Understanding the changes to the welfare system and the

impact on meKen Butler

Tax Credits and Benefits Adviser Robbie Spence

Benefits of Working AdvisorDisability Alliance

Who we areDisability 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’• 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. planning and buying food and drink 2. preparing and cooking 3. taking nutrition 4. managing medication and monitoring health

conditions 5. managing prescribed therapies other than

medication 6. washing, bathing and grooming 7. managing toilet needs or incontinence 8. dressing and undressing 9. communicating with others

PIP

• 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 Consultationclosing 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

• 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:

• 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)

• office@disabilityalliance.org

• 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