Welfare Reform Changes
There are a number of important changes to Welfare Benefits which take effect from April 2011. The attached briefing note summarises the changes from 2010 to 2013. Welfare Reform Changes
Changes to Employment and Support Allowance and Income Support
From 1 May 2012 Contributory based Employment and Support Allowance for those in the work-related activity group will cease for those who have been in receipt of the benefit for twelve months. Entitlement to alternative benefits will be determined by the circumstances of the customer and their household.
Lone parents whose youngest child is older than five will have to claim Jobseekers Allowance rather than Income Support from 21 May 2012 unless they can claim Income Support on the grounds of being a carer or student.
Changes to Tax Credits from 6 April 2012
Couples with children
Couples with children are required to work at least 24 hours per week between them, with one of the couple working at least 16 hours to be entitled to Working Tax Credits.
There is no change to the HB/CTB additional earnings disregard, you do not have to claim Working Tax Credit to be eligible for this. One of the couple must be working 16 hours or more per week. For further information please see the HMRC website at this link.
50 Plus Element
The 50 Plus element of Working Tax Credit ended on 5 April 2012. Any claimants only eligible for Working Tax Credit due to the 50 Plus element who work less than 30 hours per week, are not disabled and do not have children will no longer receive Working Tax Credit. They will no longer receive the HB/CTB additional earnings disregard.
Claimants aged between 50 and 59 who work 30 hours or more per week and are not responsible for children will continue to receive Working Tax Credit, but not the 50 Plus element. They may still be eligible for the HB/CTB additional earnings disregard.
Backdating
The period for which a tax credit claim and certain changes in circumstances can be backdated will be reduced from three months to one month.
Income Limits
The income limit for which you can claim Child Tax Credit is going to be reduced for most people. Entitlement will be determined by your circumstances. You may not be eligible for Child Tax Credit if:
- you have one child and your annual income is more than £26,000
- you have two or more children and your annual income is more than £32,000
Child Benefit - Important Information from 2 November 2009
Due to legislative changes from 2 November 2009 when we calculate your Housing Benefit and/or Council Tax Benefit we will include your Child Benefit in the calculation but this will not be counted as income.
For further information please contact any Highland Council Service Point.
Changes to Capital Thresholds for State Pension Credit Age Customers from 2 November 2009 - Important Information
Due to legislative changes from 2 November 2009 when we are calculating your entitlement to Housing Benefit and/or Council Tax Benefit we will not count your capital as income if you have a combined capital of £10,000 and under. You must still tell us about all your capital even if your capital is under £10,000.
If your combined capital is more than £10,000 we will calculate your assumed income from capital on the basis of £1.00 for every £500 (or part thereof).
For further information please contact any Highland Council Service Point.
Employment Support Allowance - Important Information
1. Are you claiming Housing and/or Council Tax Benefit?
2. Are both you and your partner claiming Employment Support Allowance?
3. Do one of you receive the Support component and the other the Work Related component of Employment Support Allowance?
If you have answered yes to all three questions please contact any Highland Council Service Point immediately as you may be losing out on Benefit entitlement.