Latest Updates on Benefits and COVID-19 Support Measures
Stay informed with the latest updates on benefits, including the extension of the Universal Credit uplift and changes to the Minimum Income Floor for the self-employed. Learn about the extension of the Coronavirus Job Retention Scheme and Self-Employment Income Support. Additional support schemes are discussed, such as the Covid Winter Grant Scheme and Self-Isolation Grant.
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BEDFORDSHIRE BENEFITS NETWORK 03/03/2021
COVID-19 BENEFIT CHANGES
UNIVERSAL CREDIT 20pw uplift in Standard Allowance Due to end April 2021 Budget news - Extended until end of September 2021 Budget news - Equivalent will also be made in Working Tax Credit with a one-off 500 payment Minimum Income Floor (MIF) For self-employed Suspension had been extended until April 2021 Budget news - Suspension extended further until end of July 2021, followed by a gradual reintroduction from August and Work Coaches will have discretion to not apply MIF if they think earnings are still affected by Covid
UNIVERSAL CREDIT OTHER ANNOUNCEMENTS IN BUDGET UC Advances (From April 2021) Maximum time to repay an advance will be 24 months Maximum deductions rate will also be reduced to 25% NB This change was originally meant to be introduced in October 2021 but has been brought forward Surplus Earnings threshold Where someone earns too much to qualify for UC but then returns to claim UC, if they have earned over the threshold, it is used to reduce future UC entitlement. Threshold is currently 2,500 per month but was due to be reduced to 300 per month from April 2021 This change has been put back to April 2022
OTHER COVID-19 NEWS Coronavirus Job Retention Scheme (CJRS) Had been extended until 30/04/2021 80% of earnings covered while furloughed Budget news CJRS will be extended further until 30/09/2021 - Employers will have to start funding 10% of the unworked hours in July, and then 20% in August and September Self-Employment Income Support (SEIS) Applications for 3rd SEIS grant closed on 29/01/2021 Budget news - 4th grant will be available in late April, and 5th grant will be available in the summer (although the 5th grant will be less generous)
OTHER COVID-19 NEWS (continued) Covid Winter Grant Scheme Central Bedfordshire and Bedford Borough Councils used this funding to top up internal budgets aimed at supporting people, e.g. Local Welfare Provision and discretionary funds Self-isolation Grant (in England) Reported issues with accessing grant with some being refused without explanation when they should qualify discuss Plans to extend scheme to 30 June Plans to expand to include one parent/guardian who has to stay off work to look after self-isolating child Thanks to Julie Luckman (CBC) for last two points
OTHER COVID-19 NEWS (continued) Jobcentres Open between 10am and 2pm for those that cannot contact Jobcentre by phone or digitally only Work coaches continuing employment support programmes Contact continues digitally or via telephone Face to Face assessments and appeal hearings Remain suspended for all benefits Phone assessments and appeal hearings Some appeal hearings via video call Shielders / Clinical Extremely Vulnerable Can claim SSP/ESA if unable to work from home Employer could instead furlough them and claim CJRS
OTHER COVID-19 NEWS (continued) Tax Credits - rule changes Confirmation that claimants with reduced hours due to Covid are treated as working normal hours Furloughed claimants will get extra 8 weeks to return to normal hours of work after their furlough ends Test and Trace and other Covid grants ignored as income Council Tax Reminder that the extra 150 credited to the Council Tax accounts of people entitled to CTS during 2020/21 was a one-off
NON-COVID-19 BENEFIT CHANGES
UNIVERSAL CREDIT SEVERE DISABILITY PREMIUM The Severe Disability Premium (SDP) Gateway rule had prevented those entitled to SDP from claiming UC This rule was removed on 27/01/2021 Claimants receiving the SDP who need to make a claim for UC can now proceed with a claim but will then lose their SDP, and many would be worse off A Transitional Element provides some protection
SEVERE DISABILITY PREMIUM TRANSITIONAL ELEMENT Awarded to most claimants who lose their SDP when making new claim for UC Payable where: Claimant entitled to an SDP on IB-JSA, IR-ESA or IS in month before UC claim (NB: NOT if on HB only) Continued to satisfy eligibility for SDP up to date of UC claim Exception: No Transitional Element is paid if the award of UC is made when claimant forms a couple with someone already on UC
SDP TRANSITIONAL ELEMENT AMOUNTS Single 120 if Limited Capability for Work-Related Activity (LCWRA) Element included on UC claim 285 if LCWRA Element not included Couple 405 if SDP couple rate was payable before UC claim If not: 120 if LCWRA Element included for either claimant 285 if LCWRA Element not included for either
SDP TRANSITIONAL ELEMENT EROSION Relevant amount on previous slide only guaranteed for first payment For subsequent payments, erosion applies Any increase in entitlement to other elements reduces the SDP Transitional Element by the same amount. This can include: New elements awarded Benefit uprating Rent increase leading to increased housing costs element NB Excludes Childcare Element Transitional Element ends if claimant changes from single to couple or vice versa, or from one couple to another
UNIVERSAL CREDIT Pay Day Shift regulations At present claimants have to self-report if they are affected by two monthly payslips reported in the same assessment period DWP expecting to implement automation to this in early 2021 Rent issues Local Housing Allowance rates frozen from April 2021 DWP have abandoned bulk upload of rent changes from landlords Claimant s responsibility to report this. However if, after being prompted, they do not report change, DWP will ask landlord to confirm
UNIVERSAL CREDIT (continued) Managed migration plans Minister Th r se Coffey plans to keep to 2024 target to complete managed migration. Further details awaited Court case Childcare Costs Element High Court has ruled that requiring claimants to pay childcare costs before being able to claim for them is unlawful on the basis of discrimination against women DWP may be able to challenge decision
OTHER NEWS Personal Independence Payment Atos and Capita instructed to have audio recording equipment available for all face-to-face PIP assessments Claimant may still need to specifically request assessment is recorded Tax Credits Law change to allow HMRC to backdate disability elements even if claim is closed or finalized Claimant must report decision to award qualifying benefit within one month of that decision in order to get backdate on Tax Credits
OTHER NEWS Housing Benefit and Council Tax Support Cuts to Personal Allowance from 1 April 2021 for claimants reaching retirement age on or after this date This is to align the rates with the Pension Credit guarantee rate Couple rate reduced by 15.75 per week Single rate reduced by 14.05 per week Those who reached retirement age before 1 April 2021 will continue to get pre-cut rates 12-month protection for widow/er whose retirement age was after 1 April 2021 but whose deceased partner was before, as long as s/he remains in same property
