Bedroom tax

What is it?

This affects social tenants of working age.

From April 2013, for working age people who rent their home from a local authority, a housing association or other registered social landlord, will be reduced by a fixed percentage if they have more bedrooms than they need for the size of their family.

One bedroom is allowed for: . A single person; or a couple. . A disabled claimant or their partner’s non resident overnight carer. . Two children of the same sex, under age 16. . Two children, under age 10. . A severely disabled child who is unable to share a bedroom. . Foster children; or a room set aside for foster children. . Any other child. . Armed Forces personnel who usually live with parents but are deployed on operations and intend to return to the family home. There is no minimum size that is used to determine whether a room can be classed as a bedroom or not. If you do not agree with the total number of bedrooms in your property please speak to your landlord.

Does it affect me?

This does not apply to pensioners. You can check you will reach qualifying pension age using the website below or follow the link from the Financial Advice Week information www.gov.uk/calculate-state-pension/y Claimants who work full-time on the minimum wage are not exempt.

The following are exempt from the

 Shared ownership – where a tenant part owns the property under a shared ownership lease. They may have a mortgage on their part of the property and rent the rest.

 People who have reached the qualifying age for state .

 Rent liabilities for mooring charges for houseboats and site charges for caravans.

 A person placed in temporary accommodation by the local authority because they are homeless, or to prevent homelessness.

 People in supported ‘exempt accommodation’, where care and support is provided by, or on behalf of, the landlord. If you have a lodger:-

From April 2013, if you have a lodger they will be included as part of your household when calculating how many bedrooms you need. The money they pay you is used as income when working out your housing benefit.

But, from October 2013, under , any bedrooms occupied by a lodger will be treated as spare bedrooms and the bedroom tax will apply. However, the money they pay you will not be used when working out entitlement to Universal Credit.

For students:-

The bedroom tax will apply, unless the student is away for less than 52 weeks and intends to return home

People in the Armed Forces who are deployed on operations but usually live with parents and intend to return to the family home will be treated as continuing to live at home. This means the bedroom tax will not be applied to the room they normally occupy. In addition, the person claiming housing benefit will not be subject to a non- dependant deduction while the person in the Armed Forces is away, but there will be a deduction when they return home. For foster families:-

Following an announcement by on 12/03/13, people who are approved foster carers will be allowed an additional bedroom, whether or not a child has been placed with them or they are between placements, so long as they have fostered a child, or become an approved foster carer in the last 12 months. For equipment needed for a disability:-

A bedroom that is used to store, or has been adapted to provide disability related equipment, is still counted as a spare bedroom. We may be able to help if your housing benefit is reduced because of the bedroom tax. Extra funding has been made available to the discretionary housing payment (DHP) fund to help people affected by the reform changes. Contact us for more information about DHPs and how to apply. What will it mean for me?

If you have: . One spare bedroom, you could lose 14%. . Two or more spare bedrooms, you could lose 25%.

Example 1:

A single claimant renting a 2 bedroom property for £75 per week. Eligible rent to work out housing benefit is £75 less 14% (£10.50) = £64.50.

Example 2:

Couple with one child, renting a 4 bedroom property for £120 per week. Eligible rent to work out housing benefit is £120 less 25% (£30) = £90.00.

Example 3:

Two working age tenants share a 3 bedroom property, and pay £100 per week rent. Eligible rent to work out housing benefit is £100 less 14% (£14) = £86. Divide by 2 = £43 per week eligible rent for each tenant.

Example 4:

A pension age tenant and a working age tenant rent a 3 bedroom property for £100 per week. Eligible rent to work out housing benefit is £100 less 14% (£14) = £86. Divide by 2 = £43 per week eligible rent for the working age tenant only. As the pensioner is exempt from the bedroom tax their eligible rent is £50 per week.

Note: The amounts above are used at the start of the housing benefit calculation, which also takes into account a person’s income and circumstances. Who to contact

Contact your landlord

RSL Telephone KHT 0151 290 7000 Villages 0151 480 1313 Riverside 0845 111 0000 Your Housing 0161 248 2300 LHT 01928 796 000 Plus Dane 0800 169 2988 Anchor 0800 023 6956 Regenda 0344 736 0066 Muir Housing 0300 123 1222 Symphony 0345 602 1120 Cosmopolitan 0151 224 0201

Council Tax Reduction Scheme

What is it?

From 1 April 2013, the national Council Tax Benefit scheme will be abolished and will be replaced by local Council Tax Reduction Schemes. Every local authority has had to develop its own local scheme but with significantly reduced funding. The changes only affect people of working age.

Does it affect me?

Pensioners are not affected by this change but it will mean that many working-age households will need to pay some council tax for the first time.

The Council Tax Reduction Scheme replaces Council Tax Benefit for everyone, but only working-age claimants will see a reduction in the amount of support that they will get towards their Council Tax.

What will it mean for me?

For working age customers only:

 Everyone must pay at least the first 20% of their council tax liability. On average, for a Band A property, this will be around £3.75 per week

 Claims will only be backdated for a maximum of 12 months

 Second adult rebate will be abolished

 Flat rate non-dependant deductions will be applied (except where the claimant or partner is receiving Attendance Allowance, or the care component of Disability Living Allowance, or the daily living component of Personal Independence Payment) o £2 – if the non dependant is not working. o £5 – if the non dependant is working 16 hours or more. o Nil – if the non dependant is a pensioner receiving guarantee credit or savings credit. How much non dependant deduction is applied depends on whether the claimant is working age or pension age – not whether the non-dependant is working age or pension age. A non-dependant is someone who lives in your home but who is not financially dependent on you. For example, a friend or a grown up son or daughter)

If you:

 Currently receive Council Tax Benefit; you will automatically be transferred on to the Council Tax Reduction Scheme from 01/04/13. You do not need to make a separate claim.

 Have not claimed Council Tax Benefit before 01/04/13, you will need to make a claim for Council Tax Reduction. You will need to fill in a detailed application form.

Make a telephone claim to the Department for Works and Pensions for , Job Seekers Allowance, Employment and Support Allowance or Pension Credit; you will only need to fill in a single sheet application form. This is because the Department for Works and Pensions will verify your claim details and they are allowed by law to share this with the Local Authority’s Benefits Service, so you don’t need to provide the information twice.

Who to contact

Call the Council’s Contact Centre on (0151) 443 4042

Personal Independence Payment

What is it?

From 8 April 2013, Disability Living Allowance (DLA) will be replaced by Personal Independence Payment (PIP) for working age people; even if the person has previously been given an indefinite or lifetime award. PIP looks at how a person’s ability to carry out daily living and mobility activities are affected by their condition, or disability, and focuses on the sensory, mental health, intellectual, cognitive and development impairments; and their ability to live independently and participate in society. It does not look at capability for work.

A wider scope of evidence is used for PIP, which includes evidence from the people who provide support.

DLA looks at the health condition, or disability, and focuses on the physical disability.

Does it affect me?

Children up to 16 years of age, and people aged 65 and over will carry on getting Disability Living Allowance, as long as they remain eligible. People receiving Attendance Allowance will not be affected by the introduction of PIP. To qualify for PIP a person must:  Be habitually resident in the UK (decided by DWP).  Have had the disability, or health condition, for 3 months prior to the claim; and  The condition is expected to last for a further 9 months.

People who are terminally ill will be fast-tracked and won’t have to satisfy the qualifying period of having the disability or health condition for 3 months before the claim; or the prospective test where the condition is expected to last for a further 9 months.

People already on DLA don’t have to meet the qualifying period, but do need to meet the prospective test. There will be no gaps between DLA and PIP, as long as everything is provided on time.

PIP is only paid for up to 4 weeks for temporary absence abroad; but there will be provisions for up to 26 weeks if the person has gone abroad for specific medical treatment.

What will it mean for me?

It is planned there will be shorter awards for up to 2 years, longer awards for between 5-10 years and indefinite awards, subject to review. In-claim reviews will take place on the likelihood of changes occurring.

The intention is for PIP to passport to other benefits, e.g. blue badge, carers’ allowance, motability schemes and public transport concessions, wherever possible. Who to contact

For more information go to http://www.dwp.gov.uk/policy/disability/personal- independence-payment/pip-faqs-and-myth-buster/faqs/

There is a PIP checker on the DWP website, go to https://www.gov.uk/pip-checker

Benefit Cap

What is it?

From April 2013, working age people on certain benefits will receive less because their benefit will be capped.

Initially, this will only ‘go live’ in 4 London Boroughs with a national roll out expected to start in July 2013 and be completed by September 2013.

Residents in Knowsley won’t be affected until the roll-out starts between July and September.

Does it affect me?

The cap applies to combined income for: . Housing benefit. . Income support. . Job seekers allowance. . and employment and support allowance – work related only. . and child . . Other benefits: o Severe disablement allowance. o Carer’s allowance. o Maternity allowance. o Guardian’s allowance. o Bereavement allowance. o Widow’s pension. o Widowed parent’s allowance. o Widowed mother’s allowance.

Use the on-line calculator www.direct.gov.uk/benefitcap to see how the cap affects individuals.

The cap does not apply to: . One off payments, e.g. social fund loans, clothing grants. . Council tax benefit and its local replacement. . Free school meals and child care costs. . War widow’s allowance or war widower’s allowance. . Disability living allowance, personal independence payment, attendance allowance or constant attendance allowance. . Employment and support allowance - support component. . Industrial injuries benefits. . People who find work and claim .

You won’t be affected by the if you qualify for working tax credit (whether or not you claim it), or if you get any of the following benefits: . Disability Living Allowance. . Personal Independence Payment (from April 2013). . Attendance Allowance. . Industrial Injuries Benefits (and equivalent payments as part of a war disablement pension or the Armed Forces Compensation Scheme). . Employment and Support Allowance, if you get the support component. . War Widow’s or War Widower’s Pension.

If a person works enough hours to qualify for working tax credit, but their earnings means they are not entitled, they are exempt from the benefit cap.

But if they don’t work enough hours to qualify for working tax credit, the benefit cap will apply.

If a person has worked for the last 12 months and loses their job through no fault of their own, there is a grace period of 39 weeks before the cap is applied.

What will it mean for me?

The benefit cap is set at £500 for couples and lone parents, or £350 for single adults.

Until universal credit is introduced, the benefit cap will be applied to housing benefit only. This means people will have to use other benefits/income to pay any shortfall in their rent.

The cap is worked out weekly but the frequency of your payments will stay the same, e.g. fortnightly or monthly in arrears.

Who to contact www.gov.uk

Use the online calculator www.gov.uk/benefitcap to see how the cap affects individuals

Universal Credit

What is it?

Universal Credit will replace a number of benefits into a single payment. It will replace:

. Income support. . Job seekers allowance – income based. . Employment and support allowance – income related. . Housing benefit. . Working tax credit. . . It will start with a ‘standard allowance’ for the claimant and partner (if they have one). Additional amounts will be added, if applicable, for children, illness or disability, housing costs and child care costs.

Does it affect me?

Universal Credit will still be a ‘means-tested’ benefit and will be worked out in a similar way to how Housing Benefit is currently calculated. You will not be eligible to claim if you have savings over £16,000. If you are working you will be allowed to keep 35p in every pound of your earnings. The assessment will look at your household income and savings as a whole. Some income, like earnings, will be taken into account. Others, like disability living allowance, will be disregarded. Similar rules will apply for savings. Disregarded income or savings will not be used in the assessment for Universal Credit.

Older people:-

Changes to Pension Credit are expected to start in October 2014 and finish by October 2017. A ‘Housing Credit’ element will be incorporated into Pension Credit to help with rent and an additional amount will be included in Guarantee Credit for dependent children.

Couples, where one is over pension age but the other is under:-

A mixed age couple, where on is working age and the other is pension age, will need to claim Universal Credit not Pension Credit. This means that they would also be subject to the benefit cap and bedroom tax.

Mixed age couples already claiming Pension Credit will be protected and will stay on Pension Credit.

Check when you will reach qualifying pension age using the website below or follow the link elsewhere in this information. www.gov.uk/calculate-state-pension/y

The table below sets out the planned timetable for change.

End Apr Live testing in pathfinder area. 2013 Oct 2013 Nationwide launch of Universal Credit. No new claims for Income Support, Job Seekers Allowance (Income– based) and Employment and Support Allowance (Income-related). Oct 2013 – Phase 1 – existing Income Support, Job Seekers Allowance (Income– Apr 2014 based) and Employment and Support Allowance (Income-related) claimants who have had a change in their circumstances, e.g. started work or had a baby, will move over to Universal Credit. Apr 2014 No new claims for tax credits. Apr 2014 – Phase 2 – Part-time workers, disabled people, carers and lone parents Dec 2015 with children under 5 still claiming one of the old benefits will be transferred onto Universal Credit. Jan 2016 – Phase 3 – people on Housing Benefit who are not working, and not Oct 2017 claiming any other means-tested benefits will move on to Universal Credit. Oct 2017 Transfer of benefit claims from the old system to Universal Credit will be complete.

What will it mean for me?

Universal Credit will be paid to you monthly. It will then be up to you to make arrangements to pay rent to your landlord. The easiest way to do this is usually by direct debit.

The housing cost element of universal credit may be reduced for non-dependants, depending on the person’s circumstances and/or the non dependant’s income. This will be known as a ‘housing cost contribution’ and cannot be taken from any other element of universal credit.

Transitional protection means that no-one transferred to Universal Credit will be worse off initially, as long as their circumstances are the same.

Who to contact? www.gov.uk

When will I reach pension age?

A pensioner is someone who has reached the qualifying age for State Pension Credit.

From April 2010 to April 2020, state pension age for women is gradually increasing from 60 to 65, to match the pension age of a man. As a result of this, the minimum age for State Pension Credit will increase based on date of birth.

The quick reference table below shows when someone will reach the qualifying age: Date of birth Date reaches Date of birth Date reaches pension age pension age 06/04/50 - 05/05/50 06/05/10 06/11/52 – 05/12/52 06/07/15 06/05/50 - 05/06/50 06/07/10 06/12/52 – 05/01/53 06/09/15 06/06/50 - 05/07/50 06/09/10 06/01/53 – 05/02/53 06/11/15 06/07/50 – 05/08/50 06/11/10 06/02/53 – 05/03/53 06/01/16 06/08/50 – 05/09/50 06/01/11 06/03/53 – 05/04/53 06/03/16 06/09/50 – 05/10/50 06/03/11 06/04/53 – 05/05/53 06/05/16 06/10/50 – 05/11/50 06/05/11 06/05/53 – 05/06/53 06/07/16 06/11/50 – 05/12/50 06/07/11 06/06/53 – 05/07/53 06/09/16 06/12/50 – 05/01/51 06/09/11 06/07/53 – 05/08/53 06/11/16 06/01/51 – 05/02/51 06/11/11 06/08/53 – 05/09/53 06/01/17 06/02/51 – 05/03/51 06/01/12 06/09/53 – 05/10/53 06/03/17 06/03/51 – 05/04/51 06/03/12 06/10/53 – 05/11/53 06/05/17 06/04/51 – 05/05/51 06/05/12 06/11/53 – 05/12/53 06/07/17 06/05/51 – 05/06/51 06/07/12 06/12/53 – 05/01/54 06/09/17 06/06/51 – 05/07/51 06/09/12 06/01/54 – 05/02/54 06/11/17 06/07/51 – 05/08/51 06/11/12 06/02/54 – 05/03/54 06/01/18 06/08/51 – 05/09/51 06/01/13 06/03/54 – 05/04/54 06/03/18 06/09/51 – 05/10/51 06/03/13 06/04/54 – 05/05/54 06/05/18 06/10/51 – 05/11/51 06/05/13 06/05/54 – 05/06/54 06/07/18 06/11/51 – 05/12/51 06/07/13 06/06/54 – 05/07/54 06/09/18 06/12/51 – 05/01/52 06/09/13 06/07/54 – 05/08/54 06/11/18 06/01/52 – 05/02/52 06/11/13 06/08/54 – 05/09/54 06/01/19 06/02/52 - 05/03/52 06/01/14 06/09/54 – 05/10/54 06/03/19 06/03/52 -05/04/52 06/03/14 06/10/54 - 05/11/54 06/05/19 06/04/52 – 05/05/52 06/05/14 06/11/54 – 05/12/54 06/07/19 06/05/52 – 05/06/52 06/07/14 06/12/54 – 05/01/55 06/09/19 06/06/52 – 05/07/52 06/09/14 06/01/55 – 05/02/55 06/11/19 06/07/52 – 05/08/52 06/11/14 06/02/55 – 05/03/55 06/01/20 06/08/52 – 05/09/52 06/01/15 06/03/55 – 05/04/55 06/03/20 06/09/52 – 05/10/52 06/03/15 06/04/55 06/04/20 06/10/52 – 05/11/52 06/05/15