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Spring Edition 2021
Welfare Benefits Team
Factsheet
The Over
In this edition we cover
Universal credit Major change for Means-testing and
75s... and the Budget disabled people non-means testing
Pensioners
Many married women (and other groups - please see
below) who reached ‘state pension age’ (i.e. the age
at which they could officially retire and receive a state
retirement pension) before 6 April 2016, may have
Missing
missed out on state retirement pension entitlements
dating back many years.
They may now be own National Insurance
Out…
owed many hundreds of contributions record. To
pounds (in some cases qualify for a full pension
thousands of pounds) in (currently worth £137.60
back pay. per week) a person
The current estimate needed to have a National
is that £2.7 billion in back Insurance contributions
pay in state retirement record of at least 30
pension is owed and qualifying years.
£90 million in ongoing However, married
entitlements is to be paid. women who did not
If a person reached have a complete National
state pension age before 6 Insurance contributions
April 2016 then they could record could apply for a
claim the ‘old’ Retirement Category B Retirement
Pension. Under these rules Pension (worth up to
a person could claim a £82.45 per week or
Category A Retirement 60% of their husband’s
Pension based full Retirement Pension
upon their entitlement whichever was
the lesser figure) based
upon their husband’s
National Insurance
contributions record
once their husband had
reached the then state
retirement age of 65. In
effect a woman could
be paid whichever paid
the greater amount
between the Category
A Retirement Pension
and the Category B
Retirement Pension.
Continued on page 2
For further information contact: welfare.benefit@lbhf.gov.uk
2 | Welfare Benefits Team Factsheet Spring Edition 2021
Pensioners Missing Out…
Who may be affected? Continued from page 1 The Pension Service have been
As stated this does not only affect married women. It also affects others. aware of the issue since last year. It
The people who may have missed out include: has taken on extra staff to identify
and contact those who are owed
money. Between August 2020 and
Age 65 Married women (or civil partners) who reached state January 2021 scans of old computer
before pension age of 65 before 6 April 2016 whose Retirement records took place to identify those
6 April 2016 Pension is less than £80.45 per week (£82.45 per week potentially affected. Anyone who
from 5.4.2021). thinks that they may have missed
out may contact the Pension Service
Age 65 Married women (or civil partners) whose husband (or on 0800 731 0469 to check.
before civil partner) reached the age of 65 before 17 March The ‘new’ State Pension was
17 March 2008 who failed to apply for any additional Retirement introduced for people reaching
Pension, perhaps because they did not realise that they state pension age on or after 6 April
2008 could. 2016. Qualification is dependent
upon the contributions record of
Pension was Widows (or bereaved civil partners) whose pension was the claimant. How much is paid
not increased when their husband (or civil partner) died. is ultimately determined by how
not increased complete a person’s National
Insurance contributions record is. To
Aged 80 A person who is now aged 80 or over whose Retirement qualify for a full pension (currently
Retirement Pension is less than £80.45 per week (£82.45 per week worth £179.60 per week) a person
Pension is less from 5.4.2021) irrespective of their marital status. must have a National Insurance
than £80.45pw contributions record of at least 35
qualifying years. Anyone who is
affected by this and receives a lump
Partner was If a woman (or civil partner) was underpaid but they sum payment or an increase in their
underpaid and are now deceased, then her widow (or bereaved Retirement Pension should bear in
now deceased civil partner) or surviving children may apply for the mind that it could impact on any
backdated payment that would otherwise have been benefits that they are currently in
paid to her. receipt of.
Welfare Benefits Team Factsheet Spring Edition 2021 | 3
The Over 75s… State retirement pension,
private pensions and occupational
Since 1 August 2020 the TV licencing pensions are all counted as income
laws were changed, and people along with any earned income.
aged over 75 no longer qualify for Attendance Allowance, Disability
a free TV licence unless they are in Living Allowance and/or Personal
receipt of Pension Credit or are blind Independence Payment are all fully
(severely sight impaired) or live in a disregarded but must be declared.
care home. Pension credit can be claimed over
Pension Credit is designed to provide the phone or online.
people over state retirement age
with a minimum income for day-
to-day living. From 5 April 2021 the
minimum income figures will be:
• £177.10 per week
for a single pensioner
• £270.30 per week
for a pensioner couple
The principle is that if a single
pensioner’s total income or
pensioner couple’s total
income is less than these
amounts, they can apply for
Pension Credit as a top-up to
their already existing income.
The European Economic Area (EEA) and Swiss citizens
and their family members living in the UK by 31
December 2020 will be able to claim or continue to
receive benefits for as long as they continue to be
lawfully resident in the UK and meet the eligibility
requirements. To lawfully live in the UK, EEA and
Swiss citizens and their family members (including
children) must apply to the EU Settlement Scheme by
30 June 2021.
Depending on their circumstances, they will be either
Deadline
issued with pre-settled status or settled status. Those
with settled status will be treated equally to British
citizens and can claim benefits. Those with pre-settled
to apply to
status will need to pass the ‘right to reside test’ to get
benefits. Irish citizens and their family members living in
the UK will be able to claim or continue to receive the UK
EU Settlement
benefits to which they are entitled, without a need to
register with EU Settlement Scheme.
Scheme
Without a pre-settled or settled status, EEA and Swiss
Citizens cannot claim benefits. It is important to apply to
the EU Settlement Scheme.
30 June 2021 Applications can be made online at www.gov.uk
For further information contact: welfare.benefit@lbhf.gov.uk
4 | Welfare Benefits Team Factsheet Spring Edition 2021
Universal credit and related
measures in the Budget
The budget on 3 March 2021 included several
announcements relating to benefits and COVID-19
support.
Universal credit uplift and
working tax credit increase
The temporary increase to the standard allowance in
universal credit (UC), which was introduced in response to
COVID-19, will not be removed in April 2021 as originally
planned. It will be extended by six months until the end
of September 2021. The uplift is worth £86.67 per month
(£20 per week).
There is however no easement of the benefit cap, so
some families will continue to fail to benefit, in part or
full, from the uplift.
There will be a £500 lump-sum payment in April 2021
to people getting working tax credit for those in work
who have not yet migrated to UC.
Advance payments
People making a new claim for UC receive their first
payment a calendar month and a week after the date of
their claim. Claimants can request an advance payment
of up to 100 per cent of what they are due to receive, in
order to manage their finances in that period. Monthly
deductions are then made from their UC payment to pay
back the advance.
From April 2021, applicants will be offered the option
to repay over a 24-month period instead of the previous
12 months allowed, to support with budgeting their
money.
Deductions
Deductions are made in UC to contribute to the reduction
of priority debts such as rent and utility arrears. From April
2021, the normal maximum deduction rate for arrears will
change from 30 per cent to 25 per cent of a claimant’s
UC standard allowance. This will reduce the monthly
deductions, to be repaid over a longer period.
Minimum income floor
The minimum income floor (MIF) is a measure that
assumes that, after a year of self-employment, someone
who would otherwise have to look for work, will be
earning the equivalent of the full-time national minimum
wage. UC is then based on that assumed figure. The
minimum income floor was suspended in March 2020
and this has now been extended until the end of July
2021. It will be gradually reintroduced from August 2021.
DWP work coaches will have discretion to not apply
the MIF on an individual basis, where they assess that
claimants’ earnings continue to be affected by COVID-19
restrictions.
Welfare Benefits Team Factsheet Spring Edition 2021 | 5
Shared accommodation rate
exemptions for care leavers
The shared accommodation rate applies to those who are
under the age of 35, living alone and renting privately.
It limits the housing costs that can be met by benefit, to
the price of a certain standard of bedsit or a room in a
shared house. There are some exemptions e.g. parents,
couples and some people with disabilities and includes
care-leavers, who are currently exempt from the shared
accommodation rate until their 22nd birthday. From June
2021, it is the DWP’s intention to raise this to the 25th
birthday.
Currently, those aged 25-34 who have spent three
months in a homeless hostel for the purposes of
rehabilitation/re-settlement are also exempt from the
shared accommodation rate. This will be extended to
those under 25 from June 2021.
Surplus earnings rule
The surplus earnings rule is designed to ‘even-out’ the
calculation of UC for people with high fluctuations in their
income. An example would be people who get a regular
low wage (and therefore a higher amount of benefit)
but also get a large annual bonus, which would end or
substantially reduce their UC but only for the month in
which it is received. At present, the carry-over is limited
to £2,500 per month, and this will be extended until
31 March 2022. It has come into force in the last year,
when some low-income claimants received back-dated
payments from the Self-Employed Income Support
Scheme, and this may be repeated in 2021/22 as that
scheme is expanded.
Support for employees
The furlough scheme for employees affected by COVID-19
is being extended. The Coronavirus Job Retention Scheme
helps employers to keep staff on their payroll when
they have had to close or scale back due to COVID-19,
rather than making them redundant. The scheme pays a
percentage of employees’ wages, up to a certain amount
per month. This was due to run until the end of April 2021
but has been further extended in the Budget to the end of
September 2021. Employers will be asked to contribute 10
per cent in July and 20 per cent in August and September
as the scheme is gradually phased out. More information
is available at www.gov.uk
Self-Employment Income
Support Scheme SEISS
Support for the self-employed is also extended. The
Self-Employment Income Support Scheme allows self-
employed people to claim a taxable grant if they have lost
trading / partnership trading profits due to COVID-19.
A fourth grant, covering the period between February
and April 2021, will be available from late April. A fifth
grant, covering the period from May to July 2021, will
be available from late July. More information is available
at gov.uk More changes are expected over the coming
months.
For further information contact: welfare.benefit@lbhf.gov.uk
6 | Welfare Benefits Team Factsheet Spring Edition 2021
Major change for disabled people
moving to universal credit
27 January 2021 saw of circumstances that will To make up for the The three different
the closure of what was prompt a legacy benefit loss of SDP when people levels of transitional
known as the SDP gateway being closed and a claim move onto UC, the DWP payments are:
for working age people. for UC to be made are: has introduced SDP 1. £405 a month where
People who receive the • moving into, or out of, transitional payments, joint claimants were
severe disability premium employment (although included in the UC award. receiving the higher
(SDP) in their legacy that doesn’t always They are only available couple rate SDP in their
benefits such as income mean they need to stop to people who have legacy benefits.
support (IS) or income- claiming tax credits or received SDP within their
related employment and IS, IRESA or IBJSA in the 2. £285 a month for
claim UC through being
support allowance (IRESA) month before they claim single claimants not
unemployed)
can now claim UC. UC and continue to meet in the UC limited
• becoming responsible capability for work-
Severe disability for a child for the first the eligibility conditions
premium was an for SDP. They are not related activity
time, where a new (LCWRA) group. It is
additional premium claim for child tax credit available to people who
awarded to top-up legacy are only receiving a SDP also paid to couples
would no longer be where only one
benefits in recognition of possible within their HB or council
the extra disability related tax support, or to people member is eligible for
costs that people living • moving home to a claiming benefits for the SDP and they are not
with severe disability incur, new local authority first time. receiving the LCWRA
as long as they met the and needing help with component in UC.
following criteria: housing costs. 3. £120 a month for single
• were in receipt claimants who have
of disability living LCWRA. This is lower
allowance, personal because they will be
independence payment receiving the LCWRA
or Attendance element of UC. It is also
Allowance at the paid to couples where
relevant rate, only one member is
eligible for SDP and
• no one was claiming
they are receiving the
Carer’s allowance for
LCWRA component in
looking after them
UC.
• and they were the Households receiving
only adult living in the the SDP in their HB
property. only will miss out on
Before 27 January, this protection, as will
there was a two-year households who lose
period where these other elements of their
claimants were protected legacy benefits when
from the move to UC they move to UC.
and could remain on The SDP
the legacy benefit with transitional element
SDP. Now, if they have will decrease over
a relevant change of time.
circumstances, they will Anyone
have to move from legacy concerned about
benefits and apply for UC. moving from
Over half a million existing benefits
households on IRESA onto UC can
get SDP. There are also call our advice
many households on line for a
HB who get the SDP benefit
as part of their HB check first.
calculation, and they
were protected by
the SDP gateway too.
Some of the changes
Welfare Benefits Team Factsheet Spring Edition 2021 | 7
Motability
Until 31 July 2021, Motability customers who are in
‘temporary and exceptional financial need’ due to
COVID-19 can apply for an advance of the £600 good
condition bonus (GCB), which is usually only paid to
customers at the end of the vehicle lease.
The Motability Charity scheme is also now open for
grant applications again. For more information, see
www.motability.co.uk
Appeal hearings
by video link
Due to the COVID-19 pandemic, social security appeal
tribunal hearings have been taking place by telephone
rather than face-toface. Claimants and tribunal
members (along with representatives, witnesses, carers
and/or interpreters if participating) are all joined by
teleconference. HM Courts and Tribunals Service are now
putting measures in place to hold video hearings as an
alternative option to phone hearings.
The latest version of the benefit appeal form asks
appellants firstly whether they want to take part in
an appeal hearing (as opposed to having the tribunal
members make a decision based on the paperwork). If
they want to take part in a hearing, it then asks which
options they would accept out of a telephone hearing,
video hearing or face-toface hearing. The tribunal, not
the appellant, makes the final decision on which type of
hearing to hold.
A copy of the benefit appeal form (SSCS1) and
guidance on what to expect when joining a telephone
or video hearing are available at gov.uk. People taking
part in video hearings are asking to dress as if they were
coming into a court or tribunal building, to have a plain
background, and not to eat or drink anything except
water during the hearing.
UC Benefit rates from April 2021
Monthly UC Up to April 2021 April - Sept 2021 October 2021 - April 2022
standard allowance £20 included £20 included £20 remove
Single under 25 £342.72 £344.00 £257.33
Single 25+ £409.89 £411.51 £324.84
Couple under 25 £488.59 £490.60 £403.93
Couple 25+ £594.04 £596.58 £509.91
* Be aware these are illustrations of some basic amounts that are part of the UC calculation and that they can be lower
or higher if for example, there are housing costs or extra elements to be added.
See: www.gov.uk/government/publications/benefit-and-pension-rates-2020-to-2021
For further information contact: welfare.benefit@lbhf.gov.uk
8 | Welfare Benefits Team Factsheet Spring Edition 2021
What does Welfare
means-testing Benefit Officer
and non-means Case Study
testing mean? Miss M, aged 15 years old resided in a 3 bedroom
LBHF property with her mother - who was our
Tenant and her 2 younger brothers. Unfortunately,
Mean Tested Benefits her mother passed away on 29/10/2018.
Means tested benefits are those benefits in the social Miss M remained in the 3-bedroom property with
security system that assess your personal circumstances her 2 younger brothers aged 7 & 9 years old. Miss M
(single, couple, disabled etc) income and savings/capital, was made to succeed her mother’s tenancy, but as
to determine your entitlement to benefits. These benefits she was only 15 years old then, her Uncle became the
are to help meet the cost of basic living expenses. Trustee of the property and Miss M the beneficiary.
Examples of means-tested benefits are: An interview was arranged for Miss M and her uncle
A to visit our Housing Office at White City to complete
• Universal Credit the signup succession. Our WBO, Uyi was present at
• Income-based Jobseekers Allowance (IBJSA) that interview to meet with Miss M and her Uncle A.
• Income-related Employment Support allowance Miss M was referred to Uyi by the Housing Officer
(IRESA) for a benefit check and to identify other benefits
and support Miss M might be entitled to, including
• Income Support (IS) assisting with her rent payment.
• Housing Benefit (HB) After the completion of the signup succession, Uyi
• Pension Credit (PC) completed a Pre-tenancy signup checklist with her. It
• Tax Credit (child tax credit & working tax credit) emerged that Miss M had just turned 16. Uyi informed
her that she would be entitled to claim Universal Credit
• Council tax support (CTS). (UC). With the assistance of her Uncle, Miss M visited
Entitlement to these benefits can give access to the her local job centre to apply for UC. UC was awarded
following support through the social fund: and included help with housing costs for the rent. This
• Sure start maternity grant cleared the arrears that had built up. Miss M’s rental
income support officer (RISO) applied for the rent to
• funeral payment/ bereavement payment be paid directly into the rent account (APA alternative
• cold weather payment. payment arrangement). Her Uncle moved into the
The amount of income/savings/capital affects your property as well, until Miss M turns 18. Everyone was
eligibility. happy with the outcome.
Uyi completed the Post signup checklist with
Non-mean Tested Benefits Miss M, 4 weeks after the sign-up interview, via the
Your income/savings/capital are largely ignored for telephone to further make enquiries. It emerged that
the eligibility to non-means tested benefits, as long as her circumstances remained the same. The family
claimants meet the criteria. expressed their appreciation of Uyi’s assistance
Examples of some non-means tested benefits are: received by text messages and verbally.
• state retirement pension
• carer’s allowance
• child benefit
• personal independence payment (PIP)
• attendance allowance (AA).
CAR PAYMENT RENT
Welfare benefits advice line
020 8753 5566
Advice line Morning Afternoon
Monday 9.30am–12.30pm 13.30pm–16.30pm
Wednesday 13.30pm–16.30pm GAS LIGHTS
Friday 9.30am–12.30pm 13.30pm–16.30pm DOES THIS FEEL LIKE YOU?
Welfare benefits team: welfare.benefit@lbhf.gov.uk Call our advice line 0208 753 5566
0012. 2021.
For further information contact: welfare.benefit@lbhf.gov.uk
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