2. South Ribble Borough Council Benefits Service

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

4. Applicable Amounts PERSONAL ALLOWANCES SINGLE CLAIMANT DEPENDANTS’ ALLOWANCE Aged under 25£56.80Birth – 16 years (ChB)£65.62 Aged 25 - 29£71.7016 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 60-64 (single claimant)£145.40 At least 1 aged 18 - 59£112.55Aged 65+ (single claimant)£163.50 Main Phase ESA£112.55Aged 60-64 (couple)£222.05 At least one aged 65+£244.95

5. 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

6. The Calculation APPLICABLE AMOUNT £ INCOME £ Couple112.55Long Term Incapacity Benefit162.64 Dependant65.62Child Tax Credit208.24 Dependant65.62Child Benefit ***47.10 Dependant65.62Maintenance***10.00 Family Premium17.40 Disability Premium44.20Total Income427.98 Less Disregarded Income ***57.10 Total Applicable Amount371.01Income Used in Assessment370.88

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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