South Ribble Borough Council Benefits Service

Means-Test (1) Applicable Amounts (2) Premiums (3) Income (4) Disregards

Applicable Amounts PERSONAL ALLOWANCES SINGLE CLAIMANT DEPENDANTS’ ALLOWANCE Aged under 25£56.80Birth – 16 years (ChB)£65.62 Aged £ years – 20 th B’day (ChB)£65.62 Main Phase ESA£71.70 LONE PARENT POLYGAMOUS Aged under 18 (HB Only)£56.80DWP Circ A23/2013 Appendix A£40.85 Aged 18 +£71.70 Main Phase ESA£71.70 COUPLE PENSIONERS Both aged under 18 (HB Only)£85.80Aged (single claimant)£ At least 1 aged £112.55Aged 65+ (single claimant)£ Main Phase ESA£112.55Aged (couple)£ At least one aged 65+£244.95

PREMIUMS Carer £33.30 Family £17.40 Family (lone parent) protected where entitled to Family Premium prior to April 1998 £22.20 DISABILITY Child (for each child) £57.89 Single Person or Lone Parent £31.00 Couple - Claimant or Partner disabled £44.20 ENHANCED DISABILITY Child (for each child) £23.45 Single person or Lone Parent £15.15 Couple £21.75 SEVERE DISABILITY – WORKING AGE AND PENSION AGE Single Person or Lone Parent in receipt of AA or high/middle rate DLA Care, no non dependents over 18 and no one receiving Carers Allowance for them £59.50 Couple – Claimant & Partner in receipt of AA or highest/middle rate DLA Care, no non dependents over 18 and no one receiving Carers Allowance for one of the couple £59.50 Couple – Claimant & Partner in receipt of AA or highest/middle rate DLA Care, no non dependents over 18 and no one receiving Carers Allowance for care of Claimant or Partner £119.00

The Calculation APPLICABLE AMOUNT £ INCOME £ Couple112.55Long Term Incapacity Benefit Dependant65.62Child Tax Credit Dependant65.62Child Benefit ***47.10 Dependant65.62Maintenance***10.00 Family Premium17.40 Disability Premium44.20Total Income Less Disregarded Income ***57.10 Total Applicable Amount371.01Income Used in Assessment370.88

Welfare Reform - changes o Local Council Tax Support Scheme o Under Occupancy Local Housing Allowance o The Benefits Cap o Universal Credit o Social Fund Care & Urgent Needs Support Scheme

Local Council Tax Support Scheme Subject to the existing means-test Protects vulnerable/disabled people through PREMIUMS Pensioners are EXCLUDED from the scheme The Scheme applies to ALL working age claimants Flat Rate Scheme requiring a contribution of £2.95 p/wk o No appeal against the contribution o Exceptional Hardship Policy

Under Occupancy Local Housing Allowance was introduced in 2008 and restricted Housing Benefit to claimants in private rented accommodation that had too many bedrooms for the household o Circa 1300 claimants were affected by LHA o LHA was restricted to the private sector o Solutions included o Rent Reductions by Landlords o Claimants paid the shortfall themselves o Claimants moved accommodation

Under Occupancy Under Occupancy applies in the Registered Social Landlord Sector o Pensioners - EXCLUDED o Applies to all Working Age claimants o Returning Armed Forces – regulations under review o Disabled Children – regulations being amended o Reduction(s) o 14% of eligible rent > 1 Bedroom o 25% of eligible rent > 2 or more Bedrooms South Ribble Borough Council = 600 – 650 cases

The Benefits Cap The Benefits Cap restricts the amount of weekly out of work Benefit households can receive o Pensioners – EXCLUDED o Also EXCLUDED are households in receipt of: o Disability Living Allowance o Personal Independence Payments o Attendance Allowance o Working Tax Credits o Support Component of Employment & Support Allowance o War Widow(ers) Pension o Industrial Injuries Benefit including: o War Disablement Pensions o Armed Forces Compensation Scheme

The Benefits Cap The Benefits Cap is applied following a full means-test; the restriction is applied to Housing Benefit rather than other DWP Benefits in the first instance The Benefits Cap is restricted to: o £500 per week for Couples and Lone Parents o £350 per week for Single Adults

Social Fund Social Fund will no longer be administered by DWP from 1 st April. Lancashire County Council will take over this (changed) service. LCC have rebranded Social Fund to “Care & Urgent Needs Support Scheme” o Provides support in times of urgent crisis o Financial o Access to Food Banks o Second-hand Furniture Gateway / Benefit Service will refer claimants to LCC as appropriate

Universal Credit Universal Credit is designed to simplify the Welfare System; UC will replace a number of other Benefits to provide a single entitlement based upon need. It is being designed to encourage claimants to be work ready; it will be paid monthly into a bank account and applications will be made on line. Digital by Default – Digital by Design o Universal Credit will begin to rollout from October 2013 o Universal Credit will eventually replace Housing Benefit o Migration from Housing Benefit to Universal Credit will be completed by 2017 o Housing Benefit will no longer be administered by Local Authorities

Discretionary Housing Payments DHPs are designed to provide short-term financial assistance where (typically) a shortfall exists between the actual rent and Housing Benefit (or Universal Credit) award Unlike the means-test, the DHP assessment compares: Total Household Income V Reasonable Expenditure Where reasonable expenditure exceeds available income a DHP award will be considered – for a limited period Decisions can be reviewed by another officer but there is no right of appeal

Communications o Local Council Tax Support Scheme o Public Consultation plus letters to every working age claimant o All Working Age claimants notified of the changes in writing o Gateway trained to take enquiries o Under Occupancy o Partnership working with RSLs for property information o Everyone affected had been notified in advance by letter (Jan) o New Award letters have already been issued to all claimants (March) o Letters include reference to Discretionary Housing Payments o The Benefit Cap o On hold – pending information from DWP o Social Fund o LCC / DWP providing communication regarding changes o SRBC Benefit Staff / Gateway to provide sign-posting to LCC

Maximising Entitlement o Gateway & Benefit staff undertake training to ensure compliance with emerging legislation o Benefit staff include better off assessment when processing applications o Home Visits / Gateway Appointments available to help with form completion o The Benefit Calculator is available on SRBC’s website for self serve o We work with partners to encourage take-up of Benefit o Printed on the back of all Council Tax Bills is advice on how to claim o Advice surgeries are run throughout the Borough o Signposting to all available benefits in DWP, HMRC and TPS