Welfare Reform Update – January 2016

Welcome to the January 2016 edition of the CLC Building Futures welfare reform update. As you are aware, during 2013/14 and 2014/15, there were significant changes to the benefits system, with individuals and families having different and often reduced entitlements than before. How people have been affected depends on their personal circumstances and where they live. As the new 2015 Government starts work to find a further 12 billion pounds of cuts from the welfare benefits budget, it is likely that many more changes will be on the way. This bulletin will keep you up-to-date with developments and help you support the young people you work with through the current and future changes. If you would like to be added to our distribution list to receive our updates and other bulletins, please email [email protected]. In this issue:            

Bedroom Tax Benefit Cap Council Tax Support Local Welfare Assistance (replaced parts of the Social Fund) Personal Independence Payment (PIP) Universal Credit Benefits for EEA Nationals who are jobseeking Child Tax Credit – notifying what young people are doing Future changes to Tax Credits Changes to Jobseeker’s Allowance Benefit rates frozen for 4 years Benefits for Young People from April 2017

Bedroom Tax What is the bedroom tax? It is a way of ensuring that social housing tenants who get Housing Benefit to help them pay their rent, do not get help to pay for any ‘spare’ bedrooms they have. So, the Housing Benefit department base any Housing Benefit award on how many bedrooms the household needs (not how many bedrooms they actually have). When did the bedroom tax start? It started on 1st April 2013. Who is affected? All current and future working age tenants who rent from a local council or housing association are affected (unless exempt). Working age means – under the current pension age for women (whether the Housing Benefit claimant or partner is male of female!). The pension age for women as at December 2015 is 62 and 9 months! It is gradually increasing, and by 2018, will be 65, the same as pension age for men. How will young people be affected by the bedroom tax? Young people living independently in social housing could be affected, if they occupy a property larger than they need. Young people who live with their family in social housing, may find that their family is under-occupying, and they may be asked to help out financially to help pay the ‘missing’ rent. It is possible that a young person who has already left home may be asked to return, to occupy the ‘spare’ bedroom. How does the Bedroom Tax work? The Housing Benefit office work out how many bedrooms the household actually needs to live in. If the household has more bedrooms than they need, the Housing Benefit office will reduce the rent they use to work out the award of Housing Benefit payable. How many bedrooms are allowed? A bedroom is allowed for each of the following:  adult couple (same sex or opposite sex)  any other adult aged 16 or over  two children under 16 (same sex)  two children under 10 (opposite sex)  any other child  non-resident carer  an approved foster carer gets a room for a foster child  grown up son/daughter in the forces but who still lives at home There is a useful calculator on the Shelter website, which works out exactly how many bedrooms a household needs. How much is the rent reduced by? If a household under-occupies by one bedroom, the rent (and any eligible service charges) is reduced by 14%. If a household under-occupies by two or more bedrooms, the rent (and any eligible service charges) is reduced by 25%. This reduction is called the under-occupation penalty or ‘bedroom tax’. So who has to pay the missing 14% or 25%? It is the responsibility of the tenant. They may be able to get help by applying for a DHP from the Housing Benefit office (see below), but these payments are usually short-term. Unless CLCbuildingfutures.org

the tenant can somehow find the money to pay, they will have to downsize to smaller accommodation. If they do not, rent arrears will start building up, which may lead to eviction. What happens if people who are supposed to share a room, cannot due to disability? This depends on whether the people who are supposed to share are two disabled children or an adult couple. What happens if those supposed to share a room are children, where one or both has a disability? Where disabled children are proven to need separate bedrooms, the household can ask the Housing Benefit office not to apply the under-occupation penalty. The Housing Benefit office can allow an extra bedroom for a disabled child (who is entitled to the middle or high rate care component of DLA), who would normally have to share a bedroom under the underoccupation rules, where it is not reasonable to share due to the disability. This concession was not in the original ‘bedroom tax’ rules. It was conceded after action through the courts. How does the Housing Benefit office decide whether it is ‘reasonable’ for disabled children to share or not? They will look at various factors, such as: whether the child is currently sharing a bedroom without difficulty; whether the nature and frequency of any overnight care causes prolonged and/or repeated disruption to another child; whether the disability increases the likelihood that the child may behave in a disruptive manner during the night; or whether sharing a bedroom poses a risk of physical harm to either child. They will also look at how long the situation is likely to last. For example, they may allow the extra bedroom if they know that within a couple of months, the ages of the children who are required to share will change, and separate bedrooms will be allowed anyway. What happens if a disabled child does not receive the rate of DLA required, but is unable to share a bedroom due to disability? The only option in this situation is for the Housing Benefit claimant to apply for a Discretionary Housing Payment. This is also the only option for adult couples who are unable to share a bedroom due to disability. What happens if the people supposed to share a room are an adult couple where one or both has a disability? The only option for disabled adults who cannot share, is to ask for a Discretionary Housing Payment (see below) to make up the shortfall. Has anyone challenged the ‘bedroom tax’ for disabled adult couples who cannot share, in the courts? Yes, they have. However, the courts confirmed that for disabled adult couples, although the rules were discriminatory, the system of Discretionary Housing Payments gave adequate protection. The case was appealed to the Court of Appeal in January 2014. However, the appeal failed. In January 2015, five disabled adults were given the right to appeal the case to the Supreme Court. The case has not been heard yet. What is a Discretionary Housing Payment (DHP)? Each council has a DHP fund, from which they can award extra payments (to top up Housing Benefit) in special circumstances. However, the budget is quite limited, and any awards are likely to be short-term (perhaps 13 or 26 weeks). An application for a DHP must be decided on its own merits. The money to fund DHP payments is given to local councils by the Government every year, but the budget is limited.

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Are there any exemptions from the bedroom tax?  people over working age (62 and 9 months as at December 2015)  those in temporary accommodation  those in shared ownership  People in supported exempt accommodation (where the landlord also provides care, support and supervision to the tenant) What other options are there for someone who is affected? The Government has suggested a number of options.  move to smaller accommodation with the same landlord  move to the private rented sector.  get a lodger (landlord has to consent & income affects benefits)  ask other members of the family to help out  Get a job or work more hours and increase finances. Where can I check how much Housing Benefit (HB) will be payable? Go to the entitled to website and complete the online calculator. This will check bedroom tax and how much HB is payable.

Benefit Cap What is the benefit cap? The benefit cap is the maximum weekly amount of benefit a non-working household can receive, before Housing Benefit payments are reduced. A household comprises the claimant and their partner, and any dependent children or young people (this usually means getting Child Benefit for them). How will young people be affected by the benefit cap? A young person living independently is unlikely to be affected by the cap, as their weekly cap limit is £350. A young person still living at home with their family (where the family is still responsible for them and getting Child Benefit), may find that the family benefit income is capped. This is because the cap level for a family with children is £500 for all members, irrespective of how many children are in the household, or what area of the country they live in. So, money may be tight, which will impact all members of the family. Large families in the London area are the group most affected by the benefit cap. How much is the current weekly benefit cap? For single people the cap is £350 weekly. For couples (with or without children) and lone parents, the cap is £500 weekly (based on average household income of £26,000 per year). Which benefits are included within the benefit cap?  Income Support  Jobseeker’s Allowance  Employment and Support Allowance (not if in ESA support group)  Housing Benefit (unless for supported exempt accommodation)  Child Benefit  Child Tax Credit  Carer’s Allowance  Incapacity Benefit / Severe Disablement Allowance  Bereavement Allowance / Widowed Parent’s Allowance  Maternity Allowance CLCbuildingfutures.org

Which benefits are not included within the benefit cap?  Retirement Pension / Pension Credit  Council Tax Support  Social Fund payments  Discretionary Housing Payments  Free school meals and any help with childcare costs  Housing Benefit if in supported exempt accommodation How does the cap work? Income from all (included) benefits is added together:  If the total is less than the appropriate cap (£350 or £500), then all benefits will be paid in full.  If the total exceeds the cap (£350 or £500), then the Housing Benefit award will be reduced to ensure that the total benefits in payment do not exceed the cap level.  If the total benefit income excluding Housing Benefit exceeds the cap, then Housing Benefit will not be paid, apart from 50p weekly. This 50p award will allow the claimant to apply for a Discretionary Housing Payment, which may help the household pay their rent in the short-term. Longer term they may need to move somewhere cheaper. Is anyone exempt from the benefit cap? Households where someone is in receipt of Disability Living Allowance, Attendance Allowance or Personal Independence Payment are exempt. A High Court decision in December 2015 determined that a family carer receiving Carer’s Allowance and looking after a grandparent was also exempt from the cap. Also, a household where someone is entitled to Working Tax Credit will be exempt. So, how many hours does a worker need to work to claim WTC?  lone parents and disabled workers must work 16 hours or more weekly  couples with children must work 24 hours or more weekly (with one of them doing 16 hours or more)  most other people must work 30 hours or more weekly. What if someone has been working recently but has stopped? Where someone has been working for the last 52 weeks, but is now not working, then the benefit cap will not apply for a 9 month grace period. What can households do who are subject to the benefit cap? The Government has advised that people affected by the cap need to urgently get into work (for a sufficient number of hours), then the cap will not apply. Another option is to move to an area where the rent is cheaper. However, this may mean school-age children having to change schools and move away from local family, friends and community. Another option is to ask the Housing Benefit section for a Discretionary Housing Payment (DHP) to help fund the shortfall in rent. However, DHP payments are discretionary, and usually short-term, and any application for a DHP must be decided on its own merits. The money to fund DHP payments is given to local councils by the Government every year, but the budget is limited. How many families are having their benefit capped? Between 15 April 2013 and August 2015, 66,900 households had their benefit capped. 45% of these households were in London. In August 2015 (latest figures published) 23,400 households had their benefit capped. Of the top 20 local authorities with the highest number of households affected by the benefit cap, 18 of these were in London. CLCbuildingfutures.org

The five areas with most capped households (as at August 2015) were: Brent Ealing Enfield Birmingham Tower Hamlets

849 775 757 750 615

households households households households households

How can I work out if the cap will affect a household? There is a cap calculator on the Gov UK website. It can work out household size and whether a household will be affected by the cap. Was the court case which challenged the benefit cap successful? No it wasn’t. Three lone parent families who had all been left by their husbands (and two had experienced severe domestic violence) appealed to the Court of Appeal. The women took their case to the Court of Appeal, and it was heard in February 2014. The Court of Appeal decided that the Regulations are discriminatory against women, but that the discrimination is justified because it ‘reflects the political judgement of the Government’ and has been endorsed by Parliament. The women appealed to the Supreme Court, but on 18th March 2015, it was held that their appeal had been unsuccessful, by a majority of 3-2. Is the benefit cap changing in the future? The Government has announced that the Benefit Cap will soon be reducing. The weekly benefit cap will be:  £442.30 for couples with/without children and lone parents living in Greater London  £296.35 for single people in Greater London The date that this reduction will happen from has not been confirmed yet. The benefit cap will also exist within Universal Credit. It will, however, be a monthly rather than a weekly cap.

Council Tax Support What is Council Tax Support? It replaced Council Tax Benefit in April 2013, and in some areas does not help as much. What was Council Tax Benefit? Council Tax Benefit was administered by the local council. People who could not afford to pay their council tax could apply for Council Tax Benefit, which may reduce their bill Who is affected by the change to Council Tax Support? Anyone who receives a council tax bill and needs help to pay it. Is Council Tax Support the same as the old Council Tax Benefit scheme? No. The old Council Tax Benefit scheme was nationwide, so it was the same wherever someone lived. The Council Tax Support scheme is local. Each Council has to devise its own method of support. How much help people will get depends on what scheme their council has decided to put in place. How does this change affect young people? Council Tax is not payable until someone reaches the age of 18. A young person living independently (except for students) may have their own Council Tax Bill. So, they may be CLCbuildingfutures.org

affected individually. Young people living with their (low income) family may find there is less money to support everyone, as the family struggles to pay the extra Council Tax bill. People on low income benefits (Income Support, Jobseeker’s Allowance (IB) and Employment and Support Allowance (IR)) used to get all their Council Tax paid by Council Tax Benefit. Is that the same under Council Tax Support? Not necessarily. It depends where the person lives. In some areas, people on low income benefits will have all their council tax paid by Council Tax Support. In some areas, people on low income benefits will have to pay a percentage of their council tax out of their benefit income. How much they have to pay depends on what their council has decided locally. How will someone know if they have to contribute towards their Council Tax or not? They will be sent a bill by their local council. What if they cannot afford to pay their Council Tax bill? A reminder will be sent, and then a summons. Ultimately, bailiffs will call, and in the worst case scenario, someone can be sent to prison. How can I find out what each council has decided? Look at the local council’s own website. Click here for a more national view. What schemes have central London councils put in place? Most central London councils have kept the same Council Tax Support scheme that they introduced in April 2013. Details of the minimum percentage that ‘low income’ households have to pay towards their council tax is listed below. ‘Low income’ includes those in receipt of benefits such as Income Support / Jobseeker’s Allowance (income based) / Employment and Support Allowance (income related). Camden 8.5% Hackney 15% Hammersmith and Fulham 0% Haringey 19.8% Islington 8.5% Kensington and Chelsea 0% Lambeth 15.86% Southwark 15% Tower Hamlets 0% Wandsworth 0% Westminster 0% Might Council’s change how much they charge low income households in April 2016? Yes, they might. The Council Tax year starts in April, and the Council can change their Council Tax Support scheme at that point. They can ask low income households to contribute more (or less!). It is up to the local council to decide what scheme they want to operate. However, as councils become more cash-strapped, they may not be able to afford the scheme they currently have in place for much longer. Are any future changes planned? It is possible that Council Tax Support may be abolished, and any help with Council Tax be placed within the new Universal Credit. Watch this space...

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Local Welfare Assistance (replaced parts of the Social Fund) What was the Social Fund? The Social Fund was a set of payments and loans and grants, which were paid by the Department for Work and Pensions. It included grants to help with maternity costs, funeral costs, winter fuel and cold weather costs, as well as Community Care Grants (for furniture/clothing), Crisis Loans (for emergency situations) and Budgeting Loans. Has it been abolished? Not completely. It still exists at the DWP office and processes any applications for grants to help with maternity costs, funeral costs, winter fuel and cold weather payments. What has changed then? Since April 2013, the budget for Community Care Grants (which used to help with the costs of furniture and clothing) and emergency Crisis Loans was given to individual local authorities. They were told to devise their own scheme instead. They now have to process applications for whatever scheme they have put in place. Were the councils given any guidelines? Not really. They were advised to design a scheme which met local need. So do councils now offer Community Care Grants and Crisis Loans? Not unless the local council devised a scheme which included these. What sort of things have councils put in place? Every Council is different. Most councils run a cashless scheme. Some offer vouchers for food or electricity/gas costs, furniture may be from a second hand warehouse, or may be ordered by the scheme and delivered to the applicant. Some councils simply refer applicants to food banks. What has happened to Budgeting Loans? They are still being administered by the DWP, but are known as ‘Budgeting Advances’ within the new Universal Credit scheme. What has happened to the Crisis Loans that used to help people whose payment of benefit was delayed? These can still be paid by the DWP, but they are now known as ‘short term benefit advances’. They are called ‘payments on account’ within the new Universal Credit system. How can I find out what my local council is offering? Look at the Council’s own website – but it might be difficult to find the right section. This is because councils seem to be using a variety of names for their scheme. Unless you know the name of the local scheme, it will be difficult to find! Child Poverty Action Group have identified all the schemes nationwide, and put a link to them all on their website. This can be found at www.cpag.org.uk/lwas Does the Government plan to keep funding these local schemes? The Government did try to completely cut the funding for these schemes from April 2015 onwards. However, following the threat of a Judicial Review, they conceded slightly, and only cut 74 million from the national budget of 174 million. Because of this reduction in funding, it is now more difficult for local councils to offer the support that they did in the last financial year, unless they pay for it themselves. The funding for this from 2016 onwards has not been announced yet. CLCbuildingfutures.org

Personal Independence Payment (PIP) What is Personal Independence Payment? Personal Independence Payment (or PIP) is the new benefit which has replaced Disability Living Allowance for people who first claim when aged 16-64 (inclusive). Why did the Government decide to replace DLA with PIP? DLA has been in place for about 20 years. The government was becoming concerned with the increasing number of claimants. PIP is ‘intended’ to target payments to those in need. Does DLA still exist? Young people aged under 16 can still claim DLA, and there are no plans to change this for the time being. When a young person receiving DLA reaches the age of 16, s/he will have to claim PIP instead. People who were getting DLA when PIP started, are generally still getting it. However, they are gradually being migrated to PIP in all areas - including London. The first DLA recipients to be migrated are: those with a DLA award which has come up for renewal; those with a DLA award whose condition has changed; or those who reach the age of 16. Other DLA recipients will all be gradually migrated, including those with a lifetime/indefinite DLA award. What can PIP help with? PIP can be paid to people who have sickness and/or disability needs, and who need help with daily living tasks and/or mobility needs. What is PIP made up of? PIP is made up of two components, a daily living component and a mobility component. Both components have two rates of payment. To determine entitlement to the two components and the level of PIP award, individuals are assessed on their ability to complete a number of key everyday activities relating to daily living and mobility. How much is PIP? Enhanced daily living Standard daily living

£82.30 £55.10

Enhanced mobility Standard mobility

£57.45 £21.80

How does PIP differ from Disability Living Allowance? DLA was made up of a care component and a mobility component.  The care component of DLA has been replaced by the PIP daily living component. However, PIP daily living only has two rates of payment (instead of the three rates of care component payable under DLA).  The mobility component of DLA has been replaced by the PIP mobility component. PIP mobility has two rates rate of payment (the same as the two rates of mobility component payable under DLA). Are there any other differences between PIP and DLA? Part of the PIP assessment process includes a medical for most people, which was not the case under DLA. Also, PIP is harder to qualify for, as the criteria are stricter and are based on a points assessment.

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What daily living activities are assessed under PIP? Ten activities get assessed under the PIP daily living criteria. They are:  preparing food; taking nutrition; managing therapy or monitoring a health condition; washing, bathing; managing toilet needs or incontinence; dressing and undressing;  communicating verbally; reading and understanding signs, symbols and words; engaging with other people face to face; making budgeting decisions. What mobility activities are assessed under PIP? Two activities get assessed under the PIP mobility criteria. They are: planning and following journeys; moving around. How can a new claimant make a claim for PIP? Phone 0800 917 2222 from 8am - 6pm Monday to Friday Textphone 0800 917 7777 from 8am - 6pm Monday to Friday What if someone cannot use the telephone to make a claim for PIP? A relative or carer or friend can make the call, as long as the claimant is there to give permission. What happens after the telephone call to claim PIP? Once the claim has been registered, a ‘How your disability affects you’ form (PIP2) will be posted to the claimant. This needs to be completed to explain how the claimant’s condition affects their daily life. Supporting evidence can be returned with this form, which should be returned to the DWP by post within one month. Will everyone have to undergo a medical for PIP? Once the form (and any accompanying evidence) has been returned to the DWP, it will be passed to a health care professional (from a private company called ATOS). This person will then decide whether to contact the claimant’s GP or consultant for further evidence and whether a face to face medical assessment with a health care professional is required. How will the DWP decision maker decide what award to make? The report from the medical consultation will be returned to the DWP Decision Maker, who will then use all the available evidence to reach a decision. The Decision Maker will decide whether an award of PIP will be made and which components will be included, the length of the award and the date it will be reviewed – based on the likelihood of the health condition or impairment changing. The new claim process for PIP seems to be very slow. How long should someone have to wait for a decision? When PIP began, there were well documented problems with the claims and assessment procedures. Sadly, it was not unusual for claimants to wait 1 year before receiving the result of a PIP claim. Latest statistics from the DWP in September 2015, show that the average time taken to clear a new PIP claim is now 11 weeks in total. This is not great, but is a vast improvement on what was happening previously. When a client does (finally) receive an award of PIP, it will be backdated. It is also really important that they inform other benefits offices of this (such as ESA, Income Support, Housing Benefit, Working Tax Credit), as receipt of PIP can mean that extra premiums may be payable within these benefits – which can mean more money! CLCbuildingfutures.org

What happens if someone is unhappy with a PIP decision? The claimant can ask for a mandatory reconsideration of the decision. This must be requested within one calendar month of the decision (or within 13 months if there is good reason for lateness). If the claimant is still unhappy after the mandatory reconsideration decision, an appeal can be lodged directly with Her Majesty’s Courts and Tribunals Service. Details of how to do this are included on the mandatory reconsideration decision notice. How can people who get DLA find out when they are to be migrated? The DWP have an online PIP checker which can advise what date a DLA claimant will be migrated https://www.gov.uk/pip-checker Do DLA claimants need to do anything to start the migration process? No, current DLA claimants just have to wait for the DWP to contact them. However, once they are contacted, they need to respond to any letters and attend the medical if required. Failure to do this could lead to their DLA payments being stopped. Will everyone on DLA get PIP in the future? Probably not. It is thought likely that many people who currently receive the low rate of care component of DLA will not transfer to PIP daily living, as their needs will not score enough points. They will not be the only losers though. It just depends on whether the claimant can score enough points to qualify for PIP. Statistics showed that by September 2015, 76% of existing DLA claimants has successfully migrated to PIP. This means that 24% had not…

Universal Credit What is Universal Credit? Universal Credit is a single integrated means-tested benefit for people under the pension age for women (62 and 9 months at December 2015) who are working or not working. It can include payments to help with daily living costs, as well as help with rent and mortgage payments, and help with childcare costs. In most cases it will be paid calendar monthly directly to the claimant (and this includes any help with payments of rent). However, there are some safeguarding arrangements where financial vulnerability is proven. Which benefits does Universal Credit replace? Universal Credit takes the place of six of the current means-tested benefits for working age people. These are: Income Support, Jobseeker’s Allowance (income based), Employment and Support Allowance (income related), Working Tax Credit, Child Tax Credit and Housing Benefit. Why is the Government bringing this benefit in? The government believes Universal Credit will be easier for claimants as they will only need to claim one benefit to help with living costs and rent. Also, it will be paid calendar monthly (just like wages), so will help people prepare for work, where most people are paid monthly. The Government says that Universal Credit will ensure that people in work are better off due to better earnings disregards and tapers. This is disputed by many organisations who say that not all workers will be better off under Universal Credit. Also, reductions to the earnings disregards from April 2016 have made this even less likely to be the case. CLCbuildingfutures.org

How are Universal Credit claims made? Universal Credit claims must be made online, and will (eventually) be maintained online. How will Universal Credit be paid? In most cases, Universal Credit will be paid to the claimant on one specific day in the month, every month, just like wages. In most cases it will be up to the claimant to pay their rent, their bills, and then budget until the next payments arrives the next month. For jobseekers and people with limited capability for work, there will be a 7 day waiting period at the beginning of the claim where nothing at all will be payable. What if someone cannot manage to budget monthly or pay their rent? It is possible to request an ‘Alternative Payment Arrangement’ (APA) where rent can be paid directly to the landlord, or where money can be paid twice a month instead, or split between members of a couple. APAs have to be requested and will only be agreed to by the UC staff if the claimant can prove their vulnerability with evidence. What if someone already has rent arrears when they claim Universal Credit? If there are two month’s rent arrears, landlords can contact the Universal Credit office and request that the rent money be paid directly to them. How long will a claimant have to wait for their first Universal Credit payment? Usually, the first payment will not arrive for about 6-7 weeks. When the money does arrive in the claimant’s bank account, it will be payment for one calendar month. Where the claimant cannot wait that long for payment, they can request a ‘payment on account’ or advance payment. This has to be requested and is not sent out automatically. Any payment on account will is repayable by the claimant, from future payments of Universal Credit. What is the Claimant Commitment – I have heard it is a vital part of Universal Credit? The claimant commitment is something signed and agreed to by a Universal Credit claimant when they make their claim. It lays out exactly what the claimant has to do (known as ‘conditionality’) in order to receive their Universal Credit. For example, a young unemployed claimant will be required to prove they are job-seeking for 35 hours weekly, and looking for a job of 35 hours weekly. The job-seeking requirement will be adjusted depending on the claimant. So, it can be negotiated down to fewer hours if children need to be picked up from school or where there is a health condition or disability. What is the current work ‘conditionality’ for people with young children? Currently, the main carer of a child under 1 does not have to do any work related activity. When the child is aged between 1-5, the main carer has to attend work focused interviews. Once the child is 5, the main carer will have to start looking for work on a full-time basis, although this can be adjusted around school hours. Is the current work ‘conditionality’ changing for people with young children? Yes. From April 2017, the main carer of a child under 1 will not have to do any work related activity. When the child is aged 2, the main carer will have to attend work focused interviews and undertake work preparation. Once the child is aged 3, the main carer will have to start looking for work on a full-time basis, although this can be adjusted around school hours. How many Jobcentre Plus offices are currently accepting Universal Credit claims? There have been well documented problems with the roll-out of Universal Credit – mainly due to problems with the IT system. Universal Credit is now gradually rolling out across the country, and by April 2016, it will be available in all Jobcentres. As at December 2015, about 70% of Jobcentres are accepting claims for Universal Credit – although most are only accepting claims from a very limited group of claimants. CLCbuildingfutures.org

Can everyone in these areas claim Universal Credit? No they can’t. In most areas, claims can only be made by single jobseekers, aged 18 or over, with no children, not pregnant, fit for work, not living in temporary or supported accommodation, and not in education or training. The jobcentres which launched Universal Credit first, have now started taking UC claims from couples and families with children as well. Other areas will gradually extend the groups of claimants they can accept UC claims from – as soon as they have gained experience from their jobseeking client base. When will claimants of exiting benefits start migrating to Universal Credit? The date keeps changing! The latest Government announcement is that migration will start in April 2018, and will be completed by March 2021. The Government want the claims process to be running smoothly for new claimants, before they transfer existing claimants. Where has Universal Credit started in London, or when will it start? Dates for the launch of Universal Credit in central London areas are: Camden Hackney Hammersmith and Fulham Haringey Islington Kensington and Chelsea Lambeth Southwark Tower Hamlets Wandsworth Westminster

14th March 2016 28th March 2016 28th October 2013 (one of the first to start) 14th March 2016 9th November 2015 2nd November 2015 8th February 2016 8th February 2016 2nd March 2015 27th April 2015 9th November 2015

To keep up to date with the exact dates when each areas is launching Universal Credit, and which client groups they are accepting claims from, go to: https://www.gov.uk/jobcentreswhere-you-can-claim-universal-credit I have come across a Universal Credit claimant in an area which hasn’t launched Universal Credit yet. How can that be? You may come across a Universal Credit, even if you are based in an area where UC has started yet. This is because, if a UC claimant moves from an area where UC has started, they remain a UC claimant – even if they move to an area which has not yet started! How many people are in receipt of Universal Credit and who are they? As at 12 November 2015, 155,000 were on the Universal Credit caseload, of which 51,075 (33%) were in employment and 104,490 (67%) were not in employment. You may wonder how come so many are in employment when claims are, at the moment, limited to jobseekers? It is because although the claimants had to claim Universal Credit as a jobseeker, they then found work. Despite working, they had to remain on Universal Credit as, presumably, their wages did not pay them enough to live without continued help from Universal Credit. The Universal Credit caseload is increasing by about 7,278 per week. Where can I find out more about Universal Credit? The DWP have a Universal Credit toolkit available on their website. It has lots of information, leaflets and case studies.http://www.dwp.gov.uk/adviser/updates/uc-toolkit-partners.shtml

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Benefits for EEA nationals who are jobseeking What is the EEA? The EEA is the European Economic Area. It is made up of the 28 European Union member states plus Norway, Liechtenstein and Iceland. Can EEA jobseekers receive Jobseeker’s Allowance while they look for work? All new EEA jobseekers now have to have lived here for 3 months before they can apply for Jobseeker’s Allowance (JSA). Once they have lived here for 3 months, they can claim JSA. They will have to satisfy a robust test of job-seeking, and will be asked what effort they made to find work before coming to this country and whether their language skills will be a barrier to finding employment. After they have received JSA payments for 3 months, it can only continue to be paid if there is compelling evidence that the claimant has a genuine chance of finding work. Can EEA jobseekers receive Housing Benefit? Since April 2014, new EEA jobseekers are not able to claim Housing Benefit at all, even if they are in receipt of JSA. In most cases, they will only be entitled to Housing Benefit if they are a ‘worker’. The definition of worker has been tightened up and requires someone to show they are undertaking ‘genuine and effective work in the UK’. To prove this automatically, a person will have to show that for the last 3 months, they have been earning at least £160 weekly (equivalent to working 24 hours at the National Minimum Wage). There are some exceptions where EEA nationals who are job-seeking can get Housing Benefit. For example, where they can prove they have ‘retained worker status’ (which lasts for a certain period after finishing work), or they are a ‘family member’ of someone who has a right to reside here, or they claimed it before April 2014. What if an EEA jobseeker had claimed Housing Benefit before the rules changed in April 2014, but then moved? If an EEA jobseeker moves within the same borough, then it is just a change of circumstances (not a new claim) so their Housing Benefit claim can continue to be paid. However, if an EEA jobseeker moves to a new borough, they will have to make a new claim for Housing Benefit. This will be refused as it has been made after the rules changed. That person cannot receive any Housing Benefit until they are a worker (or have retained worker status, or are a family member of someone who has a right to reside here). Can EEA jobseekers receive Child Benefit and Child Tax Credit if they have children? All new EEA jobseekers now have to have lived here for 3 months before they can apply for Child Benefit and Child Tax Credit. Once they have lived here for 3 months, Child Benefit and Child Tax Credit can be payable. However, these benefits will usually only be payable for 3 months. At this point, they will stop, unless there is compelling evidence that the claimant has a genuine chance of finding work.

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Child Tax Credit – notifying what young people are doing How often do parents have to notify the Tax Credit office about what their son/daughter aged 16 or over is doing? Before April 2014, if a parent confirmed that their son/daughter was remaining in full-time non-advanced education or approved training at age 16, then payment of Child Tax Credit would automatically continue until the young person reached the age of 20 (unless circumstances changed before then). From April 2014, parents with a son/daughter aged between16-19 have to advise the Child Tax Credit office each year (by 31 August) as to what they are doing. They have to confirm whether the young person is staying in full-time non advanced education or approved training. Failure to do so will result in that young person being removed from the Child Tax Credit claim.

Changes to Tax Credits I heard a lot on the news about cuts to Tax Credits for working parents. Did they go ahead or did George Osbourne decide against them? The Government had planned drastic cuts to Tax Credits from April 2016. However, after concern from many places (including lots of their own MPs), they decided not to go ahead with them. Unfortunately, the cuts that were planned are still there within Universal Credit, so will affect working parents - just not until they start claiming Universal Credit. Is it true that benefits will only be payable for 2 children within a benefits claim? From April 2017, it is planned that Child Tax Credit / Universal Credit will only be payable for 2 children. What about households who already get benefits and have more than 2 children? Households with more than two children who are already in receipt of benefits at April 2017 will not be affected (unless they have another child after this date). This is intended to give people time to plan their family size. Are there any exceptions to this ‘2 children’ rule? Exceptions will be made where there is a multiple birth, or where a third child is born as a result of rape, or other exceptional circumstances.

Changes to Jobseeker’s Allowance How are the government tightening up access to Jobseeker’s Allowance? From April 2014, jobseekers will be expected to be more ‘work ready’ on day one of their claim. For example, they will be expected to have an email address, a suitable CV, and a Universal Jobmatch account. Where a new jobseeker does not meet these criteria, they will be expected to complete this activity at the earliest opportunity, with support where required. Will jobseekers have to attend the Jobcentre more frequently? Some jobseekers will be required to attend weekly for work search reviews. What happens to jobseekers who have limited English skills? Jobseekers will be screened for their English speaking ability, and can be mandated to attend English language training. CLCbuildingfutures.org

When do payments of Jobseeker’s Allowance start? From April 2014, Jobseeker’s Allowance will only normally be paid after a 7 day waiting period. So, if someone claims on 11th May 2015, payments will start from 18th May 2015. Many jobseekers seem to have JSA sanctions applied. Why is this? JSA can be sanctioned (or not paid) if a jobseeker does not do what is ‘required’ (by the Jobcentre) in order to find work. What is ‘required’ is determined at the initial meeting between the jobseeker and their Personal Adviser at Jobcentre Plus. A Jobseeker’s Agreement (or Claimant Commitment depending on the area) is drawn up, and the claimant must adhere to this, or face sanctions. What can a jobseeker do if they disagree with the sanction? A jobseeker can ask the decision maker to reconsider their decision – for example where they feel there was good cause for them to fail to do whatever activity was required. If this is unsuccessful, they can submit an appeal. Whilst awaiting the outcome of either of these, they can request a hardship payment of JSA (which is paid at a reduced rate and only where a jobseeker proves vulnerability).

Benefits rates frozen for 4 years Are benefit rates being frozen for 4 years? For most working age benefits, this is the case. The amounts will stay the same for the next 4 years. So, if an 18 year old gets £57.90 Jobseeker’s Allowance each week now, they will get the same amount for the next 4 years. Which benefits are staying the same for 4 years? The benefits which will not go up are:       

Jobseeker’s Allowance Employment and Support Allowance (not if in the support group) Housing Benefit Income Support Chid Benefit Tax Credits Local Housing Allowance rates for Housing Benefit private sector

Benefits for young people from April 2017 I have heard that benefits for young people aged 18-20 are being stopped. Is this true? No, benefits for young people are not being abolished. From April 2017, the Government is tightening up access to benefits for young people aged under 21. They will be given more support, but will be required to do more in return for any payments of benefit. What will be available for unemployed young people aged 18-20? From April 2017, it is planned that anyone aged 18-20 who claims Jobseeker’s Allowance, or Universal Credit as a jobseeker, will be subject to a period of ‘intensive activity’. This is being called an ‘Intensive Activity Programme’ or ‘boot camp for young people’. It is currently being trialled in jobcentres in Yorkshire.

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What is the Intensive Activity Programme? The Intensive Activity Programme comprises a number of compulsory courses which must be completed within the first three weeks of unemployment. The programme (which is 71 hours in duration) will be classroom based, and will condense all the training into one block at the beginning of unemployment, instead of a more piecemeal approach. It will include classes to include tips for interview techniques, writing CV’s, making job applications, and help with searching for job vacancies. The idea is that that new young claimants will get an unprecedented level of support to ensure they are well equipped to find work within 6 months. What happens if someone does not take part in, or complete, the Programme? Failure to take part will mean that benefits are not payable. What happens after the period of Intensive Activity? After the 3 week Intensive Activity Programme is completed, there will be a new ‘Youth Obligation’. The young person will be allocated a dedicated work coach who will work with the young person and continuously review what was achieved through the 3 weeks course. After 6 months of receiving Jobseeker’s Allowance or Universal Credit as a jobseeker, there will be a requirement to undertake work, training, an apprenticeship, unpaid work experience, or a community work placement. Failure to do this will lead to a removal of benefits. Are there enough apprenticeships available for all the young people who need them? To help people get into work or training, the Government has said that 3 million more apprenticeships will be created by 2020. Whilst this is good news, these need to be of good quality to help young people get into work. Sadly, 46% of apprenticeship training providers are still rated as ‘requiring improvement’ or inadequate’ by Ofsted. Will 18-20 year olds still be able to get help with their rent from Housing Benefit or Universal Credit? Not necessarily. From April 2017, it is planned that most unemployed 18-20 year olds will no longer be automatically entitled to any help with their rent from Housing Benefit or within their Universal Credit. Are there any exceptions for vulnerable young 18-20 year olds? Yes. Certain unemployed 18-20 year olds will still be able to get Housing Benefit or help with their rent within Universal Credit. This includes:       

young lone parents young couples with children who live with them care leavers those in temporary accommodation those in supported/specified accommodation newly unemployed and living independently but who have worked continuously for the previous six months (will get help for 6 months) those who cannot live with their parents due to estrangement

What effect will this have on young people aged 18-21? Young people aged 18-20 will have to stay at home until they are 21, or can afford to pay their rent themselves. This may cause pressures on families who are overcrowded or where there are problematic family relationships. CLCbuildingfutures.org