replaced by Personal IndependencePayment. Medical assessment required.

October 2013 All means-tested benefits

Replaced by Universal Credit. New waysof claiming to be introduced. Benefits paiddirectly to you. This means you will beresponsible for organising payment ofyour rent to Link. It will no longer be paidby your local council to Link – you willneed to do this.

www.linkhousing.org.uk

3

Disability Living Allowance (DLA)

From June 2013, no new claims for DLA will beaccepted in Scotland. Instead, you will need toclaim for Personal Independence Payment (PIP).Due to cuts in benefit spending by theGovernment it may be more difficult to beawarded PIP than the current DLA.

As with DLA, PIP will be made up of two parts,a mobility component and a care component.Each component will have two rates, a standardand an enhanced rate. As yet, we do not howmuch each rate will be.

Within each PIP assessment you will haveto undergo an activity test and you will have toscore a certain number of points in relation tocertain activities for daily living and mobility.You may also have to attend a consultation witha trained independent assessor as part of theclaim process.

I already receive DLA, what do Ineed to do?

What happens next depends on your age

Between October 2013 and March 2016, everyonefrom 16 to 64 who receives DLA will bereassessed under the new PIP rules. If you meetthe conditions you will be moved onto PIP. If youdo not meet the conditions, then your DLA willstop. If you are not awarded PIP and don’t agreewith the decision you can lodge an appeal againstthe decision.

If you are aged 65 years or over on the day PIPis introduced you will continue to receive DLAand will not have to claim PIP, unless of courseyour health improves and you are no longerentitled to DLA.

There is no change to DLA for children up tothe day before their 16th birthday.

Indefinite Awards

If you currently have an indefinite award of DLA,you will still be reassessed for PIP (if you are aged16 to 64).

Motability Cars & Passported Benefits

At the moment, we do not know the full extent ofthe regulations and the full criteria for the new PIPscheme and how it relates to the Motabilityscheme or passported benefits. Passportedbenefits include free school meals, leisure andtravel passes.

What if I have a Carer?

At present we expect there to be similar rulesregarding entitlement to Carer’s Allowance underthe PIP scheme.

When will I get my reassessment?

We don’t yet know how the reassessment processwill work or when you will be chosen for yourassessment. The Department for Work andPensions will contact you about this. Furtherinformation can be found at www.dwp.gov.uk/pip

valuing people, providing homes, building communities, working together

4

Universal Credit

Universal Credit is the biggest change to thebenefit system and the new system will provide inand out of work support for working-ageclaimants. It is being introduced to:

● Reduce the cost of the Benefit system● Remove barriers to employment● Prevent benefit claimants from being better off

than working families● Simplify the existing system.

Universal Credit will replace and combine anumber of different (currently separate) benefitsand tax credits, including:

● Income support● Income-based Job Seekers Allowance● Income-related Employment and

Support Allowance● Housing Benefit● Council Tax Benefit● Child Tax Credit and Working Tax Credit.

Universal Credit will be the sum of the abovebenefits you or your household are entitled to.

It will not include Disability Living Allowance (DLA)or Carer’s Allowance.

When will the change take place?

New claims for Universal Credit will start fromOctober 2013 in some areas and it is expectedthat new claims for the current benefits will bephased out by April 2014. Existing claims forcurrent benefits will be transferred across toUniversal Credit between 2014 and 2017.

How and when will Universal Creditbe paid?

Universal Credit will be paid as a single paymentmonthly rather than fortnightly and generally byelectronic bank transfer. This “in arrears” meansthat you must have a suitable bank, buildingsociety or credit union account that will supportthe payment. If you are in a couple, only oneperson will receive the single payment.

What is included in Universal Credit?

The elements which make up the UniversalCredit are:

● The standard allowance ● An amount for the responsibility of children

and young people● An amount for housing costs● An amount for ‘other particular needs and

circumstances’ e.g the you may have limitedcapability for work or you have regular andsubstantial caring responsibilities.


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How is the award calculated?

For each person there is a ‘maximum amount’which is made up of the different elementsoutlined above. From this amount, sums will bededucted for earned and unearned income.

Who is eligible to claimUniversal Credit?

Universal Credit can be awarded to a singleperson or to a couple jointly. You must meet thefollowing basic conditions:

● Be at least 18 years old, but under thequalifying age for pension credit

● Reside in Great Britain ● Not in higher education (this will be defined in

the regulations) ● Have accepted a ‘claimant commitment’

You must also satisfy certain financial conditions.Entitlement to Universal Credit will depend onboth your income and capital. Universal Credit willnot be payable if either one is above a certainlimit. The capital limit will be set in regulations, butis likely to be £16,000.

What is the claimant commitment?

In order to receive Universal Credit, you musthave accepted a commitment, setting out thegeneral expectations of and requirements placedupon you. Where appropriate, this will includework-related requirements. The commitment willalso set out any penalties for failing to meetthese requirements, this may result in yourpayments stopping.

How to claim Universal Credit

The UK Government expects 80% of claims forUniversal Credit to be made and maintainedonline. This means that you must access theinternet to make an online claim and provide ane-mail address for future communication.Changes of circumstances should also bereported by e-mail. If you don’t have access to theinternet at home you can access it at your locallibrary or at the job centre – and there are manyfree courses to show you how.

You will be notified nearer the time the details ofwhere and when you can make your claim online.

Are Pensioners affected?

Universal Credit will NOT replace PensionCredit. However, when Universal Credit isintroduced, if either member in a couple isunder the qualifying age for Pension Creditthen the couple will be treated as ‘workingage’ and expected to claim Universal Credit.Due to the abolition of Housing Benefit, theDepartment for Work and Pensions is updatingPension Credit to enable pensioners to claim fortheir housing costs (including rent) as part of theirPension Credit claim. For more information go towww.dwp.gov.uk/policy/welfare-reform


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How Link can help you ...

As you read this guide you will realise that thereare many changes being made to welfare benefitsand also to the way they are administered. Thismeans that the benefits you are entitled to, theway you make benefit claims, how you manageyour claims on an on-going basis and how youmanage your benefit income are all going to bevery different in the future.

Welfare Rights and Money Advice

Link has its own accredited Advice Team made upof six dedicated and knowledgeable staff. Theconfidential service they provide is FREE to allLink tenants and sharing owners.

If you have any questions, concerns or requirehelp to deal with the benefit changes then get intouch with the team – they will be happy tohelp you.

The Welfare Rights team is there to giveyou advice and assistance on everything to dowith benefits as well as any other welfare issuesthat may be affecting you. This includes;

● Carrying out a Benefits check● Helping you to make any claims ● Talking to Department Work and Pensions, the

Council, or other agencies on your behalf● Assisting you if you need to appeal a decision.

The Money Advice staff can give you advice andassistance to deal with any debt, to help withbudgeting and to find out about financialproducts. This includes;

● Debt and budgeting advice ● Contacting creditors on your behalf to make

repayments arrangements, such as TrustDeeds or bankruptcy

● Advice on financial products such as setting upbank accounts, Credit Union accounts andaffordable credit.

We also provide the award-winning OlderPeople’s Advice Service (OPAS) to people aged60 years and over.

How to contact the team

The Welfare Rights and Money Advice service isprovided over the telephone, by officeappointment, by letter, e-mail, fax or by text. If,however, an enquiry is complex (or you havedifficult circumstances) a team member willarrange to visit you at home or another suitablevenue at a convenient time for you.

OPAS is delivered via a visit to your home or atanother suitable venue and at a time that suitsyou. You can contact the team yourself or ask yourHousing Officer, a family member, friend or otherprofessional who you have contact with, to makea referral on your behalf.

You can contact the Advice Team by:

● e-mail at [email protected]● telephone on 01324 417174● letter to Advice Team, Link Housing

Association, Watling House, CallendarBusiness Park, Falkirk, FK1 1XR

You can contact OPAS by:

● e-mail at [email protected]● telephone on 0845 002 0941● letter to OPAS, Link Housing Association,

Watling House, Callendar Business Park,Falkirk, FK1 1XR


7Link Housing – 08451 400 100 or 0330 303 0013 or [email protected]

Housing Officers

Your Housing Officer is the first person you shouldcontact for help, information and advice. He/shecan also help you with all of the changes that arehappening.

Your Housing Officer will:● Make sure that you are kept up to date with any

changes that will affect you● Offer initial advice and discuss the options that

are available to you ● Refer you for specialist support and advice

to the Welfare Rights or Money Advice Teamor to any other agency that may be able toassist you

● Provide information and advice on newmethods for paying your rent.

How to contact your Housing Officer

Housing Officers spend much of their time outand about in the areas they cover. They can visityou in your own home and will try to assist youif you may be experiencing problems affectingyour tenancy.

You can contact your Housing Officer by:

● Telephone on 08451 400 100 from a landline● Telephone on 03303 030012 from a mobile● Text to 07557183553

Support Workers

If you have a support worker he/she too can helpyou deal with the changes that are happening.Your support workers priorities are to:

● Provide general information on the changes toyour benefits

● Help refer you for specialist support andadvice to the Welfare Rights or Money AdviceTeam or to any other agency that may be ableto assist you

● Help you to speak to your Housing Officerabout matters relating to your tenancy

● Assist you to fill in application forms and makebenefit claims

● Assist you to report changes in yourcircumstances to the benefit paying authorities

● Assist you with benefit appeals● Assist you to manage your money ● Assist you to pay your bills including

your rent.

How to contact your Support Worker

You should already know the telephone numberfor your Support Worker. If you do not have thisthen contact your Housing Officer for advice.

What if I need a Support Worker and don’thave one?

If you think you would benefit from having asupport worker you should speak to your HousingOfficer for further information and advice.

Other sources of advice

You can also contact the welfare benefits team atyour local Council or the Citizens Advice Bureau.

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Under-Occupation and the Bedroom Tax

At present the amount of Housing Benefit youreceive is based on your income, your rent andwho lives in the household. It doesn’t matter howmany bedrooms there are in your property.

From April 2013, the number of bedrooms youhave in your property will affect the amount ofHousing Benefit you are entitled to. If you are ofworking age and you have more bedrooms thanyou require for your family (i.e. your property isunder-occupied) there will be a restriction on theamount of Housing Benefit you will be entitled to –this is called “Bedroom Tax”. You will beresponsible for paying the shortfall.

The restriction will be:

● 14% of the benefit if you have one bedroomtoo many

● 25% of the benefit if you have two or morebedrooms too many

The following people are exempt from therestriction to their Housing Benefit:

● Pensioners ● Sharing owners● People in supported exempt accommodation

All other tenants will be affected by therestriction – even those with the followingspecial circumstances:

● Separated parents who have shared care ofone or more children. Only the parent whoreceives Child Benefit will be allocated abedroom for the child/children

● Couples who sleep in separate rooms due toill health

● Foster carers because foster children arenot counted as part of the household forbenefit purposes

● Disabled people who live in adapted andspecially designed houses.

Who is entitled to a bedroom?

● A couple● A person aged 16 or older● Two children of the same sex until their

16th birthday● Two children until their 10th birthday (any gender)● Any other child● For a carer where the claimant or their partner

requires overnight care● A joint tenant – it is important to realise that a

joint tenant couple are only entitled to onebedroom.

What options do you have if theBedroom Tax is going to affect you?

There are a number of options you can consider ifyou are affected by the Bedroom Tax.

Move

You may be able to move to more appropriatelysized accommodation. Contact your HousingOfficer if you want consider this option.

Transfer to another property

If you are registered with Homehunt you can applyfor any Link properties advertised on thehomehunt website at www.homehunt.info.Properties are allocated to the person who makes‘best use’ of it, such as using all the bedrooms, orwho needs any special adaptations that havealready been made to the property.

If you live in Edinburgh, different arrangementsapply under the Edindex (Common HousingRegister) scheme. Visit the Edindex website atkeytochoice.scotsman.com and download anapplication form, which you should complete thenreturn to any City of Edinburgh Council office.Available properties are listed on the Edindex siteand in the Edinburgh Evening News every Monday.

Mutual exchanges

A mutual exchange is when you swap propertieswith another tenant. The other person must have a


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Scottish secure tenancy with either Link, anothercouncil, another housing association or a housinco-operative.

If you live anywhere apart from Edinburgh,please contact Link to apply for a mutualexchange. The other tenant should also contacttheir landlord. We and the other landlord willreview the exchange, looking at how each tenanthas conducted their tenancy and whether they arup to date with their rent payments.

If the exchange is then approved you mustremain in your property until the agreed date. Anyrepairs that are needed must be completedbefore you move.

If you live in Edinburgh, you can register for theEdinburgh House Exchange free of charge. Thiswill enable you to find a home through theEdindex scheme. For more information and toregister, visit the Edinburgh House Exchangewebsite at www.houseexchange.org.uk.

Homeswapper

Homeswapper is a free online house matchingservice, open to tenants of more than 300 housinassociations and local authorities across the UK.

When you register, your home is matched withthose of other tenants looking to move. You will binformed of any matches, which you can view onthe Homeswapper website. Please note that onlytenants with clear rent accounts are eligible to usHomeswapper. To register, visit the Homeswappeweb site at www.homeswapper.co.uk.

Take in a Boarder / lodger

You will need to seek permission from Link to fillany unoccupied room. This would mean the roowould still be treated as unoccupied but youwould have income from the boarder/ lodger tohelp you pay the shortfall. The income you receivmay be taken into account for benefit purposesand may affect some other benefits you receive.

It is important that you get specialist advicebefore taking up this option.

Have family members contribute more

If you have one or more non-dependants living inthe house they may be able to help cover theexcess rent by giving you extra money.

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Find employment or increase the hoursyou work

If it is possible or a realistic option, getting a job orincreasing your working hours would increaseyour income and help cover any reduction in yourhousing benefit. The additional income will affectthe amount of the benefits you are entitled tothough so it is important that you report this to thebenefit paying authorities.

Discretionary Housing Payments

If you cannot cover a reduction in your housingbenefit from your own resources and you havespecial circumstance for remaining in your currentaccommodation then you may be able to claim aDiscretionary Housing Payment (DHP). You needto make an application to the Housing Benefitteam at your local council Department for this.Additional DHP funds have been allocated by theGovernment to cover the following:

– Disabled people living in accommodation thathas been substantially adapted for theirneeds, including new builds

– Foster carers including those between fosterplacements

If your child is approaching a trigger point age(which means they will be entitled to bedroom oftheir own) or you are pregnant and will not beunder-occupying when your baby is born or youare within 6 months of pension age you may alsobe entitled to DHP. DHP claims for under-occupation cannot be made until April 2013 andany award is likely to be for a short period. You willtherefore not be able to rely on DHP as a longterm solution to under-occupying your home.

What will happen next

If you are under-occupying your home your localcouncil will write to you soon to let you know. Theywill also let you know how much of your HousingBenefit you will lose.

It is important that you do not ignore theseletters and should think about how you will be ableto pay the shortfall on your rent. You should getadvice and support to look at the various optionsif you need this.


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Working Tax and Child Tax Credit

On April 6 2012, there were a number of changesto Working Tax and Child Tax Credits.

Changes to working hours for couples

Previously, if you were part of a couple (who had achild) and you worked 16 hours a week you couldclaim Working Tax Credit (WTC).

From April 6 2012, couples (with a child) mustwork 24 hours between them and one personmust work at least 16 hours to be eligible for WTC.Due to this change, some claims for WTC willstop. The deadline for renewing Tax Credits wasJuly 31 2012 so you may have just found out if thischange has affected you.

Backdating

Previously, Tax Credit claims could be backdatedfor up to three months. This has reduced to onlyone month.

Changes in income

Previously, Tax Credits could increase with anyloss of wages. Now, they will only increase if yourincome drops by over £2,500 a year (approx £50per week).

Income limit reducing

Previously, you could claim for Child Tax Credit ifyour total household income was below £41,300.This income level has now been reduced and willvary according to the number of children. Toqualify for Child Tax Credit, you will need to earnbelow £26,000 for one child and below £32,000for two. These figures are estimates however, andyour circumstances may mean that you would stillqualify for Child Tax Credit even if you earn more.The only way to be sure if you will qualify is tomake a claim.

50 Plus Element

Previously, if you were over 50 and returned towork following unemployment, you receivedadditional Tax Credits. This additional element hasnow stopped and may end some claims for WTC.There are some exceptions to these changes so ifyou are worried or want further information pleasecontact us for advice.

Child Care Costs

This has been reduced from 80% to 70% of thecost of eligible child care for your children. Thismeans that the maximum amount you can nowreceive is £122.50 for one child and £210 for twoor more children. You won’t necessarily get the fullamount as this depends on your income.

**Remember, if your income goes downbecause of changes to your Tax Credits youmay be able to get more help with your rentfrom Housing Benefit. It is important that youreport all changes to your income to theHousing Benefit Office. Even if you did notqualify for Housing Benefit before, you maydo now if your income has dropped. **

Further information

Check out HM Revenue and Custom’s website athttp://www.hmrc.gov.uk/taxcredits/


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Benefit cap

From April 2013, a limit will be put on the amountof benefit that people aged 16 to 64 can get. Thisis called a “Benefit Cap”. The benefit cap meansthat people should not get more in benefitpayments than the average wage paid to peoplein work.

Why is the benefit cap being introduced?

The benefit cap will make sure that householdsgetting benefits will not normally get more inbenefit than the average working householdreceives in pay.

The benefit cap will encourage people to lookfor work and help to promote fairness betweenthose in work and those getting benefits.

What’s included in the benefit cap?

When added together the benefit cap will limit thetotal income you can get from the followingbenefits:

● Bereavement Allowance● Carer’s Allowance● Child Benefit● Child Tax Credit● Employment and Support Allowance (except

where it is paid with the support component)● Guardian’s Allowance● Housing Benefit● Incapacity Benefit● Income Support● Jobseeker’s Allowance● Maternity Allowance● Severe Disablement Allowance● Widowed Parent’s Allowance● Widowed Mothers Allowance● Widows Pension● Widows Pension Age-Related

How much is the benefit cap?

The actual amount of the cap won’t be set untillater this year, but is currently expected to be setas follows.

A maximum of £350 a week if you are a singleperson and either:● have no children● the children you have responsibility for don’t

live with you

A maximum of £500 a week if you are either:● a couple, with or without dependent children● a lone parent with dependent children

The cap will not apply, if you qualify for WorkingTax Credit, or get any of the following benefits:● Disability Living Allowance● Personal Independence Payment

(from June 2013)● Attendance Allowance● Industrial Injuries Benefits● Employment and Support Allowance, if paid

with the support component● War Widow’s or War Widower’s Pension.

The cap will be applied through deductions fromHousing Element payments.

If you are currently getting benefits affectedby the benefit cap

If you are already getting benefits and couldbe affected by the benefit cap. The department forWork and Pensions (DWP) will write to you.DWP will help you to get information about thechanges and to think about what you can do nowto get ready.

If you are affected, your Housing Benefit maygo down from April 2013. To make sure that thetotal amount of your benefit is not more than thecap level. If this happens, you may have to usemoney from your other benefits to pay towards therent for your home.


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Social Fund

This article looks at changes that have alreadybeen made to the Social Fund and furtherchanges that are going to happen in April 2013.

What has already changed?

Budgeting Loans

There were some important changes to BudgetingLoans from May 8 2012. The new changes meanthat DWP can award budgeting loans to helpfamilies buy maternity and baby items or to helpwith the costs of a relatives funeral. This is all inaddition to other help available such as the SureStart Maternity Grant or a Funeral Payment fromthe Social Fund.

To be eligible for a Budgeting Loan you must stillbe in receipt of a ‘qualifying benefit’ at the time yourclaim is assessed and have been receiving thatbenefit for at least 26 weeks. Any capital you havecould also affect your eligibility. DWP will continueto assess your ability to repay any loan you get, aswell as if you currently have any outstanding loansto repay. You also cannot be offered a BudgetingLoan of less than £100 or more than £1,500.Youcan get a claim form (SF500) from your localJobcentre Plus office or online.

Crisis Loans

Changes to the amount you may receive in CrisisLoans were introduced on the April 9 2012. Non-householders facing an emergency or disastercan now only expect to receive 30% of theirpersonal allowance rate rather than the previousrate of 60%. So if you are a single non-householder over 25 who would normally get£71.00 per week Job Seekers Allowance, and hadto apply for a Crisis Loan due to an emergency,you would only get 30% (£21.30). Nevertheless,householders making this type of application arestill however entitled to the previous rate of 60%.

What will change in April 2013?

In April 2013, the way Social Fund grants andloans are paid is changing.

Community Care Grants and Crisis Loans

The responsibility for paying Community CareGrants and Crisis Loans will be transferred to thelocal authority. Unfortunately, the pot of moneygiven by the UK Government for these grants willnot be ring fenced, which means that the localcouncil can use the money however it wants. Thismight mean that it is harder to make a successfulclaim for a Community Care Grant or Crisis Loanas there will be less money available.

It is likely that the local council will arrange forhelp in kind from local charities and there will belimited cash payments.

It has not been decided which departmentwithin the local authority will manage the SocialFund so there is no information available on howto make a claim.

Budgeting Loans

Budgeting Loans will continue to be available untilUniversal Credit is fully rolled out for those not yeton Universal Credit. As people migrate across toUniversal Credit they will have access to a newsystem of Budgeting Advances that will replaceBudgeting Loans for Universal Credit recipients.

Crisis Loan Alignment Payments

Crisis loan alignment payments to cover delayedwelfare payments will be replaced by a newnational scheme of Short Term Advances. Thiswill be administered by the DWP.


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Non Dependant Deductions

Non Dependant Deductions areincreasing – this means the moneywill decrease

People who normally share your accommodationbut are not dependant on you for financial supportare known as non-dependants. Others who livewith you as a family and any children you havefostered do not count as non-dependants.

The following do not count as non-dependantswhether they share accommodation or not:

● Carers employed by a charity that charges forthe service

● Joint tenants● Subtenants ● Boarders● Tenants of owner occupiers● Landlords/ladies and their partners● Foster children

Non dependent deductions increased significantlyin 2011 and 2012 with a further increase due inApril 2013. It is expected that increaseddeductions will continue in line with benefitincreases from 2014 onwards.

Current Non Dependant deductions2012: (weekly)

This table shows the amount that will be deductedfrom your Housing Benefit for each non-dependant in your household. It is up to you tomake up the shortfall in your rent and council taxyourself. You must therefore ask the non-dependant to give you the amount you owe or youwill need to make this up from your other incomeor benefits. It may be possible to claimDiscretionary Housing Payments to help you withthis cost.

In receipt of Pension Credit NIL

In receipt of Assessment phaseEmployment and SupportAllowance (Income Related)

NIL

In receipt of Main phaseEmployment and SupportAllowance (Income Related)

£11.45

Aged 25 and over and onIncome Support or Jobseeker’sAllowance (Income Based) oraged 18 years or over and not inremunerative work

£11.45

Gross Weekly income less than£124.00 £11.45

Gross Weekly income between£124.00 and £182.99 £26.25




Gross Weekly income £394.00and above £73.85


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Employment and Support Allowance

Employment and Support Allowance (ESA)provides financial help to those who are unable towork because of illness or disability. It alsoprovides personalised support to those who areable to work.

Welfare reforms to Employment and SupportAllowance includes the commitment to makingthe benefit fairer and to ensure that help goes tothose with the greatest need.

About Employment and SupportAllowance

● It gives you access to a trained personaladviser and a wide range of other servicesincluding employment, training and conditionmanagement support.

● You must attend a medical assessment calledthe Work Capability Assessment. Thisassesses what you can do, rather than whatyou cannot, and identifies the health-relatedsupport you might need.

● If you claim Employment and SupportAllowance, you will be expected to takesteps to prepare for work. This includesattending work-focused interviews with yourpersonal adviser.

● If you have an illness or disability that severelyaffects your ability to work, you will getincreased financial support. You will not beexpected to prepare for a return to work.You can volunteer to do so at any point if youwant to.

The changes

● From 1st May 2012 contribution-based ESA islimited to 365 days if you are not in the WorkRelated Activity Group or assessment phase.The 365 day time-limit does not include anytime spent in the “Support Group” or the timespent in the assessment phase if you movedfrom the assessment phase into the SupportGroup at the start of your claim.

● There is also an expectation that more peoplewill be in the “Work Related Activity” group as aresult of the change in the overall assessment.

● Young people who currently qualify forcontributory ESA without having paid NationalInsurance contributions will no longer qualify. (A “Young person” is defined as aged between16-19 years or satisfies the “age exception”rule-i.e. aged between 20 and under 25 years-the “age exception” rule revolves aroundeducation or training).


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Incapacity Benefit and SevereDisablement Allowance

If you currently receive Incapacity Benefit orSevere Disablement Allowance then this willchange.

Between October 2010 and March 2014, if youare an existing Incapacity Benefits claimant (thoseon Incapacity Benefit, Severe DisablementAllowance and Income Support on disabilitygrounds) you will be reassessed under theEmployment and Support Allowance (ESA) WorkCapability Assessment (WCA) instead of thePersonal Capability Assessment.

Key points about this process:

● If after April 2012, you are moved on to ESA,are placed in the work related activity groupand are only entitled to Contributory ESA, thenyou will be paid ESA for a year after which thiswill cease.

● If you are placed in the support group you willnot have your Contributory ESA time limited.

● No new claim will be required for the move toESA, DWP will contact you when the change isgoing to happen.

● the date of a the re-assessment will be basedon the review date of your Personal CapabilityAssessment.

● people who reach State Pension Age duringthis reassessment period 2010-2014 will not bereassessed to avoid having to change benefitstwice in a short period.

● where possible, the DWP will use existing dataheld for IB/IS to determine entitlement to ESA;

● DWP has pledged to help customers adapt totheir new circumstances and ensure continuityof payment is maintained.

● existing incapacity benefits will continue to bepaid to the day before the change.

● where people who are eligible for ESA receivemore on existing incapacity benefits than theappropriate ESA rate, their existing rate ofbenefit will be frozen at the point of conversion.

● where people who are eligible for ESA receiveless on incapacity benefits than the appropriateESA rate, their benefit will immediately beincreased to the ESA rate on conversion.

● all claims to incapacity benefits on or after 31January 2011 will be treated as new ESA claims– there will be no link to earlier claims forincapacity benefits.

● appeals may be brought against the decisionnot to award ESA as a result of failure to meetthe WCA threshold.

● ESA will be paid at the same rate as for newESA claims where a person is appealingagainst a decision that they are not entitledbecause of not meeting the WCA threshold.


16

Housing Element and paying your rent

Housing Benefit will be replaced with a HousingElement and will be paid as part of the singleUniversal Credit payment.

In most cases the Housing Element will bepaid directly to you and not to your landlord ascurrently happens.

This means that you will need to arrange topay your rent to your landlord yourself.

There may be a small number of ‘vulnerable’people who will continue to have their rent paiddirectly to their landlord, however the UKGovernment has not yet provided any detailsabout this yet.

How to Pay Your Rent

There are a number of options available to make iteasier for you to pay your rent:

Paying by Direct Debit

The best way to pay is by Direct Debit. This issimilar to a standing order but you don’t need tocontact your bank every time there is a change inyour rent – Link will do it for you. If you would liketo change from standing order to direct debit thiscan be arranged over the telephone through theCustomer Service Centre, call 08451 400 100option 1.

Paying by Cash

All Link tenants are given an allpay card, whichyou can use to pay your rent in any Post Office,shop or garage, which displays Paypoint, E-pay,Payzone or allpay Logo. This is a free service –you will be given a receipt and your payment ismade to your rent account within 24 hours.

Paying over the internet

Pay over the internet using your allpay referenceat www.allpayments.net. Payments online canbe paid by debit and credit card. Use the allpayapp on a smartphone (details in last tenantsnewsletter).

Paying over the Telephone

You will need your allpay reference to pay over thetelephone using a credit or debit card, call allpayon 0870 243 6040 or the service centre on 08451400 100 if using a mobile call 03303 030013.

Payment by Cheque or Postal Order

Cheques or postal orders should be madepayable to Link Housing Association. If a chequeis dishonoured we reserve the right to make acharge against your account to cover bankcharges plus handling costs.

W przypadku, ze tutejsza informacja bedzie potrzeba w innej wersji n.p.duzy druk, kaseta audio, lub w innym jezyku, prosze sie sontaktowac znami pod numerem 08451 559 559.

08451 559 559

08451 559 559

08451 559 559

08451 559 559

08451 559 559

Link Housing Association Limited is a company registered in Scotland.Company registration number SC216300.

Registered Office: Link House, 2C New Mart Road, Edinburgh EH14 1RL.Part of the Link group. © LinkGroup Ltd 2012.


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