Social Security Update Kinship Care: Social Security Update ALISON GILLES SEPTEMBER 2018

CPAG in Scotland Second-tier advice service for advisers, social workers, support workers . . . Free advice line Training Information sessions Children’s Handbook Scotland

Emerging issues for kinship carers Roll-out of universal credit 2 child limit Benefit cap Child elements in pension credit from February 2019

Roll-out of universal credit Most areas are now ‘full service’ All will be full service by the end of 2018 Affects new claims (exception until February 2019 for families with 3 or more dependent children) For example, start looking after child under informal kinship care arrangement. Can’t claim CTC in full service area Managed transfer 2019-2022

Kinship Care And Benefits . . . And now, universal credit Confusing Illogical Baffling Controversial Unfair Complicated Difficult Mind-boggling Challenging

Universal Credit Universal credit Income support Income-based JSA Income-related ESA Housing benefit Child tax credit Working tax credit

UC and Kinship Carers Not looked after child Looked after child Cannot get the child element (also no childcare costs and work allowance will be affected) unless have parental responsibilities or rights (permanence order) Any local authority payment disregarded as income In housing element (rented) size criteria does not include bedrooms for looked after children, although one extra bedroom allowed on the basis of being an approved kinship carer – impacts on LHA and bedroom tax Can get child element (+ childcare costs if appropriate and work allowance reflecting dependant child) Any local authority payment disregarded as income Conditionality – special rule allows ‘family and friends’ carer to be subject to work-focused interview only requirement for 12 months after becoming a family and friends carer if, The child has no parent or has parents unable to care for her/him, or Child would otherwise be looked after

UC and Kinship Carers Kinship carers of looked after children No conditionality if child under 1 (if couple, this applies to main carer) Work-focused interview only if child 1-16 (if couple, usually just applies to main carer, although can apply to both depending on care needs of child) If child/young person is 16+, work-focused interview only if needs of young person make that reasonable

Implications for Local Authorities In relation to kinship carers of non-looked after children – no new implications In relation to kinship carers of looked after children, major financial implications if these carers are to be remunerated to an equivalent rate as foster carers Pre-UC, local authorities can choose to make a payment (under section 22 of the Children (Scotland) Act 1995) which is not for accommodation or maintenance, allowing carer to receive CTC and allowing the local authority to meet its obligations at less cost.

What Does Scottish Government Guidance Say About UC? “The complexity of the UK benefits system and the roll-out of the social security provision of Universal Credit will require specialist advice of Welfare Rights Officers. The introduction of Universal Credit is likely to increase the complexity for local authorities as there will no longer be a succinct breakdown of child tax credit.” Appendix E, National Guidance on Part 13: Support for Kinship Care

“Two Child Limit” Introduced April 2017 Main impact on CTC and UC Doesn’t apply to child benefit, increases for disabled children, childcare costs Exception for some children in kinship care

Kinship care exceptions: Kinship care order under section 11 of the C (S) Act 1995; Guardian under section 7 of the C (S) Act 1995; Entitled to guardian's allowance in respect of the child/children; Parental responsibilities ‘vested’ in you by a permanence order (only one impacting on ‘looked after’ child); One of the above bullet points applied prior to the child's 16th birthday and you have continued to be responsible for the child; Undertaken care of the child/children where it is likely that otherwise/he would have been looked after by the local authority (special social work form).

Two Child Limit – CPAG Legal Win SC and others v Secretary of State for Work and Pensions [2018] EWHC 864 (Admin) – Judicial Review challenge in the High Court

Benefit Cap Issues Benefit cap can be imposed on people on housing benefit (below pension credit age) or universal credit Current level: £257.69 a week if single, £384.62 a week if couple or have dependent children There are exemptions (eg, disability benefit), but none that relate to kinship carer status, except for being in receipt of Guardian’s Allowance, which has limited impact Example Couple with 2 kids, take on care of niece and nephew and have kinship care order. Income-based JSA: £114.85 Child tax credit: £223.86 Child benefit: £ 61.80 Housing benefit: £120.00 Total £520.51 Excess over cap: £135.89 HB entitlement would be wiped out Solution: Discretionary Housing Payment/ local authority

Child Elements in Pension Credit From 1 February 2019 some pension credit claimants will get an additional amount in their PC for a child, instead of child tax credit This is necessary as CTC is being replaced by UC but people over pension credit age can’t claim UC If child ‘looked after’ by local authority can’t get a child amount unless claimant has parental rights (like UC rules – permanence order)

Getting Help

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