Welfare Rights Service - Wolverhampton Council
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Welfare Rights Service
A to Z of Benefits
for People Living in
Wolverhampton
Welfare Rights Service
City of Wolverhampton Council
Ground Floor - Civic Centre
St Peter’s Square
Wolverhampton
WV1 1RT
Email: WRS@wolverhampton.gov.uk
Telephone: 01902 555351
1st May 2019 [PDF]Contents
Section 1: Introduction ................................................................................. 4
1.1 Introduction
1.2 Welfare Rights Service
1.3 Useful Publication and Websites
1.4 State Pension Age and Qualifying Age for Pension Credit
1.5 Homeless and Benefits
1.6 Benefits and People from Abroad
1.7 Spending on Social Security
1.7 Wolverhampton in Profile
Section 2: Welfare Reform and Savings ....................................................... 12
2.1 Welfare Reform and Work Act 2016
2.2 Other Welfare Reform and Saving Measures
2.3 Welfare Reform Act 2012
Section 3: Overview of Benefit System ......................................................... 18
3.1 Structure of the Benefits System
3.2 Benefits and Tax Credits
3.3 Benefits Check Sheet
3.4 A to Z of Benefits
A: Contributory Benefits
1. State Retirement Pension
2. New Style Jobseeker’s Allowance
3. New Style Employment and Support Allowance
4. Bereavement Support Payment
B: Non-Contributory Benefits
1. Personal Independence Payment
2. Disability Living Allowance
3. Attendance Allowance
4. Carer’s Allowance
5. Child Benefit
6. Guardian’s Allowance
7. Statutory Sick Pay
8. Industrial Injuries Benefit
9. Armed Forces Compensation Scheme
10. Maternity Allowance
11. Statutory Maternity Pay
12. Statutory Adoption Pay
13. Statutory Paternity Pay
C: Means-Tested Benefits
1. Universal Credit
2. Pension Credit (and Housing Benefit)
3. Council Tax Support
WRS A to Z of Benefits 1.5.2019 [PDF]
2Section 4: Other Sources of Help .................................................................. 40
4.1 DWP Loans and Grants
- Advance Payment - Universal Credit
- Budgeting Advance - Universal Credit
- Sure Start Maternity Grant
- Funeral Expenses Payment
- DWP Short-term Benefit Advances
- DWP Winter Fuel Payments
4.2 Local Welfare Assistance
4.3 Blue Badge (Parking Concession)
4.4 Motability Scheme
4.5 Vehicle Excise Duty (Road Tax) Exemption
4.6 NHS Benefits
4.7 Fares to Hospital
4.8 Free School Meals
4.9 16 to 19 Year Olds in Education - Bursary Scheme
4.10 The Family Fund
4.11 Severn Trent Trust Fund
4.12 Discretionary Housing Payments
Section 5: Overlapping Benefits Rule............................................................ 49
Section 6: Going into Hospital ....................................................................... 50
Section 7: Backdating Claims ....................................................................... 52
Section 8: Overpayments .............................................................................. 54
Section 9: Disputes and Appeals .................................................................. 56
- Supersession
- Revision
- Appeal
Section 10: Contacts ..................................................................................... 59
WRS A to Z of Benefits 1.5.2019 [PDF]
3Section 1:
Introduction
1.1: Introduction
This information booklet provides a basic overview of our benefit system whilst offering a deeper
insight into the rules of some key benefits that may be available to people at times of:
SICKNESS: when they may be considered to be too sick to work
DISABILITY: when they may need help with their personal care or mobility
UNEMPLOYMENT: when they may have no income for the costs of day-today living
RETIREMENT: when traditionally they may have a low income
LOW PAID EMPLOYMENT: when they are working, but remain on a low income
CARING RESPONSIBLITY: when they have a caring responsibility
It is designed to aid people who have some understanding of the benefits system to advise on
potential benefit rights and to lend support in the making of claims and assist when benefits are
refused or withdrawn.
It is acknowledged that as detailed as this booklet is, it does not provide information on every
aspect of the individual benefits covered or coverage on all possible situations. Given how broad
and complex the benefit system is, it would simply not be possible to do this. It sets out only to
explain the main aspects of the benefits that may be available to people whilst confirming the
qualifying conditions relating to the benefits that most low income individuals and families rely on. If
you require more information, then please see Section 1.3 Useful Publications and Websites. Also,
be aware that if you work for a group or organisation assisting people living in Wolverhampton, you
can contact our Specialist Support Team for further information and advice. See Section 1.2 for
details for the Specialist Support Team contact information.
It is not our intention to suggest that benefits maximisation is the absolute answer to the difficulties
faced by many low-income households. Even maximum benefit entitlement invariably means a low
income, and for many this represents poverty. However, it should not be necessary for people to
live on an income below the level of benefit to which, by law, they have a legitimate right.
The information contained in this publication is meant to provide an introductory overview of our
benefit system and key aspects of welfare reform. It should not be treated as an authoritative
statement of the law. The details may be subject to change by new regulation and/or case law.
Further, whilst every effort has been made to ensure that the information is accurate and up to date
is acknowledged that some details will inevitably change. If you should spot any incorrect
information or details that are in need updating, then do ring us (01902 555351) or email us at
WRS@wolverhampton.gov.uk and let us know.
1.2: Welfare Rights Service
The Welfare Rights Service comprises of four distinct elements:
▪ Specialist Support Team: Provides benefits training and consultancy to local groups and
organisations that provide benefits advice and information.
WRS A to Z of Benefits 1.5.2019 [PDF]
4▪ Welfare Rights Officers in Social Work Teams: Provide technical support and casework
assistance to social workers in adults and children, young people and family social services
teams across Wolverhampton.
▪ Benefits and Assessment Team: Undertakes benefits maximisation work amongst those
receiving non-residential care and support services.
▪ Macmillan Welfare Rights Team: Provides benefit advice and support to people affected by
cancer at New Cross Hospital (Wolverhampton) and Royal Shrewsbury Hospital (Shropshire).
The Welfare Rights Service provides a wide range of training courses. There is an Introduction to
Benefits course for those who have no or only a basic knowledge of benefits. There are also
courses covering entitlement to Universal Credit, Personal Independence Payment and
Employment and Support Allowance. The range of courses undertaken includes courses covering
welfare reform, disputing and appealing decisions and the benefits rights of young people, disabled
children and people from abroad. For more details of the courses provided please refer to our
training programme.
The Welfare Rights Service also produces a periodical newsletter (‘Benefits Bulletin’) which is
designed to bring news on key changes to benefits system and news on welfare reform to Council
staff and local advice giving organisations within Wolverhampton.
You can contact the Welfare Rights Service by (01902) 555351 or
WRS@wolverhampton.gov.uk. You may find more information on benefits and welfare reform on
the website www.wolverhampton.gov.uk/home.
1.3: Useful Publications and Websites
Publications:
▪ Welfare Benefits Handbook: Child Poverty Action Group (price £61.00)
This publication provides a comprehensive guide to all benefits and tax credits. It is an excellent
resource for organisations providing information and advice to people on benefit rights and
entitlements. It provides comprehensive information on all benefits including information on all the
disability and incapacity benefits, the new Universal Credit, the new State Pension, dealing with
benefit sanctions and challenging decisions.
▪ Disability Rights Handbook: Disability Rights UK (price £35.00)
This publication provides a comprehensive guide to benefits and services available to those living
with a health condition, injury or disability. It is easy to use and packed with vital information. It is an
invaluable aid to any front-line worker.
Websites:
▪ www.wolverhampton.gov.uk/welfarereform
City of Wolverhampton Council’s (Welfare Rights Service) “Benefits, Universal Credit and Welfare
Reform” website from which information about benefits, Universal Credit and welfare reform may be
obtained. The site hosts a copy of the ‘Wolverhampton Information and Advice Directory’ produced
by the City of Wolverhampton Council (Welfare Rights Service). This contains easily accessible
details on the network of groups and organisations in Wolverhampton providing information, advice
and/or support particularly in the areas of welfare benefits (including welfare reform), debt, housing
and employment. The site also provides details of the local food bank and soup kitchen providers.
WRS A to Z of Benefits 1.5.2019 [PDF]
5▪ www.universalcreditwolverhampton.co.uk
The City of Wolverhampton Council has developed this website in partnership with local
organisations (including Wolverhampton Homes, Citizens Advice, Wolverhampton City Credit
Union, Refugee and Migrant Centre) as an information hub designed to assist local people. It
provides a host of useful information on Universal Credit, including information on who may claim
Universal Credit and how claims may be made. It also features links to other Universal Credit
information points, as well as details of sources of on-line support with matters such as money
advice and budgeting.
▪ www.gov.uk/universal-credit/overview
Provides a brief overview of Universal Credit, how to claim and how to report changes of
circumstance.
▪ www.cpag.org.uk
Child Poverty Action Group website: Access to information on benefits, tax credits and welfare
reform.
▪ Disability Rights UK
Disability Rights UK website: Access to information and factsheets on benefits, tax credits and
welfare reform.
▪ www.rightsnet.org.uk
LASA members website containing details of key changes in legislation and news on topical issues.
▪ www.dwp.gov.uk
Provides access to a wide variety of information on benefits.
▪ www.gov.uk/topic/benefits-credits/tax-credits
Provides access to a wide variety of information on tax credits.
▪ www.gov.uk/government/publications/industrial-injuries-disablement-benefits-technical-
guidance/industrial-injuries-disablement-benefits-technical-guidance
Provides information on the Industrial Injuries Benefit scheme.
▪ www.gov.uk/government/publications/armed-forces-compensation/armed-forces-compensation-
what-you-need-to-know
Provides information about the Armed Forces Compensation Scheme.
WRS A to Z of Benefits 1.5.2019 [PDF]
61.4: State Pension Age and Qualifying Age for Pension Credit
State Pension Age:
Previously the ‘State Pension Age’ (i.e. the age at which a person may retire and apply for State
Retirement Pension) was 65 for men and 60 for women. However, new measures have meant that
that age has gradually been equalised. This has resulted in both men and women needing to be
aged 65 since November 2018 to reach ‘State Pension Age’ and be able to apply for any State
Retirement Pension. Then from between November 2018 and October 2020 the ‘State Pension
Age’ for both men and women will be increased from 65 to 66. Thereafter, the plan is to increase it
from 66 to 67 by 2028.
This all means that a man born before 6.12.1953 will have the state pension age of 65 and a
woman born before 6.4.1950 will have a state pension age of 60. Women then born between
6.4.1950 and 5.7.1953 will reach ‘State Pension Age’ at an age between 60 and 64. Women born
between 6.7.1953 and 5.12.1953 will reach ‘State Pension Age’ during their 65th year. A person
(man or woman) born after 5.10.1954 but before 6.4.1960 will reach ‘State Pension Age’ at 66. A
person (man or woman) born between 6.4.1960 and 5.3.1961 will reach ‘State Pension Age’ at up
to 66 and 11 months. A person (man or woman) born after 5.3.1961 but before 6.4.1977 will reach
‘State Pension Age’ at 67.
It is understood that once these reforms have been embedded the intention is to increase the ‘state
pension age’ to 68 between 2037 and 2039.
Qualifying Age for Pension Credit (Guarantee Credit):
Historically the ‘Qualifying Age for Pension Credit’ was 60 for both men and women. This meant
that at the age of 60 both men and women were guaranteed a Pension Credit minimum income, the
present rates of which are £167.25 per week (single) and £255.25 per week (couples). It meant that
people of this age could forego claiming the much lesser amounts of Universal Credit because they
could be considered to be retired. However, the introduction of new measures has meant that those
whose date of birth is before 6.4.1950 have been able to claim Pension Credit at the age of 60 but
those whose date of birth is between 6.4.1950 and 5.12.1953 the qualifying age has increased
gradually whereas those whose date of birth is after 5.12.1953 need to be aged 65 before they can
apply. The intention is to steadily increase the ‘Qualifying Age for Pension Credit’ in line with the
‘State Pension Age’ resulting in people needing to be 66 then 67 (and then 68) before they can
qualify.
In the case of ‘mixed-age couples’, it is presently sufficient for one member of a couple to have
reached the ‘Qualifying Age for Pension Credit’ for a claim to be made on behalf of both members.
However, new rules will mean that from 15th May 2019 a claim for Pension Credit may only be
made once both members of a couple have reached the ‘Qualifying Age for Pension Credit.
1.5: Homelessness and Benefits
Whilst there may be practical obstacles which may need to be overcome in order to make a
claim/collect benefit, as a matter of law a person cannot be refused benefit simply because they are
homeless.
A homeless person may have entitlement to Universal Credit if they are unemployed, too sick to
work or working but on a ‘low income’. Under the rules for Universal Credit if a person is fit for work
then they will be required to have a ‘claimant commitment’ outlining what steps they will be taking to
find paid employment. What may be expected is dependent upon personal circumstance. Indeed,
there is scope within the rules to waiver or suspend this particular requirement depending on the
person’s situation. It could be reasonable simply to task a homeless person with the objective of
finding accommodation as the first step to getting a job.
WRS A to Z of Benefits 1.5.2019 [PDF]
7A homeless person may also claim the following benefits providing they are able to meet the normal
qualifying rules even though they are without accommodation.
▪ Personal Independence Payment ▪ New Style ESA
▪ Disability Living Allowance ▪ New Style JSA
▪ Attendance Allowance ▪ Universal Credit
▪ New State Pension ▪ Pension Credit
▪ Industrial Injuries Disablement Benefit
A person should not be treated as though they are homeless if they are only temporarily absent
from their home. If a person is staying at different locations (e.g. with different friends or relatives)
they should not be treated as being without accommodation. Indeed, if a person lives in a habitable
structure (e.g. tent or caravan) then they should not be treated as though they are without
accommodation.
Do seek further information and advice as necessary.
1.6: Benefits and People from Abroad
The right to claim Social Security benefits is not available to everyone. Entitlement is subject to a
person’s immigration status. Put simply, essentially there are three types of immigration groups:
▪ British Nationals: This group normally has a right to benefits providing they are present
and ordinarily resident and in the case of some benefits “habitually resident” - that is to say
that they have been resident in Great Britain for an “appreciable period” of time and they
have a “settled intention” to remain in Great Britain.
▪ EEA Nationals: This group normally has a right to benefit providing they are present and
normally resident and in the case of some benefits “habitually resident” - that is to say that
they have been resident in Great Britain for an “appreciable period” of time and they have
a “settled intention” to remain in Great Britain. In the case of “means-tested benefits” and tax
credits entitlement, this group must also have a “right to reside” in Great Britain to claim.
This means that they are, for example, working or self-employed or that they are able to
retain their “worker” or “self-employment” status during a temporary period of
unemployment, sickness or during a reasonable period of maternity leave.
▪ Persons Subject to Immigration Control (PSIC): This group of people require permission
to enter or remain in the UK and do not normally have a right to claim benefits. This is
because their very right to remain here is time limited and subject to a “no recourse to public
funds” requirement - that is to say they may only remain here providing they do not claim
any benefits/certain benefits. However, there are some exceptions. For example, a PSIC
may claim benefits where they have been granted leave to enter or remain as a result of a
“maintenance undertaking” and they have since been resident in the UK for at least five
years or the person who gave the undertaking to maintain them has died.
Note: If a person has been granted refugee status, humanitarian protection or discretionary leave
(unless this is subject to a “public funds” restriction) then they are not a PSIC and may claim
benefits under the normal rules. Another distinct group is Asylum Seekers - that is to say people
that are subject to immigration control but who have applied to remain here and are awaiting a
Home Office decision on an application to do so. This group is normally excluded from any benefit
entitlements and must instead rely on asylum support provided by the Home Office.
WRS A to Z of Benefits 1.5.2019 [PDF]
8The rules surrounding the benefit rights of people coming from abroad (including people who are
returning to Great Britain having been living abroad), surrounding presence and residency are
complex. In some cases, the right to remain living here is itself subject to the very condition that a
person does not claim “public funds” (benefits and tax credits). Therefore, do seek further specialist
information and advice as necessary.
1.7: Spending on Social Security
The following provides details of the largest areas of public spending over the last 30 years.
Year Government Expenditure
2016 - 2017 £772 Billion Total
Social Security 31.1%
Health 18.8%
Education 13.2%
2012 - 2013 £718 Billion Total
Social Security 29.2%
Health 17.2%
Education 12.2%
2000 - 2001 £519 Billion Total
Social Security 28.0%
Health 15.2%
Education 13.0%
1979 - 1980 £336 Billion Total
Social Security 20.2%
Health 9.8%
Education 11.0%
The spending on ‘pensioner benefits’ in 2015-2016 was £129.6 billion:
▪ £92.1 billion - State Retirement Pension
▪ £10.7 billion - DLA and Attendance Allowance
▪ £6.5 billion - Pension Credit
▪ £6.8 billion - Housing Benefit
▪ £2.8 billion - Winter Fuel payments and free TV licences
▪ £10.7 billion - Other
The spending on ‘non-pensioner benefits’ in 2015-2016 was £98.6 billion:
▪ £29.9 billion - Child Tax Credit and Working Tax Credit
▪ £19.2 billion - Housing Benefit
▪ £15.1 billion - ESA and Incapacity Benefit
▪ £10.9 billion - DLA and Personal Independence Payment
▪ £11.7 billion - Child Benefit
▪ £5.2 billion - Jobseeker’s Allowance
▪ £6.6 billion - Other
Source: various
Survey of public spending in the UK - Institute of Fiscal Studies - IFS Briefing Note BN43
Institute of Fiscal Studies - NAWRA Stoke March 2015
Despite significant cuts under welfare reform, in real terms spending was predicted to be broadly
unchanged between periods 2010-2011 and 2015-2016.
WRS A to Z of Benefits 1.5.2019 [PDF]
9This should not be taken to imply that the implemented reforms did not save as much as intended
(although this is true to those applied to disability benefits) but rather reflects the fact that other
factors pushed up spending e.g. an ageing population contributing to rising pensioner spending and
a decline in home ownership increasing Housing Benefit spending.
1.8: Wolverhampton in Profile
The following provides some basic statistical information profiling Wolverhampton in terms of
population and benefits.
Population:
▪ 252,987 Population of Wolverhampton
Ethnicity:
▪ 35.5% Percentage of Black and Minority Ethnic residents
Households:
▪ 102,177 Number of households
Life Expectancy:
▪ 77.5 years Male life expectancy (86 is the average UK male life expectancy)
▪ 82.0 years Female life expectancy (89 is the average UK female life expectancy)
Source: Wolverhampton in Profile
City of Wolverhampton Council: Unemployment Briefing April 2017
Pension Credit:
▪ 14,240 Pension Credit claims in payment
Disability: Care and Mobility Needs:
▪ 7,120 Attendance Allowance claims in payment (4,180 at the higher rate
and 2,950 at the lower rate)
▪ 13,260 Disability Living Allowance claims in payment (3,470 higher rate care
component, 4,420 middle rate care component and 3,910 lower rate care
component plus 7,010 higher rate mobility component and 4,370 lower rate
mobility component)
▪ 4,386 Personal Independence Payment live claims in payment at various rates
Carers:
▪ 4,450 Carer’s Allowance claims in payment (110 aged 65 or over)
▪ 6,720 Carer’s Allowance underlying entitlement (i.e. people who are entitled to
Carer’s Allowance but who do not get it because the overlapping benefits
rules apply - of these 193 are aged 65 or over)
WRS A to Z of Benefits 1.5.2019 [PDF]
10Incapacity for Work:
▪ 12,320 Employment and Support Allowance claims in payment (2,320 Contributory
ESA, 1,380 Contributory ESA plus Income-related ESA and 8,110 Income-
related ESA top-up)
▪ 1,000 Incapacity Benefit or Severe Disablement Allowance claims in payment but to
be migrated on to Employment and Support Allowance
▪ 797 Universal Credit live claims in payment at various rates
Income Support (Carers, Lone Parents and Other):
▪ 4,700 Income Support claims in payment
Source: DWP Stat-Xplore (March 2016)
Claimants of Out of Work Benefits:
▪ 6,570 Total number of claimants of out of work benefits (4,115 male and 2,455
female) equal to 4.1% of the resident population of Wolverhampton - 1,350
aged 18 to 24, 3,775 aged 25 to 49 and 1,435 aged 50 plus
▪ 5,700 Jobseeker’s Allowance claims in payment
▪ 2,850 Lone parents
▪ JSA claims 5th highest number of Jobseeker’s Allowance claimants of 326 English local
authorities as percentage of working age population - youth unemployment
also 5th highest of 326 English local authorities
▪ 20.8% Bilston (16 to 64) - percentage of working age population claiming out of
work benefits
▪ 20.4% Bushbury South & Low Hill - percentage of working age population claiming
out of work benefits
▪ 19.8% East Park - percentage of working age population claiming out of
work benefits
▪ 6.7% Penn - percentage of working age population claiming out of
work benefits
Out of Work Benefits: The above claimant count is the number of people claiming benefit
principally for the reason of being unemployed. This is measured by combining the number of
people claiming Jobseeker's Allowance (or who sign on for National Insurance credits) with the
number of people receiving Universal Credit principally for the reason of being unemployed. It
therefore embraces claimants who are out of work, capable of work and available for and actively
seeking work at the time.
Source: NOMIS (Official Labour Market Statistics)
Source: Economic Partnerships and Investments Education and Enterprise - City of Wolverhampton Council
WRS A to Z of Benefits 1.5.2019 [PDF]
11Section 2:
Welfare Reform and Savings
A number of different reforms and savings measures have been put in place to reduce spending on
welfare benefits and/or reform the way the benefit system operates. First there was the Welfare
Reform Act 2012 (following the Welfare Reform Bill 2011) which looked to make substantial
savings. This was then followed by the Welfare Reform and Work Act 2016 (following the Welfare
Reform and Work Bill 2015) which also sought to make further savings.
2.1: Welfare Reform and Work Act 2016
Key reforms made under the Welfare Reform and Work Act 2016 included:
Freezing Rate of Working Age Benefits:
A. freezing the main rates of benefits for ‘working age’ people for four years starting from
2016/2017
The Benefit Cap:
B. from 2016 reducing the existing ‘benefits cap’ threshold to £384.62 per week (from £500 per
week) for couples/lone parents and to £257.69 per week (from £350 per week) for single
people
Child Tax Credit:
C. restricting Child Tax Credit to two children per family unless the claim is for more than two
children who were born before 6th April 2017, unless exemption rules apply to that child -
equivalent changes made to Housing Benefit rules limiting the overall amount of assistance
paid to larger families
D. removing the ‘family element’ of Child Tax Credit (worth £545 per annum) from all families who
are only responsible for a child born on or after 6th April 2017
Universal Credit:
E. restricting the ‘child element’ of Universal Credit to two children per family unless the claim is
for more than two children who were born before 6th April 2017, unless exemption rules apply to
that child
F. removing from April 2017 the ‘limited capability for work element’ of Universal Credit (worth up
to £126.11 per month) for new claimants who have ‘limited capability for work’ but not ‘limited
capability for work-related activity’ and are placed in the ‘work-related activity group’ (i.e. not the
‘support group’)
G. increasing from April 2017 conditionality for Universal Credit so that those with children aged 3-
4 will be subject to the ‘all-work related requirement’, those with children aged 2 will be
subjected to ‘work-focused interview requirement’ and ‘work preparation requirement’ and
those with children aged 1 should remain subject to the ‘work-focused interview requirement’
only
NOTE: The plan under the Welfare Reform and Work Bill to save on tax credits spending by 1.
reducing the income threshold figure for Child Tax Credit from £16,105 to £12,125 and 2. reducing
the Child Tax Credit/Working Tax Credit income threshold from £6,420 to £3,850 and 3. increasing
the excess income taper figure from 41% to 48% was not carried forward into the Welfare Reform
and Work Act 2016.
WRS A to Z of Benefits 1.5.2019 [PDF]
12This is because these measures did not receive support from the House of Lords because it was
considered that it would leave many households (many of whom would be working) substantially
worse off.
Employment and Support Allowance:
H. removing from April 2017 the ‘work-related activity component’ of Employment and Support
Allowance (worth £29.05 per week) for new claimants who have ‘limited capability for work’ (but
not ‘limited capability for work-related activity’) and are placed in the ‘work-related activity
group’ (i.e. not the ‘support group’)
Help with Mortgage Interest - IS/(IB)JSA/(IR)ESA/UC/PC:
I. removing from April 2018 assistance with mortgage interest payments for owner-occupiers
claiming Income Support, Income-based JSA, Income-related ESA, Universal Credit and
Pension Credit and replacing it with an interest-bearing loan secured against the property.
The Welfare Reform and Work Act 2016 also places a duty on the Secretary of State to report
annually to parliament on the progress of ‘full employment’ (and on how this should be interpreted)
and the progress of delivering three million apprenticeships. The Welfare Reform and Work Act
2016 repeals almost all of the Child Poverty Act 2010 and replaces it with a duty on the Secretary of
State to report on “life chances”, children living in “workless households” and “educational
attainment”. A number of the proposed reforms surrounding Child Tax Credit and Working Tax
Credit which were contained within the Welfare Reform and Work Bill 2015 (e.g. scrapping of the
‘family element’, substantially reducing the threshold figures and increasing the excess income
taper) resulting in large numbers of families (many of whom were working) being worse off have not
been included in the actual Welfare Reform and Work Act 2016.
2.2: Other Welfare Reform and Saving Measures
Other key welfare reforms and saving measures which have been introduced include:
Universal Credit:
A. scrapping from January 2018 the measure introduced in August 2015 that meant most
Universal Credit claimants had to wait seven days before being entitled to a payment of
Universal Credit
B. making substantial reductions from April 2016 to the ‘work allowance’ (which acts as an
earnings disregard) - for people without children the ‘work allowance’ has been reduced from
£111.00 per month to nil and the figure for those without housing costs with children was
reduced from a maximum £734.00 per month to 397.00 per month
C. increasing from April 2016 the percentage of relevant childcare costs under Universal Credit
from 70% (maximum amount £532.29 per month for one child and £912.50 per month for two
or more children) to 85% (maximum amount £646.35 per month for one child and £1,108.04
per month for two or more children)
D. removing from April 2017 the higher first child amount (worth £277.08 per month) under
Universal Credit and having a standard amount for all children (worth £231.67 per month) with
transitional protection for existing claimants
E. introducing a ‘two child limit’ to the amount of Universal Credit available to families meaning no
child element (worth up to £231.67 per month per child) for any third or subsequent child(ren)
born on or after 6th April 2017 unless exemption rules apply to that child
WRS A to Z of Benefits 1.5.2019 [PDF]
13F. removing from December 2017 (when Wolverhampton becomes a ‘full service area’)
entitlement to the ‘housing cost element’ of Universal Credit (and Housing Benefit) for single
young jobseekers (aged 18 to 21) unless they are e.g. too sick to work, a lone parent, an
orphan, they are unable to live at home with parents due to estrangement or health risks
Pension Credit:
G. reducing from May 2016 the period during which a person may continue to claim Pension
Credit whilst abroad from 13 weeks to a maximum of 4 weeks (some exceptions)
H. removing Pension Credit ‘assessed income periods’ from April 2016 for new claimants and
phasing it out for existing claimants - this provision enabled people to continue to receive the
same level of award of Pension Credit during set periods despite certain changes in financial
and personal circumstances
I. removing Pension Credit ‘savings credit’ from April 2016 by removing entitlement for people
who reach state pension age after 6th April 2016 and phasing it out for existing claimants
State Retirement Pension:
J. introducing from April 2016 the new State Pension which is based upon contributions paid over
a 10 to 35 year period - only those with a 35 year contributions record will qualify for a full
pension (those who have a contributions record of between 10 and 34 years will receive a
proportional pension and those whose contributions record is less than 10 years will not qualify)
- entitlement is focused upon individual entitlement with no special rules for people who are
married, in a civil partnership or bereaved
Housing Benefit:
K. reducing from April 2016 the maximum backdating period of Housing Benefit claims from six
months to one month - the subsidy remains at only 25%
L. removal from May 2016 of the ‘family premium’ from Housing Benefit for new claimants
M. reducing from May 2016 the period during which a person may continue to claim Housing
Benefit whilst abroad from 13 weeks to a maximum of 4 weeks (some exceptions)
N. from April 2017 introducing a ‘two child limit’ to the amount of Housing Benefit available to
families meaning no extra award for any third or subsequent child(ren) born on or after 6th April
2017 unless Child Tax Credit is in payment for that child or other exemption rules apply
Tax Credits:
O. introducing a ‘two child limit’ to the amount of Child Tax Credit available to families meaning no
child element (worth up to £2,780 per year per child) for any third or subsequent child(ren) born
on or after 6th April 2017 unless exemption rules apply
Benefit Cap:
P. reducing the benefit cap from £26,000 per year to £20,000 per year (£384.62 per week) for
families and couples and from £23,000 per year to £13,400 per year (£257.69 per week) for
single people
Q. adding to the list of exemptions from the ‘benefit cap’ people who are getting Carer’s Allowance
(or the ‘carer element’ of Universal Credit) and/or Guardian’s Allowance from Autumn 2016
Mortgage Interest - IS/(IB)JSA/(IR)ESA/UC:
R. restoring from April 2016 the waiting period for help with mortgage interest to the pre-recession
period of 39 weeks
WRS A to Z of Benefits 1.5.2019 [PDF]
14Bereavement Benefits:
S. replacing Bereavement Benefits with a single benefit - the new ‘Bereavement Support
Payment’ from April 2017 consisting of a lump sum payment and set monthly payments for a
further maximum 18 months which will greatly disadvantage some bereaved parents
Local Housing Allowance and Social Landlords:
T. applying from April 2018 ‘local housing allowance’ rates as maxima for Housing Benefit
(including use of a ‘shared accommodation rate for single claimants aged under 35 who do not
have children) paid in some social rented sector properties
ESA Permitted Work:
U. removing from April 2017 the 52-week limit on ‘permitted work’ for those people in the ‘work-
related activity group’.
2.3: Welfare Reform Act 2012
Key reforms already made under the Welfare Reform Act 2012 have included:
Annual Uprating:
A. limiting the up-rating of most ‘working age’ benefits to 1% (rather than inflation) over a 3-year
period from April 2014
Incapacity Benefit and Employment and Support Allowance:
B. reducing the number of people claiming incapacity benefits (on grounds of being too sick to
work) by the introduction of a more stringent (‘Work Capability Assessment’) medical
assessment under Employment and Support Allowance
C. limiting entitlement to Contributory Employment and Support Allowance to one year (presently
people may claim up to pensionable age) unless the claimant is so disabled that they have
‘limited capability for work-related activity’ (meet the qualifying criteria to be placed into the
‘Support Group’)
D. removing the ‘incapacitated in youth’ provision which enabled many young people who were
too sick to work to qualify for Contributory Employment and Support Allowance without needing
to meet the NI contributory conditions
Bedroom Tax:
E. introducing a ‘bedroom tax’ for social landlord tenants of working age which serves to limit the
maximum levels of Housing Benefit payable if they are considered to be over-accommodated -
anyone who has one extra bedroom will lose 14% of their Housing Benefit and anyone who has
two or more extra bedrooms will lose 25% of their Housing Benefit
Council Tax Benefit:
F. abolishing the national Council Tax Benefit scheme (under which people could qualify for 100%
subsidy) and replacing it with a locally administered Council Tax Support scheme funded by
less money (meaning even the poorest claimants of “working age” would be expected to
contribute at least 8.5% towards their council tax)
Housing Benefit:
G. reformulating the way in which the level of the Local Housing Allowance is calculated for
Housing Benefit purposes for private sector tenants and increasing the single room rent age
limit from 25 to 35
WRS A to Z of Benefits 1.5.2019 [PDF]
15H. increasing the level of ‘non-dependant’ contributions resulting in less Housing Benefit being
paid to low income households
Child Trust Funds and Maternity Grants:
I. removing the Child Trust Fund and the Health in Pregnancy Grant, and making the Sure Start
Maternity Grant only payable in the case of the first child
Child Benefit:
J. freezing the level of Child Benefit for 3 years and removing entitlement for those earning above
£60,000
Tax Credits:
K. reducing the amounts payable in Working Tax Credit and Child Tax Credit including a reduction
in the amount of assistance given with childcare costs
New Personal Independence Payment:
L. removing entitlement to Disability Living Allowance for an estimated 20% of current claimants
by introducing the new Personal Independence Payment for people of ‘working age’
Retirement Age:
M. bringing forward the equalisation of state pension age at 65 from April 2020 to November 2018
and then increasing the state pension age to 66 by April 2020
Educational Maintenance Allowance:
N. scrapping the Educational Maintenance Allowance payable to young people who remain in
education, which was worth up to £30.00 per week for young people from the poorest families,
and replacing it with a discretionary bursary system which will only assist some students
Benefit Cap:
O. introducing a ‘benefits cap’ resulting in certain people being limited to a maximum benefit
entitlement of £500 per week for couples/lone parents and £350 per week for single people
Universal Credit:
P. introducing a new Universal Credit to replace Income Support, Income-based JSA, Income-
related ESA, Housing Benefit, Working Tax Credit and Child Tax Credit with the aim of making
the benefit system simpler and reducing bureaucracy by having a single benefit administered
by a single agency whilst removing disincentives to work (so work is clearly seen to pay) and
producing positive behavioural effects
Q. introducing a new Universal Credit with amounts to assist with the rent payments of social
landlords (previously met by Housing Benefit) being paid to the tenant not the landlord
R. introducing a new Universal Credit with payments being made monthly, increasing people’s
need to budget
Tougher Conditionality for Jobseekers:
S. increasing the conditionality requirements for job hunting and availability for work subject to the
penalty of sanctions under Jobseeker’s Allowance (and then the new Universal Credit)
Overpayments:
T. making all overpayments recoverable even where it is the DWP’s error
WRS A to Z of Benefits 1.5.2019 [PDF]
16Social Fund:
U. replacing Social Fund Budgeting Loans with payments on account loans under Universal Credit
whilst abolishing Community Care Grants and Crisis Loans, passing the responsibility for these
provisions on to local authorities, who operate local needs led schemes but with reduced/no
funding for it
Industrial Injuries:
V. enabling young trainees to qualify for benefit under the Industrial Injuries scheme.
Impact of the Welfare Reform Act 2012 (in Wolverhampton)
It was estimated that reforms to Housing Benefit by way of the “bedroom tax” would affect c4,120
households with the average loss being c£690.00 a year, with nearly 900 of those households
losing 25% of their Housing Benefit. The estimated cumulative loss to social landlords as a result of
the “bedroom tax” was c£2.3 million per year.
Reforms to Disability Living Allowance (from DLA to Personal Independence Payment) were
expected to affect c9,500 “working age” claimants, with the government forecasting that some 20%
of claimants would be likely to be ineligible for PIP following testing against PIP claim criteria. The
introduction of tougher medicals for Employment and Support Allowance was estimated to affect
c2,660 residents with the average loss being £43.96 per week. The changes to tax credits have
been estimated to affect c30,800 households with an average loss of c£15.52 per week. It has been
estimated that the introduction of the “benefit cap” would affect 256 families with the average loss
(from income from Housing Benefit) being c£54.00 per week. The loss to “working age” households
due to reforms of Council Tax Benefit was estimated to affect c20,000 households, with the
households affected losing on average £73.00 per year. The overall combined loss of benefit
income to Wolverhampton residents, landlords and businesses was estimated to be £28.2 million
between 2014 and 2017.
Greater Pressures All Round?
Impact of the Welfare Reform Act 2012
City of Wolverhampton Council
Wolverhampton Welfare Reform Impact Analysis
City of Wolverhampton Council
The measures of the Welfare Reform Act 2012 were intended to take an estimated £19 billion a
year out of the economy - this was equivalent to £470 a year for every adult of “working age” in the
country. The biggest losses arise from changes to incapacity benefits (Incapacity Benefit to
Employment and Support Allowance), changes to tax credits and capping the annual up-rating. The
households predicted to suffer most would be those claiming sickness and disability benefits
because they could be hit by a number of different elements of the reforms. The general rule being,
the more deprived the local authority the greater the financial hit. The key effect of welfare reform
will be to widen the gaps in prosperity between the best and worst local economies across Britain.
Hitting the poorest places hardest
Sheffield Hallam University – Centre for Regional Economic and Social Research
Christina Beatty and Steve Fothergill
According to the table of the most deprived local authority districts “Index of Multiple Deprivation
2015”, Wolverhampton is the 15th (18th in 2010) most deprived area. According to the table of local
authority districts with the highest levels of income deprivation and employment deprivation,
Wolverhampton is 12 with the proportion of the population living in income deprived households
being 23.8% (nearly one quarter). In the table on the proportion of children living in income deprived
households Wolverhampton came 12th with 31.3% (over one third).
The English Indices of Deprivation 2015
Department for Communities and Local Government
WRS A to Z of Benefits 1.5.2019 [PDF]
17Section 3:
Overview of Benefit System
3.1: Structure of the Benefits System
The benefit system that we have today has historically developed in a patchwork way, by
responding to what was seen to be important or ‘right’ at the time. This has led to a current system
which is complex and does not always seem fair or logical.
Nevertheless, the system does have a broad structure and each benefit within it a purpose.
Understanding both the structure and purpose of the benefits helps when it comes to identifying
which benefits people may be entitled to.
There are essentially three types of benefit:
where entitlement is dependent upon the level of the
A. means tested benefits -
claimant’s (and/or partner’s) income and/or capital
where entitlement is not normally dependent upon
B. non-means-tested - - level of the claimant’s (and/or partner’s) income and/or
contributory based capital but subject to the satisfaction of a National Insurance
stamp contributions record
where entitlement is not normally dependent upon
C. non-means-tested - - level of the claimant’s (and/or partner’s) income and/or
non-contributory based
capital or National Insurance stamp contributions record
When examining entitlement to ‘non-means-tested’ benefits there is again a distinction. For some
non-means-tested benefits entitlement may be established by simply meeting the qualifying rules
for payment, whereas with others entitlement is dependent upon a person’s National Insurance
contributions record. That is to say, whether or not the claimant (or depending on the benefit the
claimant’s spouse/civil partner) has paid (and/or been credited with) sufficient National Insurance
contributions/National Insurance credits. Therefore, when examining entitlement to ‘non-means-
tested’ benefits, it is important to distinguish between those that are non-contributory and those
that are contributory-based.
Not all benefits are paid by government departments e.g.
Who pays the benefits? - DWP/HMRC. Some benefits are paid by a person’s local
authority or employer.
The following provides a guide to which benefits are ‘means-tested’ and ‘non-means-tested’
(contributory and non-contributory) and who is responsible for administering a particular benefit.
People will sometimes use a vague or general name for the benefit income they receive but it is
important to make sure we use the correct name when giving advice, seeking advice and/or filling in
forms.
WRS A to Z of Benefits 1.5.2019 [PDF]
183.2: Benefits and Tax Credits
Non-Means-Tested Benefits
Contributory:
1. State Pension Pension Service
2. Contributory-based JSA Department for Work and Pensions (DWP)
3. Contributory ESA Department for Work and Pensions (DWP)
4. Bereavement Benefits Department for Work and Pensions (DWP)
Non-Contributory:
1. Personal Independence Payment Department for Work and Pensions (DWP)
2. Disability Living Allowance Department for Work and Pensions (DWP)
3. Attendance Allowance Department for Work and Pensions (DWP)
4. Carer’s Allowance Department for Work and Pensions DWP)
5. Child Benefit Her Majesty’s Revenues and Customs (HMRC)
6. Guardian’s Allowance Her Majesty’s Revenues and Customs (HMRC)
7. Statutory Sick Pay Employer
8. Industrial Injuries Benefit Department for Work and Pensions (DWP)
9. Armed Forces Compensation Payment Veteran’s Agency
10. Maternity Allowance Department for Work and Pensions (DWP)
11. Statutory Maternity Pay Employer
12. Statutory Adoption Pay Employer
13. Statutory Paternity Pay Employer
Means-Tested Benefits
1. Universal Credit - replacing: Department for Work and Pensions (DWP)
A. Income-based JSA Department for Work and Pensions (DWP)
B. Income-related ESA Department for Work and Pensions (DWP)
C. Income Support Department for Work and Pensions (DWP)
D. Child Tax Credit Her Majesty’s Revenues and Customs (HMRC)
E. Working Tax Credit Her Majesty’s Revenues and Customs (HMRC)
F. Housing Benefit City of Wolverhampton Council
2. Pension Credit Pension Service
3. Council Tax Support City of Wolverhampton Council
Note: Universal Credit will eventually replace Income-based JSA, Income-related ESA, Income
Support, Housing Benefit, Child Tax Credit and Working Tax Credit. Incapacity Benefit and
Severe Disablement Allowance have been replaced by Contributory Employment and Support
Allowance for those considered to have ‘limited capability for work’ (i.e. they may be considered
to be too sick to work).
WRS A to Z of Benefits 1.5.2019 [PDF]
19Section 3.3: Benefit Check Sheet
It is possible to broadly assess what benefits a person may be entitled to claim if you know
their status e.g. working, unemployed, too sick to work or retired. The following provides a
guide. In some situations, you may need to check more than one heading e.g. if someone
is unable to work due to ill-health and needs help with their personal care or
a person who is retired and a carer.
Name: National Insurance Number:
Potential
Page Status In Payment N/A
Entitlement
A. Unemployed or working part-time
22 ▪ New Style Jobseeker’s Allowance
35 ▪ Universal Credit
38 ▪ Council Tax Support
B. Working full-time
35 ▪ Universal Credit
38 ▪ Council Tax Support
C. Unable to work due to ill-health / Disability
31 ▪ Statutory Sick Pay
23 ▪ New Style Employment and Support Allowance
32 ▪ Industrial Injuries
35 ▪ Universal Credit
38 ▪ Council Tax Support
D. Care and mobility Needs
28 ▪ Disability Living Allowance (Child Aged Under 16)
27 ▪ Personal Independence Payment (Aged 16 to 64)
29 ▪ Attendance Allowance (Aged 65 or over)
E. Older Person
22 ▪ New State Pension / State Retirement Pension
37 ▪ Pension Credit
38 ▪ Housing Benefit
38 ▪ Council Tax Support
F. Carer
30 ▪ Carer’s Allowance
35 ▪ Universal Credit
38 ▪ Council Tax Support
G. Have a child or about to have a child
31 ▪ Child Benefit
31 ▪ Guardian’s Allowance
33 ▪ Maternity Allowance
33 ▪ Statutory Maternity Pay
34 ▪ Statutory Paternity Pay
34 ▪ Statutory Adoption Pay
35 ▪ Universal Credit
38 ▪ Council Tax Support
Universal Credit: Universal Credit has replaced Income Support, Income-based JSA,
Income-related ESA, Child Tax Credit, Working Tax Credit and Housing Benefit. The so
called ‘legacy benefits’. It has not replaced Council Tax Support. Do see C.1: Universal
Credit for more information.
WRS A to Z of Benefits 1.5.2019 [PDF]
203.4: A to Z of Benefits
A. Contributory Benefits (Non-Means Tested)
A.1: New State Pension
The new State Pension replaced State Retirement Pension (see below) for those who have
reached ‘state pension age’ (see Section 1.4) on or after 6th April 2016. People who reached ‘state
pension age’ (see section 1.4) before this date may be eligible to the old State Retirement Pension.
See below.
The full State Pension amount is £168.60 per week. Some people may receive more than this if
they deferred their entitlement. The actual amount payable depends on the claimant’s contributions
record - National Insurance stamp contributions and/or National Insurance stamp credits. A person
must have 35 years of qualifying contributions to receive the full rate of State Pension. Anyone who
has contributions record dating prior to 6.4.2017 will get a State Pension award based upon
transitional rules. Any State Pension award based upon transitional rules could receive more or less
than the maximum amount of the full State Pension. A person will need at least 10 years qualifying
contributions to receive any kind of reduced rate State Pension. There is no increase in this amount
for a dependant adult or child.
The amount paid is dependent upon the claimant’s contributions record. A person may not, as they
formerly could under the former State Retirement Pension, establish a claim based upon the
contributions record of a spouse or civil partner.
State Retirement Pension: State Retirement Pension may be paid to people who have reached
‘state pension age’ (see Section 1.4) prior to 6th April 2016. A person’s entitlement and level of
payment will depend on their contributions record or the contributions record of their spouse/civil
partner. A person may be entitled to a ‘Category A’ pension if they have a full or partial
contributions record of their own. Those who have a full contributions record will receive a basic
pension of £129.20 per week. A ‘Category B’ pension may be available to those who rely on the
contributions record of their spouse (former spouse) or civil partner (former civil partner) for their
pension. The basic pension here is £77.45 per week, but can be up to £129.20 for widows/
widowers/surviving civil partners.
Category A and B pensions may be topped-up by an additional earnings-related pension
(SERPS/S2P) unless the person is in a contracted out scheme. A ‘Category D’ pension may be
paid to people aged 80 or over who either do not have a ‘Category A’ or ‘Category B’ pension or
have one but the value is worth less than £77.45 per week. The ‘Category D’ pension will provide a
pension/top-up to any existing ‘Category A’ or ‘Category B’ pension up to £77.45 per week.
Go to www.gov.uk/new-state-pension for more information and how to apply.
A.2: New Style JSA
A person may claim New Style JSA (formerly known as Contributory-based Jobseeker’s Allowance)
if they:
▪ are aged under ‘state pension age’ (see Section 1.4); and
▪ are unemployed or working part-time (i.e. less than 16 hours per week); and
▪ are not a full-time student; and
▪ have paid and/or been credited with sufficient National Insurance contributions to meet the
contributions test; and
WRS A to Z of Benefits 1.5.2019 [PDF]
21they have entered into a ‘claimant commitment’ which shows that they are able to meet the ‘labour
market conditions’ by being available for work and actively seeking work.
If a person is working, any net earnings above £5.00 per week are deducted from the amount of
New Style JSA that might otherwise be paid. Any earnings that may be paid to a partner are fully
disregarded. Also disregarded are any savings and capital.
Contributory JSA is paid for a maximum period of 26 weeks. The amount paid depends on a
person’s age. People aged under 25 will get £57.90 per week and people aged 25 or over will get
£73.10 per week.
Go to www.gov.uk/guidance/new-style-jobseekers-allowance for more information and how to
apply.
A.3: New Style ESA
A person may claim New Style ESA (formerly known as Contributory Employment and Support
Allowance) at times when they are too sick to work - when they may be considered to have ‘limited
capability for work’ by reason of physical and/or mental disablement. Entitlement to New Style ESA
is dependent upon the claimant’s National Insurance contributions record. It may be awarded to
people aged 16 or over but under ‘state pension age’ (see Section 1.4).
Contributory ESA pays a basic ‘personal allowance’ of:
▪ £73.10 per week for those aged 25 and over; or
▪ £57.90 per week for people aged 16 to 24
In addition to the above amounts a person could be paid (after 13 weeks - the so called
‘assessment phase’) an additional:
▪ Work-related Activity Group - ‘work-related activity component’ of £29.05 per week where the
claim was made prior to 3rd April 2017; or
▪ Support Group - ‘support component’ of £38.55 per week.
The ‘work-related activity component’ is paid to those who meet the ‘limited capability for work’
assessment. The higher ‘support component’ is paid to those who meet the tougher ‘limited
capability for work-related activity’ assessment.
Working: If a person is on sick leave from their job then they may claim New Style ESA for any
period during which they are on sick leave. However, if they are entitled to Statutory Sick Pay (SSP)
then they will normally get SSP due to ‘overlapping benefits rule’. If a person does qualify for SSP
then, whilst they are able to claim New Style ESA before the end of their SSP award, entitlement to
New Style ESA will normally only start once they have exhausted their entitlement to SSP. This will
usually be after 28 weeks. People may not normally claim New Style ESA whilst actually
undertaking work (as opposed to those that are absent from work due to ill-health). However, some
forms of work are allowed e.g. voluntary work and so called ‘permitted work’. Under the ‘permitted
work’ rules a person may earn up to £131.50 per week, without it affecting their entitlement to New
Style ESA. Do seek further information and advice as necessary.
The amount of New Style ESA payable is affected if the claimant gets an occupational pension. Any
amount that would otherwise be paid is reduced by 50% of any occupational pension above £85.00
per week. However, a person’s entitlement should not be affected by any occupational sick pay (as
opposed to Statutory Sick Pay - see above) paid by their employer. The amount paid should also
not be affected by any savings, Personal Independence Payment or other benefits.
WRS A to Z of Benefits 1.5.2019 [PDF]
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