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Newsletters: Budget 2020

What was announced in this week's Budget?

Responding to the Coronavirus

The government has put several measures in place with regards to Universal Credit, Statutory Sick Pay and New-Style Employment and Support Allowance to take account of those affected by Coronavirus.
Click here for more details

Additional Support for those transferring from
UC to Pension Credit

As highlighted in our recent Briefing there is a problem with the current system when a UC claimant turns Pension Credit age meaning that they could miss out on up to a month's benefit.

The government have announced that they will amend the Universal Credit Regulations to allow Universal Credit to be paid up until the end of the Assessment Period in which the claimant turns Pension Age. This will be paid in addition to any Pension Credit and/or Housing Benefit the claimant may be entitled to. 

We do not yet have a date for when this change will take place.

This resolves one problem highlighted in our Briefing - however four more issues remain unresolved.
 
Click here to see our Briefing in full

Extending the higher surplus earnings threshold.

The Surplus Earnings Rule
The idea of the Surplus Earnings Rule is that when someone earns a large amount or gets a large bonus, they should make those earnings last for more than one month.
The rule was introduced in 2017, however a concession was made that meant it would not affect so many claimants.
The Government has announced that this concession will now continue until April 2021.

So until April 2021, the earnings threshold that the claimant must earn above for the surplus earnings rule  to kick in will remain at the amount of earnings at which the claimant ‘floats off’ UC plus £2500.

From April 2021 it will drop to the original proposed amount, ie the earnings at which the claimant ‘floats off’ UC plus £300.

Find out more about the surplus earnings rules on our website.
Click here for more info on the Surplus Earnings rules

Changes to deduction level and
re-paying New Claim Advances


Deductions from Universal Credit
From October 2021 the overall maximum deduction rate for all deductions will reduce from an amount equal to 30% of the claimant's Standard Allowance to 25%.
 
Repayment of New Claim / Benefit Transfer Advances
From October 2021 the repayment period for New Claim Advances and Benefit Transfer Advances can be extended from 12 months to 24 months (it was previously due to increase to 16 months).

 

Other benefit announcements..

Shared Accommodation Rate (SAR) exemptions
From October 2023 there will be exemptions from the SAR for UC and HB claimants in private housing, covering rough sleepers aged 16-24, care leavers up to the age of 25, and victims of domestic abuse and human trafficking.

Personal Independence Payment
From June 2020 Personal Independence Payment claimants will not have an award period of less than 18 months. 

EEAs and benefits
Non-contributory benefits - EEA migrants arriving in the UK under the new immigration system from January 2021, when considering non-contributory benefits, will only have entitlement under the rules that apply to non-EEA nationals. 
Child Benefit - EEA migrants arriving in the UK under the new immigration system, from January 2021 will not be able to export Child Benefit.

Support for Mortgage Interest (SMI) loans
SMI loan recipients moving home will be able to transfer their existing loan to their new property.

Devolution of welfare benefits to the Scottish Government
A number of disability benefits will be devolved to the Scottish government, including Personal Independence Payment, Disability Living Allowance, Attendance Allowance, Industrial Injuries Disablement Allowance and Severe Disablement Allowance.
Need training to ensure your staff are up-to-date with all the changes.
Our Welfare Reform Update course covers:

Mixed Age Couples
The SDP Gateway
The SDP Transitional Protection Payment
EEAs and UC


Book to be delivered in-house to up to 16 delegates for just £985+vat all in.

If you have money left in this year's training budget, then why not buy a training voucher that can be used anytime in 2020/21.

Contact us on training@housingsystems.co.uk
We are a company dedicated to sustaining tenancies and combating poverty by providing housing professionals with the resources they need to challenge benefit decisions and take on the challenges ahead.
                                              
 
If you would like any further details about our services please contact us:
 

Housing Systems, Tom Hill House, Gargrave Road, Broughton, Skipton BD23 3AQ

                 Tel: 01756 796394               Email: info@housingsystems.co.uk


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