Disability Benefits Update March 2016

1

Contents Welfare Reform Act 2012 Employment and Support Allowance Personal Independence Payment Universal Credit Benefit Cap “Bedroom Tax” Council Tax

Welfare Reform Act 2012

3

Welfare Reform Act 2012 – main features Introduction of Universal Credit in place of means tested benefits (inc.ESA)

Changes to Employment and Support Allowance Replacement of DLA with PIP Introduction of Benefit Cap Introduction of “Bedroom Tax” Changes to Council Tax benefit

Introduction of ‘conditionality’ - sanctions Changes to way benefits are claimed and paid

Employment and Support Allowance (ESA)

5

Employment & Support Allowance – Introduction Cannot work because of impairment or longterm condition

Replaced Incapacity Benefit

‘Contributory’ - If you have paid enough National Insurance contributions

‘Non-contributory’ paid to people with a very low income.

To be eligible, claimants must take ‘Work Capability Assessment’ (WCA)

a. Work Capability Assessment - Part 1 “Are you capable of doing any sort of work”?

1. Whether claimants can work is tested by a Work Capability Assessment

2. Assessment from information given on ESA50 form and meeting with “health care professional”

3. Different mental and physical activities assessed. You earn points by not being able to do something

ESA Work Capability Assessment activity example - 1. Learning tasks 15 pts: Cannot learn how to complete a simple task, such as setting an alarm clock 9 pts: Cannot learn anything beyond simple task, such as setting an alarm clock 6 pts: Cannot learn anything beyond moderately complex task, such as steps to operate washing machine. 0 pts:

None of those below apply

Work Capability Assessment - Part 1 seven different mental activities

Seven types of mental activity assessed:

4. Coping with change

1. Learning tasks

2. Awareness of everyday hazards

3. Initiating and completing personal action

5. Getting about

6. Coping with social engagement

7. Appropriate behaviour with others

ESA – Work Capability Assessment example:1. Mobilising: on own - with/without stick, chair (in each case without significant discomfort or exhaustion) 15 pts: Cannot mobilise more than 50m repeatedly OR without stopping 9 pts:

Cannot mount or descend 2 steps, with or without handrail

9 pts:

Cannot mobilise more than 100m repeatedly OR without stopping

6 pts:

Cannot mobilise more than 200m repeatedly OR without stopping

0 pts:

None of these apply

Work Capability Assessment - Part 1 Ten different physical activities

Ten types of physical activity assessed:

1. Mobilising unaided

2. Standing and sitting

4. Picking up and moving things

5. Manual dexterity

6. Making yourself understood

8. Navigating and maintaining safety

9. Control of bowel or bladder

3. Reaching

7. Understanding communication

10. Consciousness

Work Capability Assessment - Part 1 “Are you capable of doing any sort of work”?

If under 15 points = “Yes, fit for work.”

No ESA; apply for JSA instead

More than 15 points = “ Maybe” You have a “limited capability for work” Can you undertake work related activity?

Work Capability Assessment - Part 2 Can you undertake “Work-related activity”?

Determines which Group placed in, and amount of ESA

Test of ability to do 16 mental and physical activities - (similar to Part 1)

If one or more of these applies to you -placed in the Support Group

For each, there are ‘descriptors’ of things you might not be able to do

Otherwise - placed in the Work Related Activity Group (WRAG)

ESA: the “Work-Related Activity” Group

Must attend workfocused interviews with Job Centre Plus

Must do ‘work-related activity’: skills development, training and/or job hunting

If claiming contributory ESA: award for 12 months only

Failure will mean sanction: loss of benefits for specified period

If claiming noncontributory ESA: award not time-limited and you can claim additional payments

ESA – What has been happening?

ESA decisions

Personal Independence Payment 17

Moving from D.L.A. to P.I.P.

• DLA continues until 16th birthday • If born before 8 Apr 1948 – DLA continues

since June 2013

• All new claims are for PIP only

from June/July 2015

• In Bucks, people with DLA fixed awards which end, or with changed health circumstances, invited to claim PIP.

from September 2015

• All other DLA claimants (incl “indefinite”) to be invited to claim PIP.

PIP - Applying

1.

Get a letter from DWP saying your DLA will stop and inviting you to re-apply for PIP

2.

Start claim by phoning DWP; provide information about self, agree declaration

3.

Complete PIP2 Form – “How your disability affects you”

4

Return PIP2 in one month with all relevant evidence!

5.

Then probably called to face to face meeting with ATOS “health care professional”

6

Decision by DWP based on ATOS assessment - Notification sent to you

7

If not happy, ask for Reconsideration within one month. Can then appeal.

About Personal Independence Payments Contribution to extra costs disabled people face

Claim aged 16 – 64 whether working or not

Not meanstested or taxed

On top of other benefits

Paid whether person has care or not

Can be spent on whatever claimant likes

May be ‘passport’ to other benefits incl Motability

PIP - Structure & Assessment

Two Components

1. Daily Living

2. Mobility

Two levels of award

1. Standard

2. Enhanced

Getting PIP – How the Assessment works There are 12 different types of activity

Each type of activity has several ‘descriptors’

Each ‘descriptor’ scores between 0 and 12 points

You get points for things you cannot do

More points if need aids, help, prompts or supervision

Point score added up separately for ‘Daily Living’ and ‘Mobility’

8 points = Standard Rate for that Component

12 points = Enhanced Rate for that component

Possible to have different rates in each component

Daily Living Activity 1. Preparing food – example of descriptors Preparing food 0 pts:

Can prepare a simple meal unaided (one-course, cooked, fresh)

2 pts:

Needs to use aid/appliance to prepare/cook simple meal

2 pts:

Cannot cook simple meal using gas/electric cooker

2 pts:

Needs prompting to prepare or cook simple meal

4 pts:

Need supervision or assistance to prepare or cook simple meal

8 pts: Cannot prepare and cook food

Daily Living Activities (i) 1. Preparing Food

• Physical or mental ability to prepare and cook a simple onecourse meal 2. Taking nutrition

• Ability to eat and drink by cutting up food, moving it to your mouth, chewing etc, or using a food tube or similar device 3. Managing therapy

or monitoring a medical condition

• Support needed from others (not professionals) to actively manage your medication taken at home, or monitor your health condition (when failure, would cause health to deteriorate.)

Daily Living Activities (ii) 4. Washing and bathing • Physical or mental ability to wash and bathe in a standard un-adapted bathroom 5. Managing toilet needs or incontinence • Ability to manage own toilet needs or incontinence condition using an un-adapted WC 6. Dressing and undressing

• Ability to select, put on, take off un-adapted clothing which is suitable and appropriate, including socks and shoes

Daily Living Activities (iii) 7. Communicating

verbally

• Ability to communicate using words in own native language and whether specialist support needed to express or understand verbal communication. 8. Reading

and understanding signs, symbols, words and dates

• Ability to read and understand signs, symbols, words and dates, in own native language, (not including braille) 9. Engaging with people face to face

•Ability to engage with other people in an appropriate way, without causing distress; to understand body language and establish relationships and whether you need specialist support.

Daily Living Activities (iv)

10. Making budgeting decisions • Ability to spend and manage your money, including complex and basic budgeting decisions without prompting or assistance.

Mobility Activity 1. Planning and following journeys–descriptors Planning and following journeys 0 pts:

Can plan and follow journey unaided

4 pts:

Needs prompting . . . . To avoid overwhelming distress

8 pts:

Cannot plan route of a journey

10pts: Cannot follow route of unfamiliar journey . . . Without help 10 pts: Cannot undertake any journey . . without distress 12 pts: Cannot follow route of familiar journey without help

Mobility Activity 2. Moving around – descriptors Moving around 0 pts:

Can stand and move more than 200 m. (aided or unaided)

4 pts:

Can stand and move between 50 and 200 m (aided or unaided)

8 pts: Can stand and move unaided between 20 and 50 m 10 pts: Can stand and move with aid between 20 and 50 m 12 pts: Can stand and move between 1 and 20 m (aided or unaided) 12 pts: Can not stand or move more than 1 m. (aided or unaided)

All activities:– Safely, Repeatedly, etc Being able to do a task safely means harm is not likely to be caused to you or another if you do it

Being able to do a task repeatedly means being able to do it as often as is reasonably required

Being able to complete a task to an acceptable standard means what it says

Being able to complete a task in a reasonable time period means no more than twice as long as a non-disabled person

All activities– ability to do a descriptor Must be able to do a descriptor: - safely - to an acceptable standard - repeatedly - within a reasonable time period. Otherwise, points for not being able to do it!

Can’t do two or more descriptors added together for more than half the time? You get the points for the descriptor which you can’t do the longest or which scores the highest points!

Must be able to do a descriptor - on more than half the days of a year, looking 3 months back and 9 months forward? Otherwise, points for not being able to do it!

Being able to do a descriptor is measured over the whole 24 hrs – (unlike DLA)

PIP – new claimants

DLA claimants and PIP

Comparison of success rates for DLA and PIP – Daily Living/Care component Nil

low

medium/standard

High/enhanced

120

90

60

30

0

DLA

PIP

Comparison of success rates for DLA and PIP – Mobility component Nil

medium/standard

High/enhanced

125

100

75

50

25

0

DLA

PIP

What to do now!

Look at ESA or PIP tests now

Collect evidence linked to descriptors; (repeatedly ? safely?)

Keep a diary Find source of advice

disabilityrightsuk.org citizensadvice.org.uk turn2us.org.uk carersuk.org

Respond quickly to any DWP letter or form

Universal Credit

37

What is Universal Credit? Will replace most income-related benefits (including ESA) Designed to get people off benefits by starting working or earning more For people of working age (18-pension age) , not in education

May get UC if in work or not, if sick or disabled, or if caring Means tested – what you get depends on income & savings you may have Paid each calendar month in arrears – only into bank account Tapers off when you start or increase earnings - 65% for every £1 earned

When will Universal Credit happen here?

Currently

Limited pilot schemes (simple cases, selected areas) Autumn 2015 New claims from single unemployed people in Bucks During 2016 (?) All new benefit claimants in Bucks expected to claim UC Expected 2017-2019 (?) All existing benefit claimants including ESA moved to UC

How is Universal Credit structured?

Single benefit with different elements

Eg: Limited capability for work (as ESA)

Basic allowance

plus

Single/couple/young

additional elements

Eg: Housing costs

Eg: Children

Eg: Childcare costs

Eg: Caring

responsibilities

Applying for Universal Credit If you have less than £16,000 capital:- Apply on-line (only)

- Followed by face-to-face meeting with DWP. - Must sign up to a Claimant Commitment to get Universal Credit - If you break Commitment, may be “sanctioned” with loss of benefit

Claimant Commitments under Universal Credit In order to receive UC you will need to sign a claimant commitment Placed in one of four conditionality groups – depending on circumstances - No work related requirements

- Work focused interview requirement only - Work preparation requirements - All work related requirements

The Benefit Cap

43

The Benefit Cap “Cap” on total benefits a person or couple can receive

Affects “working age” people

Includes Housing Benefit, ESA (WRAG), JSA, Carer’s Allowance etc

But not - if a household member receives DLA, PIP or some other benefits

For single person: £350 per wk (£260 from April)

For couple/family £500 per week (£380 from April)

182 households in Bucks affected in first year of operation (all with 2+ children)

Under occupancy subsidy/ “Bedroom Tax”

45

“Under Occupancy subsidy”or the ‘Bedroom Tax’ - 1

Affects anyone who lives in Social Housing and receives Housing Benefit (HB)

HB reduced if you have more bedrooms than Gov’t consider necessary

If you have 1 ‘spare’ bedroom, HB is reduced by 14%

If you have 2 or more spare bedrooms, HB is reduced by 25%

“Under Occupancy subsidy” or the ‘Bedroom Tax’ - 2 The following are entitled to one bedroom:

1. An adult couple, regardless of disability or illness 2. Single person over 16 3. Two children of same sex (up to 16) unless one has a disability 4. Two children under 10, unless one has a disability 5. Foster child or children

6. Carer providing overnight care for adult 7. Serving member of armed forces

Council Tax

48

Council Tax Reduction Scheme Replaces “Council Tax Benefit”

Each District Council responsible for its own scheme • If you qualify, you’ll get a discount on your Council Tax bill • This depends on: • Where you live • Your circumstances (residency, benefits etc.) • Household income (incl. savings, pensions) • If other adults or children live with you • Apply to local District Council

Council Tax Disability Reduction Scheme National Scheme • If any resident in household is “substantially and permanently” disabled and… • There is a room (other than a bathroom, kitchen or toilet) which is used to meet your needs as a disabled person; OR • You need a second bathroom or kitchen for your needs; OR • You need additional space in your home to use a wheelchair indoors. • Council Tax reduced by one valuation band (eg from D to C). Can be backdated for 6 years.

Thank you for listening!

51