What you need to know about changes to your Benefits

Transcription

1 Welfare Reform A guide to changes Version 1 January 2014 What you need to know about changes to your Benefits

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3 Changes to the benefits system and how it could affect you The Welfare Reform changes to benefits will be the biggest shake up of the system in 60 years. Welfare Reform is one of the UK Government s flagship bills and intends to bring in a new Universal Credit. This will replace the current system of benefits and tax credits. This leaflet will help you find out about: Who will be affected Where you can go for help and advice These are the key changes that could affect you: Social Sector Size Criteria Restriction Bedroom Tax... 4 Overall Benefit Cap... 9 Council Tax Benefit Scottish Welfare Fund Disability Living Allowance(DLA) and Personal Independence Payments (PIP) Universal Credit and Direct Payments For further information about these changes and contacts please see the back cover. 3

4 Social Sector Size Criteria Restriction or Bedroom Tax KEY THINGS TO KNOW These new rules only apply to tenants of working age (where a person has not yet reached pension credit age) If your benefit is reduced you must find a way to make up the shortfall. You may want to find work or increase your hours or you may decide to reduce your outgoings. You cannot do nothing - the new arrangements introduced by the UK Government are designed to encourage people back into work and make them less reliant on benefits. KEY THINGS TO THINK ABOUT DOING Apply for a Discretionary Housing Payment. Get in touch with Employment and Skills if you want to get back to work or training. Get in touch with Supported Employment if you want to get back to work and have a disability or long term health condition. Take a job: If you are not currently in employment, finding a job could help you to pay the additional rent. Increase hours of work: If you are in employment you may consider increasing your working hours to make up the shortfall in rent. Consider a lodger: If you have a spare room you may wish to take in a lodger to help make up the shortfall in rent. A lodger could also help towards the cost of household bills. Be aware however that you must discuss this with your Landlord first. Any change in income could affect your benefits check in advance with your local housing benefit office and Jobcentre Plus. Consider a mutual exchange: Bear in mind your bedroom eligibility under the new Housing Benefit rules. 4 Social Sector Size Criteria Restriction

5 Will it affect me? From April 2013, Social Sector Housing Benefit has been reduced for tenants of working age to allow just one bedroom for each of the following: A couple A person who is not a child (aged 16 & over) Two children of the same sex Two children under 10 Any other child (other than a foster child or child whose main home is elsewhere) A paid carer (or a group of carers) providing overnight care. FAMILY MAKE UP Couple with one child Single parent with girl aged 6 and boy aged 12 Couple with a girl aged 6 and a boy aged 12 Single parent with a boy aged 17 and a boy aged 12 BEDROOMS ALLOWANCE 2 BEDROOMS 3 BEDROOMS 3 BEDROOMS 3 BEDROOMS How much housing benefit will I lose? Depending on your circumstances, if you have more bedrooms than this new rule allows this is called under-occupying and you could lose some or all of your Housing Benefit. If you are under occupying by 1 bedroom your Housing Benefit will be reduced by 14% of the rent amount. Reduction in Housing Rent per week Benefit/shortfall if under occupying If you are under occupying by 2 or more bedrooms, your Housing Benefit will be reduced by 25% of your rent amount. Reduction in Housing Rent per week Benefit/shortfall if under occupying How will I make up any shortfall in rent? If you are under-occupying and have your Housing Benefit reduced there are several options you can take. Staying in the same property You may decide to pay the difference between your Housing Benefit and your rent yourself by: Increasing hours of work, taking a job, asking non-dependants to contribute more to household expenses or taking in a lodger. You may also apply for a Discretionary Housing Payment (DHP). Moving to a different property Mutual exchange, register with a Registered Social Landlord (i.e. DGHP, Loreburn, Home Scotland, Irvine), rent a private property. Please remember that it will be your responsibility to make up the shortfall and pay your rent in full. Social Sector Size Criteria Restriction 5

6 Who is exempt? Non-mainstream accommodation These are mooring charges for a house boat and site charges for caravans and mobile homes as well as various excluded tenancies, such as regulated tenancies. Temporary accommodation Any claimant who is placed in temporary accommodation by the local authority because they are homeless or to prevent homelessness. Exempt accommodation the size limit rules will not be applied to those in supported exempt accommodation. Are you allowed a room for a foster child? Yes. When calculating how many bedrooms a family unit require, a room for a foster child will be taken into account. Where a claimant or partner is an approved foster carer (or a formal kinship carer in Scotland), one extra bedroom will be allowed for use by a foster child or children. The extra bedroom will be applied if they have a child placed with them, or for a period of up to 52 weeks for foster carers who are between placements. For new foster carers this will be applied for up to 52 weeks if no child is placed with them (from the date of approval). If the foster carer required more than one additional room for foster children, they can apply for support with their housing costs through Discretionary Housing Payments (DHP). Parents of Armed Forces Personnel Adult children who are in the armed forces, but who continue to live with their parents, will be treated as continuing to live at home when deployed on operations, for the 6 Social Sector Size Criteria Restriction purposes of size criteria. On operations does not necessarily mean away from the UK just away from the home they usually occupy. My house has been adapted to cater for my disability. Am I excluded from the size limit rules? No, however if you have an extra room that is necessary and related to your disability you may get help with extra rent through the Discretionary Housing Payment fund (DHP). My child is away at university; can I keep their room for when they are home in the holidays? The new size limit rules do not allow for this, unless the absence is temporary (less than thirteen weeks or 52 weeks for students) and the young person concerned intends to return home. My partner has passed away, am I going to be expected to move as well? In these circumstances you would be protected and the size limit rules would not be applied until after 12 months or you moved home, or there was another change to your circumstances. I could afford my rent but just lost my job and need to claim Housing Benefit. Does this mean I won t get benefit to cover all my rent because I have an extra room? If you have not claimed Housing Benefit in the last 52 weeks, the size limit rules will not be applied for the first 13 weeks. They will be applied earlier than 13 weeks if you move home or have another change in circumstances.

7 Susan s Story Susan (45) is single and lives by herself in a two bedroom rented property. Susan was given the tenancy in 2004 and shared the property with her son, Alex (23), until 2006 when he moved to his own property. Since that time Susan has stayed on by herself. Susan has received Income Support and both forms of Disability Living Allowance (Care and Mobility) most of her adult life because of a medical condition. Susan said, I have very little work experience, because my condition means getting around is very difficult, and potential job training almost impossible. Susan is a tenant of a local Registered Social Landlord (RSL), is of working age and lives in a property that has more bedrooms that she needs. This means that from 1st April 2013 she has been deemed as under-occupying her home. The amount of Housing Benefit she can be awarded will be restricted under a new UK Government scheme called Social Sector Size Criteria. Since Susan lives by herself in her two bedroom house, under the new rules she has an extra bedroom and has a 14% reduction applied to her eligible rent. Eligible rent is the maximum value of Housing Benefit that can be paid. Susan s rent from 1st April 2013 is charged at per week. Because of her reduced income, normally she would have received the full amount in Housing Benefit. Under the new rules the 14% reduction has left her with Housing Benefit of per week. Susan needs to find an extra 9.69 per week. Susan s Housing Benefit will be less for the year 2013/14. Susan has some options to help meet this shortfall. She said, It will be very difficult to find the extra rent from my present income. I know I can go to Dumfries and Galloway Citizens Advice Service or to the Council s own Money Advice team for financial advice, but I intend to ask my landlord whether they would allow me to take in a boarder/lodger to help share the housing costs. Should Susan s condition worsen and she needs an overnight paid carer, then an allowance will be made for the extra bedroom, meaning she will no longer be deemed as under-occupying. Susan can also speak to her landlord about moving to more suitable accommodation. If Susan s property had been adapted to meet the needs of her disability, she can also apply for a Discretionary Housing Payment award. If you are a social landlord tenant in WHAT receipt of Housing TO Benefit and you EXPECT affected by these rule changes, you will have been notified. You may already have received notification from the Council Housing Benefit section, or spoken to your landlord about your circumstances and options. 7

8 Roger & Trish s Story Roger (47) and Trish (40) live with their two sons, Raymond (9) and Gabriel (5), in a 4 bedroom property, which they rent from a Housing Association. Roger said, I work part-time, and Trish stays at home to care for Raymond, who has a disability. As well as my limited earnings, we receive Carer s Allowance, Tax Credits, Child Benefit and Disability Living Allowance for Raymond. Their limited income means that they used to receive full Housing Benefit of per week. From 1st April 2013, their rent increased to per week. However, because of the new Social Sector Size Criteria scheme, their eligible rent has been reduced, as they are deemed to be under-occupying their property. Eligible rent is the maximum amount of Housing Benefit that can be given. In Roger and Trish s case the new rules state they can be awarded Housing Benefit based on their need for 2 bedrooms (one for them as an adult couple, and one for the boys as they are both under 16 years old). Their eligible rent reduced by 25% to With their New Year rent at 74.22, Roger and Trish will need to make up per week shortfall. This means a loss in Housing Benefit of for the full year. Under the new rules a bedroom is allowed for each of the following: Adult couple(s) Other adult(s) aged 16 or over Pair(s) of children of the same gender aged under 16 Pair(s) of children of opposite genders aged under 10 Other children Non-resident paid carer(s) who provide overnight care What are the options for Roger and Trish? Trish said, Roger could try working more hours to pay the extra rent and I could look for work, though that is difficult when Raymond needs so much care and Gabriel is still very young. We could go to Dumfries and Galloway Citizens Advice Service or to the Council s Money Advice team for advice on budgeting. The family could also consider asking their landlord whether they would be allowed to take in a lodger to help pay the increased rent. Roger and Trish can apply for Discretionary Housing Payment award. Your Housing Benefit may be reduced if you WHAT are in social housing TO and have more EXPECT bedrooms that you need for the number of people living in the property permanently. This means you may have to pay more rent. The alternative may be to move to a smaller property, if one is available. 8

9 Overall Benefit Cap The UK Government has limited the total amount of benefits a working age single person or a couple receive. The Government have set the cap at the same as the average income for a working household. At the moment this is around 500 per week ( 26k a year) for couples and lone parents, and 350 per week for single people without children. This cap includes Child Benefit and Housing Benefit. The new Benefit Cap took effect in Dumfries and Galloway from 15th July The cap is applied by reducing the level of Housing Benefit paid to the household. If you are impacted by this change you will have been notified by our Council of the amount your Housing Benefit is reduced by. KEY THINGS TO KNOW There are less than 20 households in Dumfries and Galloway affected by this change. They should have all been contacted individually by now. If your benefit is reduced you must find a way to make up the shortfall. You may want to find work or increase your hours or you may decide to reduce your outgoings. You cannot do nothing - the new arrangements introduced by the UK Government are designed to encourage people back into work and make them less reliant on benefits. KEY THINGS TO THINK ABOUT DOING Take a job: If you are not currently in employment, finding a job could help you to pay the additional costs. Increase hours of work: If you are in employment you may consider increasing your working hours to make up the shortfall in benefits. Get in touch with Employment and Skills if you want to get back to work or training. Get in touch with Supported Employment if you want to get back to work and have a disability or long term health condition. Ask non-dependants to contribute more to household expenses. Consider a lodger: If you have a spare room you may wish to take in a lodger to help make up the shortfall. A lodger could also help towards the cost of household bills. Be aware however that you must discuss this with your Landlord first. Any change in income could affect your benefits check in advance with your local housing benefit office and Jobcentre Plus. Overall Benefit Cap 9

10 Alex & Maggie s Story Alex (38) and Maggie (37) live with their five children, in their rented 3 bedroom house. Since losing his job as a retail assistant earlier this year, Alex has been claiming Jobseeker s Allowance, as he continues to look for a new job. With the eldest of their children still under ten, and the youngest only two, Maggie is a stay at home mum to the couple s large family. Prior to the introduction of the Benefit Cap, Alex and Maggie s unemployed status meant that they received full Housing Benefit on their per week rental charge. However since its introduction, their overall benefit award has meant this award has been reduced. As they are a couple, the Benefit Cap level applied to them is 500 per week, inclusive of any Housing Benefit they receive. The couple s large family meant that in addition to Alex s Jobseeker s Allowance of per week, they also received Child Benefit totalling per week, and an additional per week in Child Tax Credit. Their total weekly benefit award, including their Housing Benefit, therefore added up to per week. However since the introduction of the Benefit Cap, the couple s Housing Benefit award has been limited to per week, which is a loss of entitlement of per week. It is up to them to ensure any shortfall in their rent that is no longer covered by Housing Benefit, is paid to their landlord. WHAT ARE THE What are the OPTIONS options for Alex and Maggie? Due to their family size, and reasonable rent charge, negotiating a lower rent could prove difficult, but it is still an option for the couple. In the short term, they could contact the Council s Benefit Section about claiming a Discretionary Housing Payments (DHP) award to top up their Housing Benefit. However this is a short term award, meant only to relieve the shortfall, and is not a long term solution. The main option available to them would be for one or both to take up employment. They could then meet any shortfall themselves, or indeed qualify for Working Tax Credits, which would then mean the cap would no longer apply to them. 10

11 Council Tax Benefit From April 2013 Council Tax Benefit has been abolished and replaced in Scotland by a Council Tax Reduction scheme. 10% less funding from UK Government but the Scottish Government have put extra money in place to cover the 10% shortfall this year. Our Council is following the Scottish Government s scheme. Will it affect me? The Reduction scheme mirrors the old Benefit scheme so all claimant s will see no changes to the level of Council Tax assistance paid in 2013/14. The scheme is still means tested, with claims received and processed by the Council in the same way Council Tax Benefit was. 10% less funding has been provided from the UK Government, but the Scottish Government have put extra money in place to cover the 10% shortfall in 2013/14. Our Council is following the Scottish Government s scheme. As this scheme is not a benefit but a reduction, appeals relating Council Tax Reduction claims and processing are dealt with by the Valuation Tribunal Service at a higher level. Council Tax Benefit 11

12 Scottish Welfare Fund Hit by a crisis out of the blue? On benefits and need help to set up or stay in your home? The Scottish Welfare Fund offers oneoff payments to help you stay in your community. Crisis Grants Are you on Income support, Income based Job Seekers Allowance, Income related Employment Support Allowance or Pension Credit? Have you had an emergency or disaster? Do you need money to avoid serious damage to yours or your families Health and Safety? Do you have nowhere else to turn? If you answered yes to all of the above questions, you may be entitled to a Crisis Grant. To make an application for a Grant please visit ScottishWelfareFund or telephone Community Care Grants Are you on Income support, Income based Job Seekers Allowance, Income related Employment Support Allowance or Pension Credit? Are you trying to establish yourself in the community following a period of care (i.e. been awarded a new unfurnished tenancy)? (This is likely to be a part of a planned resettlement programme. For example, following an unsettled way of life or you are a prisoner or young offender on release on temporary licence.) Do you need help to remain in the community rather than going into care? (Circumstances need to indicate that there is an identifiable risk of you not being able to live independently without this help.) Are you a family facing exceptional pressures and cannot meet unexpected one off costs? (Circumstances need to indicate this is essential to provide a safe and secure environment for your children.) If any of the above criteria apply to yourself or someone you know a Community Care Grant may be available. To make an application for a Grant please visit ScottishWelfareFund or telephone Scottish Welfare Fund

13 Crisis Loans and Community Care Grants from the Department for Work and Pensions (JobcentrePlus) have been replaced with Scottish Welfare Fund Grants which are administered by our Council. KEY THINGS TO KNOW These do not need to be paid back. If you need help with expenses after an emergency or disaster to avoid an immediate threat to you or your family s health or safety, you may be able to get a Crisis Grant. Typically, you will be on benefits. You may be given money or another form of support, for example a voucher or a fuel card. KEY THINGS TO THINK ABOUT DOING If you are on benefits, and need help with expenses to live independently in the community or to continue to live independently in the community, you may be able to get a Community Care Grant. You may be given money or another form of support, for example a voucher or furniture. Scottish Welfare Fund 13

14 Disability Living Allowance and Personal Independence Payments KEY THINGS TO KNOW KEY THINGS TO THINK ABOUT DOING New claimants can apply for PIP from June For existing claimants of DLA there is no automatic transfer from DLA to PIP. If you are already receiving DLA you will receive a letter from the Department for Work and Pensions (DWP) at some point in the future inviting you to make a claim for PIP. This will apply to all existing claimants, even people who have an indefinite or lifetime award. You will be assessed under the new entitlement criteria. To apply for PIP you need make a call to the Department for Work and Pensions and all the initial information required will be taken from you. You will then be sent an application pack which allows you to tell your story on how your condition affects you. You may be asked to attend a face-to-face assessment with a health professional. For new claims call the Department for Work and Pensions on For reassessments or reviews make a claim for PIP as soon as you get your letter from the Department for Work and Pensions. If you do not make a claim for PIP within 4 weeks then your DLA claim will end. 14 Disability Living Allowance and Personal Independence Payments

15 Disability Living Allowance (DLA) has been replaced by Personal Independence Payment (PIP) for people aged 16 to 64 from 8 April This will be initially for new claims only. The introduction of PIP is a part of a wider reform of the welfare system. The new benefit will better reflect today s understanding of disability which has changed significantly in the two decades since DLA. PIP will include an assessment of individual needs and aims to ensure that financial support is targeted at those who face the greatest challenges to living independently What is PIP? PIP is to help towards some of the extra costs arising from a health condition or a disability. It is based on how a person s condition affects them, not the condition they have. How are your needs assessed? Your needs for help with daily living and mobility are assessed by a point-scoring test. The test looks at several different mobility and daily living activities. The more help you need with activities, the more points you will score. To qualify for the difference rates you need to score the following: Daily Living Component (activities 1-9) Standard rate: 8 points Enhanced rate: 12 points Mobility component (activities 10-11) Standard rate: 8 points Enhanced rate: 12 points Awards will be reviewed to ensure that the claimant is receiving the right support. Reviews will be at appropriate intervals depending on how likely it is for the claimant s condition of impairment to change. How is PIP made up? There are two components to PIP the daily living component and the mobility component. Each component can be paid at standard rate or enhanced rate for those with the greatest needs. It is possible to get the daily living component for a variety of needs around activities such as toileting, dressing, preparing food and drink, taking medication, communicating, engaging socially and making financial decisions. You can qualify for the mobility component if you actually need help in getting around out of doors or if you need help in planning or following a journey. Disability Living Allowance and Personal Independence Payments 15

16 How does the claim process work? 1. Thinking about claiming Information about PIP will be available from a range of sources, including online, via leaflets and through support organisations. This will explain the eligibility criteria and help the claimant decide if they want to claim PIP. Existing DLA claimants will be contacted individually by the Department for Work and Pensions to ask if they want to claim PIP. 2. Making a claim Claimants (or those supporting them) phone the Department for Work and Pensions to make a claim to PIP. This involves an identity check and some basic questions. Paper claims won t normally be used and online claims should be available from Spring The Department for Work and Pensions will send claimants a form where they can explain how their disability affects them. 3. Telling your story - Claimant completes the How your disability affects you form to explain how their condition affects their daily life, both on good and bad days and over a range of activities. Supporting evidence can be sent with the form. 4. Assessment Claim details, form and supporting evidence are passed to health professional. Most people will be asked to attend a face to face consultation unless a decision can be reached on the basis of written evidence. Home visits will be available when necessary and claimants can take someone along for support. The consultation will provide the opportunity to explain in their support needs in their own words. The health professional reviews the claim against a set of clear descriptors to assess the challenges faced by the individual. 5. Decision A Department for Work and Pensions Case Manger will use all the information in the claim form and from the health professional and anything else that has been provided. They will make a reasoned decision on entitlement, including the level and length of award PIP is for people aged 16 to 64 Disability Living Allowance (DLA) will remain for children up to the age of 16. Once PIP has been introduced, the Department for Work and Pensions (DWP) will contact them as they approach 16 to explain what will happen. DLA will remain available to those 65 or over on 8 April 2013 (the day PIP is introduced). In the same way as DLA, claimants can receive PIP whether they are in or out of work. The benefit is not means tested or taxed. 16 Disability Living Allowance and Personal Independence Payments

17 When is PIP being introduced? FEBRUARY 2013 The Department for Work and Pensions will have sent general information about PIP to all existing DLA claimants in their DLA uprating letters. DLA claimants don t need to take action as a result of this letter. APRIL 2013 New claims to PIP start for people living in specific areas including Cheshire, Cumbria, Merseyside, and North East & North West England. When a DLA claim is received from this area, it will be treated as a claim for PIP instead. DLA new claims continue in all other parts of the country and for existing DLA claims. FURTHER DEVELOPMENTS We do not currently know when PIP will be implemented in Dumfries and Galloway. It is likely that the majority of working age DLA claimants will not be affected until 2015 or later. Once new claims to PIP do start, there will be no new claims for DLA for people aged 16 to pension age. What about existing DLA claimants? There are no automatic entitlements to PIP, even where an indefinite or lifetime DLA award has been made. The Department for Work and Pensions will write to individuals from October 2015 to let them know when their DLA is due to end, and explain how they can make a claim to PIP. Existing claimants do not need to take any action now. From October 2013, anyone with a DLA award coming up for renewal, that is young people turning 16 or DLA claimants reporting a change in their condition, are reassessed for PIP. If an existing DLA recipient makes a claim to PIP then their DLA would normally continue until a decision on their PIP claim is made. If PIP is not awarded or not claimed within 4 weeks then DLA will stop. How are other benefits and services affected? PIP does not affect benefits such as Employment and Support Allowance or Jobseeker s Allowance. People receiving Attendance Allowance will not be affected by the introduction of PIP. Like DLA, receiving PIP may provide access to other help. This can include Blue Badges, concessionary travel passes or Motability. These arrangements have still to be finalised. Carers may also receive Carers Allowance because the person they are caring for is receiving DLA or PIP. Disability Living Allowance and Personal Independence Payments 17

18 Universal Credit and Direct Payments There are four big changes that will happen when Universal Credit starts: KEY THINGS TO KNOW Universal Credit has an online application process and you will need to manage your account online. Only one person in each household will be able to make a claim for Universal Credit One Payment will be made monthly in arrears into a bank account. Housing costs will no longer be paid direct to a landlord (although there will be exemptions for vulnerable people). You will be responsible for paying these bills. You will have to manage your benefit to make sure that you pay the rent on time or you may lose your home. KEY THINGS TO THINK ABOUT DOING If you are unfamiliar with computers either ask a friend or relative to help you or get involved in some training so that you can do things yourself. If you don t have your own computer, book computer time completely free at your local library. Get support in using computers and access to PC s from Employability and Skills or Supported Employment. Make sure that you have a bank or building society account that your Universal Credit can be paid into. Join a credit union and open a savings account. Set up a monthly direct debit for your rent and other bills so they are always automatically paid on time. This will help to take the worry out of budgeting. 18 Universal Credit and Direct Payments

19 The UK Government is changing the rules on benefits. Benefits to working aged people will be replaced with one single benefit called Universal Credit paid directly to you. What is Universal Credit? The UK Government is replacing the different working age benefits with one single new benefit called Universal Credit which is paid directly to you. It will replace many of the means tested or income assessed benefits such as: Income Support Housing Benefit Income-Based Jobseeker s Allowance Income-Based Employment Support Allowance Child Tax Credit Working Tax Credit At the moment you get these benefits separately from different places. For example, Tax Credits are paid by the Inland Revenue and Housing Benefit is paid by your local Council. How is a Universal Credit payment calculated and what does it include? Universal Credit is made up of a standard allowance and potentially five elements, as any award is based on a claimant s personal circumstances. The five elements are: Child Element / Disabled Child Additions Childcare Element Carer Element Limited Capability for Work Element Housing Element. The monthly Universal Credit payment covers everyone in a family who qualifies for support. This may be: a person claiming for themselves alone a person claiming for themselves and their child or children a couple making a joint claim for themselves a couple making a joint claim for themselves and their child or children. Children over 18 living with their parents or siblings can claim Universal Credit in their own right. Universal Credit and Direct Payments 19

20 Who will be affected? All benefit claimants where a person is aged between People who only get a small amount of housing benefit for example, if you are working When is this happening? We do not currently know. The earliest that Universal Credit will be introduced is April 2014 but it could be considerably later. When it is introduced, it may be for new claims only and for specific groups. Please watch the press for information as it becomes available. How will a claim for Universal Credit be made? The UK Government has said that in future any claims for Universal Credit will need to be made online (via a computer). In Dumfries and Galloway we are looking at ways in which we can help people with this. We will be providing more information on this in the future. What does direct payment mean? The UK Government want people to be more responsible for the management of their income and so Universal Credit will be paid directly to each person or family making a claim. The direct payment will be paid to you at the end of each month and will include the amount you are entitled to towards your housing costs and rent. In order to receive Universal Credit you will need a bank account for the benefit to be paid into. Will this affect how my rent is paid? Yes. Currently, if you are entitled to help towards your rent it is often paid directly to your landlord. Once you transfer onto Universal Credit the amount paid to cover your housing costs will be paid to you and you will be responsible for paying your rent directly to your landlord. To do this you will need to have a bank account so it s extremely important that you set one up for the Universal Credit to go into. It will also take the worry out of budgeting as you can set up direct debits for your rent and other bills so you won t fall behind with payments. Paying your rent is a priority payment because if you do not pay it, ultimately you could lose your home. The Benefits Cap is only applied to housing costs but affected people may be further impacted once they become a Universal Credit claimant. Dumfries and Galloway Council Financial Inclusion and Assessment Team can help you with money advice. Their details are at the end of this leaflet. Can my Housing Element be paid direct to my landlord? Most people will be expected to be given their Housing Element and arrange to pay their landlord themselves. However, for a minority of claimants, alternative payments may be able to be arranged if they have real difficulty in managing their budget. 20 Universal Credit and Direct Payments

21 What benefits are excluded from Universal Credit? Disability Living Allowance Carers Allowance Child Benefit Council Tax Reduction Contribution Based Jobseeker s Allowance Contributory Employment and Support Allowance Statutory Sick Pay Industrial Injuries Disablement Benefit Bereavement Benefits Statutory Maternity Pay and Maternity Allowance Changing to a single monthly payment Universal Credit will be paid in arrears as a single monthly payment, aiming to replicate the experience of most people in work. Changing to this may mean that you will have 2 to 3 weeks to cover with no payment, before you get your first monthly payment. This means that if you are awarded Universal Credit on 1st April and you are currently paid fortnightly, you may not be paid again until 1st May. In the meantime, you will have to live on what money you have or take a loan, which has to be repaid, to tide you over. John & Julie s Story John and Julie have 5 children. They currently receive 622 in benefits. Their housing costs are 100 per week. At present their benefit will only be reduced by leaving them with p per week must be left in payment so a Discretionary Housing Payment can be awarded. Once they transfer to Universal Credit, their payments will further reduce to 500. In both circumstances, they should claim for a Discretionary Housing Payment to help to make up the difference. KEY THINGS TO THINK ABOUT DOING Set up a bank account that your Universal Credit can be paid into. Set up a direct debit to pay your rent. If at all possible, start saving to help cover the shortfall that will happen when you move to a single monthly payment. Universal Credit and Direct Payments 21

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23 More Information More detailed information can be found on our website: Government services and information The Money Advice Service Employability and Skills Can help if you want to get back to work or training. Tel Supported Employment Can help if you want to get back to work - and have a disability or long term health condition. SupportedEmploymentService@dumgal.gov.uk Tel Make sure you are claiming all the benefits you can for example, money to help with the costs of a disability. Our Council s Financial Inclusion and Assessment Team can provide specialist benefits advice to help you maximise your income. Financial Inclusion Assessment Team Tel fiatreferrals@dumgal.gov.uk Scottish Welfare Fund Tel Benefits Tel Citizen s Advice Bureaux Your local Citizen s Advice Bureaux provide specialist benefits advice services that might be able to help you. They have offices across Dumfries and Galloway. bureau@dumfriescab.casonline.org.uk Tel Dumfries Welfare Rights Dumfries Welfare Rights also provide advice about benefits info@welfarerights.net Tel

24 WHERE CAN I GET MORE INFORMATION ABOUT THESE CHANGES? Complete the Contact Us Form at dumgal.gov.uk Telephone with enquiries your enquiry to DGDirect@dumgal.gov.uk Write to Dumfries and Galloway Council, Welfare Reform, Benefits Section, Carruthers House, English Street, Dumfries DG1 2HP Follow@dgcouncil on Twitter to receive updates, view our Twitter policy for more information job centre plus Visit you local Jobcentre Plus at Annan, Dumfries or Stranraer DUMFRIES ANNAN GRETNA LANGHOLM LOCKERBIE LOCHMABEN MOFFAT KELLOHOLM SANQUHAR THORNHILL CASTLE DOUGLAS DALBEATTIE KIRKCUDBRIGHT Visit our Customer Service Centres, where Customer Service advisors are available to answer any customer queries. CUSTOMER SERVICES CENTRES Queensberry Square, Dumfries DG1 1BF High Street, Annan. DG12 6AQ Central Avenue, Gretna DG16 5AQ Langholm Town Hall, Market Pl, Langholm. DG13 0JQ High Street, Lockerbie DG11 2JL High Street, Lochmaben DG11 1NQ Due to refurbishment works, as from 3 February 2014 the Customer Service Centre will operate out of Lochmaben Library for approximately 4 months. Moffat Town Hall, High Street, Moffat. DG10 9HF Mill Hill Centre, Corserig Crescent, Kelloholm DG4 6EL 100 High Street, Sanquhar. DG4 6DZ Townhead Street, Thornhill. DG3 5NW 4 Market Street, Castle Douglas. DG7 1BE 23 High Street, Dalbeattie DG5 4AD Daar Road, St. Mary Street, Kirkcudbright. DG6 4JG NEWTON STEWART Church Street, Newton Stewart DG8 6ER STRANRAER North Strand Street, Stranraer. DG9 7LD