Newcastle Welfare Rights Service
Training Information and Publicity Unit
Social Service Directorate
CONTENTS
INTRODUCTION ______________________________________________ 1
SECTION ONE: BENEFIT CHANGES 'AT A GLANCE' _______________ 2
Changes in 2000 ............................................................................................ 3
Changes in 2001 ............................................................................................ 5
Changes in 2002 .......................................................................................... 10
Changes in 2003 .......................................................................................... 11
Changes in 2004 .......................................................................................... 12
SECTION 2: SOME CHANGES IN DETAIL ________________________ 13
APRIL BENEFIT UPRATING - ABOVE INFLATION__________________ 14
1. A quick view: ................................................................................................ 14
2. More detail: ................................................................................................... 14
People aged 60 and over ............................................................................. 14
Children and adults with disabilities .............................................................. 15
Carers .......................................................................................................... 16
Working & on a low wage ............................................................................. 17
3. Jargon box .................................................................................................... 17
CHILDREN LEAVING CARE ACT _______________________________ 18
LEGAL AID FUNDING _________________________________________ 19
DLA/AA & HOSPITAL CHANGES _______________________________ 19
LOCAL AUTHORITY CARE HOMES _____________________________ 19
DECISION MAKING AND APPEAL CHANGES _____________________ 20
BACKDATING LINKED BENEFITS - NEW RULES .......................................... 20
SOME OTHER DECISION MAKING CHANGES IN JUNE 2000: ...................... 23
Supersession................................................................................................ 23
Suspension .................................................................................................. 23
Anti test case rules ....................................................................................... 23
Appeals ........................................................................................................ 24
APPEAL RIGHTS AGAINST A SUPERSESSION DECISION ........................... 24
HOUSING AND COUNCIL TAX BENEFIT ........................................................ 25
BACKGROUND TO DECISION MAKING CHANGES ....................................... 25
Disputing decisions....................................................................................... 25
Appeals ........................................................................................................ 26
Appeal tribunals... ......................................................................................... 26
HOUSING AND COUNCIL TAX BENEFIT _________________________ 26
Decision making and appeals changes .......................................................... 26
Backdating........................................................................................................ 27
Discretionary Housing Payments ................................................................... 27
INCAPACITY FOR WORK CHANGES 6 APRIL 2001 ________________ 28
Part 1. Severe Disablement Allowance (SDA) ................................................ 28
SDA rules before being abolished in April 2001 ............................................ 28
Transition across the change in April 2001 ................................................... 31
Part 2. 'People incapacitated in youth' - new rules ....................................... 31
How much and when from? .......................................................................... 32
Part 3. Changes to Incapacity Benefit (ICB) ................................................... 32
Means test .................................................................................................... 32
New National Insurance contribution rule ..................................................... 32
REDUCING GENERAL PRACTITIONERS PAPERWORK _____________ 33
EXTRACTS FROM THE REPORT..................................................................... 33
Timetables .................................................................................................... 33
Chapter 3: Analysing the burdens................................................................. 35
Chapter 4: Reducing the burdens ................................................................. 37
Chapter 5: What you can do to help ............................................................. 38
CARERS ___________________________________________________ 39
9th April 2001 Changes ..................................................................................... 39
Invalid Care Allowance changes (ICA).......................................................... 39
Carers premium changes ............................................................................. 39
Earnings disregard ....................................................................................... 40
2002 and beyond changes ............................................................................... 40
65 age limit to go! ......................................................................................... 40
After the death of the person being cared for ................................................ 40
THE BEREAVED _____________________________________________ 41
Bereavement Benefits...................................................................................... 41
Who can claim? ............................................................................................ 41
Tax-free lump sum of £2000 ......................................................................... 41
Widowed Parent’s Allowance ....................................................................... 41
Bereavement Allowance ............................................................................... 42
NI contribution conditions for Bereavement Benefits..................................... 42
Transitional rules .......................................................................................... 43
Means-tested Benefits changes ...................................................................... 43
Income Support ............................................................................................ 43
Bereavement Premium ................................................................................. 43
Benefits Disregards ...................................................................................... 44
UNEMPLOYED/EMPLOYED ____________________________________ 45
Job Seekers Allowance (means tested) – new joint claim rules ................... 45
Welfare To Work ............................................................................................... 47
Tax Credits ....................................................................................................... 49
New Deal ........................................................................................................... 49
Merger of Benefits and Job Agencies............................................................. 50
INTRODUCTION
This booklet provides supportive information to the briefings that we held in March and
April 2001 for social work and other professionals.
It is split into two sections:
The first section is a chronological list of some benefit changes on and around April
2001. We have not given all of the changes, but those we believe to be relevant to a
variety of professionals dealing with people who need benefit information. We also
include some non-benefit changes, which relate to benefits.
The arrows indicate that there is more detail, located on the adjacent page number.
Where we have not provided further details, we often indicate where more information
can be obtained.
The second section describes in more detail, some of the changes listed in section
one. This paper cannot hope to explain all of the benefit rules behind these changes. We
provide training, information and a telephone advice line for that. However, wherever
possible, we have tried to give a little background explanation behind some of the
concepts and terms.
Clive Davis
Caron Henderson
Welfare Rights Officers
Training Information and Publicity Unit
Newcastle Welfare Rights Service
Social Services Directorate
Newcastle City Council
Brian Roycroft Centre
Newbiggin Hall
Newcastle
NE5 4BR
Tel. 0191 277 2621
BENEFIT CHANGES ON & AROUND APRIL 2001
1
SECTION ONE:
BENEFIT CHANGES 'AT A GLANCE'
BENEFIT CHANGES ON & AROUND APRIL 2001
2
CHANGES IN 2000
Date
Change
Page
April 2000
New Deal for 50 plus age group. Get topped up to
guaranteed minimum for 52 weeks if on a certain means
tested benefit & take up full time job. More at new deal
website: www.newdeal.co.uk
1 April 2000
Bail or approved probation hostel dwellers cannot get
Housing Benefit
1 April 2000
Most Asylum seekers to get financial (vouchers) &
accommodation support from Home Office instead of
benefits system. To be dispersed around country in clusters
1 April 2000
Council Tax changes:
 The "disability reduction" on the bill will apply to the
lowest band. Band A will be reduced by a ninth of band D
if the rules apply
 The exemption from paying the bill due to the property
being empty is now limited to one year. And 50%
reduction thereafter.
1 April 2000
Legal Aid funding changes. Cash limited fund with certain
groups of people getting priority.
3 April 2000
The "All Work Test" (for people incapable of work)
renamed "Personal Capability Assessment".
19 June 2000
Disability Living Allowance and Attendance Allowance
will be payable on days entering and leaving hospital.
 p.19
19 June 2000
People in Local Authority care homes will continue to get
Disability Living Allowance and Attendance Allowance if
they are paying their own fees.
 p.19
19 June 2000
Important changes to backdating benefits and other rules.
 p.20
24 August
2000
DSS should only refuse to re-consider an award of benefit  p.20
if the new information is totally irrelevant (e.g. "I want more
Income Support because my dog's had puppies"). Before,
the DSS were refusing to re consider even when it was
relevant. And because of this, the claimant could not appeal.
BENEFIT CHANGES ON & AROUND APRIL 2001
 p.19
3
1October 2000 Disabled Persons Tax Credit. Up till now, this benefit was
only for people who were not working at the time they got a
job. A new "Fast track" system means it is also payable
where the claimant already has a job or has recently worked.
2 October
2000
3 October
2000
Human Rights Act introduced.
7 Nov 2000
One off payment of £10,000 made by DSS to survivors of
Japanese POW camps. DSS website for more details:
www.dss.gov.uk
20 Nov 2000
New Child Benefit rules for children in Local Authority care
and residential accommodation: The rules are clarified for
those who are in solely due to disability or illness. They
also make it clearer that Child Benefit is only lost when the
child's accommodation or maintenance is being met by
public funds.
15 Dec 2000
Industrial Injuries Disablement Benefit
New interpretation of rules. One off gratuity payments for a
disability due to an Industrial Injury or accident expire after
7 years. The percentage of disability for that injury can now
be added to percentage(s) for other industrial injuries.
See DSS website for the new guidance www.dss.gov.uk.
Look for "Information for advisors/Decision Makers
Guide/DMG memo/Vol 11 No. 1/00"
Working Families Tax Credit amount increased if family
has a "disabled child" (who is entitled to Disability Living
Allowance or is registered blind)
BENEFIT CHANGES ON & AROUND APRIL 2001
4
CHANGES IN 2001
Date
Change
Page
 p.33
2001
Pilots: Nurses in GP surgeries can certify incapacity for
work. From Govt. "Cutting GPs Paperwork" report 19.3.01
2001 (?)
Maybe 2002
Carers benefits changes, including:
 p.39
Invalid Care Allowance
 to be renamed to "Carers Allowance"
 65 age limit abolished
 to continue after disabled person's death (up to 8 weeks)
The date for these changes are to be announced. See April
2001 for other changes to carers' benefits.
8 January
& other dates
during 2001
Child Support changes:
 criminal offence to fail to provide information or to provide
false information
 adding further cases where parentage may be presumed,
including where the alleged parent refuses to take a
scientific test
 extending the jurisdiction of the Child Support Act 1991
to non-resident parents
9 Jan 2001
DSS to write to parents of all children aged 2½ - 4 years old  p.15
already on the care component of Disability Living
Allowance, inviting them to make claims for the higher
mobility component. In preparation for allowing 3 and 4 year
olds to get mobility component from 9 April this year.
30 Jan & 1
Feb 2001
The one off DSS payment of £10,000 for Japanese POW
camp survivors & their spouses to be ignored as capital
for all means tested benefits. See November 2000 above.
Feb 2001
New Child benefit claim form - for both new claim & new
child
8 March 2001
Government Job vacancies and training opportunities online
at: www.worktrain.gov.uk
 p.50
19 March 2001 For some couples aged 18 - 24 & claiming Job Seekers
Allowance - both will have to make a joint claim. There are
exceptions.
 p.45
April 2001
Carers & Disabled Children Act. Details from the Carers
Association - www.carersuk.demon.co.uk & Dept of Health www.doh.gov.uk/carers
BENEFIT CHANGES ON & AROUND APRIL 2001
5
 p.33
April 2001
"Cutting GPs Paperwork" Govt. report 19.3.01
 GPs will no longer be expected to sign the statement at
part 1 of Disability Living Allowance & Attendance
Allowance claim forms. Others who know claimant
encouraged to e.g. health professionals or social
workers?
 Health professionals should be approached before GPs
regarding "dial a ride" and home disability equipment
e.g. phones.
April 2001
Residential care costs. Financial help from the Local
Authority for people to improve:
 More of resident's capital is to be ignored. The limits are
to increase from £10,000 & £16,000 to £11,500 &
£18,500.
 Value of resident's home to be ignored for 3 months after
admission.
For details see Department of Health website
www.doh.gov.uk. (e.g. press release 5th Jan 20001)
April 2001
Welfare to Work changes:
 £100 job grant for people moving from benefit into work
 Income Support help with mortgage costs to run on for
4 weeks after starting in work. This mirrors existing 4
week 'run on' for Housing & Council Tax Benefit, which
now needs no separate claim (and other improvements).
 If job does not 'work out' - within 52 weeks - person can
return to Income Support with the mortgage help will be
paid straight away (rather than having to wait the normal
nine months)
 p.47
April 2001
New Deal changes:
 New Deal for 25+
New "regime" for "hard to employ", "drug addicts",
Mentoring, training, benefit sanctions.
 New Deal basic skills screening extended to people on
New Deal for 50+, lone parents, disabled people.
 New Deal for partners
Present voluntary help - extended to all partners of
unemployed people moving into work.
 p.49
April 2001
Free passes giving entitlement to concessionary travel for all
pensioners. Announced in Budget 2001
April 2001
Child Tax Credit introduced. Replacing married couples
allowance (which was abolished in April 2000). This is a Tax
Allowance - not to be confused with the benefits:- Working
Families Tax Credit or Disabled Persons Tax Credit
BENEFIT CHANGES ON & AROUND APRIL 2001
6
April 2001
Local (Newcastle) Housing & Council Tax Benefit disregard
of war pensions increased to £24 a week
April 2001
April uprating:
 p.14
Many changes above inflation and extras for various means
tested benefits (including Working Families Tax Credit,
Disabled Persons Tax Credit, Income Support.) for various
groups. For example:
 pensioners,
 people with children,
 carers
 people with disabilities
April 2001
More improvements to backdating linked benefits. See also
19 June 2000 changes.
2 April 2001
Imprisonment/loss of driving license for wilful refusal or
culpable neglect to pay Child Support maintenance
4 April 2001
Working Families & Disabled Persons Tax Credits:
 p.49
 New claim & award can be made when a new child joins
family (born, adopted, official surrogate). In such cases
the new tax credit award will be paid by the Inland
Revenue rather than the employer
 Childcare costs may also be included for caring for new
child
 Mothers will be able to apply for the WFTC when they are
on maternity leave (entitled to either Maternity Allowance
or Statutory Maternity Pay) rather than having to wait until
they return to work.
6 April 2001
Severe Disablement Allowance (SDA) abolished
 p.28
6 April 2001
Incapacity Benefit (ICB):
 New 'incapacitated in youth' rules. Those without
National Insurance contributions & aged 16 - 20 (or 25 if
in education etc) can get ICB. This rule was previously a
feature of SDA.
 Means tested. Part of Private & Occupational Pension
taken into account.
 Stricter National Insurance rules.
 p.31
6 April 2001
Stakeholder Pension introduced. See DSS pensions
website www.dss.gov.uk
9 April 2001
Widows benefits to be replaced by "Bereavement benefits"
for widows AND widowers.
BENEFIT CHANGES ON & AROUND APRIL 2001
p.20
 p.41
7
 p.15
9 April 2001
Disability Living Allowance higher Mobility component
payable for 3 & 4 year olds.
9 & 10 April
2001
£10 disregard of new Bereavement Benefit by Income
 p.41
Support & means tested-Job Seekers Allowance. £15 for tax
credits, Housing & Council Tax Benefit.
30 April 2001
New Deal for Lone Parents (NDLP):
 p.49
 lone parents who are on or claim income support (and
whose youngest child is aged 13+) have to attend 'work
focused interviews'. Rolled out in phases.
 New £15 a week Income Support 'premium' for lone
parents who undertake work-focussed education and
training through NDLP
 Help towards childcare costs if a NDLP lone parent starts
a job of less than 16 hours a week.
June 2001
Working Families and Disabled Persons Tax Credits:
 basic credit to go up by £5 a week
 Help with childcare costs to increase - up to:
 £135 for one child
 £200 for two children
June 2001
"Cutting GPs Paperwork"
Govt. report 19.3.01
 p.33
GPs' role in the mental health assessment process will be
clarified, to reduce unnecessary involvement
July 2001
Housing & Council Tax Benefit
 Internal review system abolished.
 Decisions and appeals to be transferred under same
structure as all other benefits.
 Current backdating of claims rules to remain (52 weeks
rather than 3 months maximum for some other benefits)
 Discretionary decisions (e.g. for hardship payments) to
be transferred to a new system run by Local Authority.
Tighter budget restrictions but wider criteria. Only
internal review system for disputes.
 p.26
July 2001
New Deal for disabled extended nationally. See New Deal
website www.newdeal.gov.uk
 p.49
Autumn 2001
New national centres to provide full national list of vacancies
and other job centre services 24 hours a day. For employers
and jobseekers. Details www.employmentservice.gov.uk
Also on internet too at: www.worktrain.gov.uk
Autumn 2001
Job Grant extended to lone parents on new deal
BENEFIT CHANGES ON & AROUND APRIL 2001
 p.49
 p.47
8
October 2001
Benefits Agency and Employment Service to merge for work
age claimants. Called the 'Working Age Agency'
October 2001
Part of New Deal Phase 2
Announced in Budget 2001
“Pathfinder” offices of Employment Service and Ben. Agency
staff in pilot areas.
Nearest – Gateshead, Felling, Blaydon, Birtley.
 p.50
Action teams for job to be set up around country.
Including NEWCASTLE.
Pending details from DFEE
October 2001
child premiums within Income Support and Job Seekers
Allowance - means tested will be increased by £1.50 per
week
October 2001
Sure Start Maternity Grant and Funeral Payment
the £500 capital limits will be abolished.
October 2001
NHS Plan
 Nursing care (provided by nurses?) in care homes to be
fully funded by NHS. Personal care still payable.
 Extra funding to help person keep their own home
'during their lifetime'
See Department of Health website www.nhs.gov.uk and
'NHS plan'
October 2001
Children Leaving Care Act.
Delayed from April. Local Authority to support care leavers
(financially & otherwise) till they are at least 18 and older.
Section 6 excludes most (but not all) 16/17 year olds from
benefit.
October 2001
Stakeholder pensions available where 5 or more employees
1 October
2001
Legal Aid
Intention to increase income and capital limits (£1K to £3K)
and simplify the means test for free legal advice
October 2001
Combined (private and state) pension forecasting.
BENEFIT CHANGES ON & AROUND APRIL 2001
 p.18
 p.19
9
CHANGES IN 2002
Date
Change
Page
 p.45
2002
Joint claim rules for Job Seekers Allowance - extended
to all childless partners of the unemployed who are 45 or
under.
Early 2002
The Disability Living Allowance & Attendance Allowance  p.33
factual report that GP's complete will change to focus on
clinical facts rather than subjective opinion. From Govt.
report on "Cutting GPs Paperwork" 19.3.01
April 2002
New Child Support System
April 2002
NHS plan:
 National Care Standards Commission set up by Care
Standards Act 2000 to monitor & encourage better
services.
 Single assessment process for health and social care for
older people
 Extra Income Support paid when claimant in residential
care ('residential allowance') to stop. Such funding to
come from Local Authorities instead.
 Old, pre-1993 Income Support 'preserved rights' cases to
transferred to Local Authority for assessment, funding
and case management.
See Department of Health website www.doh.gov.uk and
'NHS plan'
April 2002
The flat rate of Statutory Maternity Pay (SMP) & Maternity
Allowance to rise to £75 a week, and in 2003 - to £100
April 2002
Sure Start Maternity Grant (from Social Fund) up from £300
to £500.
April 2002
Welfare to work measure for Income Support or Job
Seekers Allowance:
People taking up short term work will have their benefit
suspended for up to 12 weeks rather than closed down - to
simplify the reclaiming process when they return to work.
April 2002
£10 maintenance disregard for lone parents (& other dates?)
1 April 2002
lone parents on income support (with children aged 9+) on
have to attend 'work focused interviews'. Rolled out in
phases.
BENEFIT CHANGES ON & AROUND APRIL 2001
10
5 April 2002
Baby Bonus – Extension of Child Tax Credit (CTC)
Paid to parents of child born after 5 April 2002 for the first
year of child’s life. £10/week extra on top of CTC.
6 October
2002
Reduction in inherited State Earnings Related Pension
Scheme (SERPS). Postponed till now due to poor publicity
of the reduction. Details to be announced.
CHANGES IN 2003
Date
Change
2003
Pensioner Credit
To help pensioners whose income/capital has been too high
for Income Support because of Pensions(s)
 Guaranteed weekly minimum income linked to earnings
 No capital limits
 Fixed term awards
2003
NHS Plan
Free, national translation and interpretation service in NHS via NHS direct. See Department of Health website
www.doh.gov.uk
2003
Benefits paid direct into bank/building society
2003
Integrated Child Credit
"Single new tax credit for families with children. Bringing
together support for children in WFTC, DPTC, IS/JSA and
Children's Tax Credit, building on foundation of universal
Child Benefit.
Paid direct to main carer in the family
The new system will also assess eligibility on the basis of
household income" (from Budget 2001)
April 2003
New "Employment Tax Credit". Same as other tax credits
for those without children (daughter of 'Earnings Top Up'
pilot run in Newcastle etc which ended in 1999)
April 2003
SMP & Maternity Allowance period will be extended from 18
weeks to 26 weeks
April 2003
Paid adoption leave - when a child is first placed with a
family to allow one adoptive parent to claim paid leave - for
the same period & at the same flat rate as SMP. Adoptive
parents will be able to choose which of them takes time off
work and receives the payment
BENEFIT CHANGES ON & AROUND APRIL 2001
11
1 April 2003
Supported Accommodation system
Replaces transitional Housing Benefit scheme (see above).
Local Authority given Government funding to support certain
'vulnerable' people living in the community. See 'supporting
people' link in DETR web site. www.detr.gov.uk
7 April 2003
Certain lone parents (those with children aged 5 & 3
months plus) on income support required to attend 'work
focused interviews'. Rolled out in phases. Last one.
CHANGES IN 2004
2004
NHS Plan
Extra money for intermediate care and rehabilitation to help
stay at home and avoid residential care. See Department of
Health website www.doh.gov.uk and 'NHS plan'
BENEFIT CHANGES ON & AROUND APRIL 2001
12
SECTION 2:
SOME CHANGES IN DETAIL
BENEFIT CHANGES ON & AROUND APRIL 2001
13
APRIL BENEFIT UPRATING - ABOVE INFLATION
Most benefit rates are going up as they usually do in April - with inflation. But some are
to go up much higher than normal and there are new extras. Most of the increases are
with the ‘means tested benefits’ like Income Support and the tax credits.
Here are some that you may need to take note of to ensure your clients are getting or
have claimed.
There are 3 parts:
1. A quick view of the changes
2. A more detailed explanation
3. A 'jargon box' which explains some of the terms
1. A QUICK VIEW:









New 'enhanced disability premium/credit' for a household with a person getting
higher care component of the Disability Living Allowance (£11.05 or £16 a week
extra)
Disabled child premium/credit increased by £7.40 a week
The earnings disregard of £15 goes up to £20
New £10 or £15 disregard of new Bereavement Benefit
For people 60 & over:
 Higher capital limits
 Higher levels of means tested benefit
For carers
Carers premium up from £14.15 to £24.40
Earnings disregard up from £15 to £20 a week
Invalid Care Allowance earnings limit up from £50 to £72 a week
2. MORE DETAIL:
PEOPLE AGED 60 AND OVER
Savings levels raised
For those 60 and over, the savings ‘cut off’ limit is raised from £8,000 to £12,000. Unless
the higher £16,000 limit already applies.
Prior to April, savings from £3,000 up to the ‘cut off’ limit would reduce some of your IS,
JSAM, HB & CTB. From April this will rise to £6,000.
BENEFIT CHANGES ON & AROUND APRIL 2001
14
Present level
From April 20001
£3,000

£6,000
£8,000 cut off
£12,0000 cut off
Between these two amounts a “tariff
system” operates where for every
£250 (or part of) of capital between
these two figures, a £1 a week income
is assumed.
Weekly levels increased
You get an extra amount of these benefits depending on your age. From April, those
aged 60 to 79 are having their levels increased to the higher level applicable to those 80
or over.
aged 60 - 73
aged 74 - 79
80 plus
pre April rate
single
couple
26.25
40.00
28.65
43.40
33.85
49.10
April rate
single
couple
39.10
57.30
The Government has also called these changes - the Minimum Income Guarantee (MIG)
CHILDREN AND ADULTS WITH DISABILITIES
Mobility component for children
From April, the Mobility Component higher rate of the Disability Living Allowance is being
introduced for children 3 and 4 years old. This benefit is for people who have walking
problems and was previously only payable for those aged 5 and above. It is worth
£38.65 a week.
Disabled child premium/credit
For each child that gets Disability Living Allowance or is blind, the IS, JSAM, HB, CTB,
WFTC and DPTC of the parent(s) includes a ‘disabled child premium’. From April this is
going up from £22.25 to £30 a week.
New enhanced disability premium/credit
If someone in the family gets the highest care component of DLA a completely new
'enhanced' disability premium is being included in IS, HB or CTB, WFTC and DPTC.
£11.05 for single people and £16.00 for couples/lone parents.
Disabled child on highest care component of DLA
For each child in the family that gets highest care component of DLA, a premium/credit
of £41.05 is included in the IS, JSAM, HB, CTB, WFTC and DPTC of the parent(s).
BENEFIT CHANGES ON & AROUND APRIL 2001
15
This is a combination of the enhanced premium/credit and the disabled child
premium/credit. It is included for each child satisfying the condition. And it is in addition
to the enhanced disability premium/credit, which may be payable if an adult in the family
also gets highest DLA care component.
Examples of
'disabled child premium/credit' & 'enhanced disability premium/credit'
This table is an attempt to summarise some of the above 2 premiums/credits & their
potential combinations. It is taken from a reading of the regulations 1 and a conversation
with the Inland Revenue. Please treat carefully!
It does not include the severe disability premium. It is not included here because it is
not a new premium nor is it going up above inflation. Usually it is included in addition to
other premiums. It is not part of the tax credits system.
situation
A single adult gets highest
DLA care
A lone parent or
one or both of a couple gets
highest DLA care
Both adults in a couple on
highest DLA care
Each child on highest DLA
care
Each child on any other rate
of DLA
A single adult and a child in
the family both get highest
DLA care
A lone parent/couple adult
and a child in the family get
highest DLA care
A lone parent/couple adult
and 2 children in the family
get highest DLA care
amount
£11.05
premium/credit (p/c)
enhanced disability p/c - single adult rate
£16.00
enhanced disability p/c - couple/lone
parent rate
£16.00
enhanced disability p/c
£41.05
enhanced + disabled child p/c - per child
£30.00
disabled child p/c - per child
£52.10
enhanced + disabled child p/c + enhanced
disabled single adult p/c
£57.05
enhanced + disabled child p/c
+
enhanced disabled couple adult p/c
enhanced + disabled child p/c (x2)
+
enhanced disabled couple adult p/c
£98.10
The Government has also called some of these changes - the Disability Income
Guarantee (DIG)
CARERS
One of the rules about Invalid Care Allowance is that it is not payable if you earn above
a certain amount. In April this is increasing from £50 to £72 a week.
1
Statutory Instruments: 2000/2629, 2001/207 & 2001/367
BENEFIT CHANGES ON & AROUND APRIL 2001
16
If you are entitled to Invalid Care Allowance, your IS, HB & CTB will include and
additional ‘carer’s premium’. From April this ‘carer’s premium’ is increasing from £14.15
to £24.40 a week! (You can get this extra even if you don’t actually receive it because
you are already getting another ‘overlapping’ benefit, such as Widows benefits).
See more on carers section below.
WORKING & ON A LOW WAGE
Earnings
The benefits IS, HB & CTB ignore certain amounts of wages. Up till April, £15 of
earnings were ignored if, for example, you had a disability benefit or received Invalid
Care Allowance. In April this is increasing to £20 a week.
New Child
The normal rule for Working Family Tax Credit and Disabled Persons Tax Credit has
been that an award continues for 6 months regardless of most changes. From May this
year, the birth of a child will increase the rate. You don’t have to wait till the end of the
award.
See more in unemployed/employed section below.
3. JARGON BOX
Income Support (IS) & Job Seekers Allowance - means tested (JSAM)
Are for people on a low or no income. Are “means tested”.
Housing Benefit (HB) & Council Tax Benefit (CTB)
Help towards the rent and Council Tax bill. Means tested.
Working Families Tax Credit (WFTC)
Is for those working 16 or more hours a week & have at least one child. Means tested.
Disabled Persons Tax Credit (DPTC)
Also for those working 16 or more hours a week & are on a ‘disability’ or ‘incapacity’
benefit when they start work. They do not need to have children. Means tested.
(“Means tested” benefits take into account certain income and savings)
Disability Living Allowance (DLA)
Payable at different rates for someone who has care or mobility needs due to a
disability.
Invalid Care Allowance (ICA)
Payable to a person who cares for someone getting DLA care component (middle and
highest rate) or Attendance Allowance.
Warning! Even though entitlement to ICA can increase a means tested benefit (carer’s
premium) it is also taken into account as income. Seek advice before claiming it.
Of course these are very brief explanations. More rules apply. Seek advice
BENEFIT CHANGES ON & AROUND APRIL 2001
17
CHILDREN LEAVING CARE ACT
From October 2001:
One rule of the Act is that 16/17 year olds leaving care will not be able to claim Income
Support, Income based JSA and Housing Benefit.2
However, certain groups (who would be able to claim benefits even if they were living
with their parents) will escape this exclusion 3. For example, those who are:





Unfit for work
"Disabled"
Registered blind
In special education
Lone parents
About 25 per cent of looked-after children have a disability or long-term sickness. And
many others have severe behavioural problems - so many will still be entitled these
benefits.
And, looked-after children will still be able to get benefits such as Disability Living
Allowance and Incapacity Benefit.4
Benefit-relevant extracts from the Dept. of Health 'Quality Protects' web pages:
5
Councils are not simply taking on the DSS role here - they must assess and meet the
needs of "eligible" and "relevant" children on a case-by-case basis.
There are no changes to benefits rules for care leavers aged 18 and over.
How much should/will the weekly allowance level for care leavers be?
The current thinking is that benefit levels should be used as a benchmark so that no
young person who comes within the scope of the Act should receive a package of
support worth less than the benefits package they would have received through the DSS
under the old arrangements. This is not to say that each young person must receive
cash to that amount: how the support is delivered will vary from case to case depending
on the young person's needs and abilities. Ministers have also stressed that minimum
standards are not to be taken as the norm for levels of support, and that they would
normally expect councils to provide more than the minimum prescribed.
2
3
Section 6 of the children (Leaving Care) Act 2000. Includes both relevant and eligible children.
Section 6(3) ibid.
4
Severe Disablement Allowance is abolished in April and Incapacity Benefit will be opened up to young
people (see section on changes to incapacity benefits)
5
http://www.doh.gov.uk/qualityprotects/work_pro/
BENEFIT CHANGES ON & AROUND APRIL 2001
18
LEGAL AID FUNDING
On 1st April the Community Legal Services (CLS) replaced the Legal Aid Board. Main
changes:
1. Solicitors and other advice services have to meet certain criteria to get a CLS ‘quality
mark’ & legal aid funding.
CLS provide a list.
2. Discretionary & cash limited payments for legal aid based on priority. Highest are
child protection cases & risk to loss of life or liberty. After that come:
 Children’s welfare
 Domestic violence
 Serious wrong doing or human rights breaches by a public body
 Social welfare
 Funding decided by CLS fund. 6
DLA/AA & HOSPITAL CHANGES
From 19 June 2000, the rules for going in and coming out of hospital changed.
Going in and out of hospital will count as a day out of hospital. So they will be entitled to
DLA or AA on both days.
This should help for example people who have overnight stays at home.
The general rule is that after 28 days in hospital these benefits stop. After that however,
s/he will be entitled to a 1/7th of that benefit for:
 every full 24 hours s/he stays at home,
 the day s/he leaves hospital and goes home, and
 the day she leaves home and re enters hospital.
LOCAL AUTHORITY CARE HOMES
From 19 June 2000 people in Local Authority care homes will continue to get
Disability Living Allowance care component and Attendance Allowance if they are
paying their own fees.
The general rule is that these benefits stop once a person has been in a private or local
authority residential care or nursing home for 4 weeks and if the local authority is helping
with the costs. However if a person pays the fees themselves, these benefits will
continue. This exception only used to apply to private homes.
6
Details at - www.justask.org.uk
BENEFIT CHANGES ON & AROUND APRIL 2001
19
DECISION MAKING AND APPEAL CHANGES
Changes in June 2000, April 2001 and July 2001
In 1999 a new system of decision-making and appeals (DMA) was brought in for most
benefits. What follows is a description of the important changes to that system. After that
is a general description of the DMA system for people who need it.
Covering:
New rules (backdating benefits & other changes)
Appeals
BACKDATING LINKED BENEFITS - NEW RULES7
In on 19th July 2000
This is relevant for many benefits where:
 Entitlement to some benefits depend on entitlement to other benefits e.g. a carer can
only get Invalid Care Allowance (ICA) if the person they care for gets Attendance
Allowance (AA) or the middle or higher rate care component of Disability Living
Allowance (DLA).
 Increases of some benefits depend on getting others e.g. getting DLA attracts a
disability premium in a person's Income Support (IS)
The problem was:
(This is one example. Are other similar problems)
Simultaneous claim for DLA and IS in January.
Entitlement to IS depends upon the DLA being awarded (disability premium is needed)
DLA takes 8 months to be awarded. In the meantime, IS refused because no DLA award
(yet) and so no disability premium
DLA is eventually awarded (September) and paid from date of claim (January)
IS can only be paid from September which is when the DLA is finally awarded. This is
because the rules don't allow for a nil award to be revised.
IS is only paid if a new IS claim is made when actually getting the DLA
This was not the policy intention.
Till recently the only solution was for the DSS to "stockpile" the IS claim until the DLA
decision. Stockpiling is okay if you are aware of this problem. Many people won't know
about claiming IS and also are not aware of this link between the benefits
7
The Social Security & Child Support (Miscellaneous Amendments) Regs 2000. SI 2000 No.1596.
Vol. 1 4/00
BENEFIT CHANGES ON & AROUND APRIL 2001
Memo DMG
20
No problem if..
Already on IS and getting DLA will get you a premium.
DLA is claimed. Takes 9 months to win. DLA is awarded from date of DLA claim
Then IS can be revised or superseded back to DLA claim.
These are the terms used:
"Relevant benefit" (e.g. IS, JSAM) is the benefit that is awarded or increased due to the
award of the….
"Qualifying benefit" (e.g. DLA, SDA)
From 19th June 2000 new rules were introduced to try to address the problem.8
whereby:
- the claim for the relevant benefit (e.g. IS) is backdated to on or near the date the
qualifying benefit (e.g. DLA, SDA) was awarded from.
Here are 3 scenarios to show how the new rules will work.
Scenario 1 - new claim for e.g. IS and DLA
The claim for the relevant benefit (e.g. IS) will be treated as made…
on the date it was originally claimed or, if later,
the date from which the qualifying benefit (e.g. DLA) was awarded, where:



the original claim for the relevant benefit (e.g. IS) was refused on the grounds that
the claimant had not been awarded a qualifying benefit (e.g. DLA) (and did not
qualify on other grounds); and
the qualifying benefit was claimed not later than 10 days after the date of the original
claim for the relevant benefit; and
the qualifying benefit was awarded after the original claim for the relevant benefit
was decided; and
a further claim for the relevant benefit is made within 3 months of the decision to
award the qualifying benefit.
Example Joan's income is too high for IS. She is about to claim AA and, if the claim is successful,
she will then become entitled to IS because extra premiums will be included in her IS
Applicable Amount. However it could take 2-3 months to get a decision on the AA claim
– longer if she is initially refused and has to challenge the decision.
You should advise Joan to make a claim for IS at the same time as she claims AA (or
ensure that the AA claim is made not later than 10 days after the IS claim is made).
Whilst the IS claim will be refused, you should advise her to claim IS again within 3
8
Ibid Reg 3 inserts new paras 16 to 26 into reg 6 of the Claims & Payments 1987 regs
BENEFIT CHANGES ON & AROUND APRIL 2001
21
months of the AA award. IS will then be awarded from the date of the original IS claim
(or the date of award of AA, if later).
If however Joan does not claim IS until after her AA has been awarded, backdating will
not be possible.
There is still a problem for people who don’t know about all of this!
Scenario 2 - existing ICA award, DLA stopped
The new rules also assist where an award of a qualifying benefit is terminated or
reduced and, as a result, entitlement to a relevant benefit ceases.
Should the qualifying benefit be reinstated, and providing the relevant benefit is
reclaimed within 3 months, the linked benefit will be backdated to the date of
reinstatement of the qualifying benefit.
Example Hassan gets DLA middle rate Care Component. Following a change in his medical
condition a Decision-Maker terminates the award, so his wife’s ICA is also stopped.
Hassan appeals the DLA decision and the tribunal awards the middle rate of Care
Component from the date that the original award had been terminated.
If then his wife reclaims ICA, within three months of the tribunal decision, it will be
backdated to the date that it had been terminated.
Scenario 3 - existing awards of IS and DLA. DLA increased but not IS (SDP)
The new rules also simplify the situation where an award of a qualifying benefit (DLA
care component) leads to an increase of an existing award of relevant benefit - the
existing award will be revised or superseded and the increase backdated to the date of
entitlement to the qualifying benefit.
Example Kathleen lives alone and has been in receipt of IS for four years. Eighteen months ago
she was awarded the higher rate DLA Care Component, but her IS has not included the
SDP.
Kathleen should ask for a supersession of her IS award. And the Decision-Maker should
increase her IS and pay arrears back to the date of the DLA award.
BENEFIT CHANGES ON & AROUND APRIL 2001
22
Other benefits
Similar rules apply to other benefits9 e.g.
Severe Disablement Allowance & 80% disablement (via DLA higher rate care)
Invalid Care Allowance and DLA/AA
Disabled Persons Tax Credit (DPTC) and a 'qualifying benefit' in order to get DPTC e.g.
Incapacity Benefit
-The new rules don't apply to Working Families Tax Credit, Housing and Council Tax
Benefit, SMP, SSP
Oversight
The DSS accepted that the new rules apply only where the qualifying benefit is claimed
by the IS claimant and not the partner or child. So these rules would apply when the
claimant gets a qualifying benefit but not her partner. They initially stockpiled these
cases and will rectify the problem in April 2001. 10
SOME OTHER DECISION MAKING CHANGES IN JUNE 2000:
SUPERSESSION
If the DSS decide to supersede due to a change in circumstances or law (and it is
beneficial to claimant!!!), they can now backdate any increase to:
the date they decided to commence action
or even to earlier to date of the law change 11
(rather than the date the decision was made) 12
SUSPENSION
Failure to notify claimant - not fatal any more
This change is not so good for the claimant13
Previously - if the DSS decided to suspend payment whilst awaiting an appeal (for
claimant or in a 'lookalike' case) they had to inform claimant by certain date. If not then
the suspension was lifted.
Now, they only need to inform claimant "as soon as reasonably practicable"
DSS guidance says "in practise this means without delay"
ANTI TEST CASE RULES
Before the change, an 'out of time revision' could be made if an earlier decision had
been erroneous in law. The result was that benefit could be backdated to the 'wrong'
decision.
9
see Disability Rights Bulletin Summer p. III
Letters from DSS 20.9.00 & 31.1.01
11 DMG memo Vol 1 4/00 para 21
12 Dis Rights Bulletin Summer2000 p.ix
13 Ibid. regs 20 & 21 amend SS & Child Support (Decision & Appeal) regs 16(4) & 20
10
BENEFIT CHANGES ON & AROUND APRIL 2001
23
But these changes now exclude an error in law if it was found to be in error due to
another commissioner or court decision.14
Brings revision in line with anti test case rules
This means (according to a DSS guidance memo15) such a decision can only be
superseded not revised in such cases and backdating is much more limited in
supersessions.
APPEALS
Withdrawal
If a claimant withdraws his/her appeal before the DSS has sent it to the tribunal, the DSS
can cease any action.
Misconceived appeals
A legally qualified panel member sitting alone can decide on misconceived appeals
Time limits
A claimant only has a limited time in which to request a written statement of reasons for
a tribunal's decision or appeal to a commissioner. However, these time limits do not start
to run whilst s/he is applying to correct or set aside a tribunal decision16
APPEAL RIGHTS AGAINST A SUPERSESSION DECISION
When a DSS decision maker (DM) is asked to make a supersession decision due to a
change in circumstances the rules allow the DM one of 2 decisions:
1. to supersede (to make an 'outcome decision')
2. to decide not to supersede (not to make and 'outcome decision') because [in the view
of the DM] the change in not relevant.
The problem is that the first decision is appealable. The second is not.
The difficulty can be explained in this example. A person who has been on lower rate
care component of DLA for a number of years, believes she is recently become entitled
to the middle rate because she has another medical condition and submits a
supersession request. The DM believes that it is not enough to bring her into the middle
rate and decides not to supersede because in his eyes it is not a relevant change in
circumstances. The claimant cannot appeal. Before this rule, the claimant could have
appealed which would have given her chance to persuade the tribunal that it meant she
was entitled to the middle rate. But now, the DM has not made an 'outcome decision'
and she cannot appeal it. She could ask for a judicial review!!
14
Reg 14 amends reg 1(3) SS & Child Support (Decision & Appeal) regs
Para 10
16 Reg 29 amends reg 54 SS & Child Support (Decision & Appeal) regs
15
BENEFIT CHANGES ON & AROUND APRIL 2001
24
The DSS have accepted this is a problem and have tried to clarify their view of the
situation - without resorting to changing the law.17 They have confirmed that in the
above situation, the DM would be wrong not to make an -appealable - outcome decision
(even if it was to leave the benefit at the same rate).
It is only when the new information is totally irrelevant (e.g. 'our dog had puppies') that
the DM would refuse to supersede.
HOUSING AND COUNCIL TAX BENEFIT
In July 2001, the rules for decision making and challenging decisions of Housing Benefit
and Council Tax Benefit are mainly to be brought under the new decision making rules.
See separate section on these benefits below.
BACKGROUND TO DECISION MAKING CHANGES
This is a very quick overview of the decision and making rules which were introduced in
1999 for most benefits. They should be read with the above changes.
Background
The new system is intended to be friendlier & quicker, whereby decisions are
properly explained & changed if they are wrong. Explanations are to be
provided within 14 days if requested. But shorter time limits for disputing
decisions will create problems. For example the appeal time limit is reduced
from 3 to 1 month.
DISPUTING DECISIONS
There is to be a new system of revising and superseding, where an earlier decision is
reconsidered by a different officer. This replaces the old system of reviews.
Here are some important points:
 The claimant has one month (from the date of the decision) to request a revision.
This can be for any reason but it will be best to explain why the decision was wrong.
 This can be extended by 12 months if there are special reasons for the late request.
 A revision can be requested at any time (and benefit may be fully backdated) if:
 The DSS made an official error18 and the claimant didn’t contribute to it, or
 If a claimant should have been getting a higher amount of benefit because s/he got
another benefit some time ago (for example, getting Disability Living Allowance
means Income Support should increase) then the higher amount of benefit should be
fully backdated.
17
18
MP Hugh Bayley July 2000
But see July 2000 changes above which stops the revision (and full backdating) rules apply if the decision was
found erroneous due to another case law decision
BENEFIT CHANGES ON & AROUND APRIL 2001
25
APPEALS
 A claimant has only one month (from the date of decision) to submit a written
appeal. This can be extended:
 By 2 weeks if the decision didn’t have an explanation
 By 12 months if s/he has special reasons for the late appeal.
 Appeals can be struck out for various reasons such as the appeal is ‘without
foundation’ (but the claimant is given a chance to argue)
 An appeal can be made against either an original decision or against a revised or
superseded decision
 When the DSS receive an appeal, they may change (revise) their decision.
 Appeals should be on an appeal form available from the DSS.
APPEAL TRIBUNALS...
 can consist of one, two or three members depending on the case.
 can’t consider changes between the appeal letter and the hearing
 need not consider issues not in the appeal letter so full details must be given (but
case law states that they can take into account evidence that was provided after the
appeal letter, so long as it relates to the time of the appeal letter).19
HOUSING AND COUNCIL TAX BENEFIT
DECISION MAKING AND APPEALS CHANGES
The widespread changes to decision-making and appeals (DMA) that took place for
most benefits in 1999, are to effect Housing Benefit and Council Tax Benefit (HB/CTB) in
July 2001.20 Here are the details:




19
20
The existing system of internal reviews is to be completely replaced by the DMA
rules.
The 6 weeks for an internal review then 4 weeks for a second internal review to a
Housing Benefit Review Board - made up of Councillors - is to go. To be replaced by
the DMA system of revision, supersession and appeal to an independent appeal
tribunal. For example:
Claimants will have - within one month of a decision - to either:
 request an internal revision, or
 submit an appeal to an independent appeal tribunal
Outside these time limits it will be possible to re-open or reconsider an earlier
decision where some backdating is possible
CDLA/2934/99
Child Support, Pensions and Social Security Act 2000 section 68 & schedule 7, HB/CTB circular A36/2000
BENEFIT CHANGES ON & AROUND APRIL 2001
26

An appeal can be made against an original, revision or supersession decision. If the
appeal is unsuccessful, a claimant will have the opportunity to pursue it to a Social
Security Appeal Commissioner etc - just like other benefits.
 Local authorities' powers to suspend benefit pending appeals and to terminate
benefits are brought in line with other benefits
 Discretionary decisions will be removed from the present appeal system (The system
of making discretionary payments is also to be replaced in July. See 'discretionary
hardship payments' below)
 Review requests made before the new rules come in will be treated as a new
'revision' or 'supersession' request but the old 6-week time limit will remain.
See 'background to decision making and appeals system' above for fuller details of the
DMA system
BACKDATING
It was planned to reduce backdating of HB/CTB claims from 12 months to 3 - in line with
most other benefits. However, this reduction will not take place21 and the 12-month
backdating of claims will remain. As will the ground of 'good cause' 22 .
DISCRETIONARY HOUSING PAYMENTS
The present system of awarding discretionary HB for exceptional hardship is to be
replaced by Discretionary Hardship Payments (DHP). 23 Regulations are only in draft
form at present. The main details are:










21
22
They are discretionary payments made by the local authority to those requiring
financial assistance to pay housing costs or council tax liability.
They will be completely outside the scope of the HB/CTB scheme
The scheme will be partly funded by the Government who will set limits on what
authorities can spend on DHP's
Authorities will have a much wider discretion on what to pay for than at present.
Certain things will be excluded such as ineligible service charges, water rates, HB
where claimants are only entitled to CTB and vice versa
A claim can be from the claimant or someone acting on his/her behalf
The claimant must be on HB or CTB.
The request can be in writing or in any other form the authority decides to allow.
The authority must give reasons for its decision 'as soon as reasonably practical.'
Decisions can only be reviewed (reconsidered) internally. They will not be subject to
external appeal.
Hansard written answer 28.11.00col491W & HB/CTB circular A51/2000
Regulation 72(15) Housing Benefit General Regulations
23
Child Support & Pensions Act 2000 sections 69 & 70. HB/CTB circular A36/2000, Discretionary
Financial Assistance Regulations 2000 (draft)
BENEFIT CHANGES ON & AROUND APRIL 2001
27
INCAPACITY FOR WORK CHANGES 6 APRIL 2001
Severe Disablement Allowance - abolished!
but replaced for younger people
and other changes to Incapacity Benefit
Part 1 explains the present rules for Severe Disablement Allowance and how some
people are protected when it is abolished
Part 2 describes how a restricted version of SDA is being incorporated into Incapacity
Benefit (ICB), and
Part 3 outlines the other changes to Incapacity Benefit
PART 1.
SEVERE DISABLEMENT ALLOWANCE (SDA)
Some of this information is adapted from a take up campaign pack which was produced
in order to encourage people to claim SDA before it is abolished in April 2001.
It is important to know these rules. Firstly to help people claim before the change, and
secondly to help people after the change to claim if they satisfied the conditions for SDA
before the change. This will help some people avoid losing out because of the change.
SDA is a benefit paid to people who cannot work because of a severe illness or
disability. You can claim SDA if you have not paid enough National Insurance
contributions to get Incapacity Benefit. In fact, you can qualify for SDA even if you have
never worked or paid National Insurance contributions.
SDA RULES BEFORE BEING ABOLISHED IN APRIL 2001
The rates
Per week:
For yourself
For your spouse or partner*
For the first child*
For each other child*
*these may be affected by your partner’s earnings
£40.80
£24.20
£ 9.85
£11.35
As well as the basic rates and additions for dependants there are three age-related
additions. The amount you get depends on your age when your current period of
incapacity for work began:
Under 40
40-49
50-59
BENEFIT CHANGES ON & AROUND APRIL 2001
£14.20
£ 9.00
£ 4.50
28
If you are already on Income Support, you may not get any extra money by claiming
SDA. However, it may still be worthwhile claiming SDA now, in case your circumstances
change in future. If you are already getting Income Support and think that you may be
entitled to SDA, you should seek advice.
Do I qualify for SDA?
You may qualify for SDA if you meet the following conditions:

You must be at least 16 and under 65 when you claim and

You must have been incapable of work for at least 28 weeks (just over six months)
and continue to be incapable of work, and

You qualify under one of the following:


You became incapable of work on or before your 20th birthday; or
You are classed as at least 80% disabled.
Incapable of work on or before 20th birthday
If your 28 weeks of incapacity for work started on or before your 20th birthday and
you are still incapable of work you can qualify for SDA without having to satisfy
any other conditions. If you have already been incapable of work for at least 28
weeks by the day of your 16th birthday you can claim as soon as you are 16.
Classed as at least 80% disabled
You will automatically be classed as 80% disabled if:



You get disability living allowance (DLA) care component at the higher rate;
or
You are registered as blind; or
You have already been assessed as 80% disabled for industrial injuries
benefit or a war pension.
If you are not automatically treated as 80% disabled you will have to be assessed
by a Benefits Agency doctor. This usually means that you will have to have a
medical examination. If you have more than one disability or health problem the
doctor should consider their combined effect. Both physical and mental
conditions can be taken into account.
The law about disablement is quite complicated. If you have an illness or disability
which affects you and you think you might qualify – seek advice.
BENEFIT CHANGES ON & AROUND APRIL 2001
29
How do I claim SDA?
On the claim form, you must choose the date that you want your claim to start from.
Remember that you must have been incapable of work for at least 28 weeks before you
can get SDA. If you have not yet been incapable of work for 28 weeks, you can put a
future date on the form. If you have been incapable of work for more than 28 weeks,
then you may be able to get SDA backdated for up to three months.
Ask your doctor for a sicknote confirming that you are incapable of work now and have
been for 28 weeks. (If you have been sick for longer, ask for a backdated sick note for
41 weeks.) Your doctor can do this on forms MED3 and MED5. Send the certificates to
the Benefits Agency, together with your claim form.
You may be asked to attend a medical examination to assess whether you are ‘severely
disabled’. If you have to attend an examination, spend some time beforehand thinking
about the different ways that your disability or illness affects you. The doctor won’t have
access to your medical records and if you don’t tell them about a problem they will not
know about it. If your condition varies, or if you find that certain activities cause you pain
or discomfort, let the doctor know. You may also find it helpful if a relative, friend or carer
accompanies you to the examination.
Once you have been assessed as ‘severely disabled’ you will automatically be accepted
as being incapable of work. At this point, you can stop sending in medical certificates.
You can choose whether to have SDA paid straight into your bank or building society
account, or through an order book.
If the Benefits Agency turns down your claim or if you disagree with their decision, then
in most cases you can ask them to look at the decision again, or appeal to an
independent tribunal. The normal time limit for disputing a decision is just one month, so
seek advice quickly!
Can I receive other benefits at the same time as SDA?
Disability Living Allowance can be paid in full at the same time as SDA. If you have a
long-term health problem or disability but have not claimed Disability Living Allowance.
You can get SDA at the same time as Income Support, Housing Benefit and Council
Tax Benefit. However, SDA is taken into account as income when these benefits are
calculated. So you may not immediately be any better off. However, it could still be
worth claiming SDA in case your circumstances change in the future. For example, one
day you may get married or live with someone as husband and wife. If your partner
works more than 24 hours a week then you would not be able to claim any Income
Support at all. In contrast, SDA is not affected by any savings or capital that you or your
partner may have, and it is not affected if your partner works.
Remember, SDA is going to be abolished for new claimants, so if you don’t claim it now
BENEFIT CHANGES ON & AROUND APRIL 2001
30
you may lose out.
If you are already getting Income Support, you should get advice before claiming SDA.
Getting SDA may mean that your income is too high for you to get Income Support. If
you Income Support stops you may lose benefits such as free school dinners.
SDA cannot be paid at the same time as Incapacity Benefit, Retirement Pension,
Maternity Allowance, Widow’s Benefit, Invalid Care Allowance, or ContributionBased Jobseeker’s Allowance.
Can I do any kind of work while getting SDA?
You cannot normally work while claiming SDA. However you can do ‘therapeutic work’
provided it is for less than 16 hours a week and you do not earn more than £58.50 per
week. You can also do unpaid voluntary work for a charity or similar organisation while
claiming SDA.
Before starting therapeutic work, voluntary work or any other sort of work, you should
always seek advice about how to protect your entitlement to benefits.
TRANSITION ACROSS THE CHANGE IN APRIL 200124
People already getting SDA who are aged 20 or over
on 6 April 2001 will continue to be paid it.
People already getting SDA who are aged 16-19
on 6 April 2001 will be paid SDA until April 2002, when they will be transferred onto the
long term rate of incapacity benefit.
PART 2.
'PEOPLE INCAPACITATED IN YOUTH' - NEW RULES 25
Young people, who become incapable of work on or after 6 April 2001 can claim
Incapacity Benefit without satisfying the National Insurance contributions provided:
They became incapable of work before their 20th birthday; and
They have been incapable or work for at least 28 weeks.
The age limit will be 25 for people who are in a course of full time advanced or
secondary education, vocational or work based training at least 3 months before their
20th birthday.
Incapacity before the age of 16 can count towards the 28 weeks, so that they can qualify
for SDA on their 16th birthday.
24
25
The Welfare Reform and Pensions Act 1999 Order 2000 (Statutory Instruments No's 2958 & 3120)
The Welfare Reform and Pensions Act 1999 Section 64
BENEFIT CHANGES ON & AROUND APRIL 2001
31
HOW MUCH AND WHEN FROM?
From the 28th week of incapacity s/he will begin to be paid ICB as follows:
Short term lower rate for the first 28 weeks of incapacity
Short term higher rate for weeks 28 to 52
Long term rate from week 52 (with the age addition)
People on the highest rate of Disability Living Allowance care component will go onto the
Long term rate from week 28.
PART 3.
CHANGES TO INCAPACITY BENEFIT (ICB)
MEANS TEST
People who qualify for ICB from 6 April 2001 will have their ICB reduced if they receive
an occupational or personal pension payment of more than £85 per week. Their ICB will
be reduced by 50% of the amount by which their pension payment exceeds £85. For
example, someone who receives a pension of £95 will have their ICB reduced by £5 a
week.
This deduction will not apply to anyone who
 is entitled to the highest rate of care component of Disability Living Allowance, or
 qualified for ICB before 6 April 2001.
NEW NATIONAL INSURANCE CONTRIBUTION RULE
The 2 present contribution rules are that the claimant must have:
paid in any tax year, sufficient NI contributions, and
paid or been credited with sufficient contributions in each of the last two complete tax
years before the relevant benefit year (Jan to Jan)
From 6 April, the first rule is being restricted to having paid enough contributions in one
of the last three complete tax years before the current benefit year.
Must have paid (or credited in 1st case) with enough National Insurance contributions...
Old Rules
new rules
in each of last 2 tax years
in each of last 2 tax years
in any tax year
in last 3 tax years
The following people are exempt from this new rule:


Carers who get Invalid Care Allowance for at least one week before the ICB claim
Those who were getting Disabled Persons Tax Credit but earning less than the lower
earnings limit for two years.
They will only need to have paid sufficient contributions in any tax year, and:
 People who were previously on ICB in the tax year before their present claim for ICB.
BENEFIT CHANGES ON & AROUND APRIL 2001
32
REDUCING GENERAL PRACTITIONERS PAPERWORK
On 19th March 2001, the Government's Cabinet Office and Department of Health issued
a 30 page joint report on cutting GPs' red tape. A list of changes this and next year
formed a large part of the report. Here are some extracts that are relevant to benefits
and other related issues such as disability and mental health.
There are big implications for welfare rights and social services. The GPs role in
completing medical certificates and verifying benefit claims etc is being reduced. Others
(health professionals?) will be expected to complete such forms. And they are looking
into nurses completing sick notes etc.
Contents


Extracts from the report
Timetable of actions
 benefits
 related subjects
 Other parts of the report
Author's comments/explanations are in italics, with opinions in italics and bold
Full report & other information from:
http://www.cabinet-office.gov.uk/regulation/PublicSector/Reports.htm
EXTRACTS FROM THE REPORT
TIMETABLES
There are over 50 actions to commence this and next year. The benefit and the related
(e.g. disability) actions have been extracted and sorted, chronologically, into 2 lists.
Underneath some of the actions, are added notes/explanations from elsewhere in the
report (in a smaller font).
Benefit related actions
•The Benefits Agency is actively working to ensure that it will only
approach GPs for DLA/AA factual reports where their input is
essential and no one else can provide it.
Date
On-going
The DSS is developing guidelines for BA staff in consultation with the
Public Sector Team. The guidelines will mention other health
professionals that could be consulted in particular circumstances. Other
steps being taken to improve the quality and consistency of decision
making include: tighter checking regimes to ensure that the evidence
gathered is appropriate and improved training of decision-makers in
evidence gathering. The DSS is thinking of cutting back on the amount
of further medical evidence needed for higher rate mobility component
BENEFIT CHANGES ON & AROUND APRIL 2001
33
(DLA) by the end of 2001.
•Subject to successful pilots, which will begin this year, the power
to certify incapacity for work will be extended to nurse
practitioners
•GPs will no longer be expected to sign the statement at part 1 of
DLA/AA application forms
•The MATB1 and the form completed by health professionals,
including GPs, as part of a Sure Start Maternity Grant (SSMG)
claim will be reviewed
•GPs and midwives will be able to sign maternity certificates
(form MATB1) from 20 weeks before the estimated week of
confinement rather than the existing 14 weeks
•Certificates Med 3 and Med 5 (which record the doctor ’s advice
to the patient on their capacity for work with and without an
examination of the patient on the day of issue) will be available in
a single pad
Pilots begin in
2001
•The DLA/AA factual report will be revised to focus on clinical
facts rather than subjective opinion
Early 2002
April 2001
April 2001
September 2001
September 2001
The work will be taken forward by the DSS in collaboration with the GP
Advisory Panel. The change is a fundamental one and will be
progressed throughout 2001.Once the factual report has been revised,
consulted upon and tested, guidance will need to be amended, revised
forms printed and a full training programme for Benefits Agency
decision-makers completed.
Other related actions
•GPs should be approached regarding applications for
concessionary bus fares only when their input is essential and
no one else can provide it. On these rare occasions, only
confirmation of clinical information will be requested.
•Proposals to reduce the GP role in the disabled parking permit
system will be invited in a discussion paper
•The Association of Train Operating Companies (ATOC)is set to
change its procedures so that GPs will no longer be expected to
sign applications for a Disabled Persons Railcard for people
with severe epilepsy
•GPs will no longer be expected to provide patients with a
certificate to explain a short-term absence from an attendance
centre
•GPs should be approached regarding the entitlement of a
disabled person to a free telephone (or related equipment) or
help with minor alterations to their home only when their input
is essential and no one else can provide it
BENEFIT CHANGES ON & AROUND APRIL 2001
Date
Imminent
Spring 2001
April 2001
April 2001
April 2001
34
•GPs should be asked to certify "dial-a-ride" applications only in
exceptional circumstances On these rare occasions GPs will be
asked to provide factual clinical information only
•GPs' role in the mental health assessment process will be
clarified, to reduce unnecessary involvement
April 2001
June 2001
The Public Sector Team, the Department of Health and the medical
profession will conduct a publicity campaign in June 2001 that will clarify
GPs role in the mental health assessment process. The campaign will
explain to GPs the different roles of the first and second medical
recommendation described in section 12 of the Mental Health Act 1983.
•Sick certification will be integrated into the hospital discharge
process so that hospital doctors and consultants will not refer
patients to a GP solely for the purpose of obtaining a sickness
certificate
•Best practice guidance to minimise referrals to GPs by the legal
profession will be issued
•The role of GPs and other health professionals in providing
reports and certificates for employers will be clarified
•Health professionals other than GPs will clarify, if necessary, that
a patient is suitable for loans of some Red Cross medical
equipment, such as self-propelled wheel chairs
•GPs will no longer need to issue repeat prescriptions for gluten
free foods
July 2001
•GPs will be approached regarding housing allocations only
when their input is essential and no one else can provide it
•GPs will be approached regarding Disabled Facilities Grants
for major structural alterations only when their input is essential
and no one else can provide it
•The feasibility of allowing community mental health practitioners
to certify severe impairment of mental health for the purposes
of obtaining a council tax discount is being investigated
April 2002
July 2001
Second-half of
2001
August 2001
Dec 2001
April 2002
To be confirmed
CHAPTER 3: ANALYSING THE BURDENS
Identifying areas for attention
65 areas were compiled for attention, … identified by the GPs as burdensome. 29 areas
were identified for action in the short-term (ie within three months). The remaining 36
areas –which include issues such as patients failing to attend appointments –are not
analysed in this report but they will form the basis of the team’s future work.
Other roles
In addition to patient care, GPs also fulfil another important role: Independent
contractors paid to provide certain statutory certificates necessary for patients to obtain
BENEFIT CHANGES ON & AROUND APRIL 2001
35
benefits on grounds of illness or disability. As independent contractors, GPs are
entitled to undertake work in a private capacity as well as for the National Health Service
(NHS).
Patient care v certification/verification duties
It is this duality of GP function that is a principal cause of some of the red tape and
bureaucracy faced by GPs. If it is believed that the GP ’s sole role should be the clinical
assessment and treatment of patients, then arguably GPs should not be expected to
undertake any activities such as certification or verification of a patient ’s condition.
However in certain circumstances, for example where an individual ’s medical
condition affords a right to particular government support and services, the citizen
clearly benefits most from a GP service that diagnoses, treats and provides verification
and details of that condition to the relevant authorities. This is a fine balance to maintain,
particularly as it could be argued that any approach to a GP about one of their patients is
a clinical enquiry almost by definition. Unfortunately, over time citizens, businesses
and public sector bodies have placed increased certification and verification
demands on GPs. The culture that has evolved is one in which GPs are approached
almost as a matter of course because they are seen as an accessible, cost-effective and
reputable source of information. This has created an imbalance where inappropriate
paperwork (i.e. requests for certificates and verification unrelated directly to the clinical
treatment of a patient) is diverting and distracting GPs from providing a high quality and
responsive service to those in need of treatment.
There now exists a culture and mistaken belief that GPs are a legitimate source of all
patient-related information and should be consulted first in all cases. This must be
remedied if the potential to reduce paperwork offered by the actions set out in this report
is to be optimised.
Getting appropriate advice from GPs without imposing a burden. Even where a
certification demand or request for information is justified, burdens on GPs can arise if it
is requested in such a way that meets the needs of those requesting the information but
requires a GP to provide more than purely clinical facts. For example, a factual
report is sometimes requested from a GP when the Benefits Agency is unable to
make a decision on the basis of the information provided by the applicant to
support a claim for DLA/AA.
However, at present the factual report in the main asks GPs to provide subjective
opinions rather than clinical information. As such it is a burden, not least because
it poses questions that anyone close to the person is probably better placed to
answer than a GP. Similarly, some information requests are timed and arranged for the
convenience of a Government Department or Agency rather than the GP, which results
in unnecessary additional appointments or visits to a surgery. For example, GPs and
midwives are unable to complete the maternity certificate MATB1 any earlier than 14
weeks before the estimated week of confinement, which means that they are often
issued outside of scheduled appointments.
BENEFIT CHANGES ON & AROUND APRIL 2001
36
Patient advocacy v certification/verification
Concerns about possible fraudulent claims –whether for particular services, welfare
benefits or time off work –is one of the reasons why individuals are asked to obtain
verification from their GPs or verification is sought directly. However, the GP role of
patient advocate has important implications for those seeking verification of a claimed
illness or disability. GPs are not independent, objective observers. They have a
relationship with their patients which leads them to give their patients the benefit
of the doubt in most circumstances, ie they believe what the patient says unless
they have good clinical reasons not to do so. (This justifies tribunals/Decision
Makers who may prefer BAMS report. And where does this attitude leave the
claimant's evidence?) Thus organisations may not be achieving the objective they seek
by requiring GP verification, and may be better served looking elsewhere for advice
and reassurance (occupational health specialists, for example). (this is good if it
means that tribunals and Decision Makers give equal or 'fair' value to the 'non GP'
evidence. But faced with the BAMS (DSS doctor) report, the claimant may have
some difficulty)
Overlooking short-term improvements while progressing long-term
initiatives
The Department of Health is planning to reduce the number of repeat prescriptions
issued by GPs: a “medicines management collaborative ” to be rolled out nationally by
2004; additional support from other staff, particularly pharmacists, partly through the
“medicines management ”programme, partly through the extension of prescribing rights
to nurses and others; and repeat dispensing arrangements (eg the GP prescribes for a
three or six month period but the patient collects the medicines monthly) nation-wide by
2004,with many people benefiting as early as 2002.
CHAPTER 4: REDUCING THE BURDENS
Publicising and emphasising alternative sources of advice
Steps have also been taken to emphasise that GPs are rarely the only source of advice,
and that others are often better placed to provide the information sought.
Empowering others to provide the service or information required
In certain instances there are statutory restrictions or established procedures in place
that prevent health professionals other than GPs providing the certification or information
required, even where others are equally well-placed. We will look to remove those
restrictions where appropriate.
BENEFIT CHANGES ON & AROUND APRIL 2001
37
CHAPTER 5: WHAT YOU CAN DO TO HELP
Remember, these are extracts from the report.
The reductions in GP paperwork facilitated during this project will be neutralised if public
sector organisations, the general public and private sector organisations continue to
make these demands of GPs...
Public sector organisations, including Government Departments




Do not automatically seek information from a GP. Find out what relevant
information the person or other government departments and agencies already
possess, such as entitlement to certain benefits. Contact the Cabinet Office
Public Sector Team (see back of this report for details) if data sharing appears to be
a problem.
Ask yourself whether a GP is the only, or indeed most appropriate, person to provide
the information you are seeking. Use other professionals or persons that are likely to
be in regular contact with the person or better placed give you precisely what you
want.
Consider the use of occupational health specialists if necessary –they are
trained to advise on the effects that a medical condition will have on a person ’s
ability to undertake particular tasks.
If you feel that information from a GP is essential, then ensure that you request
factual clinical information only, not opinions about the effects of a condition.
(The problem here is that it's only looking at it from the GP paperwork view. Not at
the situation where a claimant is faced with a BAMS (DSS doctor) report)
General Practitioners


If a patient or someone else asks you to do something that you think is unrelated to
clinical diagnosis or treatment then contact those responsible for the request and let
them know.
Ensure that your practice staff ask why an appointment, letter, verification or
certificate is being requested, and encourage them to refer the person or
organisation to a more appropriate information source where possible.
BENEFIT CHANGES ON & AROUND APRIL 2001
38
CARERS
Most of these changes will be beneficial, as the Government has aimed £191 million at
carers. It is estimated that over 300,000 people will benefit from these planned changes.
9TH APRIL 2001 CHANGES
INVALID CARE ALLOWANCE CHANGES (ICA)
New rules will allow a carer to earn £72 nett a week and still claim Invalid Care
Allowance (as long as all the other qualifying conditions are satisfied) The pre-April limit
was £50.
ICA rules explained:
Invalid Care Allowance is the only benefit aimed specifically at carers. However, there
are certain conditions of entitlement that must be satisfied before a carer can receive it.
The carer must: 1. Be aged 16 or over and under 65 and
2. Not be gainfully employed or in full-time education and
3. Be caring for a person receiving either the middle or higher rate of Disability
Living component or Attendance Allowance or constant attendance allowance
(Industrial or War Disablement) and
4. Be providing care that is regular and substantial and
5. Satisfy the residence conditions and
6. Not be subject to immigration control.
CARERS PREMIUM CHANGES
For carers claiming means-tested benefits i.e. Income Support, Housing Benefit, Council
Tax Benefit, Jobseekers Allowance (means-tested) there will be an increase of over £10
per week due to an increase in the ‘carers premium’. This will take this premium from
£14.15 to £24.40 a week from April.
Premiums and applicable amounts explained
Premiums are extra rates included in a claimants ‘applicable amount’. The applicable
amount is a set amount for different needs that are added together to give the total
amount that the claimant (and family) needs to live on. An applicable amount consists of
personal allowances plus premiums plus some mortgage costs.
There are eight different premiums. Each one has specific qualifying conditions.
BENEFIT CHANGES ON & AROUND APRIL 2001
39
The carers premium can be awarded in addition to any of the other premiums. A carer
will qualify for this premium if s/he or partner is paid ICA or is entitled to it but it is not
paid because of receipt of another benefit e.g. Incapacity Benefit.
EARNINGS DISREGARD
Those carers who are working and are entitled to the Carers premium can get the first
£20 of earnings disregarded as income. This is an increase from £15. This effects
those people on Income Support, Job Seekers Allowance (means-tested), Housing
Benefit and Council Tax Benefit.
Explanation
For those people claiming means-tested benefits who are working, are allowed a set
disregard from their earnings. The amount of disregard depends on the claimant or
partners circumstances.
2002 AND BEYOND CHANGES
Other changes have been proposed but no date has been announced yet. These
include: -
65 AGE LIMIT TO GO!
This will benefit over 20,000 carers. Even if you can’t actually receive ICA because you
already get another ‘overlapping benefit’ – such as Retirement Pension – you still will be
able to attract the “carers premium” (see carers premium explanation above). This is
because so long as you satisfy the rules and you will have an “underlying entitlement” to
it.
AFTER THE DEATH OF THE PERSON BEING CARED FOR
ICA payments will continue for 8 weeks.
BENEFIT CHANGES ON & AROUND APRIL 2001
40
THE BEREAVED
From the 9th April, Widow’s benefits are to be replaced by a new scheme of benefits
available to both men and women. The new benefits will be payable to people whose
spouses die on or after April 9th. The changes will enable about 20,000 men to claim for
the first time.
Other changes to means-tested benefits will help bereaved claimants on low incomes.
BEREAVEMENT BENEFITS
WHO CAN CLAIM?
It is important to note that in order to claim any of the old or new bereavement benefits, a
claimant must be married to the deceased person.
Bereavement Benefits cannot be claimed if the claimant: Is divorced from late wife/husband; or
Remarries; or
Is living with someone else as husband and wife without being legally married;
Is in prison or being held in custody.
or
TAX-FREE LUMP SUM OF £2000
Bereavement Payment will replace Widow’s Payment with a tax-free lump sum of £2000.
To qualify, the following conditions must be satisfied: 1. The late spouse must satisfy the NI contribution conditions (see below) or his/her
death was caused by their job; and
2. S/he was not entitled to Retirement Pension when s/he died; or
3. The claimant is under pension age when their spouse died.
WIDOWED PARENT’S ALLOWANCE
Widowed Parent’s Allowance will replace Widowed Mother’s Allowance
It is a taxable weekly benefit and the amount paid consists of a basic allowance for the
claimant, plus an allowance for each dependant child and any additional pension
(SERPS)
To qualify,
1. The claimant’s late spouse must meet the NI contribution conditions (see below) or
his/her death was caused by their job; and
BENEFIT CHANGES ON & AROUND APRIL 2001
41
2. The claimant has a child who s/he gets Child Benefit for, or if the claimant is a
woman, is expecting the deceased’s baby, and
3. The claimant is under pension age when spouse died.
Widowers whose wives died before 9th April 2001, are under 65 on 9.4.01 and who have
not remarried may be able to claim if they satisfy the above conditions – seek advice.
BEREAVEMENT ALLOWANCE
Bereavement Allowance will be paid to claimants without dependant children, but only
for a period of a year. This will replace Widow’s Pension
It is a taxable weekly benefit paid for 52 weeks after a husband/wife dies. The amount
paid is age related. If the claimant is aged 55 or over when spouse dies, s/he will get the
full rate of Bereavement Allowance. If s/he is aged between 45 and 54, s/he will only get
part of the full rate. SERPS is not payable in addition to this amount.
To qualify,
1. The claimant is aged 45 or over but under pensionable age when his/her spouse
died or when s/he stopped getting Widowed Parents Allowance; and
2. The claimants late spouse must meet the NI contributions (see below), or his/her
death was caused by their job; and
3. The claimant does not get Widowed Parent’s Allowance.
Entitlement will continue until claimant reaches pensionable age or 52 week period
expires.
NI CONTRIBUTION CONDITIONS FOR BEREAVEMENT BENEFITS
NI contribution conditions will stay the same as for Widow’s Benefits
The following is a brief outline – seek advice for more details.
Bereavement Payment - The deceased spouse must have paid, in any one tax year
before his/her death, a certain level of NI contributions (Class 1,2 or 3). The NI
contributions must have produced an earnings factor of at least 25 times that years
lower earnings limit. Lower earnings limits change from year to year.
Widowed Parents and Bereavement Allowances – There are two conditions for these
benefits.
First condition – The late spouse must have paid in any one tax year, NI contributions
with an earnings factor of 52 times that years lower earnings limit.
Second condition – The late spouse must have either paid or been credited with NI
contributions with an earnings factor of at least 52 times that year’s lower earnings limit
for a specific number of years. The number of years needed to satisfy this condition
depends on the length of the deceased’s working life.
BENEFIT CHANGES ON & AROUND APRIL 2001
42
TRANSITIONAL RULES
Transitional rules will apply to those already in receipt of Widow’s Benefit’s prior to these
Those already claiming Widow’s pension or Widowed Mother’s Allowance will carry on
getting it as long as they meets the existing entitlement conditions.
Those claiming Widowed Mother’s Allowance will still be able to move onto the
appropriate rate of Widow’s Pension (if aged over 45) when their youngest child is aged
16, or 19 if still in full-time education.
MEANS-TESTED BENEFITS CHANGES
INCOME SUPPORT
A new category of person will be entitled to claim Income Support (IS) and excused from
signing on as unemployed.
To qualify the claimant must: 1. Be aged between 55 and 60 as at April 2001 and
2. Have lost his/her spouse in the period from 9th April 2001 to April 2006
3. Be claiming benefit as a single person.
and
These conditions enable bereaved spouses to claim IS in the five years leading up to
age 60. When s/he reaches that age s/he may be able to continue the claim by reason of
age alone.
BEREAVEMENT PREMIUM
A new temporary premium i.e. it will be phased out on 10.4.2006, is to be introduced to
Income Support (IS), Job Seekers Allowance -means-tested (JSAM), Housing Benefit
(HB) and Council Tax Benefit (CTB). This premium is payable on the exhaustion of a
years entitlement to Bereavement Allowance. The amount of the new premium is
£19.45.
To qualify, the claimant must: 1.
2.
3.
4.
Be between the ages of 55 and 60 as at 9 April 2001 and
Have lost his/her spouse on or after 9 April 2001 and
S/he must be claiming benefit as a single person and
Claim IS/JSAM/HB/CTB within 8 weeks of Bereavement Allowance stopping (if not
already receiving these benefits).
For IS and JSAM, the premium will not be included if the claimant stops claiming benefit
or ceases to be single.
BENEFIT CHANGES ON & AROUND APRIL 2001
43
The Bereavement Premium cannot be paid in addition to the Disability Premium or any
of the Pensioner Premium, so they will be paid instead since they are payable at a
higher rate than the Bereavement Premium.
BENEFITS DISREGARDS
Where a claimant receives either Widowed Mothers Allowance or Widowed Parents
Allowance, there is a partial disregard of these payments when calculating income for
the means-tested benefits.
For IS and JSAM it will be £10.
For HB, CTB, Working Families Tax Credit and Disabled Persons Tax Credit it will be
£15.
BENEFIT CHANGES ON & AROUND APRIL 2001
44
UNEMPLOYED/EMPLOYED
JOB SEEKERS ALLOWANCE (MEANS TESTED) – NEW JOINT CLAIM
RULES
New regulations, in force from 19 March 2001, mean that certain couples - described as
"joint claim couples" - will only be entitled to means-tested jobseeker's allowance if they
make a claim for it jointly and both members comply with the conditions for entitlement.
Note – the new rules do not impact on entitlement to NI based JSA.
The new rules define "joint claim couples" as those where –
 at least one of the couple is aged 18 or over and born after 19 March 1976 i.e. under
25 and
 neither has a dependant child
The above age limits will be changed to 45yrs and under in 2002.
Unless exempt or an exception (see below), a joint claim couple will be required to  make a joint claim for JSA; and
 both be available for and actively seeking work; and
) labour market
 both enter into a jobseeker’s agreement and
) conditions
 pass the basic conditions of eligibility and
 no-one in the family is entitled to Income Support.
The basic rule is that should one member of a couple fail to meet the above conditions,
benefit will be paid to the other as if they were a single claimant (although this condition
is relaxed for certain prescribed categories of persons). However see section on
Sanctions.
In addition, provision is made for cases falling into prescribed exceptions for one
member of the couple to claim for the other as in a standard JSA claim. 26
Exempt categories
Couples are exempt from the joint claim rules if one of them is:
Studying full-time
 aged 16 or over but under 19 and is receiving full-time education

is a full-time student;

other similar rules
26
Jobseeker's Allowance (Joint Claims) Regulations 2000 (SI No.1978), and to the Social
Security Amendment (Joint Claims) Regulations 2001 (SI.No.518) that were laid before
Parliament on 26 February 2001.
BENEFIT CHANGES ON & AROUND APRIL 2001
45
A carer
1. the person being cared for is in receipt of attendance allowance or the care
component of disability living allowance at the highest or middle rate prescribed in
accordance with section 72(3) of the Benefits Act; or
2. the person being cared for has claimed AA/DLA but the claim has not yet been
decided(up to 26 weeks from the date of claim only); or
3. gets ICA.
Incapable of work
Accepted – or treated as - incapable of work by the DSS (i.e. satisfies ‘personal
capabilities test), or
Gets SSP
Living in residential care homes, nursing homes or residential accommodation
A disabled worker
Due to a physical or mental disablement his/her earnings or hours of work are reduced
to 75% or less – compared with someone without that disability.
A disabled student
Someone who would qualify for a disability premium; or
Has recently been incapable of work.
Blind
Registered blind
Pregnant
If the woman is incapable of working due to pregnancy.
People aged 60 or over.
A refugee
A refugee who is attending a course of more that 15 hours per week to learn English and
has started this course before being in Great Britain for 12 months or longer.
A young person in training
Anyone on a training course provided by Training and Enterprise Council aged 18-24.
Note: -this is not an exhaustive list – seek advice.
People falling into the above groups may be able to claim Income Support instead of
JSA.
BENEFIT CHANGES ON & AROUND APRIL 2001
46
Exceptions
Couples may not be required to claim jointly. In the following circumstances, one
member claims for the other as in a standard claim.
These are couples where one member is:
Working over 16 hours but less than 24 a week or
Getting SSP and before becoming incapable of work was working 16 hours or more a
week or
Getting maternity allowance or SMP, or pregnant and within 11 weeks before the
expected week of confinement or
Not habitually resident in the UK, Ireland, Channel Islands or Isle of Man
Note: - this is not an exhaustive list.
Sanctions, hardship and reductions in benefits
If a joint-claim couple fail to meet the labour market conditions e.g. being available for
work then one or both can be subject to a sanction.
If one couple member is sanctioned then the non-sanctioned member may receive a
single claimant rate of benefit.
If both are sanctioned then no JSA-M is payable unless the couple can receive a
‘hardship payment’. However to qualify for a hardship payment, a joint-claim couple
have to be in a ‘vulnerable group’. Couples have to be in a ‘vulnerable group’ e.g. one of
couple is pregnant.
A hardship payment is a reduced amount of JSA-M.
Seek advice for further details.
WELFARE TO WORK
From 9th April, there are a number of changes designed to encourage claimants into
work.
£100 Job Grant
This will replace Jobfinders Grant and Jobmatch payments. It is payable to claimants
who satisfy the following criteria,
Must be aged 25 or over on day starting work and
Must have started working or increased hours to 16 or more per week. (Can be selfemployed or on certain training schemes where a wage is received e.g. New Deal) and
The work must last for at least 5 weeks and
Must have been in receipt of a qualifying benefit for as least 52 weeks (without
interruption) prior to taking up work.
Qualifying benefits are :-Income Support, JSA (contribution based and means-tested),
Incapacity Benefit, Severe Disablement Allowance.
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Jobseekers will not be eligible if:received a Job Grant in previous 52 weeks or
lone parent who is eligible for Lone Parent Run-On or
only receiving credits of N.I. Contributions or
partner has moved into full time work.
Payment should be made automatically.
Help with mortgage costs - 4 week run on
Claimants who are owner occupiers will be entitled to help with mortgage interest
payments for 4 weeks following entry into full time work.
To qualify,
The claimant must have been entitled to either IS or JSA-m must for at least 26 weeks
and
The work needs to be expected to last for at least 5 weeks.
The claimant will not be expected to submit a claim for this extra benefit and the amount
of benefit received should be the same as received whilst on benefit.
Lone parents entitled to benefit under the 2 week lone parent ‘run-on’ will only be
entitled to an additional 2 weeks under the new rules.
Housing Benefit (HB) and Council Tax Benefit (CTB) 4 week run on
These Extended Payments will also be changed under new rules. Previously only certain
claimants could receive this payment, now anyone who satisfies the following conditions
can claim.
A claimant must have been in receipt of IS or JSA-m for at least 26 weeks and
S/he stops receiving the above benefits due to starting work and
The work must last at least 5 weeks.
HB/CTB will continue to be paid for 4 weeks and no new claim is needed. However the
benefit section needs to be informed.
Improving existing linking rules for mortgage interest
People who return to Income Support/JSA-m will find it easier to re-qualify for help with
mortgage costs. This is due to an introduction of a 52 week linking period. If a person
takes up a job/training but finds that it doesn’t work out then s/he can claim help with full
mortgage costs without having to wait for 39 weeks. However, s/he must reclaim within a
year after coming off Income Support/JSA-m.
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TAX CREDITS
There are a number of changes to Working Families Tax Credit (WFTC) and Disabled
Persons Tax Credit (DPTC).
From 4th April


The tax credit award will be increased as soon as there is a new baby. The baby can be
born, legally adopted or parental order has been obtained for a surrogate child. Under
the current rules, an increase will not be made until the current award ends.
Mothers will be able to apply for WFTC when they are on maternity leave rather than
wait until they return to work. To qualify, mothers must have worked at least 16 hours
prior to maternity leave and have received statutory maternity pay (SMP) or maternity
allowance (MA). Claims can be made whilst receiving SMP or MA however it is worth
bearing in mind that whilst these benefits are ignored as income, occupational maternity
pay is not and a person will receive a lower award of WFTC.
From 9th April
£15 income disregard of Widowed Mothers Allowance and Widowed Parents Allowance.
From 10th April
New enhanced disability tax credits will be included in the tax credit assessment. This is
an extra amount of £16 per week for couples and lone parents and for single people
claiming DPTC it will be £11.05.
This tax credit has the same qualifying criteria as the new enhanced disability premium.
To get it there has to be someone under 60 in the claimants family who gets Disability
Living Allowance (DLA) care component at the highest rate.
Children who qualify will receive the new credit at £41.05 per week as this will include
the Disabled Child tax credit. This is payable for each qualifying child. If an adult in the
family also gets higher DLA care, the enhanced disability credit is also payable.
From June
The basic credit of WFTC and DPTC will increase by £5 per week. This rise is in
addition to the April increase.
The childcare tax credit will increase from £100 to £135 a week for childcare costs for
one child and from £150 to £200 a week for two or more children.
NEW DEAL
Lone Parents
From 30th April there will be a new premium payable to lone parents. A £15 Training
Premium is a payment additional to Income Support, paid direct to the client for
undertaking an ‘approved activity’ e.g. Job Search 2 hours or more per week. This
premium can be paid for a twelve month period.
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It is payable to participants who are in receipt of IS and does not affect their entitlement
to Housing or Council Tax Benefit.
Also available from 30th April is extra help for those taking part in New Deal for Lone
Parents. Childcare Subsidy is available to participants who undertake part-time work of
up to 15hours and 59 minutes per week. This has to be agreed with an Advisor prior to
starting part-time work. It is payable for a twelve month period.
Registered childcare has to be either:provided by carers registered with Local Authorities, eg registered childminders or
nurseries; or
run on school premises out of school hours club by an LA; or
provided in schools or establishments exempted from registration under the Children's
Act 1989 or operated on Crown property.
The subsidy is £50 for one child and £75 for two or more children.
Payment cannot be authorised for friends or family members unless they are registered.
It will be paid direct to the childcarer.
Compulsory interviews for all lone parents making new or repeat claims to Income
Support will be brought in from 30th April 2001. This will only effect those whose
youngest child is aged 13 or over. Over the next few years this scheme will be widened
to cover those with younger children.
Disabled
From July 2001 the New Deal for Disabled pilots will be extended nationally. It will also
start to introduce a voluntary gateway to those moving onto incapacity benefits as well
as ensuring that a claimant will have access to a ‘job broker’. Job brokers will provide
practical assistance to help disabled people find work. This can include practical
assistance such as working out entitlement to financial assistance for example, Disabled
Persons Tax Credit.
Partners
From April 2001 the New Deal for Partners will be extended to all partners of sick and
disabled claimants. This is a voluntary scheme to help partners take up work or training
opportunities by being able to consult with an Advisor.
MERGER OF BENEFITS AND JOB AGENCIES
From October 2001 it is planned to merge the Benefits Agency with Employment
Services to form a new Working Age Agency. This agency will provide a single
gateway to job hunting and welfare support.
It is thought that Pensions will be dealt with by a separate organisation.
The Working Age Agency will be piloted at 50 locations before going nationally.
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