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February 2022 Newsletter

Welcome to our latest newsletter - bringing you right up to date with useful welfare benefit information. 

In this issue find out more about some of the issues below:
  • New UC Case Law - Confirms that for most people there is no going back once a claim for UC has been submitted.
     
  • Social landlord's welfare funds - We investigate the impact on means tested benefits.
     
  • Transitional SDP Element - Claimants missing out due to DWP errors.
     
  • UC conditionality- Recent changes to the rules
     
  • Extra help for those who are struggling - A good time to apply to the Household Support Scheme and for a Discretionary Housing Payment.
     
  • Help to claim UC contract won by Citizens Advice - But what about those who need face to face help?
     
  • New tool - TSDPE erosion calculator.
     
  • Recent Questions - HB and moving home / Advance claims for UC.
     
  • Your chance to WIN £50 for your local FOOD BANK and a Webinar place for yourself
The point of
no return

(to legacy benefits)

Two new Upper Tribunal decisions (both made by the same judge) have looked at what happens to a claimant's legacy benefits on claiming UC. In both cases Judge Jacobs decided that once the claim has been made on the UC computer system, it is not possible to get back onto working age legacy benefits, even if the claimant quickly withdraws their UC claim or they are not eligible for UC. It was previously thought that a claimant could get back onto their previous award of Housing Benefit, Tax Credits and/or Income Support if they withdrew their UC claim before a 'stop notice' was issued. 

In the first case, the claimant changed his mind and withdrew his UC claim within two and a half hours of making it. The Judge ruled that the claimant could not withdraw his claim for UC (and therefore have his Housing Benefit reinstated). The Judge added that, even if he could withdraw the UC claim, that did not re-write history. He believed that in this case the moment the UC claim was made was the point at which the Transitional Regulations kicked in to terminate his HB and the transition to UC had been triggered.

The second case involved a claimant whose Tax Credits had been terminated when she made a claim for UC. She was later refused UC on the grounds that she did not have a right to reside for benefit purposes, so she challenged the decision that the Transitional Regulations had been triggered by her claim for UC ie that her Tax Credits should not have been terminated.

The Judge ruled that the reference (in Regulation 8 of the UC Transitional Regulations) to the basic condition of being 'in Great Britain' is freestanding and has to be read without regard to the qualifying regulations. When making her UC claim, the claimant provided the information that she was resident at an address in Great Britain - that was sufficient for the computer system to allow the claim to proceed. The fact that she was later found not to fit within the (complex) right to reside rules was irrelevant - her Tax Credits had already been terminated.

Judge Jacobs' decisions in these cases conflict with previous case law (and what happens in reality). Therefore where a claimant has:

  • withdrawn their UC claim before a 'stop notice' has been issued, and
  • has nothing to lose by not claiming UC ie would not be entitled, and
  • was previously receiving Housing Benefit, Tax Credits and/or Income Support

then they could argue, that based on the previous caselaw, that any Housing Benefit, Tax Credit and/or Income Support they were receiving should continue/be reinstated. It would be up to the Decision Maker / Judge to chose which case law to follow.

Note: the rules for Income-Related ESA and Income-Based JSA are different as these are 'abolished' to the claimant from the moment they submit a claim for UC.

Click here to find out more...

Webinar
 

Judicial Review
- the missing link

Just £35+vat per delegate

Payments from landlord's welfare fund - impact on benefits

With the cost of living increasing and wages / benefits not keeping up, many social housing providers are considering setting up Welfare Funds to help families in particular need. The payments could help with furniture, bedding, food, fuel bills, clothing, nappies, travel or other essential costs, in exceptional circumstances.

Such payments need to be reported by the claimant to the benefit authorities, who would then classify them and decide if they affect any award.

But how will these payments be treated for welfare benefit purposes – could they reduce a claimant’s benefit entitlement? The answer is ‘probably not, but it all depends…’.

Click here for the answers in our Hot Topic
TSDPE errors leading to underpayments

The Transitional SDP Element is included where a claimant - entitled to the Severe Disability Premium (SDP) in a IR-ESA, IS or IB-JSA award - undergoes natural migration from legacy benefits to UC. It is an extra element that is included when their UC is assessed. It is a set amount in for their first UC assessment period but is treated as a Transitional Element from the second assessment period onwards and can be eroded or lost completely by certain changes in the claimant's circumstances.

We have heard about a problem where the Transitional SDP Element has been incorrectly reduced (eroded). It would be easy to miss such an error - the claimant would probably have no idea that they were being underpaid!

The problem seems to arise where, due to DWP error, an element is missing or lower than it should be, from the first UC assessment period. For example where the LCWRA Element should have been included, where an extra bedroom should have been allowed in the size criteria or where it is an 'untidy tenancy' situation and only half of the housing costs have been awarded in error.

When the error is corrected later on, ie awarding back pay, the TSDPE has also been eroded by the amount of the increase. But this should not happen if the underpayment goes back to the first assessment period! Erosion of the TSDPE can only occur when a new element is included* or an element increases* from the second monthly assessment period onwards. (*Except the Childcare Costs Element.)

Where this has happened the claimant should request a Mandatory Reconsideration of how the underpayment has been assessed. As this mistake arose because of DWP error there is no time limit within which the claimant has to request this.

 

Seen our latest Briefing - Making the most of the TSDPE? - Click here
New Tool

TSDPE Erosion Calculator
- use our new tool to predict and plan...

Click here
 
MASTERCLASS

Want to learn more about the Transitional SDP Element?

Why not book onto our Masterclass -
click here to find out how.

Changes to UC Conditionality Rules 

UC claimants will be required to widen their job search to outside of their preferred sector / level of pay after 4 weeks of job seeking. 
Previously, UC claimants have been able to restrict their job search to their preferred sector / level of pay for up to 3 months where their work coach was satisfied that they still had a reasonable prospect of finding work despite this limitation.

The regulations changed from 8th February 2022 - the limitation is now only allowed for up to  4 weeks (still at the work coach's discretion).
The move is part of a DWP push to get more people into work and to fill a record number of vacancies in the job market.
This does not mean that to avoid a sanction claimants must get a job within four weeks - but that where this limitation has been allowed, the claimant must widen the types of jobs they are willing to apply for to avoid being sanctioned.

Click here to find out more about limiting the conditions...

Claimants with a terminal illness will not need to sign a claimant commitment for Universal Credit or ESA. 
New Regulations, effective from 15th February 2022, explicitly state that claimants who are terminally ill do not need to sign a claimant commitment. Before this, it was at the discretion of the work coach to decide whether the illness amounted to 'exceptional circumstances'.
“Terminally ill” is defined in Regulation 2 of the UC Regulations and means suffering from a progressive disease where death in consequence of that disease can reasonably be expected within 6 months (to increase to 12 months from April 2022).

Click here to find out more about when a claimant commitment is not needed..
Household Support Fund and DHPs - time to apply?

The government provided an extra pot of money to help those in difficulties over the winter of 2021/22. The Household Support Fund was set up in English council areas; in Scotland, Wales and Northern Ireland, the devolved governments used the funding for their own schemes. The funding covers the period up to the end of March 2022. So if someone is in financial need now, it would be worth checking if extra help is available via the local authority - before it is too late!

Local authorities receive an annual budget for Discretionary Housing Payments. They don't get to keep what has not been spent and it is in their interests to use up the DHP budget, to avoid a cut in funding for the next financial year. So if your council has plenty of budget remaining, now is a good time for people to apply!
REMEMBER: UC claimants can apply for a DHP if their award includes a Housing Costs Element. This means more claimants can get a DHP under the UC system as this includes those who would not have been entitled to any HB due to their income but are entitled to some UC.

 

Click here for more on the Household Support Fund
Click here for more on DHPs

'Help to Claim' UC Service Continues

Citizens Advice and Citizens Advice Scotland have been awarded the contract to continue to deliver the Universal Credit ‘Help to Claim’ service from April 2022 - March 2023.

However, there is no funding included for face to face help and advice. The new contract only funds support through telephony and digital channels. 

The government has said that anyone who is unable to access support via these channels will be able to go to their local jobcentre, where jobcentre staff will identify the right support to meet their needs (Statement here).

The National Association of Welfare Rights Advisers (NAWRA) has raised concerns over this. NAWRA has written to the Secretary of State for Work and Pensions, Dr Therese Coffey, stating,

"It is essential that prospective claimants have access to independent, quality advice. This is
particularly important as the DWP steps up its voluntary Move to UC campaign. The DWP has repeatedly assured stakeholders that during this campaign jobcentre staff will not advise people to claim universal credit because a decision whether or not to move is very complex and could result in that person losing out financially...


NAWRA believes that the new Help to Claim service is not fit for its purpose of supporting vulnerable people to make a claim for universal credit and asks that consideration be given to resourcing and funding independent advice not only to make a claim, but also to maintain a claim."

You can read NAWRA's letter here.

ONLINE WORKSHOP

Universal Credit - For Better or for Worse

 
In 2022 the DWP will start to encourage the 3 million claimants still on legacy benefits to claim UC instead.
But is this their best option?

 
This workshop will look at which claimants would be better off delaying a move to UC, and which may be better off on UC. 
 
For many there may be more to consider than just the level of entitlement - for instance, the level of deductions, impact of future known changes etc -  these other considerations will be discussed.
 
Make sure your customers take all the relevant factors into account before making the move onto UC.


Wednesday 23rd March, 9.30am - 12.30pm
Just £79+vat per delegate

Or book in-house for £595+vat
(for up to 16 delegates)


 
Click here to find out more and get booked on...


Recent Question

Q: We have a customer who is currently living in a caravan and looking to move to one of our properties. They are moving within the same area and currently receive Housing Benefit for the ground rent at the caravan (they own the caravan).
Would the change in tenancy type trigger the need to claim UC or would they be able to stay on Housing Benefit?


A: If the existing HB claimant is simply moving from one address to another within the same LA area, there is no need to claim UC. They can remain on HB - it is just a change of address - ie a change of circumstances on the existing HB award. The change of tenancy type makes no difference.
So if that is the only change, there is no need to claim UC. Although if they wanted to, they could claim UC!



Recent Question

Q: I have a tenant who is due to go into hospital for surgery. She is hoping to work up to the date she goes into hospital but will not be able to work for at least 13 weeks afterwards.
Her income will drop to Statutory Sick Pay, so she will need to claim Universal Credit to be able to pay her rent.
Following the surgery, she will not be physically able to make a UC claim and there is no one who can help her. She is worrying how she will make a claim post-surgery when she knows how unwell she will be.
Are there any circumstances where a UC claim can be made in advance?

A: Your tenant can make an advance claim for UC. If someone claims Universal Credit when they are not yet entitled, and the DWP considers that they will become entitled within a calendar month, the DWP have the discretion to accept the claim.
(Regulation 32 of the UC etc Claims & Payments Regs 2013).
It would probably help if you could contact the DWP Partnership Manager so that they can ensure her claim is accepted from the correct start date, processed and paid and any contact with her is managed carefully. Information about her treatment, being alone and health problems can be communicated to UC and they should be noted on her claimant profile, so that all UC staff are aware.
She might be able to authorise you (or someone else) to provide updates to UC on her behalf.


Your chance to
win £50 for your local food bank and a FREE webinar place for yourself!

 
Every month we give you the chance to win £50 for your local food bank plus a FREE place for you for our next webinar!

Congratulations to Rachel from Abri who won our January quiz.  A £50 donation will be made to a local Foodbank - she is asking her team for nominations.

Why not enter our competition and possibly win a donation for your local food bank?

The winner will be selected at random and can nominate a food bank of their choice to receive a £50 donation from us, and they will also receive a FREE webinar place for our
next webinar 

To enter this month's competition, just email your entry to us by Friday 11th March 2022 for your chance to win.

This month's competition question:

This month our question is about Housing Benefit and mixed age couples who have a 'spare' bedroom...
Which of these statements is true?

1.  Mixed age couples who receive 'pension age' Housing Benefit are not subject to the bedroom tax, but mixed age couples who get 'working age' Housing Benefit are subject to the bedroom tax.

2.  Mixed age couples who receive Housing Benefit are not subject to the bedroom tax. It does not matter which type of HB; whether it is 'pension age' or 'working age' HB, there is no bedroom tax deduction under either type of HB for a mixed age couple.


Find the answer on this page

And email your entry to: info@housingsystems.co.uk

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Housing Systems Ltd · Broughton Hall · Archway Court, Broughton · Skipton, North Yorkshire BD23 3AE · United Kingdom