1. WELFARE RIGHTS OVERVIEW Shah Begum & Muzammel Hussen 06/01/2016 LEGAL ADVICE CENTRE

2. Aims and Objectives AIM To explain the structure of the welfare benefits system, including classification of benefits, conditions of entitlement and common rules on benefits OBJECTIVES Understand how the benefits system is structured and the differences between contributory, non-contributory and means tested benefits; Have an awareness of the principles behind means testing and how the benefit authorities work out entitlement; Be able to advise women subjected to domestic violence on benefits that they are entitled and how to make claims

3. Types of Benefit Benefits can be divided into three main types: Means tested; assess individual ‘needs’ (single/couple + special circumstances such as caring and health problems) then compare income with needs Non-means tested which can be either: not based on income/capital just have to meet conditions of entitlement ie: available for work, incapable of work, bereaved, retired. Contributory or earnings related ; paid (or credited) National Insurance contributions or in work for relevant period Non contributory ; not based on NI contributions, not dependent on income or savings. Financial help to meet need in certain circumstances (disability/children)

4. Non Means Tested CONTRIBUTORY Benefits Bereavement Benefit Retirement Pension Contribution Based Job Seekers Allowance Contribution Based Employment Support Allowance Earnings-related: SSP, SMP, SPP, SAP For reminder and overview can check CPAG key facts and qualifying conditions for each benefit

5. Means tested benefits How the means-test works Different means tested benefits have different means tests, however they all: 1.Calculate your “needs” This involves adding up a set “allowance” or “element” for each dependent within the claim, then adding on extra amounts for specified extra needs. 2.Calculate your resources All these benefits also take into account both income and capital. This can include wages, maintenance, other benefits, savings, etc. Some capital may reduce the amount of benefit. Too much capital can mean no benefit entitlement. 3.Calculating the amount of benefit paid Once needs and income have been calculated, benefit can be worked out. Different benefits have different formulae for working out how much you get.

6. Immigration Status and Benefits Not eligible for most benefits if ‘subject to immigration control’ if there are or restrictions to stay in UK, not got leave to enter or remain, or limited leave or formal sponsorship, or appealing a decision about immigration status, no recourse to public funds No Recourse to Public Funds Listed in CPAG book (most benefits) Couples Link/sharing of information with DWP and home office, if one of partner is NOT subject to immigration control they should claim, partner with limited leave (usually) ignored but should notify of presence Right to reside effects EEA nationals is about immigration law and status Habitual residency test (HRT) If recently come or returning to UK after temporary absence (DWP look at last 2 years) have to show ‘settled intention’ to reside in UK for ‘appreciable period’ – check for exempt claimants Asylum Seekers excluded from benefits, refer for asylum support Refugees: once granted refugee status full rights to claim benefits (Refugee Leave, Discretionary Leave, Humanitarian Protection

7. Residence and Immigration Conditions  It is a condition of entitlement to all non-contributory benefits and means-tested benefits that you must be present in, and have lived in Great Britain (or, in some cases, in a member state of the European Community) for a period in the past. These are known as residence conditions.  There is a Habitual Residence Test for Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Pension Credit, Housing Benefit, Council Tax Reduction, Personal Independence Payment and Universal Credit. Habitual residence has an factual meaning which looks at your settled intention to live in the UK and your links with your community. However, some benefits also have rules about when you can be ordinarily or habitually resident. For Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Pension Credit, Housing Benefit, Council Tax Reduction and Universal Credit you must have the ‘right to reside’ in order to be habitually resident.  Non-contributory and means tested benefits have immigration restrictions which means that some people who are “subject to immigration control” are not eligible to claim. People subject to immigration control may have “no recourse to public funds and include asylum seekers waiting for their asylum application to be decided by the Home Office. If an asylum seeker, or any other person with an immigration restriction, is given a right to remain in the UK they may then be able to claim benefits like British citizens.

8. Right to Reside The right to reside requirement is one part of the habitual residence test. Whether or not you have a right to reside can depend on your nationality, immigration status and the circumstances of you and your family members. The right to reside requirement applies to: Child Tax Credit Child Benefit Income Support Income-related ESA Income-based JSA Housing Benefit Pension Credit Universal Credit

9. What is right to reside? o There is no single statutory definition of who has a right to reside. You may have a right to reside under UK law or under European Union law. The right to reside mainly affects EEA nationals, and usually means they have to be a ‘qualified person’, for example, a worker or a jobseeker. It is also possible to have a right to reside from a family member or a derived right to reside from another person. o Not all rights to reside are sufficient to claim all benefits. For example, the right to reside as an EEA jobseeker will not allow you to claim Housing Benefit, and this means that jobseeker status will often not be sufficient for an EU national to meet their basic costs. In addition, many EEA jobseeker claimants are subject to a ‘genuine prospect of work’ test after 6 months which makes it very difficult to continue to get income-based JSA unless there is ‘compelling evidence’ they will get work in the near future. o The easiest route to show that you have the right to reside as a ‘worker’ is to earn at least enough to pay national insurance, currently £155 a week (from April 2015). It is possible to be a worker if you earn less than this but you will have to show that your work is genuine and effective.

10. Exemptions from the HRT for means tested benefits You are exempt from the HRT if you: Are an EEA worker, including if you have retained this status; Are an EEA national who is a self-employed person, including if you have retained this status; Are a family member of someone in either of the two above; (For HB) are entitled to IS, IR-ESA or PC; (For HB) are entitled to IBJSA but not as an EEA jobseeker Are an EEA national with a permanent right of residence as a retired or permanently incapacitated worker or self-employed person, or you are the family member of such a person; Have refugee status; Have humanitarian protection granted under the Immigration Rules; Have exceptional leave to enter or remain in the UK granted outside of the Immigration Rules (this includes discretionary leave); Are a Croatian national subject to worker authorisation and working in accordance with the conditions of your worker authorisation document; Have been deported, expelled, or otherwise legally removed from another country to the UK and you are not a person subject to immigration control.

11. Means tested benefits Means tested benefits - working or not Some benefits can only be paid if you are not in full time work, others can only be paid if you are in full time work. Some benefits can be paid whether or not you are in work. WHICH BENEFIT? In work (16 hours or more a week) Out of work (or working less than 16 hours a week) Working Tax CreditIncome Support income-based Jobseeker’s Allowance BOTH Child Tax Credit Housing Benefit Council Tax Reduction Pension Credit Universal Credit

12. Which means tested benefit? Income support – certain groups; lone parents, carers Employment Support Allowance; Sick unable to work Job Seekers Allowance: actively seeking and available for work Pension Credit – over retirement pension age (men or women – check dates of birth)

13. Passporting benefits Getting certain benefits can “passport” you to another benefit. For example if you get Income Support you can receive free prescriptions or free school meals for a child. Significant passporting benefits are: Income SupportIncome-based JSA Income-related ESAPension Credit Working Tax Credit Child Tax Credit Housing BenefitCouncil Tax Benefit Disability Living AllowanceAttendance Allowance Personal Independence Payment

14. Job Seekers Allowance For people who are; unemployed or working less than 16 hrs pw. are required to be available for work aged 18 or over but under state pension age. See Pg 29 Not in full time education (with some exceptions) Savings/capital below £16,000 Living in GB, right to reside, habitually resident, not subject to immigration control

15. There are 2 types of JSA: Contribution-based JSA & Income-based JSA. Contribution based JSA depends on national insurance contributions. paid for maximum 6 months It may be affected by earnings and occupational or personal pensions, but not by other income or capital Income-based JSA means-tested and dependent on income and capital/savings.

16. Job Seekers Allowance - continued CB JSA can be topped up with IB JSA. So some claimants will be able to get both. Present in the UK (some exceptions). Contributory JSA can be exported to EU countries for up to 3 months a person must sign on regularly and show that they are capable of work Sanctions can be applied if they do not satisfy the “labour market conditions” ; be available for work, be actively seeking work and have a current Jobseeker’s Agreement Claimant commitment

17. Not Available for Work? If a client is not available for work due to being; sick or disabled, caring responsibilities, over the state pension age for women, a lone parent with a child under 5 And other prescribed circumstances S/he may be able to claim income support, pension credit or employment and support allowance.

18. Employment and Support Allowance Employment and Support Allowance is a work related health/disability benefit for people of working age. It is paid to people who are not expected to work due to either a limited capability for work or a limited capability for work related activity. There are two types of ESA: contributory ESA which is not means tested but based on NI contributions; and income-related ESA which is based on your current level of income and capital. Some people qualify for income-related ESA even though they don’t qualify for contributory ESA (and vice versa). Some people qualify for contributory ESA topped up with income related ESA. ESA cannot be paid if Statutory Sick Pay is in payment which may be up to first 28 weeks of a period of sickness. ESA can be paid from the 29 th week of sickness, even if the employer continues to pay contractual sick pay.

19. The assessment process ESA has an assessment phase and a main phase. During the assessment phase claimants are required to provide medical certificates from their own doctor. A basic rate of ESA is paid during the assessment phase. The assessment phase is meant to last 13 weeks although it often lasts longer in practice. During this time the DWP collects information and evidence about your health problem/disability and how it affects your ability to work. Typically, this involves completion of a questionnaire (form ESA50) and attendance at a Work Capability Assessment medical. Following the Work Capability Assessment you receive a decision on your work capability. There are three possible outcomes: 1.ESA in the Support Group 2.ESA in the Work Related Activity Group 3.No ESA ESA decisions are frequently changed by appeal tribunals. If you receive a decision that you are not happy with you should consider challenging it.

20. Income Support Income below applicable amount Not getting Pension Credit or income based JSA or IBESA, Unemployed – under 16 hours (partner can work up to 24 hours) Eligibility criteria: in GB, over 16, not in FT education (see CPAG for exceptions), savings/capital below £16,000 Right to Reside/Habitually Resident/immigration status

21. Groups who can claim Income support Lone parent- child under 5 Pregnant – 11 weeks to birth, incapable of work, had baby within last 15 weeks Carer – getting Carers Allowance, or person you care for has claimed DLA/AA or is getting DLA/AA middle/high care component Age 16 – 21, estranged from parent Some sick and disabled (old rules, SSP) Check CPAG for others

22. Pension Credit Over 60 Guarantee Credit (check date of birth and refer to women's retirement age if under 65) No savings limit but if over £10K tariff applied Working/studying OK (but income taken into account – PC is reduced) Income below appropriate minimum guarantee [applicable amount/personal allowance]. Over 65 Savings Credit Qualifying income under savings credit threshold

23. Child tax credit and working tax credit Responsible for at least one child may qualify for child tax credit Works but is on a low income may qualify for working tax credit A client who is a member of a couple will need to make a joint claim with her/his partner. Entitlement to child tax credit and working tax credit is based on a combination of a client's (and her/his partner's) circumstances and annual income. Any capital a client (and her/his partner) has will not be taken into account. However, income from capital may be included in the calculation.

24. Child Tax Credit Responsible for child/ren who normally lives with you (child under 20 same rules as ChB) Claimant over 16 Income related (doesn’t matter if working/unemployed/student)

25. Working Tax Credit Lone parents working over 16 hours on low income Couple with child/ren working 24 hours pw Aged 25+ and working 30 hrs on low income Disabled – disability puts them at a disadvantage in getting a job AND previously have received a qualifying benefit

26. Working Tax Credit The work criteria You must be working full time – a minimum of either 16, 24 or 30 hours a week depending on your other circumstances. See the different categories of claimant below. Zero hours and flexible working The advent of zero hours and flexible working has caused significant difficulties for people claiming Working Tax Credit. This is because where there is no recognisable pattern of employment it can be difficult to evidence your normal working hours. You are required to notify each change to your normal working hours which can in effect mean making changes of circumstances notifications on a weekly basis. To get WTC you must work a minimum of either 16 or 24 hours per week depending on whether you are a single parent or part of a couple with children.

27. Housing Benefit Liable (or treated as) to pay rent - or partner of liable person Occupy as home – some exceptions ie temporary absences, hospital, prison Working/unemployed/benefits/low income Savings/capital under £16K (Guarantee PC no limit) People who cant claim: most students, non commercial arrangement, living with and paying rent to a close relative/ex-partner, renting home which s/he previously owned/occupying as condition of employment Rent restrictions – Under 35’s single room rent, local reference rents Can be paid to landlord or tenant Local Housing Allowance applies to private tenancies from 2008-seeTH website for rates Welfare reform now sees same restrictions applied to social housing tenants with introduction of bedroom tax.

28. Housing Benefit - continued Benefit cap Discretionary housing payments (DHP’s) Extended payments – 4 weeks benefit where entitlement ends because of starting work/increasing hours – if been on IS/IBJSA for 26 weeks Non dependant deductions-check CPAG for circs when no NDD applies Backdates – 3 months for pension age, 6 months for working age with good cause for delay Claiming – forms from Local Authority, forms in IS/IBJSA

29. The Bedroom Tax o Reduction in housing benefit for social housing tenants of working age if have more bedrooms than government deems they need o 1 spare bedroom - benefit reduces by 14% of the total rent charged o More than 1 spare bedroom – 25% of the rent o Deduction applies regardless of whether or not the claimant is in work o Deduction does not apply to pensioners

30. Bedroom tax-cont one bedroom for each of the people shown below: each adult couple each other person over 16 two children of the same sex under 16 two children under 10, regardless of their sex any other child an overnight carer you need but who doesn't normally live with you

31. Housing Costs for owner occupiers Housing costs can be claimed on IS/PC/IBJSA Limited amount - £200K loan maximum Interest at rate of 6.08% until Oct 09 Generally standard rate – bank rate + 1.59% Waiting period 13 weeks No waiting period for Pension Credit claimants Housing costs include mortgage, loans for repairs/improvements, service charges, ground rent (check CPAG) JSA claimants are limited to 2 years assistance Non dependent deductions 4 week run on – as per housing benefit

32. Social Fund Discretionary Social Fund Budgeting Loans (on IS/IBJSA/PC for 6 months) CCG and crisis loan replaced by LA crisis and support grant see TH website Regulated Social Fund see pg 16 Cold weather payment – on IS/IBJSA with child under 5 or getting disability premium Winter fuel payment – over 60 (over 80 increase) Funeral expenses Sure Start Maternity Grant-first child only

33. Income Maximisation Disability Living & Attendance Allowance/PIP Pension Credit Tax Credits Housing and Council Tax Benefit Most under claimed benefits and what advisors should check/identify entitlement for

34. Non Means Tested NON CONTRIBUTORY Benefits Disability Living Allowance Attendance Allowance Child Benefit Carers Allowance Industrial Injuries Benefit Guardians Allowance

35. Personal Independence Payment Personal Independence Payment is paid to people of working age who have difficulties living a normal life as a result of a health problem or a disability. Between 2013 and 2017 PIP replaces Disability Living Allowance for people between the ages of 16 and 65. PIP eligibility rules PIP is non means-tested and is not taxable, and is payable whether you are in or out of work. Age You must be at least 16 and under 65, (or under pension age if that is higher). If you are receiving PIP when you reach the upper age limit, you will continue to get it for as long as you remain entitled.

36. What is the Benefit Cap? The Benefit Cap is a limit on the total amount of certain benefits you can get if you're of working age. It doesn't apply to people who have reached the age where you can get Pension Credit - although it may apply if you're in mixed-age couple. If the cap applies to you, this means that if your income from certain benefits is more than the cap, your Housing Benefit will be cut. The amount of money you get above the cap limit will be taken off your Housing Benefit. At first, this will only affect you if you're getting Housing Benefit. No deductions will be made to your other benefits because of the cap. This means that if you don’t receive Housing Benefit, your benefits can’t be capped.

37. Housing benefit cap o Total benefit cap for working age households o £500 per week for families (regardless of number of children) £350 for single people o Calculated by adding together main benefits –Employment Support /Jobseekers Allowance Income support, Carers Allowance,Child Tax Credit, Child Benefit and Housing Benefit o If total more than £500 cap, the difference is deducted from Housing Benefit payment o Exemptions - working over 24 hrs (16 hrs single parent) WTC, Disability Living Allowance/PIP, ESA support group,+ job loss exemption for 9 months if previously worked for 12 months, pensioner. o Discretionary Housing Payment

38. BENEFIT CAP - Example Family A: 2 adults and three children under 16 Couple Job Seekers Allowance = £111.45 3 x Child Tax Credit = £165.00 3 x Child Benefit = £ 47.00 Total = £323.00 (£394 if 4 children) Maximum housing benefit= £177.00 ( £500 minus £323) If renting a 3 bed Council or Housing Association property with weekly rent under £177 week they will still get full housing benefit. However if have a 4 th child their maximum housing benefit would then be only £106 a week so potential shortfall

39. Exempt from the cap The following groups are not subject to the cap: Single people or couples who meet the state pension credit age rules Those receiving war widows or widowers pensions; Households with people receiving DLA, AA, Personal Independence Payment, Industrial Injuries Benefit or war disablement pension/armed forces compensation scheme payments (that are equivalent to industrial injuries benefits); Households where someone receives the Support Component of ESA or the limited capability for work related activity element of Universal Credit; Households where someone is entitled to Working Tax Credit or for Universal Credit have gross monthly earnings of £430 per month

40. Discretionary Housing Payments Some claimants may be able to get help if their Housing Benefit is reduced due to the benefit cap. An extra £35 million was added to the DHP budget for local Authorities for 2014/2015.

41. Backdating Most benefits and tax credits Maternity Allowance Carer’s Allowance Employment & Support Allowance (both types) Pension Credit Child Benefit These benefits can be backdated for three months if you were entitled to the benefit before you claimed. It does not matter why you made a late claim.

42. Backdating Income support and Jobseeker’s Allowance Income Support, income based Jobseeker’s Allowance and contribution-based Jobseeker’s Allowance can only be backdated in certain specified circumstances. The maximum backdating is three months. You must show that as a result of one of the circumstances listed, you 'could not reasonably have been expected to make the claim earlier'. Child Tax Credit and Working Tax Credit Can be backdated for one month. DLA, PIP and AA Cannot be backdated at all. Housing and Council Tax Benefits HB and CTB can be backdated for up to 3 months if you are Pension Credit age or over. If you are under Pension Credit age, you can get it backdated for 6 months, but only if you can show you had continuous good cause for not claiming.

43. Backdating after award of a ‘qualifying benefit’ Sometimes you only become entitled to one benefit once decision has been made about another benefit. For example your entitlement to Income Support may rely on you (or someone else) being able to get Disability Living Allowance, PIP or Carers Allowance. Or, you might be entitled to an increase of your Income Support because of an award of another benefit. You can sometimes get your benefit backdated to the same date the ‘qualifying benefit’ is paid from, so long as you claim in time following the decision on the ‘qualifying benefit’.

44. Which benefits can be claimed together? ONE Earnings replacement As many eligible for: Benefits because of circumstances Means Tested and Tax Credits Contribution-based Jobseeker’s Allowance Incapacity Benefit (old claims) or Employment Support Allowance (contributory element) – from 27/10/08 Maternity Allowance Bereavement Benefits Retirement Pensions Carers Allowance Disability Living Allowance or Attendance Allowance (cannot receive DLA/and AA at same time) PLUS Industrial Injuries Benefit Child Benefit Guardian’s Allowance Income-based Jobseeker’s Allowance Income Support Employment Support Allowance (income based) – from 27/10/08 Child Tax Credit Working Tax Credit Pension Credit Housing Benefit/Local Housing Allowance Council Tax Benefit You may be able to claim a combination of non-means tested, means-tested benefits and Tax Credits. You will need to check the detailed rules in the CPAG handbook

45. Where to make claims Department of Work and Pensions delegates to: Jobcentre Plus working age claimants ‘single point of delivery’ Pensions, Disability and Carers Service; Disability Living Allowance, Attendance Allowance, Personal Independent payment, and Carers Allowance, Retirement Pension, Pension Credit DCPU.CUSTOMER-SERVICES@DWP.GSI.GOV.UK Revenue and Customs [HMRC]; CTC/WTC and ChB Employers: statutory (sick/maternity/paternity/adoption) pay Debt Management; collect overpayments Tribunal Service: appeals cases Local Authority; housing benefit and council tax reduction, DHP, crisis and support grant - benefits@towerhamlets.gov.uk;

46. Making claims Couples/Joint claims; choose who meets conditions of entitlement, same sex/co-habiting Phone/in writing/internet; form to check/complete/sign, sometimes claim for one benefit can be treated as claim for another, Correct office; some exceptions National Insurance Number Providing supporting evidence; reasonably required, deadline to provide, explain in writing if can’t provide Date of claim; date of first contact