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Factsheet In this edition we cover
Spring Edition 2021

Welfare Benefits Team
Factsheet
The Over
                      In this edition we cover
                Universal credit         Major change for               Means-testing and
75s...          and the Budget           disabled people                non-means testing

Pensioners
                                        Many married women (and other groups - please see
                                        below) who reached ‘state pension age’ (i.e. the age
                                        at which they could officially retire and receive a state
                                        retirement pension) before 6 April 2016, may have

Missing
                                        missed out on state retirement pension entitlements
                                        dating back many years.
                                            They may now be            own National Insurance

Out…
                                        owed many hundreds of          contributions record. To
                                        pounds (in some cases          qualify for a full pension
                                        thousands of pounds) in        (currently worth £137.60
                                        back pay.                      per week) a person
                                            The current estimate       needed to have a National
                                        is that £2.7 billion in back   Insurance contributions
                                        pay in state retirement        record of at least 30
                                        pension is owed and            qualifying years.
                                        £90 million in ongoing             However, married
                                        entitlements is to be paid.    women who did not
                                            If a person reached        have a complete National
                                        state pension age before 6     Insurance contributions
                                        April 2016 then they could     record could apply for a
                                        claim the ‘old’ Retirement     Category B Retirement
                                        Pension. Under these rules     Pension (worth up to
                                        a person could claim a         £82.45 per week or
                                             Category A Retirement     60% of their husband’s
                                                    Pension based      full Retirement Pension
                                                        upon their     entitlement whichever was
                                                                       the lesser figure) based
                                                                       upon their husband’s
                                                                       National Insurance
                                                                       contributions record
                                                                       once their husband had
                                                                       reached the then state
                                                                       retirement age of 65. In
                                                                       effect a woman could
                                                                        be paid whichever paid
                                                                           the greater amount
                                                                            between the Category
                                                                             A Retirement Pension
                                                                              and the Category B
                                                                               Retirement Pension.
                                                                                Continued on page 2

                             For further information contact: welfare.benefit@lbhf.gov.uk
Factsheet In this edition we cover
2 | Welfare Benefits Team Factsheet Spring Edition 2021

Pensioners Missing Out…
Who may be affected?                                        Continued from page 1       The Pension Service have been
As stated this does not only affect married women. It also affects others.          aware of the issue since last year. It
The people who may have missed out include:                                         has taken on extra staff to identify
                                                                                    and contact those who are owed
                                                                                    money. Between August 2020 and
 Age 65             Married women (or civil partners) who reached state             January 2021 scans of old computer
 before             pension age of 65 before 6 April 2016 whose Retirement          records took place to identify those
 6 April 2016       Pension is less than £80.45 per week (£82.45 per week           potentially affected. Anyone who
                    from 5.4.2021).                                                 thinks that they may have missed
                                                                                    out may contact the Pension Service
 Age 65             Married women (or civil partners) whose husband (or             on 0800 731 0469 to check.
 before             civil partner) reached the age of 65 before 17 March                The ‘new’ State Pension was
 17 March           2008 who failed to apply for any additional Retirement          introduced for people reaching
                    Pension, perhaps because they did not realise that they         state pension age on or after 6 April
 2008               could.                                                          2016. Qualification is dependent
                                                                                    upon the contributions record of
 Pension was        Widows (or bereaved civil partners) whose pension was           the claimant. How much is paid
                    not increased when their husband (or civil partner) died.       is ultimately determined by how
 not increased                                                                      complete a person’s National
                                                                                    Insurance contributions record is. To
 Aged 80            A person who is now aged 80 or over whose Retirement            qualify for a full pension (currently
 Retirement         Pension is less than £80.45 per week (£82.45 per week           worth £179.60 per week) a person
 Pension is less    from 5.4.2021) irrespective of their marital status.            must have a National Insurance
 than £80.45pw                                                                      contributions record of at least 35
                                                                                    qualifying years. Anyone who is
                                                                                    affected by this and receives a lump
 Partner was        If a woman (or civil partner) was underpaid but they            sum payment or an increase in their
 underpaid and      are now deceased, then her widow (or bereaved                   Retirement Pension should bear in
 now deceased       civil partner) or surviving children may apply for the          mind that it could impact on any
                    backdated payment that would otherwise have been                benefits that they are currently in
                    paid to her.                                                    receipt of.
Factsheet In this edition we cover
Welfare Benefits Team Factsheet Spring Edition 2021 | 3

The Over 75s…                                State retirement pension,
                                         private pensions and occupational
Since 1 August 2020 the TV licencing     pensions are all counted as income
laws were changed, and people            along with any earned income.
aged over 75 no longer qualify for       Attendance Allowance, Disability
a free TV licence unless they are in     Living Allowance and/or Personal
receipt of Pension Credit or are blind   Independence Payment are all fully
(severely sight impaired) or live in a   disregarded but must be declared.
care home.                               Pension credit can be claimed over
Pension Credit is designed to provide    the phone or online.
people over state retirement age
with a minimum income for day-
to-day living. From 5 April 2021 the
minimum income figures will be:
• £177.10 per week
    for a single pensioner
• £270.30 per week
    for a pensioner couple
    The principle is that if a single
pensioner’s total income or
pensioner couple’s total
income is less than these
amounts, they can apply for
Pension Credit as a top-up to
their already existing income.

                                                             The European Economic Area (EEA) and Swiss citizens
                                                             and their family members living in the UK by 31
                                                             December 2020 will be able to claim or continue to
                                                             receive benefits for as long as they continue to be
                                                             lawfully resident in the UK and meet the eligibility
                                                             requirements. To lawfully live in the UK, EEA and
                                                             Swiss citizens and their family members (including
                                                             children) must apply to the EU Settlement Scheme by
                                                             30 June 2021.
                                                             Depending on their circumstances, they will be either

 Deadline
                                                             issued with pre-settled status or settled status. Those
                                                             with settled status will be treated equally to British
                                                             citizens and can claim benefits. Those with pre-settled

 to apply to
                                                             status will need to pass the ‘right to reside test’ to get
                                                             benefits. Irish citizens and their family members living in
                                                             the UK will be able to claim or continue to receive the UK

 EU Settlement
                                                             benefits to which they are entitled, without a need to
                                                             register with EU Settlement Scheme.

 Scheme
                                                             Without a pre-settled or settled status, EEA and Swiss
                                                             Citizens cannot claim benefits. It is important to apply to
                                                             the EU Settlement Scheme.

 30 June 2021                                                Applications can be made online at www.gov.uk

                                                For further information contact: welfare.benefit@lbhf.gov.uk
Factsheet In this edition we cover
4 | Welfare Benefits Team Factsheet Spring Edition 2021

Universal credit and related
measures in the Budget
The budget on 3 March 2021 included several
announcements relating to benefits and COVID-19
support.

 Universal credit uplift and
working tax credit increase
The temporary increase to the standard allowance in
universal credit (UC), which was introduced in response to
COVID-19, will not be removed in April 2021 as originally
planned. It will be extended by six months until the end
of September 2021. The uplift is worth £86.67 per month
(£20 per week).
    There is however no easement of the benefit cap, so
some families will continue to fail to benefit, in part or
full, from the uplift.
    There will be a £500 lump-sum payment in April 2021
to people getting working tax credit for those in work
who have not yet migrated to UC.

   Advance payments
People making a new claim for UC receive their first
payment a calendar month and a week after the date of
their claim. Claimants can request an advance payment
of up to 100 per cent of what they are due to receive, in
order to manage their finances in that period. Monthly
deductions are then made from their UC payment to pay
back the advance.
    From April 2021, applicants will be offered the option
to repay over a 24-month period instead of the previous
12 months allowed, to support with budgeting their
money.

   Deductions
Deductions are made in UC to contribute to the reduction
of priority debts such as rent and utility arrears. From April
2021, the normal maximum deduction rate for arrears will
change from 30 per cent to 25 per cent of a claimant’s
UC standard allowance. This will reduce the monthly
deductions, to be repaid over a longer period.

   Minimum income floor
The minimum income floor (MIF) is a measure that
assumes that, after a year of self-employment, someone
who would otherwise have to look for work, will be
earning the equivalent of the full-time national minimum
wage. UC is then based on that assumed figure. The
minimum income floor was suspended in March 2020
and this has now been extended until the end of July
2021. It will be gradually reintroduced from August 2021.
DWP work coaches will have discretion to not apply
the MIF on an individual basis, where they assess that
claimants’ earnings continue to be affected by COVID-19
restrictions.
Factsheet In this edition we cover
Welfare Benefits Team Factsheet Spring Edition 2021 | 5

             Shared accommodation rate
           exemptions for care leavers
           The shared accommodation rate applies to those who are
           under the age of 35, living alone and renting privately.
           It limits the housing costs that can be met by benefit, to
           the price of a certain standard of bedsit or a room in a
           shared house. There are some exemptions e.g. parents,
           couples and some people with disabilities and includes
           care-leavers, who are currently exempt from the shared
           accommodation rate until their 22nd birthday. From June
           2021, it is the DWP’s intention to raise this to the 25th
           birthday.
                Currently, those aged 25-34 who have spent three
           months in a homeless hostel for the purposes of
           rehabilitation/re-settlement are also exempt from the
           shared accommodation rate. This will be extended to
           those under 25 from June 2021.

             Surplus earnings rule
           The surplus earnings rule is designed to ‘even-out’ the
           calculation of UC for people with high fluctuations in their
           income. An example would be people who get a regular
           low wage (and therefore a higher amount of benefit)
           but also get a large annual bonus, which would end or
           substantially reduce their UC but only for the month in
           which it is received. At present, the carry-over is limited
           to £2,500 per month, and this will be extended until
           31 March 2022. It has come into force in the last year,
           when some low-income claimants received back-dated
           payments from the Self-Employed Income Support
           Scheme, and this may be repeated in 2021/22 as that
           scheme is expanded.

             Support for employees
           The furlough scheme for employees affected by COVID-19
           is being extended. The Coronavirus Job Retention Scheme
           helps employers to keep staff on their payroll when
           they have had to close or scale back due to COVID-19,
           rather than making them redundant. The scheme pays a
           percentage of employees’ wages, up to a certain amount
           per month. This was due to run until the end of April 2021
           but has been further extended in the Budget to the end of
           September 2021. Employers will be asked to contribute 10
           per cent in July and 20 per cent in August and September
           as the scheme is gradually phased out. More information
           is available at www.gov.uk

             Self-Employment Income
           Support Scheme SEISS
           Support for the self-employed is also extended. The
           Self-Employment Income Support Scheme allows self-
           employed people to claim a taxable grant if they have lost
           trading / partnership trading profits due to COVID-19.
           A fourth grant, covering the period between February
           and April 2021, will be available from late April. A fifth
           grant, covering the period from May to July 2021, will
           be available from late July. More information is available
           at gov.uk More changes are expected over the coming
           months.

For further information contact: welfare.benefit@lbhf.gov.uk
Factsheet In this edition we cover
6 | Welfare Benefits Team Factsheet Spring Edition 2021

Major change for disabled people
moving to universal credit
27 January 2021 saw             of circumstances that will           To make up for the       The three different
the closure of what was         prompt a legacy benefit          loss of SDP when people      levels of transitional
known as the SDP gateway        being closed and a claim         move onto UC, the DWP        payments are:
for working age people.         for UC to be made are:           has introduced SDP           1. £405 a month where
People who receive the          • moving into, or out of,        transitional payments,           joint claimants were
severe disability premium           employment (although         included in the UC award.        receiving the higher
(SDP) in their legacy               that doesn’t always          They are only available          couple rate SDP in their
benefits such as income             mean they need to stop       to people who have               legacy benefits.
support (IS) or income-             claiming tax credits or      received SDP within their
related employment and                                           IS, IRESA or IBJSA in the    2. £285 a month for
                                    claim UC through being
support allowance (IRESA)                                        month before they claim          single claimants not
                                    unemployed)
can now claim UC.                                                UC and continue to meet          in the UC limited
                                • becoming responsible                                            capability for work-
    Severe disability               for a child for the first    the eligibility conditions
premium was an                                                   for SDP. They are not            related activity
                                    time, where a new                                             (LCWRA) group. It is
additional premium                  claim for child tax credit   available to people who
awarded to top-up legacy                                         are only receiving a SDP         also paid to couples
                                    would no longer be                                            where only one
benefits in recognition of          possible                     within their HB or council
the extra disability related                                     tax support, or to people        member is eligible for
costs that people living        • moving home to a               claiming benefits for the        SDP and they are not
with severe disability incur,       new local authority          first time.                      receiving the LCWRA
as long as they met the             and needing help with                                         component in UC.
following criteria:                 housing costs.                                            3. £120 a month for single
• were in receipt                                                                                 claimants who have
    of disability living                                                                          LCWRA. This is lower
    allowance, personal                                                                           because they will be
    independence payment                                                                          receiving the LCWRA
    or Attendance                                                                                 element of UC. It is also
    Allowance at the                                                                              paid to couples where
    relevant rate,                                                                                only one member is
                                                                                                  eligible for SDP and
• no one was claiming
                                                                                                  they are receiving the
    Carer’s allowance for
                                                                                                  LCWRA component in
    looking after them
                                                                                                  UC.
• and they were the                                                                               Households receiving
    only adult living in the                                                                  the SDP in their HB
    property.                                                                                 only will miss out on
    Before 27 January,                                                                        this protection, as will
there was a two-year                                                                          households who lose
period where these                                                                            other elements of their
claimants were protected                                                                        legacy benefits when
from the move to UC                                                                               they move to UC.
and could remain on                                                                                     The SDP
the legacy benefit with                                                                              transitional element
SDP. Now, if they have                                                                                will decrease over
a relevant change of                                                                                  time.
circumstances, they will                                                                                   Anyone
have to move from legacy                                                                                concerned about
benefits and apply for UC.                                                                               moving from
    Over half a million                                                                                   existing benefits
households on IRESA                                                                                         onto UC can
get SDP. There are also                                                                                     call our advice
many households on                                                                                           line for a
HB who get the SDP                                                                                             benefit
as part of their HB                                                                                             check first.
calculation, and they
were protected by
the SDP gateway too.
Some of the changes
Factsheet In this edition we cover
Welfare Benefits Team Factsheet Spring Edition 2021 | 7

                                                               Motability
                                                               Until 31 July 2021, Motability customers who are in
                                                               ‘temporary and exceptional financial need’ due to
                                                               COVID-19 can apply for an advance of the £600 good
                                                               condition bonus (GCB), which is usually only paid to
                                                               customers at the end of the vehicle lease.
                                                               The Motability Charity scheme is also now open for
                                                               grant applications again. For more information, see
                                                               www.motability.co.uk

Appeal hearings
by video link
Due to the COVID-19 pandemic, social security appeal
tribunal hearings have been taking place by telephone
rather than face-toface. Claimants and tribunal
members (along with representatives, witnesses, carers
and/or interpreters if participating) are all joined by
teleconference. HM Courts and Tribunals Service are now
putting measures in place to hold video hearings as an
alternative option to phone hearings.
    The latest version of the benefit appeal form asks
appellants firstly whether they want to take part in
an appeal hearing (as opposed to having the tribunal
members make a decision based on the paperwork). If
they want to take part in a hearing, it then asks which
options they would accept out of a telephone hearing,
video hearing or face-toface hearing. The tribunal, not
the appellant, makes the final decision on which type of
hearing to hold.
    A copy of the benefit appeal form (SSCS1) and
guidance on what to expect when joining a telephone
or video hearing are available at gov.uk. People taking
part in video hearings are asking to dress as if they were
coming into a court or tribunal building, to have a plain
background, and not to eat or drink anything except
water during the hearing.

UC Benefit rates from April 2021
Monthly UC                     Up to April 2021              April - Sept 2021             October 2021 - April 2022
standard allowance             £20 included                  £20 included                  £20 remove
Single under 25                £342.72                       £344.00                       £257.33
Single 25+                     £409.89                       £411.51                       £324.84
Couple under 25                £488.59                       £490.60                       £403.93
Couple 25+                     £594.04                       £596.58                       £509.91
* Be aware these are illustrations of some basic amounts that are part of the UC calculation and that they can be lower
or higher if for example, there are housing costs or extra elements to be added.
See: www.gov.uk/government/publications/benefit-and-pension-rates-2020-to-2021

                                                  For further information contact: welfare.benefit@lbhf.gov.uk
Factsheet In this edition we cover
8 | Welfare Benefits Team Factsheet Spring Edition 2021

What does                                                    Welfare
means-testing                                                Benefit Officer
and non-means                                                Case Study
testing mean?                                                Miss M, aged 15 years old resided in a 3 bedroom
                                                             LBHF property with her mother - who was our
                                                             Tenant and her 2 younger brothers. Unfortunately,
Mean Tested Benefits                                         her mother passed away on 29/10/2018.
Means tested benefits are those benefits in the social           Miss M remained in the 3-bedroom property with
security system that assess your personal circumstances      her 2 younger brothers aged 7 & 9 years old. Miss M
(single, couple, disabled etc) income and savings/capital,   was made to succeed her mother’s tenancy, but as
to determine your entitlement to benefits. These benefits    she was only 15 years old then, her Uncle became the
are to help meet the cost of basic living expenses.          Trustee of the property and Miss M the beneficiary.
Examples of means-tested benefits are:                       An interview was arranged for Miss M and her uncle
                                                             A to visit our Housing Office at White City to complete
• Universal Credit                                           the signup succession. Our WBO, Uyi was present at
• Income-based Jobseekers Allowance (IBJSA)                  that interview to meet with Miss M and her Uncle A.
• Income-related Employment Support allowance                Miss M was referred to Uyi by the Housing Officer
    (IRESA)                                                  for a benefit check and to identify other benefits
                                                             and support Miss M might be entitled to, including
• Income Support (IS)                                        assisting with her rent payment.
• Housing Benefit (HB)                                           After the completion of the signup succession, Uyi
• Pension Credit (PC)                                        completed a Pre-tenancy signup checklist with her. It
• Tax Credit (child tax credit & working tax credit)         emerged that Miss M had just turned 16. Uyi informed
                                                             her that she would be entitled to claim Universal Credit
• Council tax support (CTS).                                 (UC). With the assistance of her Uncle, Miss M visited
Entitlement to these benefits can give access to the         her local job centre to apply for UC. UC was awarded
following support through the social fund:                   and included help with housing costs for the rent. This
• Sure start maternity grant                                 cleared the arrears that had built up. Miss M’s rental
                                                             income support officer (RISO) applied for the rent to
• funeral payment/ bereavement payment                       be paid directly into the rent account (APA alternative
• cold weather payment.                                      payment arrangement). Her Uncle moved into the
The amount of income/savings/capital affects your            property as well, until Miss M turns 18. Everyone was
eligibility.                                                 happy with the outcome.
                                                                 Uyi completed the Post signup checklist with
Non-mean Tested Benefits                                     Miss M, 4 weeks after the sign-up interview, via the
Your income/savings/capital are largely ignored for          telephone to further make enquiries. It emerged that
the eligibility to non-means tested benefits, as long as     her circumstances remained the same. The family
claimants meet the criteria.                                 expressed their appreciation of Uyi’s assistance
Examples of some non-means tested benefits are:              received by text messages and verbally.
• state retirement pension
• carer’s allowance
• child benefit
• personal independence payment (PIP)
• attendance allowance (AA).

                                                             CAR PAYMENT                                    RENT
Welfare benefits advice line
020 8753 5566
Advice line    Morning                Afternoon
Monday         9.30am–12.30pm         13.30pm–16.30pm
Wednesday                             13.30pm–16.30pm            GAS                                      LIGHTS
Friday         9.30am–12.30pm         13.30pm–16.30pm         DOES THIS FEEL LIKE YOU?
Welfare benefits team: welfare.benefit@lbhf.gov.uk                     Call our advice line 0208 753 5566
                                                                                                                        0012. 2021.

 For further information contact: welfare.benefit@lbhf.gov.uk
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