Recent Changes to Universal Credit and COVID-19 Support Programs

BEDFORDSHIRE BENEFITS NETWORK 30/09/2021

COVID-19 CHANGES

UNIVERSAL CREDIT 20pw uplift in Standard Allowance Ending today Payments from assessment periods ending from tomorrow onwards will not include the uplift Minimum Income Floor (MIF) For self-employed MIF was reintroduced from 31/7/21 Work Coach can use discretion to not apply MIF for up to 6 assessment periods until July 2022 No more than two assessment periods in a row Has to be because business still affected by Covid

OTHER COVID-19 CHANGES Coronavirus Job Retention Scheme (CJRS) Ends today Employers will not be able to claim for help to pay furloughed employees beyond today Self-Employment Income Support scheme (SEISS) Applications for 5th grant close today If turnover down by more than 30%, up to 7,500 can be paid If turnover down by less than 30%, up to 2,850 can be paid

UNIVERSAL CREDIT OTHER CHANGES

UNIVERSAL CREDIT Managed Migration DWP appear to be tendering for digital solution software Firm plans not yet announced, but it appears that, with a digital solution, DWP plan to complete Managed Migration by 2024 The longer this takes, the fewer people who will get transitional protection Pay Day Shift regulations DWP should now automatically detect when two wages have been paid in same assessment period This flags it to a Case Manager to amend manually. Not clear when this started but was announced in 27/8/21 Touchbase

UNIVERSAL CREDIT Local Housing Allowance Shared Room Rate From 31/5/21: Care leavers exemption from shared room rate extended up to 25 (was 21) from 31/5/21 Exemption from shared room rate, if claimant has spent 3+ months in a homeless hostel now has no lower age limit (was 25) NB Current claimants have to self identify. Will only be applied automatically for new claimants. Proposed from October 2023: Exemptions for victims of domestic violence and modern slavery

UNIVERSAL CREDIT Court Fine deductions DWP now setting these to 5% of standard allowance following a High Court case which ruled that always setting it to a maximum of 108.35 a month is unlawful SDP Court Case DWP ordered to compensate a couple for loss of SDP where they were awarded PIP after they claimed UC. Court decided that Transitional Protection (for the SDP) should be included in UC even though the award for the qualifying benefit (PIP) was only finalised after the UC claim was made this sets a precedent for similar cases

UNIVERSAL CREDIT Help to Claim Citizens Advice contract extended to April 2022 Recoverable Hardship Payments A sanctioned claimant can claim Hardship Payments. These are normally recoverable, with discretion to write off only if claimant was earning over a certain amount. Following a court case, this discretion can now be used for any claimant. Bedroom Tax Sanctuary Rooms Formal sanctuary rooms (for domestic violence survivors) now exempt from counting as a spare bedroom

UNIVERSAL CREDIT Debt Respite Scheme (Breathing Space) New debt option started 4/5/21 Those put forward by a debt advisor can get 60 days breathing space from contact, enforcement or payment of debts NB Indefinite time for those in mental health crisis Does not include UC advance or third party deductions from UC

OTHER BENEFIT NEWS

PENSIONERS State Pensions Thousands of women have been underpaid State Pension DWP identifying and refunding many affected But some need to self identify Triple lock will be abandoned by Government for 2022/23 the SP increase will be linked to either CPI or 2.5%, whichever is higher TV Licence Grace period for non-payment (for those 75+ who are no longer eligible for free TV Licence) ended on 31/7/21 Expect enforcement?

PERSONAL INDEPENDENCE PAYMENT PIP Activity 9 (Engaging with other people face-to-face) Following court case, DWP now reviewing decisions made since 6/4/2016 to see if higher amount should have been awarded This considers where claimant awarded descriptor 9b for prompting (2 points) should have instead been 9c for social support (4 points) Does not include claims where Tribunal has made a decision since 6/4/2016

BREXIT & AGHANISTAN NEWS EU Settlement Scheme Original cut off for EEA nationals to apply was 30/6/21 Extra-statutory payments of benefits being made to those who haven t applied, with extra time to apply Letters sent out in September, giving one further month to apply If still no application, benefits will be suspended for a month If still no application, benefits will be closed Afghanistan From 15/9/21, refugees coming from Afghanistan via official schemes are exempt from Habitual Residency and Past Presence tests for means-tested benefits.

OTHER NEWS New-style ESA Claimants of claims started from 26/4/21 now required to sign claimant commitment which may ask them to undertake work-related activity Support for Mortgage Interest Loans From 15/3/21, SMI loans can be carried onto a new property without having to be repaid as long as the gap between sale and purchase is less than 12 weeks

OTHER ISSUES AND FUTURE PROPOSALS

BEAREAVEMENT BENEFITS Government has announced that bereaved partners who are parents will soon be able to claim Bereavement Support Payment or Widowed Parents Allowance without needing to have been married/civil partners Backdating will be made available to 30/8/2018 where relevant

DISABILITY BENEFITS Health and Disability Green Paper Consultation on change for PIP and DLA claims and the WCA Do respond if you can. Important chance to influence change Deadline is 11/10/21 Terminal Illness Government announced plans to extend definition of terminal illness for special circumstances claims (from 6 months to 12 months life expectancy)

POST OFFICE CARD ACCOUNTS Were due to be closed by now. However, deadline has been extended to November 2022 Cannot make new applications Need to use Payment Exception Service instead via PayPoints

SOCIAL CARE - TAX INCREASES From April 2022, 1.25% increase to NI and dividend tax rates Proposalsfrom October 2023 in England: Cap of 86k lifetime spend on personal care, if capital assets are over 100k No contribution to care costs fromcapital, if assets are less than 20k. (NB But there still may have to be a contribution from income) In between 20k and 100k capital, care costs will be capped at 20% of a person s chargeable assets per year Any other care cost charges will be paid for by local authorities