Table of Contents
- UC Couples and Families
- UC Rollout Areas
- UC Lone Parents
- UC Self-Employed
- UC Disability
- UC Sanctions
- Working Tax Credits
- Lone Parent Income Support
- Lone Parent JSA
- Disability Living Allowance + Transfer to PIP
- Changes Access to Work
- Care Act
- Bedroom Tax
- Going to Court
- TCs Carer
- TCs Childcare
- TCs 16+ Home Education
- Links JSA and TCs
- Benefit Cap
- Mandatory Work Activity
- UC PIP ESA
- How Organising Home Education Events Can Affect Benefits/ (including Housing Benefit)
- New self-employed test for Tax Credits (NB this is NOT the same as the Minimum Income Floor for Universal Credit.)
Universal Credit for Couples and Families
Universal Credit is a new single payment for people who are looking for work or on a low income. Ultimately, it is envisaged that UC will replace in-work and out-of-work benefits such as income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Income Support, Child Tax Credits, Working Tax Credits, and Housing Benefit.
Letter from Lord Freud to Baroness Hollis to 'clarify the changes of circumstances that would give rise to somebody moving from working tax credit to universal credit' here (February 2016)
https://secondreading.uk/social-policy/universal-credit-jam-tomorrow/ November 2016 after the Autumn Statement: Impact of changes to Universal Credit, National Living Wage and tax-free Personal Allowance on the net income of two example families, under four scenarios.
As Universal Credit is brought in for couples with children, the claim will be made by a nominated parent for the family as a whole. Working Tax Credits will no longer be an option. One parent - designated as the "lead carer" - will essentially be treated in the same way as a lone parent while the other parent will be treated in the same way as claimants who have no children.
In other words, if the lead carer is employed (or in future self-employed) but claims the UC in-work subsidy because of low earnings, the parent who is not the "lead carer" will be expected to look for a job as one of the conditions for the household receiving Universal Credit. Details can be found here in the GOV.UK quick guide to Universal Credit and Your Family.
This is completely different from Working Tax Credits for couples with children, where a couple with 1 child or more can claim WTC if they work 24 hours a week between them (with 1 working at least 16 hours) ie the other parent is not required to seek paid employment, and this remains the case while ever the youngest child is in full time education. More See also home educator's blog and my 2 blog posts Universal Credit and Families 1 Universal Credit and Families 2
1/ Full Service Claim Areas Universal Credit
The GOV.UK page on Universal Credit (last updated May 2018) has a list of JobCentres where Universal Credit is in operation . See Rightsnet feedback new full service areas May 2017 + August 2017 (postponements)
https://secondreading.uk/social-policy/universal-credit-how-is-my-constituency-affected/ October 26th 2017, including a spreadsheet tracking the progress of UC by parliamentary constituency.
Most areas are still not taking UC claims from people with children. GOV.UK page. See also https://secondreading.uk/social-policy/universal-credit-where-are-we-now/ including maps, from the House of Commons Library March 2017. Full rollout is not anticipated to be finished until March 2022.
DWP UC Full Service Presentation, see claimant journey flow chart page 7.
Guidance on full digtal service from Revenue and Benefits says that existing tax credit claimants are currently unaffected by the roll-out of UC. Their awards of tax credits will continue at present until DWP introduce rules to migrate those people across to UC. DWP current plans are to migrate remaining tax credit claimants to UC from July 2019 to March 2022. See also Contact a Family guide to UC + disabled child NEW CLAIM in full service area.Citizen's Advice on Universal Credit and self employment; Live Service Areas Revenue and Benefits.
NB the text box accompanying the full service map says "In the full service areas the 'gateway' restrictions do not apply. UC replaces new claims for Income Support, Income-Based Jobseeker's Allowance, Income-Related Employment and Support Allowance, Housing Benefit, Child Tax Credit and Working Tax Credit. It includes almost the complete Universal Credit design case-mix (including disabled claimants, carers, the self-employed, etc who cannot currently make a new claim anywhere else). NB: From April 2017 until November 2018 families with three or more children cannot make a new claim for universal credit even if they live in full service areas. Affected claimants will need to claim legacy benefits instead." and the page also says "Note: from 6 April 2017 claimants with three or more dependent children are not be able to make a new claim for Universal Credit - they will have to claim 'legacy' benefits instead. This rule will apply in all areas (both 'live' and 'full' service). Families with three or more children already on Universal Credit will remain on Universal Credit"
2/ Family Claim Areas Universal Credit
The text box accompanying the gateway with children map says "Claimants who meet all the 'gateway' conditions below can make new claims for UC in all areas highlighted on the map. The claimant or claimants must:- be aged between 18 years and 60 years and six months; live at their usual address, in an area where Universal Credit is available; not be homeless, in supported or temporary accommodation, nor a homeowner; be a British citizen with a National Insurance number; be fit for work; not have applied for a fitness for work note; consider themself fit for work; not be pregnant nor have given birth within the last 15 weeks; not be receiving Jobseeker's Allowance(JSA) [*], Employment and Support Allowance (ESA), Income Support (IS), Incapacity Benefit (IB), Severe Disablement Allowance (SDA), Disability Living Allowance (DLA) or Personal Independence Payment (PIP); not be awaiting a decision on a claim for Jobseeker's Allowance (JSA), Employment and Support Allowance (ESA), Income Support (IS), Housing Benefit (HB), Child Tax Credit (CTC) or Working Tax Credit (WTC) not be appealing against a decision of non-entitlement to Jobseeker's Allowance (JSA), Employment and Support Allowance (ESA) or Income Support (IS); not be awaiting the outcome of an application to revise a decision of non-entitlement to Jobseeker's Allowance (JSA), Employment and Support Allowance (ESA), Income Support (IS) or Housing Benefit (HB); not have any caring responsibilities (such as for a disabled person); not be self-employed, a company director or part of a limited liability partnership; not be in education or on a training course of any kind; not have a person acting on their behalf over the claim; have at least one suitable account that DWP can pay the money into (including any form of credit union account); not live in the same household as a member of the regular or reserve forces who is away on duty; have lived in the UK for the last two years, and not have been abroad for more than four weeks continuously during that time; not be required to pay child maintenance via the Child Support Agency; not have savings in excess of £6,000; not be an approved foster parent (even if they currently have no foster children); not be expecting to adopt a child in the next two months; not expect to receive take home pay of more than £338 in the next month; not expect to receive any earnings from self employment in the next month; If claiming as a couple the claimants must also: live at the same address; be married to each other, civil partners of each other, or living together as if they were married; not expect to receive joint take home pay of more than £541 in the next month; not have savings in excess of £6,000 between the two of them; A new claim for universal credit cannot be made if one or more children in the household: has been adopted in the last 12 months; is receiving Disability Living Allowance or Personal Independence Payment; is certified blind or severely sight impaired; is fostered; is looked after by the local authority (apart from short periods solely to provide respite care). Source: adapted from (Universal Credit frequently asked questions (pdf) page 2.) Claimants who do not meet these conditions can only claim in the full service areas. (* Contributory JSA claimed after a claimant has met the above conditions in a UC area may not prevent a UC claim; this is not currently reflected in DWP information. DWP retain discretion to reject claims from any person or category of person.)
Lone Parents and Universal Credit (UC)
Lone parents will automatically be treated as the "lead carer" under Universal Credit. The following applies if the claimant is not already in paid employment. Once their youngest child reaches age one, the claimant will be required to attend interviews to discuss plans for a future move into work. As soon as the youngest child reaches three, the claimant will be expected to take active steps to prepare for work which might include training and work-focused interviews. When the youngest child is between age five and twelve, the claimant will be expected to look for work during school hours. Once the youngest child is thirteen, the claimant will be expected to look for full time work. Link (pages 6-7) This is essentially the same as the current regime for lone parents with Income Support and Jobseeker's Allowance.
Self-Employment and Universal Credit (UC)
- Universal Credit and Self Employed (closed Facebook group)
- Home Education Single Parents (closed Facebook group)
Universal Credit will bring substantial changes for the self-employed as the Government envisages a Minimum Income Floor, which will apply after the first or "trial year" of self-employment (known as "the start-up period." Regulations on the Minimum Income Floor and the Start-up Year can be found here UC Self-Employed Welfare Reform Act The start-up period (exemption from assumed Minimum Income Floor and job-search requirements) relates to the first year of a new business, which must have begun trading in the 12 months preceding the claim for Universal Credit. See http://www.legislation.gov.uk/uksi/2013/386/contents/made
"In future, if you are self-employed and on benefits, you may be moved onto Universal Credit if your circumstances have not changed for some time. If this happens, you will not be subject to a minimum income floor for the first six months of your claim. This will give you time to increase your earnings and makes sure that you do not lose out due to the change."
Universal credit: surplus earnings and self-employed losses Decision Makers Guide May 2018, via this page.
GOV.UK UC Quick Guide updated November 2017
https://www.litrg.org.uk/tax-guides/self-employment/working-out-profits-losses-and-capital-allowance/how-do-i-work-out-my-0 Low Incomes Tax Reform Group (LITR) + Press Release LITR Report October 2017 with link to LITR Report October 2017 arguing for: allowing self-employed claimants with fluctuating income to average their income over a period of up to a year; changes to the calculation of the ‘minimum income floor’ and increasing the start-up period during which it does not apply from one to two years; greater consistency in definitions of self-employment; more specialist support for self-employed universal credit claimants.
https://www.taxadvisermagazine.com/article/universal-credit-self-employed-work-and-pensions-committee-report July 2018 (the Committee supports LITRG’s previous recommendation that averaging of income be allowed over a period of up to one year which would go some way to ensuring the system treats the self-employed more fairly when compared to employees).
Parliamentary Answer Free School Meals, Universal Credit, minimum income floor self-employment, June 2018
Universal Credit Disability
Holes in the Safety Net: The impact of Universal Credit on disabled people and their families, Children's Society, Disability Rights UK and Citizen's Advice Report June 2016
Universal Credit (UC) Sanctions
It is the standard personal allowance - and not eg the housing component or the amount allocated for dependent children - which will be reduced if the claimant fail without "good reason" to meet the conditionality requirements. More More about local administration of UC housing
Working Tax Credit Useful Links
Statutory Instrument 2015 No. 605 The Working Tax Credit (Entitlement and Maximum Rate) (Amendment) Regulations 2015 came into force April 6th 2015
Citizens Advice Bureau Guide to Working Tax Credit
Tax Credits Guide from Contact (previously Contact a Family)
Tax Credits Self Employment (Revenue and Benefits)
Turn2Us Guide Self Employed In Work Benefits
Rightsnet forum Working Tax Credit minimum hours/earnings
HMRC Manual Tax Credits Guide Self Employed
Lone Parent Income Support (IS)
Lone parents' entitlement to Income Support ceases once their youngest child reaches age 5. Income Support Regulations Gingerbread IS Information Sheet Changes in Income Support for lone parents with a child between 3 and 5 were introduced by the IS Work Related Activity Regulations 2014 A claimant with a child over 3 may be required to undertake work-related activity, and part of the benefit may be withdrawn for non-compliance, unless the claimant can show good cause. Gingerbread explains about work related activity here. These conditions will be replicated for lone parents as "lead carer" in Universal Credit.
Statistics 2014 "In the year up to and including March 2014, we imposed 42,900 sanctions on lone parents in receipt of Income Support. These sanctions were imposed upon 39,600 individual claims. This represents 5.6% of the Income Support lone parent client base in that 12 month period..."
Lone Parent Jobseeker's Allowance (JSA)
DWP, March 2015: "The Department can confirm that that the Jobcentres cannot suggest school as appropriate child care to a home educating parent claiming job seekers allowance when offered a job. There are flexibilities within the JSA regime to cater for the needs and personal circumstances of parents whilst they are looking for paid work of 16 hours or more per week, including those who wish to educate their child(ren) at home.
Additionally, lone parents may restrict their availability for jobs to their child’s normal school hours until the child is 13. Parents who educate their child(ren) at home are therefore treated in the same way as all other parents.
The Jobcentre would not expect a parent leave a child alone at home whilst they go out to work. People will need to demonstrate that they have made genuine efforts to locate childcare, this will provide parents who educate their children at home with protection if no local services that meet their needs are available."
The regulations for home educating lone parents are the same as for all other lone parents. While receiving benefits home educating lone parents must attend mandatory Work Focused Interviews or face benefit sanctions unless different arrangements have been agreed in advance with the JobCentre. Home educating lone parents who take the view that home education is a full time job and that therefore the parent is not in any conceivable circumstances available for paid work will not meet the requirements of Jobseeker's Allowance. Home educators who refuse to consider any options for formal childcare in order to be available for work will also not meet the requirements of Jobseeker's Allowance, Staff at the JobCentre should not suggest using school or older siblings for childcare purposes so that the home educating lone parent can take a job. Nor should staff at the JobCentre suggest that children may be left alone while the parent goes out to work. If there is no appropriate affordable childcare, the home educating lone parent is currently entitled to turn down a job offer or to leave a job.
Lone parents are eligible for Jobseeker's Allowance if they are seeking work of at least/no less than 16 hours a week See Link the Explanatory Note to Regulation 13A, The Jobseeker’s Allowance (Lone Parents) (Availability for Work) Regulations 2010 No. 837 which permits lone parents with a child under age 13 to restrict their working hours to the child's normal school hours. The JSA regime has been modified to take account of the caring responsibilities of all parents who have children living in their household.
Gingerbread Fact Sheet on Benefit Sanctions DWP Press Release April 7th 2014 From 28 April 2014, first interview at Jobcentre, adviser will check what claimant has done to make themselves employable prior to claiming JSA. To make a successful claim for Jobseeker's Allowance the lone parent must sign an agreement to look for at least/no less than 16 hours work a week During the course of the JSA claim, the lone parent will be expected to sign on at the JobCentre once a fortnight. Failure to attend interviews or to comply with requirements of the JSA regime may ultimately result in the parent's personal allowance being cut by 40%.
Jobseeker's Allowance is made up of a personal allowance for the adult claimant plus an allowance for children, also known as Child Tax Credit. It should be noted that the Child Tax Credit element of the JSA payment will not be cut. (See the Gingerbread JSA Fact Sheet for more information.) The only parents permitted to remain on Income Support after their children reach the maximum qualifying age will be those who receive Carer's Allowance. Entitlement to CA is only triggered by being the official carer for someone entitled to Disability Living Allowance (DLA) at medium or high rate.
Click here for information about postal signing for claimants who live more than an hour from the nearest JobCentre (by public transport).
In 2011 Minister Chris Grayling assured MPs that "Jobcentre Plus cannot instruct a grandparent to look after a child. We recognise the importance of informal child care—in many family situations, it may be the best option available — but Jobcentre Plus cannot require a third-party adult to provide unpaid, informal child care."
"While people will need to demonstrate that they have made genuine efforts to locate such childcare, this will provide lone parents who educate their children at home with protection if no local services that meet their needs are available." Read the letter from Minister Chris Grayling about home educators on JSA here.
Disability Living Allowance and Transfer to Personal Independence PaymentEsther McVey Written Statement PIP mental health conditions, Government will not appeal Mostyn J, January 19th 2018. MORE
- Financial support if you or your child has a disability link
- Cerebra Guide to Filling in DLA Forms
- Contact-a-Family PIP Overview
- CAF Guide to 16+ Disability Benefits transfer DLA to PIP: points system carrying out activity reliably ie safely, repeatedly, in a reasonable time period, and to acceptable standard. 1/ daily living; 2/ mobility/getting around includes psychological distress. Not means tested; conditions for parent being appointee; "indefinite" DLA awards; PIP1 form; questionnaire; relevant evidence; face to face assessment Atos or Capita; variable or fluctuating conditions; Carer's Allowance
- This PIP Claim Form Guide analyses each question in turn and also has information about the Pip Review Form, AR1.
- PIP Guide + Passporting Arrangements including appeals, PIP assessment thresholds, GP evidence form
- Disability Living Allowance Overview GOV.UK
- Benefits and Work guides for claims and appeals
- Cerebra's DLA Guide
- PIP Guide from Parent and DLA Guide from Parent
- GOV.UK claimant's PIP journey
- DWP PIP Toolkit
- Atos/Capita postcode map
- Contact-a-Family PIP Overview
- National Autistic Society PIP Guide
The CAF PIP Guide includes transfer DLA to PIP: points system carrying out activity reliably ie safely, repeatedly, in a reasonable time period, and to acceptable standard. 1/ daily living; 2/ mobility/getting around includes psychological distress. No means testing; conditions for parent being appointee; "indefinite" DLA awards; PIP1 form; questionnaire; relevant evidence; considerations for opting out of face to face assessment; variable or fluctuating conditions; Carer's Allowance.
This PIP Claim Form Guide analyses each question in turn, also information about Pip Review Form, AR1. PIP Guide + Passporting Arrangements from Hft, a national charity, providing services for people with learning disabilities, includes information about appeals, PIP assessment thresholds, and GP evidence form.
Changes Access to Work May 2015
Future of Access to Work published May 8th 2015, via https://www.gov.uk/government/publications/future-of-access-to-work
Capping amount paid on Access to Work, pages 10-14; Self-employed: pages 18-20 (putting forward minimum income floor in line with proposals for Universal Credit). 32 page file.
Care Act Overview May 2015
Care Act Overview 2015
Bedroom Tax (Under-occupancy Penalty)
Overnight Carer Case Upper Tribunal upholds claimant SD v Eastleigh Borough Council (HB) (Housing and council tax benefits other)  UKUT 325 (AAC) (09 July 2014) "A bedroom cannot be switched on and off ... there is nothing in the word “regularly” that requires that the carer must be required to stay overnight on the majority of nights for the claimant to meet the criterion."
Rutherford supported by CPAG (grandparents care for disabled grandson). Supreme Court February 29th 2016 to March 2nd (DWP Housing Benefit Bulletin November 9th 2016 in respect of Supreme Court Judgment backing Rutherford and Carmichael need for extra bedroom on "medical" grounds.
December 2013 SI 2828 Regulations implementing the Court of Appeal’s ruling in the Gorry case (disabled child requiring own room, not expected to share) after DWP decided not to take it to the Supreme Court. Paul Lewis on Bedroom Tax 2016 UKUT 164 AAC Upper Tribunal, "the room should be capable of accommodating a single adult bed, a bedside table and somewhere to store clothes (see paragraph 33 of Nelson), as well as providing space for dressing and undressing."
Representing Yourself in Court + Legal Aid
Welfare rights cases have been taken out of the scope of Legal Aid. Child Poverty Action Group Welfare Handbook GOV.UK Advice for DWP decision makers DWP Decision Makers Guides on GOV.UK for DWP staff who make decisions about benefits and pensions (except UC, PIP on previous link)
People representing themselves in court are known as "litigant in person". This practice is likely to increase following the huge cuts to the legal aid budget as a result of the Legal Aid Sentencing and Punishment of Offenders Act 2012. Litigant In Person Guide Bar Council Litigant in Person Guide
GOV.UK Exceptional Cases Legal Aid Funding The Legal Aid Sentencing and Punishment of Offenders Act 2012 (LASPO) introduced the practice of applying for Exceptional Case Funding or (ECF) which is made where a case falls outside the scope of legal aid but the client or conducting solicitor believes there is evidence to support there being a requirement to provide funding because failure to do so would be a breach of their Convention rights. A typical application is in private family law proceedings concerning the right of contact with and residence of the applicant's child. Only 8 ECF applications of this type were granted during 2013-14, with 574 refused and 216 rejected.
Guidance about how income from self employed earnings is calculated is in paragraphs W2.310 – W2.471 and Annex A of Chapter BW2 of the Housing Benefit Guidance Manual
Rightsnet forum Help with Child Care costs incurred other than when claimant is working
http://lawvolumes.dwp.gov.uk/the-law-relating-to-social-security/ (Law Volumes updated to 2015)
Shelter Guide to Housing Benefit Appeals
Shelter Homeless Help Families with Children
Two grades of PIP vs 3 grades of Disability Living Allowance
Disability premium cut from £54 to £27 pw
Mortgage Help, Money Saving Expert
Carers' Working Tax Credits (WTC)Couples continue to receive tax credits IF one partner works 16 hours per week AND their partner is entitled to Carer’s Allowance. See here Income Support may be claimed when a person is receiving Carer’s Allowance which is payable where the person cared for gets the middle or highest rate of disability living allowance (DLA) care component
Childcare Tax Credits
If you are responsible for a child and pay for childcare you can claim if you work at least 16 hours a week. (Couples would both usually have to work at least 16 hours a week each unless one is incapacitated and getting a benefit for disability or illness or is entitled to Carer's Allowance.) You can claim childcare costs for any child up to the Saturday following September 1st after their 15th birthday.
To get help with childcare costs via tax credits in England, your childcare provider must be properly registered or approved. Your childcare provider needs to be registered on the Ofsted Early Years Register if your child is under 5; registered on the Ofsted compulsory part of the General Childcare Register if your child is aged 5 to 7; registered on the Ofsted voluntary part of the General Childcare Register if your child is age 8 or over. Some providers such as nannies who provide care in the child's own home don't need to register but if you use this type of provider and you want to get tax credits help with childcare costs, your provider must register on the voluntary part of the General Childcare Register.
To get help with childcare costs via tax credits in Wales your childcare provider must be registered with the Care and Social Services Inspectorate Wales (CSSIW) or someone approved by the Approval of Child Care Providers (Wales) Scheme 2007 providing childcare in the child's home.
See HMRC Guide Childcare Tax Credits for more details about childcare tax credits in England and Wales.
Tax Credits (TC) for post-16 Home Education
Tax Credits are payable for children under the age of 16 and for children over the age of 16 who are in full-time education, including home education. Home education is recognised as a valid form of full-time education for Child Benefit and for Child Tax Credit purposes. More
The Government also limits the amount of Housing Benefit that can be paid for certain types of privately rented property. This is known as the Local Housing Allowance (LHA). GOV.UK on Benefit Cap See Shelter on LHA
Mandatory Work Activity (MWA)
Universal Credit, Personal Independence Payment, Employment Support Allowance
Contact-a-Family PIP Guide
PIP Regulations Transitional Provisions
PIP Regulations 2013
UC Transitional Provision Regulations
Welfare Reform Act Commencement + Transitional Provisions
Turn2Us UC Overview
Cuts to ESA WRAG
Some changes to Tax Credits announced in the July 2015 Budget were reversed in the Autumn Statement 2015.Click here for Ofsted guidance on home education to inspectors, April 2015.