Universal credit - Epilepsy Society

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a month into your bank, building society or post office ... expected to apply online and then attend a face-to-face ...
YOUR GUIDE

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This October sees the introduction of universal credit, the flagship policy of the government’s welfare system reform programme. The new single income-replacement benefit has already been piloted in selected areas and is designed to simplify the

benefits system and to ensure that work pays. The Government hopes the reform will mean that all people are better off at work rather than on benefits, merging out-of-work benefits with in-work support. Here we explain how the system works.

Universal credit What is universal credit? Universal credit is a new meanstested benefit for people of working age. It will replace six existing benefits nationwide in Great Britain from October 2013 and in Northern Ireland from 2014. The new credit is intended to be a simpler, single monthly payment for those who are out of work or on low income. It is designed help you to be better off in work, start a new job or to work more hours. Universal credit is likely to affect around eight million households. Until now, the Department for Work and Pensions (DWP) says that in more than one million households, if a person moved from unemployment into work of 10 hours a week they would lose a large percentage of their increased earnings through higher tax or loss of benefits. Universal credit is designed to

be fairer, ensuring that those on low incomes when they first start a job will still receive support. Under the new system, support will be reduced at a consistent rate so that people keep a higher proportion of their earnings. By simplifying the system, DWP hopes to remove the distinction between in-work and out-of work support, making the transition into employment easier and financially more attractive. Which benefits will universal credit replace? Universal credit will gradually replace the following benefits: – income based jobseeker’s allowance – income related employment and support allowance – income support – working tax credit – child tax credit – housing benefit.

It will not replace the benefits below: – attendance allowance – child benefit – disability living allowance – industrial injuries benefits – local council tax support schemes – local welfare provision – pension credit – personal independence payment – state retirement pension – contributory jobseeker’s allowance – contributory employment support allowance – bereavement benefits – maternity allowance – statutory sick/maternity/ paternity/adoption pay. When will you start claiming universal credit? The Government is phasing in universal credit gradually between 2013 and 2017. If you

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are already claiming benefits, you should continue to do so as normal and you will be contacted when universal credit affects you. If you experience a change of benefits that affects your entitlement, the opportunity will be taken to move you onto universal credit at that point. If your circumstances haven’t changed then you will be moved over to universal credit on a systematic basis by DWP. There are no limits to the number of hours you can work a week. Your universal credit payment will gradually reduce as you earn more, so you won’t lose your benefits all at once if you are on a low income. If however you have capital/ savings of more than £16,000, you cannot claim universal credit. If you have capital or joint capital of over £6,000, this will be classed as a tariff income of £4.35 per month for each £250 (or part therof) over the £6,000. Capital under £6,000 is disregarded. Universal credit will be paid once a month into your bank, building society or post office account. If you are receiving help with your rent, this will be included with your universal credit so that you can then pay your landlord yourself. Who can claim universal credit? To claim universal credit you must fulfil the following criteria. You must be: – over 18 (or 16 in certain circumstances) – under pension credit age – live in Great Britain – be out of education – have accepted a claimant commitment (see below) If you have a partner and they do not meet any of the eligibility criteria above, they will not be taken into consideration for the purposes of calculating the universal credit maximum amount, although their savings/capital, income and earnings will still be taken into account. If you are 16 or 17, you can

Universal credit: Great Britain from Oct 2013, Northern Ireland from 2014

only claim for universal credit if: – you have dependent children – you are sick and have met the work capabilities assessment, or are awaiting an assessment – you are caring for someone with a severe disability – you are pregnant and it is 11 weeks or fewer before the baby’s expected date or it is up to 15 weeks since the birth of the baby. If you are a student, you will normally only be able to claim universal credit if: – you have dependent children or qualifying young persons – you are a foster parent

– you are claiming attendance allowance, DLA, PIP or have a limited capability for work – you are over pensionable age but have a partner who has not reached that age – you are in non-advanced education, are under 21 and do not receive parental support What is claimant commitment? Universal credit is based on a partnership between the state and you. In return for receiving financial support, those claimants who are out of work, depending on their circumstances, must look

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Monthly rates

Universal credit will be paid monthly into your account

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for work or take steps towards it. This could include preparing a cv, attending training courses, applying for vacancies or registering your details with a recruitment agency. There are four commitment categories setting out the responsibilities that will enable you to continue claiming universal credit. You will be asked to sign one of the claimant commitments below, according to your individual capability and circumstances: – no work-related requirements – work-focused interview requirement only

Universal credit is ‘digital by default’. This means that you are expected to apply online.

– work preparation requirement – all work-related requirements Universal credit may change as your personal circumstances change and your commitment may vary depending on family, health and potential for future earnings. For example if you: – are earning as much as can be expected, you will receive universal credit without any other conditions requiring you to increase your earnings. – have the potential to work more, you will be encouraged to look for additional or better

paid work that will enable you to increase your earnings – are able and available for work, you will be expected to actively prepare and seek work. If you do not do this without a good reason, your universal credit may be reduced – have a limited capability for work, related to a disability or health condition, but this is expected to change over time, you will be supported until you are able to work. But you will be expected to make reasonable preparations for work. – have commitments which prevent you from being able to work immediately (for example, being a carer for a child under the age of one, or caring for a severely disabled person for at least 35 hours a week) you will not be expected to work. – are a single parent or carer of children aged over one and less than five , you will be asked to attend work focused interviews. If you choose to work, you can be supported with childcare costs through universal credit. – have a disability which prevents you from working, you will not be asked to work, and will receive universal credit. How do you claim universal credit? Universal credit is ‘digital by default’. This means that you are expected to apply online and then attend a face-to-face interview. If you don’t have internet access you will be able use the computers at your local Job Centre. Alternatively, your local council should be able to provide internet access and face-to-face advice. Online advice is available at www.gov.uk/apply-universal-credit or you can call 0845 600 0723 or textphone 0845 600 0743. Find out more about getting online in Ways and Means on page 20. When you attend your face-toface interview you will be expected to sign your claimant commitment,

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as described on page 13. You will also be told the consequences of not meeting your responsibilities in return for claiming universal credit. How much will you receive? Universal credit will be paid monthly into your bank account. If you have a partner, live in the same house and both claim universal credit you will only receive one payment, into one bank account, but you will be able to choose who receives the payment. Your payment may include support for childcare costs, mortgage or rent costs. For example, if your rent is included in your payment you will be responsible for paying rent directly to your landlord. The DWP will be able to give you support and advice on how to manage your money. In certain circumstances they may be able to help you make alternative payment arrangements, by: – paying you every two weeks, instead of monthly – paying rent directly to your landlord – splitting your payment between you and your partner, if you both claim. The amount you receive will depend on your individual circumstances, for example if you have children, if you are a carer, if you have a disability, or if you have savings or other investments. Basic monthly standard allowance For a single person: – £246.81 (under 25 years) – £311.55 (25 years and over) For a couple: – £387.42 (both under 25) – £489.06 (where one person is over 25) What is the benefit cap? If you are of working age there will be a limit on the benefits you can get. This is called the benefit cap

and will apply to your combined household income from most benefits, including carers’ allowance and incapacity benefit. Disability living allowance, personal independence payment and attendance allowance are not included in the benefit cap. Combined household income means you and a partner, and any children who you are responsible for and who live with you. The total amount you can be paid from the benefits you claim, including universal credit, is limited to £500 a week (£2,166 a month) if you are a single parent or part of a couple, or £350 per week (£1,516 per month) if you are single. You may be exempt from the cap if you or anyone in your house is receiving certain allowances including: attendance allowance, disability living allowance, personal independence payment, limited capability for work and work related activity element.

When you no longer need your claim If your earnings increase or your circumstances change, you may no longer be entitled to universal credit. However a ‘re-award’ means that where necessary you will be able to return to universal credit within six months of your claim closing, without having to make a new claim. If you need to return to claiming universal credit but don’t fit the re-award criteria, there is a rapid re-claim process that will assist you.

Going to appeal If you are not happy with a universal credit decision, you should first contact DWP and ask them to look at their decision. This is called ‘mandatory reconsideration’. This gives you the chance to let DWP know why you think it is wrong and also gives them a chance to explain or change their decision. Contact details for DWP will be on your decision letter. You should contact them within one month of their decision and make it clear why you are asking for a mandatory reconsideration. If you are still unhappy with their decision you can appeal to Her Majesty’s Courts and Tribunals Service. You should fill in ‘Notice of appeal against a decision of the Department of Work and Pensions – SSCS1.’ You can find this at http://hmctsformfinder.justice.gov. uk/HMCTS/). Remember to include your mandatory reconsideration notice with your appeal.

www.moneyadviceservice.org.uk An introduction to universal credit and changes to benefits, and how to manage your money.

Find out more www.epilepsysociety.org.uk/ benefits https://secureonline.dwp.gov.uk/ universal-credit-preparation/ You will be asked to answer a set of questions about your personal circumstances, then will be given online advice based on your answers.

http://www.disabilityrightsuk.org/ universal-credit-uc www.turn2us.org.uk/information