Welfare reform and you

SEPTEMBER 2012

welfare reform guide Changes to the Benefits and Tax Credits System – How will you be affected?

The UK Government’s Welfare Reform Act became law on March 8 2012 and is the biggest overhaul of the benefits and welfare system since the 1940s. This guide gives you the details of the main changes which have been introduced and more importantly lets you know how you will be affected.

It is important that you take time to read the articles in this guide and to think about whether you will continue to be entitled to the benefits you currently receive or if you are not receiving any benefits whether you may qualify for new benefits in the future.

You also need to think about how you will manage your claims and that you are prepared for any changes. Ask yourself ...

Index: Main Changes to Benefits and Tax Credits ....................2 Disability Living Allowance (DLA) ....................................3 Universal Credit....................4 How Link can help you ... ....6 Under-Occupation and the Bedroom Tax ..................8

● Do I have a bank, building society or credit union account that my benefits can be paid into? ● Do I have access to the internet? ● How will I pay my rent? ● What will I do if I am under-occupying my home? ● What will I do if the benefit cap applies to me? ● Can I manage my money on a monthly basis?

Working Tax and Child Tax Credit ................10

These are just a few questions that you may need to answer and there will be many more. It is therefore important that you know where to get relevant information and advice so you can pay your rent on time and keep your home.

Employment and Support Allowance ............14

PLEASE READ AND KEEP THIS GUIDE TO HELP YOU THROUGH THE CHANGES

Benefit cap..........................11 Social Fund ........................12 Non Dependant Deductions ........................13

Incapacity Benefit and Severe Disablement Allowance ..........................15 Housing Element and paying your rent ................16

This newsletter can be provided in Braille, Audio Tape, Large Print and Community Languages. If you require a copy in any of these formats please contact 08451 400 100.

Some of the information in this guide has been sourced from the following websites: www.direct.gov.uk and www.disabilityrightsuk.org PLEASE NOTE THAT THE INFORMATION CONTAINED IN THIS GUIDE MAY BE SUBJECT TO CHANGE. Link Housing – 08451 400 100 or 0330 303 0013 or csc@linkhaltd.co.uk

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Main Changes to Benefits and Tax Credits You may start to receive letters over the coming months from the Department for Work and Pensions (DWP) and your local council. It is very important you do not ignore these letters and you should read them carefully. If you do not understand the contents of these letters or want more information about your options or the decisions you need to make you should seek help or advice immediately.

The table below shows the main changes to benefits and tax credits.

Date

Benefit

Change

April 2012

Housing and Council Tax Benefit

Bigger reduction in your benefit if you have other adults living in your house.

April 2012

Tax Credits

Couples will have to work 24 hours a week.

April 2012

Incapacity Benefit

Existing claimants will have to claim Employment and Support Allowance (ESA), and have a medical assessment.

April 2012

Employment and Support Allowance

Contributory ESA for work related component paid for one year only.

April 2013

Housing Benefit

Paid in relation to number of bedrooms appropriate to the size of your family. Any spare bedrooms will reduce the amount of Housing Benefit you receive.

April 2013

Housing Benefit

Cap on total benefit income.

April 2013

Social Fund

Replaced by a local scheme (still to be decided).

April 2013

Disability Living Allowance

Replaced by Personal Independence Payment. Medical assessment required.

All means-tested benefits

Replaced by Universal Credit. New ways of claiming to be introduced. Benefits paid directly to you. This means you will be responsible for organising payment of your rent to Link. It will no longer be paid by your local council to Link – you will need to do this.

October 2013

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Disability Living Allowance (DLA) From June 2013, no new claims for DLA will be accepted in Scotland. Instead, you will need to claim for Personal Independence Payment (PIP).

Due to cuts in benefit spending by the Government it may be more difficult to be awarded PIP than the current DLA. As with DLA, PIP will be made up of two parts, a mobility component and a care component.

Each component will have two rates, a standard and an enhanced rate. As yet, we do not how much each rate will be.

Within each PIP assessment you will have to undergo an activity test and you will have to score a certain number of points in relation to certain activities for daily living and mobility.

You may also have to attend a consultation with a trained independent assessor as part of the claim process.

I already receive DLA, what do I need to do?

What happens next depends on your age Between October 2013 and March 2016, everyone from 16 to 64 who receives DLA will be reassessed under the new PIP rules. If you meet the conditions you will be moved onto PIP. If you do not meet the conditions, then your DLA will stop. If you are not awarded PIP and don’t agree with the decision you can lodge an appeal against the decision.

If you are aged 65 years or over on the day PIP is introduced you will continue to receive DLA and will not have to claim PIP, unless of course your health improves and you are no longer entitled to DLA. There is no change to DLA for children up to the day before their 16th birthday.

Indefinite Awards If you currently have an indefinite award of DLA, you will still be reassessed for PIP (if you are aged 16 to 64).

Motability Cars & Passported Benefits At the moment, we do not know the full extent of the regulations and the full criteria for the new PIP scheme and how it relates to the Motability scheme or passported benefits. Passported benefits include free school meals, leisure and travel passes.

What if I have a Carer?

At present we expect there to be similar rules regarding entitlement to Carer’s Allowance under the PIP scheme.

When will I get my reassessment?

We don’t yet know how the reassessment process will work or when you will be chosen for your assessment. The Department for Work and Pensions will contact you about this. Further information can be found at www.dwp.gov.uk/pip

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Universal Credit Universal Credit is the biggest change to the benefit system and the new system will provide in and out of work support for working-age claimants. It is being introduced to: ● Reduce the cost of the Benefit system ● Remove barriers to employment ● Prevent benefit claimants from being better off than working families ● Simplify the existing system.

Universal Credit will replace and combine a number of different (currently separate) benefits and tax credits, including: ● Income support ● Income-based Job Seekers Allowance ● Income-related Employment and Support Allowance ● Housing Benefit ● Council Tax Benefit ● Child Tax Credit and Working Tax Credit.

Universal Credit will be the sum of the above benefits you or your household are entitled to.

How and when will Universal Credit be paid?

Universal Credit will be paid as a single payment monthly rather than fortnightly and generally by electronic bank transfer. This “in arrears” means that you must have a suitable bank, building society or credit union account that will support the payment. If you are in a couple, only one person will receive the single payment.

What is included in Universal Credit?

The elements which make up the Universal Credit are: ● The standard allowance ● An amount for the responsibility of children and young people ● An amount for housing costs ● An amount for ‘other particular needs and circumstances’ e.g the you may have limited capability for work or you have regular and substantial caring responsibilities.

It will not include Disability Living Allowance (DLA) or Carer’s Allowance.

When will the change take place?

New claims for Universal Credit will start from October 2013 in some areas and it is expected that new claims for the current benefits will be phased out by April 2014. Existing claims for current benefits will be transferred across to Universal Credit between 2014 and 2017.

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How is the award calculated?

For each person there is a ‘maximum amount’ which is made up of the different elements outlined above. From this amount, sums will be deducted for earned and unearned income.

Who is eligible to claim Universal Credit?

Universal Credit can be awarded to a single person or to a couple jointly. You must meet the following basic conditions: ● Be at least 18 years old, but under the qualifying age for pension credit ● Reside in Great Britain ● Not in higher education (this will be defined in the regulations) ● Have accepted a ‘claimant commitment’ You must also satisfy certain financial conditions.

Entitlement to Universal Credit will depend on both your income and capital. Universal Credit will not be payable if either one is above a certain limit. The capital limit will be set in regulations, but is likely to be £16,000.

What is the claimant commitment?

In order to receive Universal Credit, you must have accepted a commitment, setting out the general expectations of and requirements placed upon you. Where appropriate, this will include work-related requirements. The commitment will also set out any penalties for failing to meet these requirements, this may result in your payments stopping.

How to claim Universal Credit The UK Government expects 80% of claims for Universal Credit to be made and maintained online. This means that you must access the internet to make an online claim and provide an e-mail address for future communication.

Changes of circumstances should also be reported by e-mail. If you don’t have access to the internet at home you can access it at your local library or at the job centre – and there are many free courses to show you how.

You will be notified nearer the time the details of where and when you can make your claim online.

Are Pensioners affected?

Universal Credit will NOT replace Pension Credit. However, when Universal Credit is introduced, if either member in a couple is under the qualifying age for Pension Credit then the couple will be treated as ‘working age’ and expected to claim Universal Credit.

Due to the abolition of Housing Benefit, the Department for Work and Pensions is updating Pension Credit to enable pensioners to claim for their housing costs (including rent) as part of their Pension Credit claim. For more information go to www.dwp.gov.uk/policy/welfare-reform

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How Link can help you ...

As you read this guide you will realise that there are many changes being made to welfare benefits and also to the way they are administered. This means that the benefits you are entitled to, the way you make benefit claims, how you manage your claims on an on-going basis and how you manage your benefit income are all going to be very different in the future.

Welfare Rights and Money Advice Link has its own accredited Advice Team made up of six dedicated and knowledgeable staff. The confidential service they provide is FREE to all Link tenants and sharing owners.

If you have any questions, concerns or require help to deal with the benefit changes then get in touch with the team – they will be happy to help you.

The Welfare Rights team is there to give you advice and assistance on everything to do with benefits as well as any other welfare issues that may be affecting you. This includes; ● Carrying out a Benefits check ● Helping you to make any claims ● Talking to Department Work and Pensions, the Council, or other agencies on your behalf ● Assisting you if you need to appeal a decision.

How to contact the team The Welfare Rights and Money Advice service is provided over the telephone, by office appointment, by letter, e-mail, fax or by text. If, however, an enquiry is complex (or you have difficult circumstances) a team member will arrange to visit you at home or another suitable venue at a convenient time for you.

OPAS is delivered via a visit to your home or at another suitable venue and at a time that suits you. You can contact the team yourself or ask your Housing Officer, a family member, friend or other professional who you have contact with, to make a referral on your behalf.

You can contact the Advice Team by: ● e-mail at welfarerights@linkhaltd.co.uk ● telephone on 01324 417174 ● letter to Advice Team, Link Housing Association, Watling House, Callendar Business Park, Falkirk, FK1 1XR You can contact OPAS by: ● e-mail at opas@linkhaltd.co.uk ● telephone on 0845 002 0941 ● letter to OPAS, Link Housing Association, Watling House, Callendar Business Park, Falkirk, FK1 1XR

The Money Advice staff can give you advice and assistance to deal with any debt, to help with budgeting and to find out about financial products. This includes; ● Debt and budgeting advice ● Contacting creditors on your behalf to make repayments arrangements, such as Trust Deeds or bankruptcy ● Advice on financial products such as setting up bank accounts, Credit Union accounts and affordable credit.

We also provide the award-winning Older People’s Advice Service (OPAS) to people aged 60 years and over.

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Housing Officers

Support Workers

Your Housing Officer is the first person you should contact for help, information and advice. He/she can also help you with all of the changes that are happening.

If you have a support worker he/she too can help you deal with the changes that are happening.

Your support workers priorities are to:

Your Housing Officer will: ● Make sure that you are kept up to date with any changes that will affect you ● Offer initial advice and discuss the options that are available to you ● Refer you for specialist support and advice to the Welfare Rights or Money Advice Team or to any other agency that may be able to assist you ● Provide information and advice on new methods for paying your rent.

How to contact your Housing Officer Housing Officers spend much of their time out and about in the areas they cover. They can visit you in your own home and will try to assist you if you may be experiencing problems affecting your tenancy.

You can contact your Housing Officer by: ● Telephone on 08451 400 100 from a landline ● Telephone on 03303 030012 from a mobile ● Text to 07557183553

● Provide general information on the changes to your benefits ● Help refer you for specialist support and advice to the Welfare Rights or Money Advice Team or to any other agency that may be able to assist you ● Help you to speak to your Housing Officer about matters relating to your tenancy ● Assist you to fill in application forms and make benefit claims ● Assist you to report changes in your circumstances to the benefit paying authorities ● Assist you with benefit appeals ● Assist you to manage your money ● Assist you to pay your bills including your rent.

How to contact your Support Worker You should already know the telephone number for your Support Worker. If you do not have this then contact your Housing Officer for advice.

What if I need a Support Worker and don’t have one?

If you think you would benefit from having a support worker you should speak to your Housing Officer for further information and advice.

Other sources of advice You can also contact the welfare benefits team at your local Council or the Citizens Advice Bureau.

Link Housing – 08451 400 100 or 0330 303 0013 or csc@linkhaltd.co.uk

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Under-Occupation and the Bedroom Tax At present the amount of Housing Benefit you receive is based on your income, your rent and who lives in the household. It doesn’t matter how many bedrooms there are in your property.

From April 2013, the number of bedrooms you have in your property will affect the amount of Housing Benefit you are entitled to. If you are of working age and you have more bedrooms than you require for your family (i.e. your property is under-occupied) there will be a restriction on the amount of Housing Benefit you will be entitled to – this is called “Bedroom Tax”. You will be responsible for paying the shortfall.

Who is entitled to a bedroom?

The restriction will be:

What options do you have if the Bedroom Tax is going to affect you?

● 14% of the benefit if you have one bedroom too many ● 25% of the benefit if you have two or more bedrooms too many The following people are exempt from the restriction to their Housing Benefit: ● Pensioners ● Sharing owners ● People in supported exempt accommodation All other tenants will be affected by the restriction – even those with the following special circumstances: ● Separated parents who have shared care of one or more children. Only the parent who receives Child Benefit will be allocated a bedroom for the child/children ● Couples who sleep in separate rooms due to ill health ● Foster carers because foster children are not counted as part of the household for benefit purposes ● Disabled people who live in adapted and specially designed houses.

● A couple ● A person aged 16 or older ● Two children of the same sex until their 16th birthday ● Two children until their 10th birthday (any gender) ● Any other child ● For a carer where the claimant or their partner requires overnight care ● A joint tenant – it is important to realise that a joint tenant couple are only entitled to one bedroom.

There are a number of options you can consider if you are affected by the Bedroom Tax. Move You may be able to move to more appropriately sized accommodation. Contact your Housing Officer if you want consider this option.

Transfer to another property If you are registered with Homehunt you can apply for any Link properties advertised on the homehunt website at www.homehunt.info.

Properties are allocated to the person who makes ‘best use’ of it, such as using all the bedrooms, or who needs any special adaptations that have already been made to the property.

If you live in Edinburgh, different arrangements apply under the Edindex (Common Housing Register) scheme. Visit the Edindex website at keytochoice.scotsman.com and download an application form, which you should complete then return to any City of Edinburgh Council office.

Available properties are listed on the Edindex site and in the Edinburgh Evening News every Monday.

Mutual exchanges A mutual exchange is when you swap properties with another tenant. The other person must have a

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Scottish secure tenancy with either Link, another council, another housing association or a housing co-operative.

If you live anywhere apart from Edinburgh, please contact Link to apply for a mutual exchange. The other tenant should also contact their landlord. We and the other landlord will review the exchange, looking at how each tenant has conducted their tenancy and whether they are up to date with their rent payments.

If the exchange is then approved you must remain in your property until the agreed date. Any repairs that are needed must be completed before you move.

If you live in Edinburgh, you can register for the Edinburgh House Exchange free of charge. This will enable you to find a home through the Edindex scheme. For more information and to register, visit the Edinburgh House Exchange website at www.houseexchange.org.uk.

Find employment or increase the hours you work If it is possible or a realistic option, getting a job or increasing your working hours would increase your income and help cover any reduction in your housing benefit. The additional income will affect the amount of the benefits you are entitled to though so it is important that you report this to the benefit paying authorities.

Discretionary Housing Payments If you cannot cover a reduction in your housing benefit from your own resources and you have special circumstance for remaining in your current accommodation then you may be able to claim a Discretionary Housing Payment (DHP). You need to make an application to the Housing Benefit team at your local council Department for this.

Additional DHP funds have been allocated by the Government to cover the following:

Homeswapper Homeswapper is a free online house matching service, open to tenants of more than 300 housing associations and local authorities across the UK. When you register, your home is matched with those of other tenants looking to move. You will be informed of any matches, which you can view on the Homeswapper website. Please note that only tenants with clear rent accounts are eligible to use Homeswapper. To register, visit the Homeswapper web site at www.homeswapper.co.uk.

Take in a Boarder / lodger You will need to seek permission from Link to fill any unoccupied room. This would mean the room would still be treated as unoccupied but you would have income from the boarder/ lodger to help you pay the shortfall. The income you receive may be taken into account for benefit purposes and may affect some other benefits you receive.

It is important that you get specialist advice before taking up this option.

Have family members contribute more If you have one or more non-dependants living in the house they may be able to help cover the excess rent by giving you extra money.

– Disabled people living in accommodation that has been substantially adapted for their needs, including new builds – Foster carers including those between foster placements If your child is approaching a trigger point age (which means they will be entitled to bedroom of their own) or you are pregnant and will not be under-occupying when your baby is born or you are within 6 months of pension age you may also be entitled to DHP. DHP claims for underoccupation cannot be made until April 2013 and any award is likely to be for a short period. You will therefore not be able to rely on DHP as a long term solution to under-occupying your home.

What will happen next If you are under-occupying your home your local council will write to you soon to let you know. They will also let you know how much of your Housing Benefit you will lose.

It is important that you do not ignore these letters and should think about how you will be able to pay the shortfall on your rent. You should get advice and support to look at the various options if you need this.

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Working Tax and Child Tax Credit On April 6 2012, there were a number of changes to Working Tax and Child Tax Credits.

Changes to working hours for couples Previously, if you were part of a couple (who had a child) and you worked 16 hours a week you could claim Working Tax Credit (WTC).

From April 6 2012, couples (with a child) must work 24 hours between them and one person must work at least 16 hours to be eligible for WTC. Due to this change, some claims for WTC will stop. The deadline for renewing Tax Credits was July 31 2012 so you may have just found out if this change has affected you.

Backdating Previously, Tax Credit claims could be backdated for up to three months. This has reduced to only one month.

50 Plus Element Previously, if you were over 50 and returned to work following unemployment, you received additional Tax Credits. This additional element has now stopped and may end some claims for WTC. There are some exceptions to these changes so if you are worried or want further information please contact us for advice.

Child Care Costs This has been reduced from 80% to 70% of the cost of eligible child care for your children. This means that the maximum amount you can now receive is £122.50 for one child and £210 for two or more children. You won’t necessarily get the full amount as this depends on your income.

Previously, Tax Credits could increase with any loss of wages. Now, they will only increase if your income drops by over £2,500 a year (approx £50 per week).

**Remember, if your income goes down because of changes to your Tax Credits you may be able to get more help with your rent from Housing Benefit. It is important that you report all changes to your income to the Housing Benefit Office. Even if you did not qualify for Housing Benefit before, you may do now if your income has dropped. **

Income limit reducing

Further information

Previously, you could claim for Child Tax Credit if your total household income was below £41,300.

This income level has now been reduced and will vary according to the number of children. To qualify for Child Tax Credit, you will need to earn below £26,000 for one child and below £32,000 for two. These figures are estimates however, and your circumstances may mean that you would still qualify for Child Tax Credit even if you earn more.

The only way to be sure if you will qualify is to make a claim.

Check out HM Revenue and Custom’s website at http://www.hmrc.gov.uk/taxcredits/

Changes in income

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Benefit cap From April 2013, a limit will be put on the amount of benefit that people aged 16 to 64 can get. This is called a “Benefit Cap”. The benefit cap means that people should not get more in benefit payments than the average wage paid to people in work.

Why is the benefit cap being introduced?

The benefit cap will make sure that households getting benefits will not normally get more in benefit than the average working household receives in pay.

The benefit cap will encourage people to look for work and help to promote fairness between those in work and those getting benefits.

What’s included in the benefit cap?

When added together the benefit cap will limit the total income you can get from the following benefits: ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Bereavement Allowance Carer’s Allowance Child Benefit Child Tax Credit Employment and Support Allowance (except where it is paid with the support component) Guardian’s Allowance Housing Benefit Incapacity Benefit Income Support Jobseeker’s Allowance Maternity Allowance Severe Disablement Allowance Widowed Parent’s Allowance Widowed Mothers Allowance Widows Pension Widows Pension Age-Related

How much is the benefit cap?

The actual amount of the cap won’t be set until later this year, but is currently expected to be set as follows.

A maximum of £350 a week if you are a single person and either: ● have no children ● the children you have responsibility for don’t live with you A maximum of £500 a week if you are either: ● a couple, with or without dependent children ● a lone parent with dependent children The cap will not apply, if you qualify for Working Tax Credit, or get any of the following benefits: ● Disability Living Allowance ● Personal Independence Payment (from June 2013) ● Attendance Allowance ● Industrial Injuries Benefits ● Employment and Support Allowance, if paid with the support component ● War Widow’s or War Widower’s Pension.

The cap will be applied through deductions from Housing Element payments.

If you are currently getting benefits affected by the benefit cap If you are already getting benefits and could be affected by the benefit cap. The department for Work and Pensions (DWP) will write to you.

DWP will help you to get information about the changes and to think about what you can do now to get ready.

If you are affected, your Housing Benefit may go down from April 2013. To make sure that the total amount of your benefit is not more than the cap level. If this happens, you may have to use money from your other benefits to pay towards the rent for your home.

www.linkhousing.org.uk

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Social Fund This article looks at changes that have already been made to the Social Fund and further changes that are going to happen in April 2013.

What will change in April 2013?

What has already changed?

Community Care Grants and Crisis Loans

Budgeting Loans

The responsibility for paying Community Care Grants and Crisis Loans will be transferred to the local authority. Unfortunately, the pot of money given by the UK Government for these grants will not be ring fenced, which means that the local council can use the money however it wants. This might mean that it is harder to make a successful claim for a Community Care Grant or Crisis Loan as there will be less money available.

It is likely that the local council will arrange for help in kind from local charities and there will be limited cash payments.

It has not been decided which department within the local authority will manage the Social Fund so there is no information available on how to make a claim.

There were some important changes to Budgeting Loans from May 8 2012. The new changes mean that DWP can award budgeting loans to help families buy maternity and baby items or to help with the costs of a relatives funeral. This is all in addition to other help available such as the Sure Start Maternity Grant or a Funeral Payment from the Social Fund.

To be eligible for a Budgeting Loan you must still be in receipt of a ‘qualifying benefit’ at the time your claim is assessed and have been receiving that benefit for at least 26 weeks. Any capital you have could also affect your eligibility. DWP will continue to assess your ability to repay any loan you get, as well as if you currently have any outstanding loans to repay. You also cannot be offered a Budgeting Loan of less than £100 or more than £1,500.You can get a claim form (SF500) from your local Jobcentre Plus office or online.

Crisis Loans Changes to the amount you may receive in Crisis Loans were introduced on the April 9 2012. Nonhouseholders facing an emergency or disaster can now only expect to receive 30% of their personal allowance rate rather than the previous rate of 60%. So if you are a single nonhouseholder over 25 who would normally get £71.00 per week Job Seekers Allowance, and had to apply for a Crisis Loan due to an emergency, you would only get 30% (£21.30). Nevertheless, householders making this type of application are still however entitled to the previous rate of 60%.

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In April 2013, the way Social Fund grants and loans are paid is changing.

Budgeting Loans Budgeting Loans will continue to be available until Universal Credit is fully rolled out for those not yet on Universal Credit. As people migrate across to Universal Credit they will have access to a new system of Budgeting Advances that will replace Budgeting Loans for Universal Credit recipients.

Crisis Loan Alignment Payments Crisis loan alignment payments to cover delayed welfare payments will be replaced by a new national scheme of Short Term Advances. This will be administered by the DWP.

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Non Dependant Deductions Non Dependant Deductions are increasing – this means the money will decrease People who normally share your accommodation but are not dependant on you for financial support are known as non-dependants. Others who live with you as a family and any children you have fostered do not count as non-dependants.

The following do not count as non-dependants whether they share accommodation or not: ● Carers employed by a charity that charges for the service ● Joint tenants ● Subtenants ● Boarders ● Tenants of owner occupiers ● Landlords/ladies and their partners ● Foster children Non dependent deductions increased significantly in 2011 and 2012 with a further increase due in April 2013. It is expected that increased deductions will continue in line with benefit increases from 2014 onwards.

Current Non Dependant deductions 2012: (weekly) This table shows the amount that will be deducted from your Housing Benefit for each nondependant in your household. It is up to you to make up the shortfall in your rent and council tax yourself. You must therefore ask the nondependant to give you the amount you owe or you will need to make this up from your other income or benefits. It may be possible to claim Discretionary Housing Payments to help you with this cost.

In receipt of Pension Credit

NIL

In receipt of Assessment phase Employment and Support Allowance (Income Related)

NIL

In receipt of Main phase Employment and Support Allowance (Income Related)

£11.45

Aged 25 and over and on Income Support or Jobseeker’s Allowance (Income Based) or aged 18 years or over and not in remunerative work

£11.45

Gross Weekly income less than £124.00

£11.45

Gross Weekly income between £124.00 and £182.99

£26.25

Gross Weekly income between £183.00 and £237.99

£36.10

Gross Weekly income between £238.00 and £315.99

£59.05

Gross Weekly income between £316.00 and £393.99

£67.25

Gross Weekly income £394.00 and above

£73.85

Link Housing – 08451 400 100 or 0330 303 0013 or csc@linkhaltd.co.uk

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Employment and Support Allowance Employment and Support Allowance (ESA) provides financial help to those who are unable to work because of illness or disability. It also provides personalised support to those who are able to work.

Welfare reforms to Employment and Support Allowance includes the commitment to making the benefit fairer and to ensure that help goes to those with the greatest need.

About Employment and Support Allowance ● It gives you access to a trained personal adviser and a wide range of other services including employment, training and condition management support. ● You must attend a medical assessment called the Work Capability Assessment. This assesses what you can do, rather than what you cannot, and identifies the health-related support you might need. ● If you claim Employment and Support Allowance, you will be expected to take steps to prepare for work. This includes attending work-focused interviews with your personal adviser. ● If you have an illness or disability that severely affects your ability to work, you will get increased financial support. You will not be expected to prepare for a return to work.

You can volunteer to do so at any point if you want to.

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The changes ● From 1st May 2012 contribution-based ESA is limited to 365 days if you are not in the Work Related Activity Group or assessment phase.

The 365 day time-limit does not include any time spent in the “Support Group” or the time spent in the assessment phase if you moved from the assessment phase into the Support Group at the start of your claim. ● There is also an expectation that more people will be in the “Work Related Activity” group as a result of the change in the overall assessment. ● Young people who currently qualify for contributory ESA without having paid National Insurance contributions will no longer qualify.

(A “Young person” is defined as aged between 16-19 years or satisfies the “age exception” rule-i.e. aged between 20 and under 25 yearsthe “age exception” rule revolves around education or training).

www.linkhousing.org.uk

Incapacity Benefit and Severe Disablement Allowance If you currently receive Incapacity Benefit or Severe Disablement Allowance then this will change.

Between October 2010 and March 2014, if you are an existing Incapacity Benefits claimant (those on Incapacity Benefit, Severe Disablement Allowance and Income Support on disability grounds) you will be reassessed under the Employment and Support Allowance (ESA) Work Capability Assessment (WCA) instead of the Personal Capability Assessment.

Key points about this process: ● If after April 2012, you are moved on to ESA, are placed in the work related activity group and are only entitled to Contributory ESA, then you will be paid ESA for a year after which this will cease. ● If you are placed in the support group you will not have your Contributory ESA time limited. ● No new claim will be required for the move to ESA, DWP will contact you when the change is going to happen. ● the date of a the re-assessment will be based on the review date of your Personal Capability Assessment. ● people who reach State Pension Age during this reassessment period 2010-2014 will not be reassessed to avoid having to change benefits twice in a short period. ● where possible, the DWP will use existing data held for IB/IS to determine entitlement to ESA; ● DWP has pledged to help customers adapt to their new circumstances and ensure continuity of payment is maintained. ● existing incapacity benefits will continue to be paid to the day before the change.

● where people who are eligible for ESA receive more on existing incapacity benefits than the appropriate ESA rate, their existing rate of benefit will be frozen at the point of conversion. ● where people who are eligible for ESA receive less on incapacity benefits than the appropriate ESA rate, their benefit will immediately be increased to the ESA rate on conversion. ● all claims to incapacity benefits on or after 31 January 2011 will be treated as new ESA claims – there will be no link to earlier claims for incapacity benefits. ● appeals may be brought against the decision not to award ESA as a result of failure to meet the WCA threshold. ● ESA will be paid at the same rate as for new ESA claims where a person is appealing against a decision that they are not entitled because of not meeting the WCA threshold.

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Housing Element and paying your rent Housing Benefit will be replaced with a Housing Element and will be paid as part of the single Universal Credit payment.

In most cases the Housing Element will be paid directly to you and not to your landlord as currently happens.

This means that you will need to arrange to pay your rent to your landlord yourself.

There may be a small number of ‘vulnerable’ people who will continue to have their rent paid directly to their landlord, however the UK Government has not yet provided any details about this yet.

Paying over the internet

How to Pay Your Rent

Payment by Cheque or Postal Order

There are a number of options available to make it easier for you to pay your rent: Paying by Direct Debit

Pay over the internet using your allpay reference at www.allpayments.net. Payments online can be paid by debit and credit card. Use the allpay app on a smartphone (details in last tenants newsletter).

Paying over the Telephone You will need your allpay reference to pay over the telephone using a credit or debit card, call allpay on 0870 243 6040 or the service centre on 08451 400 100 if using a mobile call 03303 030013.

Cheques or postal orders should be made payable to Link Housing Association. If a cheque is dishonoured we reserve the right to make a charge against your account to cover bank charges plus handling costs.

The best way to pay is by Direct Debit. This is similar to a standing order but you don’t need to contact your bank every time there is a change in your rent – Link will do it for you. If you would like to change from standing order to direct debit this can be arranged over the telephone through the Customer Service Centre, call 08451 400 100 option 1.

08451 559 559

08451 559 559

Paying by Cash All Link tenants are given an allpay card, which you can use to pay your rent in any Post Office, shop or garage, which displays Paypoint, E-pay, Payzone or allpay Logo. This is a free service – you will be given a receipt and your payment is made to your rent account within 24 hours.

08451 559 559

08451 559 559

08451 559 559

W przypadku, ze tutejsza informacja bedzie potrzeba w innej wersji n.p. duzy druk, kaseta audio, lub w innym jezyku, prosze sie sontaktowac z nami pod numerem 08451 559 559.

Link Housing Association Limited is a company registered in Scotland.

Company registration number SC216300.

Registered Office: Link House, 2C New Mart Road, Edinburgh EH14 1RL. Part of the Link group. © LinkGroup Ltd 2012.

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Link Housing – 08451 400 100 or 0330 303 0013 or csc@linkhaltd.co.uk