Alliance Homes: Universal Credit

Who has to claim Universal Credit in the ‘non-digital’ areas?

From 1st January 2018 there will be no new claims for Universal Credit in ‘live’ (non-digital) areas.

Until 31st December 2017, you are likely to need to make a claim Universal Credit if:

Your work has ended or
You have just left school, college or university and don’t have a job that will start immediately, or
You have been claiming Employment and Support Allowance (ESA) but have been found fit for work so that your ESA award has been terminated (but if you are challenging this decision, you may not need to claim Universal Credit, contact us for further advice) or
You have had problems with your Employment and Support Allowance (ESA) which mean that your ESA award has been terminated or
You have had problems with your Jobseekers Allowance meaning that it has been terminated (not just “sanctioned”) or
You have separated from your partner / spouse or
You have stopped being a carer for a disabled person
You are a lone parent on Income Support, living in an area where families can claim Universal Credit, and your youngest child has turned 5.

In most ‘non-digital’ areas it is only single people without children who will be able to claim initially but there are some areas where couples and people with children can claim.

When will I have to claim Universal Credit?

New claims for Universal Credit can now be made throughout the UK.

But, you will only need to claim Universal Credit if a change in your circumstances means you would normally need to make a new claim for any of the benefits which are being replaced by Universal Credit. And you are not caught by what is called the ‘Severe Disability Premium Gateway’ rules (see below).

I’ve been on Employment and Support Allowance but have just been found fit for work

If your Income Related Employment and Support Allowance ends because you have been found fit for work, then unless you caught by the ‘Severe Disability Premium Gateway’ rules, are you will not be able to make to make a new claim for Income Based Jobseekers Allowance – you will probably have to claim Universal Credit instead. If you make a claim for Universal Credit and you have been getting Housing Benefit and / or Child Tax Credit, these will stop too. Even if you appeal the Employment and Support Allowance decision and you win your appeal, if you have claimed Universal Credit you will not be able to go back onto Employment and Support Allowance, but your Universal Credit award may increase and your Claimant Commitment should be amended to reflect that you are no longer claiming as a jobseeker.

If your Employment and Support Allowance ends because you are found fit for work, contact us for advice. Some people, depending on their circumstances, might be better off if they do not make a new claim for benefit while they are waiting for the first part of the challenging process (known as mandatory reconsideration) to be completed. Once they have the mandatory reconsideration decision, they can lodge an appeal. They can then request payments of their ESA to be reinstated. As long as they have not made a claim for Universal Credit, and they are not affected by the ‘repeat fit for work decision’ rules (check with us if you are not sure), their ESA can be put back into payment. And if they have provided 'fit' (sick) notes since their ESA ended, they can receive payments covering the whole period. Anyone who decides this is the better option for them should ensure their Housing Benefit claim continues by letting the Housing Benefit office know they have no income until they can get payments of their ESA claim re-started.

If you have been getting a “Severe Disability Premium” in your ESA (currently £65.85 a week) then you should not need to claim UC if your Housing Benefit hasn’t ended. So it’s important to make sure your Housing Benefit continues (on the basis of nil income). This is because you can argue that there is an “underlying” Severe Disability Premium in your Housing Benefit. You can then either claim Income Based JSA while waiting for the mandatory reconsideration decision (as above). But you need to seek advice. Go to the section on the “Severe Disability Premium Gateway” below.

I’ve moved into a different Local Authority area

Another change which would mean you need to make a claim for Universal Credit would be if you get Housing Benefit and you move to another rented house in a different local authority area. In this case you would

look at claiming Universal Credit instead of making a new claim for Housing Benefit; any Income Support / Income Related Employment and Support Allowance / Income Based Jobseekers Allowance or Tax Credits would also end.

If your Housing Benefit is being reduced due to the Benefit Cap get advice before you make a new claim for Universal Credit. The way the Benefit Cap works under Universal Credit is different and you could end up worse off.

What if my circumstances don’t change?

If you are already getting one or more of the benefits which are being replaced by Universal Credit (and you continue to be entitled to these) and you do not have a change in your circumstances that triggers a claim for Universal Credit, you may not need to claim Universal Credit until the ‘migration’ stage, sometime between 2019 and 2023.

Can I chose to claim Universal Credit?

Unless you are ‘caught’ by the Severe Disability Premium rules) you can choose to move onto Universal Credit at any time you can do so – you do not need to wait until a change in your circumstances means you have to. So you could get advice to check if you would be better off on Universal Credit – but seek advice before making any decisions!

When my area goes ‘digital’ will I have to claim Universal Credit straight away?

So, for example, if your Income Related Employment and Support Allowance ends because you have been found fit for work, you will not be able to make to make a new claim for Income Based Jobseekers Allowance – this will have to be Universal Credit instead. If you make a claim for Universal Credit and you have been getting Housing Benefit and / or Child Tax Credit, these will stop too. Even if you appeal the Employment and Support Allowance decision and you win your appeal, if you have claimed Universal Credit you will not be able to go back onto Employment and Support Allowance, but your Universal Credit award may increase and your Claimant Commitment should be amended to reflect that you are no longer claiming as a jobseeker.

If your Employment and Support Allowance ends because you are found fit for work, contact us for advice. Some people, depending on their circumstances, might be better off if they do not make a new claim for benefit while they are waiting for the first part of the challenging process (known as mandatory reconsideration) to be completed. Once they have the mandatory reconsideration decision, they can lodge an appeal. They can then request payments of their ESA to be reinstated. As long as they have not made a claim for Universal Credit, and they are not affected by the ‘repeat fit for work decision’ rules (check with us if you are not sure), their ESA can be put back into payment. And if they have provided 'fit' (sick) notes since their ESA ended, they can receive payments covering the whole period. Anyone who decides this is the better option for them should ensure their Housing Benefit claim continues by letting the Housing Benefit office know they have no income until they can get payments of their ESA claim re-started.

Another change which would mean you need to make a claim for Universal Credit would be if you get Housing Benefit and you move to another rented house in a different local authority area, which has the ‘digital’ Universal Credit service, you would have to claim Universal Credit instead of making a new claim for Housing Benefit; any Income Support / Income Related Employment and Support Allowance / Income Based Jobseekers Allowance or Tax Credits would also end.

Unlike in the ‘non-digital’ areas, there are no restrictions on who can claim Universal Credit – it does not matter what your circumstances are. The only exception to this is if you have 3 or more children.

If you have 3 or more children you will not be able to make a new claim for Universal Credit before the end of January 2019; instead, you will be told to claim Child Tax Credit and whichever of the following other benefits that would be appropriate for you instead: Housing Benefit; Income Support; Income Related Employment and Support Allowance; Income Based Jobseekers Allowance or Working Tax Credit.

If you are already getting one or more of the benefits which are being replaced by Universal Credit (and you continue to be entitled to these) and you do not have a change in your circumstances that triggers a claim for Universal Credit, you may not need to claim Universal Credit until the ‘migration’ stage, sometime between 2019 and 2022.

However, when the ‘digital’ service comes to your area, if you choose to move onto Universal Credit you can do so – you do not need to wait until a change in your circumstances means you have to. So you could get advice to check if you would be better off on Universal Credit – but seek advice before making any decisions!

What are the Severe Disability Premium Gateway rules?

These rules prevent anyone who is currently getting (or who recently got) a Severe Disability Premium* in an award of benefit, from losing that addition if they made a new claim for Universal Credit due to a change in their circumstances (as there is no exact equivalent in UC).

*The Severe Disability Premium is an extra amount included in an award of certain benefits given to claimants with a recognised need for care but no-one who is caring or can care for them.

So this 'Gateway Rule' says that anyone who is in the following situations will not be able to make a new claim for Universal Credit:

They have the Severe Disability Premium included in their Income-Related Employment and Support Allowance, Income-Based Jobseekers Allowance, Income Support or Housing Benefit,

OR

They have had in it included in a claim for one of these benefits in the past month and has continued to meet the qualifying conditions for it ever since,

AND

They still meet the qualifying conditions for it after having the change in circumstances that is triggering the need to claim extra help.

Instead, they will be able to remain on, or make a new claim for, Income-Related Employment and Support Allowance, Income-Based Jobseekers Allowance, Income Support, Tax Credits or Housing Benefit – and so will retain their Severe Disability Premium.

Who can get the Severe Disability Premium?

The Severe Disability Premium should be included when someone’s Income-Related Employment and Support Allowance, Income-Based Jobseekers Allowance, Income Support or Housing Benefit is assessed where all 3 of these situations apply:

They are getting Daily Living Personal Independence Payment, mid or high rate care component of Disability Living Allowance, Armed Forces Independence Payment, or Constant Attendance Allowance,

AND

No-one gets paid Carers Allowance or has the Carer Element included in an award of Universal Credit for looking after them,

AND

They either live alone or are treated as living alone - ie certain household members are ignored such as dependent children, other household members getting one of the benefits listed above, and lodgers.

If you are not sure whether you are getting the Severe Disability Premium included when your benefits are assessed – or whether you are entitled to it (and many people do miss out on this addition) - then contact a benefits adviser or ask us for help.

How can I prepare for Universal Credit?

To prepare for Universal Credit think about:
How you would manage to make a claim on-line – where you can go if you don’t have your own computer.
Where you can go to build up your computer skills if you’ve never been online before.
Setting up an email address – you will need to have one to be able to claim Universal Credit under the ‘full’ (digital) service.
How you will manage when the benefits that Universal Credit is replacing are paid to you as one payment on a monthly basis.
How you will manage until you have received your first monthly payment (it will probably be a longer gap between payments than you have been used to – and the first payment will be one month and 7 days after your claim).
How you will manage when you have to pay your rent to your landlord yourself.
Opening a bank or credit union account.

See the Frequently Asked Questions for more information and advice on the help you might be able to receive. If you would like to talk through some of these issues, please don’t hesitate to get in touch with us.

Changes for people who have a Limited Capability for Work

Claiming Employment and Support Allowance or Universal Credit when unfit for work?

New rules came into effect from 3^rd April 2017 that may affect you.

If you make a new claim for ESA on or after 3rd April 2017 (either Contributory or Income-Related), and you are put in the Work-Related Activity Group, you will not receive the Work Related Activity Component.

If you are claiming Universal Credit and you become sick on or after this date, similar rules mean you cannot have the Limited Capability for Work Element included in your award.

BUT it is still worth making a claim – or perhaps even challenging a previous ‘found fit’ decision.

Go to our ‘Changes for people who have a Limited Capability for Work’ page for further information and some useful tips.

Changes for 18-21 year olds

The government has announced that it is scrapping this change. However, until the rules change, it is still possible that you could be affected.

This change may affect you if you are single, aged 18-21 and claiming Universal Credit under the ‘full’ (digital) service.

If you are making a new claim for Universal Credit in a ‘full’ (digital) service area, or you are already on the Universal Credit ‘full’ (digital) service and you become liable to pay rent, then depending on your circumstances you may not be able to get any help towards your rent.

Many young people are protected from this change.

Go to the ‘Help with rent for 18-21 year olds’ page to find out if you could be affected by this change.

Two Child Limit for Child Tax Credit, Housing Benefit and Universal Credit

Having your third (or fourth, fifth plus) child?

The government has introduced a two child limit into Child Tax Credit, Housing Benefit and Universal Credit. This means that if you already have two or more children and become responsible for another child on or after 6^th April 2017, you may not see an increase in these benefits – although there are exceptions.

Go to the ‘Two Child Limit for Child Tax Credit, Housing Benefit, and Universal Credit’ page to find out how this change may affect you.