Transcript Implementing Universal Credit

Understanding the changes to
the welfare system and the
impact on me
Ken Butler
Tax Credits and Benefits Adviser
Robbie Spence
Benefits of Working Advisor
Disability Alliance
Who we are
Disability Alliance
• national charity
• aim: “breaking the link between poverty
and disability”
• publish Disability Rights Handbook
• www.disabilityalliance.org
Who is ‘disabled’?
• physical or mental impairment
• substantial long-term adverse effect on
• ability to carry out normal day-to-day
activities
Welfare benefit financial
help following a stroke
Disability Alliance
www.disabilityalliance.org
Welfare benefit financial help
following a stroke
A stroke means that the affected person
will not be able to work, often for some
time
They may also need a level of care and
support meaning a partner, relative or
friend has to give up work partly or
completely.
Statutory sick pay (SSP)
SSP is paid for up to 28 weeks by an employer
depending on how long someone has been
employed, their age, and how much is earned.
Depending on family make-up, income and
savings, SSP might be ‘topped up’ by income
support, pension credit, working tax credit,
child tax credit, housing beneift or council
tax benefit.
Employment and Support Allowance
(ESA)
ESA can either be paid as:
• contributory ESA (based on national insurance contributions) or as
• income related ESA (depending on family make-up, income and
savings).
You can get ESA if you are agreed to have a ‘limited capacity for
work’ due to ill health or disability.
When you make a claim for ESA you normally have an initial
assessment period that usually takes place over 13 weeks.
It normally includes completion of a limited capability for work
questionnaire and attendance at a medical examination.
Disability Living Allowance
(DLA)
You can claim DLA if you are disabled, are aged under 65 and need help to
look after yourself or have difficulty walking or getting around.
DLA is tax free and not means tested.
DLA has two components:
• the care component, which has three rates of payment; and
• the mobility component, which has two rates of payment.
You can be paid one or both components depending on your needs.
There is a three month waiting period before DLA can be paid and
someone’s care and mobility needs must be expected to last at least six
months.
Attendance Allowance (AA)
You can claim AA if you are disabled, are
aged over 65 and need help to look after
yourself.
There are two rates of payment:
• a lower rate care component; and
• a higher rate care component.
Unlike DLA there is no mobility
component.
AA is tax free and not means tested.
Carers Allowance (CA)
CA is a benefit for people who regularly spend at least 35
hours a week caring for a disabled person.
The amount of savings you have does not affect your CA
although you cannot receive it if your earnings are over
£100 per week.
To get CA you must be caring for a person who is
receiving either higher or middle rate care component of
disability living allowance, attendance allowance
Other benefits?
Depending on your family make-up, income and savings:
• income support, pension credit, working tax credit,
child tax credit housing or council tax benefit might
be payable on top of DLA, AA or CA.
• one off grants or loans available from the social fund
Disability Alliance has produced free downloadable
factsheets on all the benefits mentioned available @
www.disabilityalliance.org/fact.htm
Disability Alliance also has a free downloadable
factsheet on how to find a local advice centre available
@ http://www.disabilityalliance.org/f15.htm
Work Capability Assessment
• over half of all appeals are social security
and child support appeals
• over half of all SSCS appeals are IB/ESA
– 1 in 3 WCA decisions go to appeal
– 40% WCA decisions overturned
WCA ‘mis-assessments’
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loss of support to disabled people
loss of extra financial support
stress and anxiety
makes health problems worse
Tribunal Service: backlog and cost
New WCA from 28 March 2011
• unless claim already underway
• 10,000 incapacity benefits claimants a
week being re-tested for ESA using the
WCA
Changes to limited capability for
work physical health descriptors
• ‘walking’ … ‘mobilising’
• ‘significant discomfort’ … ‘significant
discomfort or exhaustion’
• ‘standing’/‘sitting’ … ‘remaining at
workstation’
• no score for bending and kneeling
• sensory impairments
mental health and learning difficulties
reduced from 10 to 7 descriptors
• memory and concentration
• execution of tasks
• initiating and sustaining personal action
= inability to complete a task
• coping with social situations
• propriety of behaviour
• dealing with other people
= coping with social engagement
+ appropriateness of behaviour
time-limiting contributory
ESA for WRAG claimants
• 400,000 people on
– Incapacity Benefit or
– contribution based ESA
lose all support after one year
Personal Independence Payment
Welfare Reform Bill
• replaces Disability Living Allowance
• 20% budget cut
• 652,000 on low rate care – to cease
Personal Independence Payment
• age 16-65
• need help for six months before claiming
two components:
• daily living component
– no low rate
– no night needs
– no ‘supervision’ needs
• mobility component
PIP activities for daily living
1.
2.
3.
4.
5.
6.
7.
8.
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planning and buying food and drink
preparing and cooking
taking nutrition
managing medication and monitoring health
conditions
managing prescribed therapies other than
medication
washing, bathing and grooming
managing toilet needs or incontinence
dressing and undressing
communicating with others
PIP
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fluctuating needs
continual and intermittent needs
fixed period awards
social and leisure activities
Social Fund
Regulated Social Fund
• will remain
Discretionary payments
• replaced by new local provision
Budgeting loans and crisis loans
• replaced by payments on account
• Passported Benefits under Universal
Credit, eg free prescriptions
• Social Security Advisory Committee
Consultation
closing date for responses: 22 July 2011.
Work Programme
• 2.9 million people
• including 1.5 million on incapacity benefits
• less support for disabled jobseekers
– less cash
– more conditionality
Work Programme
conditionality
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none – the ESA ‘support’ group
Work-focused interview
Work preparation – ESA WRAG
all - JSA
Universal Credit
Disability Alliance
www.disabilityalliance.org
Universal Credit will replace:
• child tax credit
• housing benefit
• income related employment and support
allowance
• income based jobseekers allowance
• income support
• social fund budgeting loans
• working tax credit
What about other benefits?
Universal credit does not include:
• carers allowance
• contributory jobseeker’s allowance
• contributory employment and support allowance
• disability living allowance
• child benefit
• industrial injuries disablement benefit
• statutory sick pay
• pension credit
• council tax benefit
• maternity allowance
• statutory maternity pay
Aims of Universal Credit
According to the Government universal
credit aims to:
• improve work incentives;
• smooth the transitions into and out of
work;
• simplify the system by making it easier to
understand and cheaper to administer.
When will it be introduced?
Current claimants will be migrated to
universal credit starting in 2013 and
finishing in the next Parliament.
Pilots will run from May 2013.
A full national roll out will begin from
October 2013.
Who can claim Universal Credit?
• Those on a low income who are unemployed,
working in a low paid job or are sick or disabled
and unable to work.
• The amount of universal credit will depend on
your level of income and other family
circumstances.
• There will be a basic personal amount with
additional amounts for disability, caring
responsibilities, children and housing costs.
How much will it be?
The amount of universal credit will depend on your level
of income and other family circumstances.
There will be a basic personal amount for a single person
or coupe with additional amounts for:
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disability;
caring responsibilities;
children; and
housing costs.
How much will it be?
There will be two components which will be
similar to the support and work related
components for ESA. These will be:
• a higher addition (ESA support
component equivalent);
• a lower addition (ESA work-related activity
component equivalent).
How much will it be?
It is intended that there will also be:
• Equalised disability additions for adults
and children including increased support
for the most severely disabled children
• Eligibility for the disabled child additions
will, as now, be linked to the rate of
Disability Living Allowance they receive.
What about existing claimants?
• If you are getting ESA you will eventually be
moved onto universal credit. There will still be a
work capability assessment under universal
credit.
• If you are on an incapacity benefit you will be
reassessed under the Work Capability
Assessment and if you pass the test will be
'migrated' onto ESA between October 2010 and
March 2014.
• This process overlaps with the conversion of
ESA claimants to universal credit and it is not
clear how these two processes will interact.
What about existing claimants?
The Government has said that transitional
protection will apply to current claimants.
This should mean that no claimant at the
point of transition will be made worse off
as a direct result of the introduction of
Universal Credit.
resources
Disability Rights Handbook and factsheets
published by Disability Alliance
• 020 7247 8776 (not an advice line)
• [email protected]
• www.disabilityalliance.org
Questions for discussion
at your table and with your
communication champion
1. We have mentioned several changes
to ESA and the Work Capability
Assessment
• Which one causes you the most
concern?
Questions for discussion
at your table and with your
communication champion
2. We have mentioned several changes
to Disability Living Allowance and
Personal Independence Payment
• Which one causes you the most
concern?
3. 45 – 4.30 Workshop session 1
• Benefits for people of working age
4.45 – 5.30 Workshop session 2
• Benefits for people aged over 65 years
Terrace
• Write down your question and bring it to
the workshop