PIP claims plummet but help is at hand

New claims for PIP have plummeted by more than half since the beginning of the coronavirus crisis, the work and pensions committee was told last week.

At the committee session, Justin Tomlinson, minister for disabled people, stated: “We have seen a significant drop in the number of new claimants. We’re not totally sure why.

“But in January 51,000 new claimants in the month. At the beginning of March it was around about 12,000 a week, that’s now down to 5,000 a week as of last week.

Mr Tomlinson also stated that although there were fewer staff now available to deal with disability benefits, new claims for PIP were actually going through more quickly, partly as a result of a switch away from face-to-face assessments and partly due to a drop in the number of claims.

He said the average length of time from the beginning to end of the process has actually improved.

If you are experiencing problems with a PIP claim or need benefits advice Granton Information Centre can help. Due to the Coronavirus restrictions the office is currently closed to the public, but GIC is still operating!

Please call Monday – Friday, 9.30am – 4pm on 0131 551 2459 or 0131 552 0458 if:

•You would like to arrange a telephone appointment to discuss money, benefits, housing or debt
•You wish to discuss an existing case
•You require a foodbank referral

All messages will be returned as long as you clearly leave a telephone number for us to reach you on.

Emails will be monitored daily – our email address is info@gic.org.uk

Over 110,000 Universal Credit claims since coronavirus outbreak

Claims for Universal Credit in Scotland have increased from an average of 20,000 per month in 2019 to over 110,000 between 1 March and 7 April, highlighting the impact the pandemic is having on people’s finances.

That’s why the Scottish Government, in partnership with the Citizens Advice network, is launching a new campaign to raise awareness of the financial support available to people.

The campaign will provide information and advice on issues including rent and mortgage payments, energy bills, council tax, and benefits people may be entitled to.

People will be able to access this advice online, by phone or by contacting their local Citizens Advice Bureau.

Cabinet Secretary for Social Security and Older People Shirley-Anne Somerville said: “This huge increase in claims for Universal Credit demonstrates just how many people across the country are struggling financially due to the coronavirus pandemic.

“These are difficult and worrying times for everyone, with many people requiring financial support for the first time and even more pressure on those who were already struggling to make ends meet.

“It is welcome that people are claiming the support that they are entitled to from the DWP, and I would encourage people to look into what additional help is available. Even if you are not entitled to Universal Credit, there could be other assistance that you can access so it is worth checking.

“That’s why we’ve been working with the Citizens Advice network in Scotland to create this central source of information – with everything from guidance on benefits, right through to what you can do if you are worried about paying your mortgage or rent.”

DWP entered into a new partnership with Citizens Advice in March last year, providing £39 million of funding to Citizens Advice and Citizens Advice Scotland to provide this service. DWP also funded Citizens Advice and Citizens Advice Scotland a further £12 million to set up delivery to ensure a smooth transition to the new delivery model. 

Citizens Advice Scotland Chief Executive Derek Mitchell said: “The Citizens Advice network in Scotland is known for always being there to help and the support we give will be more important than ever to help people avoid getting into crisis.

There may also be lots of people who have never used our services before and it’s crucial that they know our information and advice is there for them too.

“Our national network of Citizens Advice Bureaux is still operating for those who need it – if you have been financially impacted by the coronavirus outbreak your local Citizens Advice Bureau can help make sure you have access to all the income you are entitled to, as well as giving tailored advice about what’s on offer within local communities across Scotland.

“There’s increased demand for our advice on financial services, that’s why we’ve created dedicated COVID-19 content online so people get the information they need 24/7 and from the comfort of their own homes.

“We’ve also got a dedicated helpline for people who might not be able to access our services online. If you have been financially impacted by the coronavirus outbreak and require free, confidential, financial support, please visit cas.org.uk or call 0800 028 1456.

“Local Citizens Advice Bureaux are situated around the country. To find your local service, simply enter your postcode at cas.org.uk/bureaux

Universal Credit claimants can verify identity through Government Gateway

People applying for Universal Credit will now be able to use their existing Government Gateway account to confirm their identity, helping to speed up their claim, says the Department of Work and Pensions.

The move is expected to help thousands of claimants applying for the benefit and will be available to those who have used the Government Gateway in the last 12 months to access their Personal Tax Accounts, including to check their tax credits, send a personal tax return, or check their state pension.

Others applying for the benefit can continue to confirm their identity using GOV.UK Verify.

The DWP is acting to streamline processes where possible after receiving more than 1.4 million claims since 16 March 2020, as well as urgently redeploying 10,000 staff with a further 5,000 being recruited to aid efforts.

As people apply for Universal Credit, they will have the option to submit their

Government Gateway credentials which the department will use to progress their claim.

The department has already introduced a package of measures in response to COVID-19 providing urgent financial support, including increasing the standard allowance of Universal Credit and basic element of Working Tax Credit and suspending the Minimum Income Floor for the self-employed.

You can find out more about how to apply for Universal Credit here.

MPs want to hear experiences of people claiming benefits

Westminster’s Work and Pensions Committee wants to hear about how coronavirus is affecting people who rely on the benefits system as part of its new inquiry into the DWP’s response to the virus outbreak. 

The Committee is interested in finding out about the experiences of people who are having to claim benefits for the first time, the experiences of people who were already claiming benefits, and the experiences of people who need support but find they can’t claim any benefits.

The Committee has also published a letter from the Permanent Secretary at the DWP responding to several questions about the Universal Credit application process and how the Department is dealing with the unprecedented increase in applications. The letter reveals that nearly a million new claims were made between 16 March and 3 April this year.

Rt Hon Stephen Timms MP, Chair of the Work and Pensions Committee, said: “The DWP’s front line staff are making a herculean effort to deal with the unprecedented numbers of new claims for Universal Credit, and we thank them for everything they’re doing at such a difficult time.

“I know they will be focused on making sure that people who need money urgently get their payments as quickly as possible. But it is disappointing that the Permanent Secretary can’t tell us what proportion of people who’ve asked for an Advance payment have had one, or tell us anything about the delays that people are facing on DWP’s phonelines.

“So we can better understand the issues faced by people who rely on the benefits system, we’d like to hear from people about their experiences getting the support they need. We are keen to hear about any specific problems claiming benefits and also more generally about whether people are getting enough money to support themselves and their families during these immensely difficult days.”

Some of the questions the Committee is interested in are:  
  • How well is the Universal Credit system working for the unprecedented numbers of new claimants?
  • Has there been any improvement in the significant delays that new UC claimants were experiencing in the second half of March?
  • How quickly are people who ask for Advance payments of Universal Credit receiving their payments?
  • What lessons can be learned from the changes that have been made to the processes for verifying the identity of UC claimants? Are there any particular changes that should stay in place after the outbreak ends?
  • How effective have DWP’s communications with the public been during this period?
  • How do the needs of people claiming UC for the first time now differ from the needs of groups who’ve claimed UC in the past? How well is Universal Credit working for these new groups of people?
  • Are there any indications of how well the UC system will work for these claimants as they move into work in the short- to medium-term?
  • How well is the benefits system working for self-employed people who aren’t able to access the Government’s Self-employment Income Support Scheme? Is there a case for temporarily suspending the capital limits in UC during this period?
  • How easy is it for people to understand what they’re entitled to claim? For example:
  1. Is it clear enough how the benefits system interacts with other forms of Government support during this period, such as the Coronavirus Job Retention Scheme?
  2. Is it clear enough how public health guidance interacts with the benefits system?
  • How is the assessment process for Employment Support Allowance working? Have there been any difficulties with obtaining medical evidence to support claims?
  • What impact has the outbreak had on people who were waiting for a Mandatory Reconsideration of a decision, or who were going through the appeals process?
  • Have people who were already claiming benefits when the outbreak began seen any changes to the support they receive from DWP?
  • Are people who are claiming benefits receiving enough money to cover their basic living costs during this period?
  • Are there groups of people who need support but aren’t able to access it through the benefits system? What should DWP be doing to support those people?
  • Are support organisations and charities able to access the resources they need from DWP to support vulnerable people? What more could DWP be doing to facilitate that support?

GET INVOLVED

If you’re someone with personal experience of the benefits system, you might prefer to complete our short survey. The deadline is Wednesday 15 April.

If you’re responding on behalf of an organisation, or you’re an individual who wants to send us a longer written submission, you can send us your evidence here.

You don’t need to answer all of the questions below, and you can tell us anything relevant, even if it isn’t covered by these questions. The deadline for sending your views is 11am on Thursday 16 April.

Don’t miss out: claim Child Benefit by phone or post, HMRC tells new parents

Parents of new-borns will still be able to claim Child Benefit despite the outbreak of coronavirus (COVID-19), HMRC announced today.

Even though General Register Offices remain closed for now, parents can still claim Child Benefit without having to register their child’s birth first to ensure that they do not miss out.

First time parents will need to fill in Child Benefit Claim form CH2 found online and send it to the Child Benefit Office. If they haven’t registered the birth because of COVID-19, they should add a note with their claim to let us know.

If they already claim Child Benefit, they can complete the form or add their new-born’s details over the phone on 0300 200 3100. They will need their National Insurance number or Child Benefit number.

Child Benefit claims can be backdated by up to 3 months.

This announcement is timely as Child Benefit payments increased from 6 April to a weekly rate of £21.05 for the first child and £13.95 for each additional child. Child Benefit is paid into a parent’s bank account, usually every 4 weeks.

Only one person can claim Child Benefit for a child. For couples with one partner not working or paying National Insurance contributions (NICs), making the claim in their name will help protect their State Pension.

Financial Secretary to the Treasury, Jesse Norman, said: “We need people to stay at home in order to protect the NHS and save lives. Today’s change means new parents won’t miss out financially and can keep their families safe.

The government will do whatever it takes to support people and the NHS during this outbreak, and HMRC is working around the clock to help families and businesses across the UK.

Angela MacDonald, Director General for Customer Services at HMRC, said: “It’s really important that new parents remember to register for Child Benefit, even during these unprecedented times.

“The increase in Child Benefit is a boost for family budgets but there’s more to claiming than the payments. We’re encouraging people to claim so they don’t miss out on National Insurance credits that help protect their State Pension. It also helps children to get their National Insurance number automatically at 16.”

HMRC is reminding High Income Child Benefit Charge customers of the importance of claiming Child Benefit, even if they choose to opt out of receiving monetary benefits.

The tax charge applies to anyone with an income over £50,000 who claims Child Benefit or whose partner claims it. Even if you do have to pay the tax charge, you could still be better off by claiming Child Benefit – the tax is 1% of Child Benefit for each £100 of income over £50,000.

You can use the Child Benefit tax calculator to work out how much you may have to pay, or you can opt out of receiving Child Benefit payments altogether when you complete the form, so you won’t have to pay the charge but will still protect your State Pension.

If you need help or support with this, call Granton Information Centre on 0131 551 2459 or 0131 552 0458, email info@gic.org.uk

Universal credit: Emergency boost needed

The last few weeks have seen an unprecedented change in the economic situation of the UK (writes the TUC’s KATE BELL). Since the Prime Minister announced a full ‘lockdown’ on the 23rd March, economic activity in the UK has been rightly restricted in the service of protecting public health.

The TUC has clear priorities throughout this crisis. First, to ensure that public health is protected. Second, to protect workers’ jobs and livelihoods.

Following calls from the TUC and unions the government has announced welcome schemes to try to keep people in work. Protecting jobs must be the first step to protecting incomes and ensuring the country can get back on its feet when the crisis subsides.

But there is still more to do to ensure everyone who is sick gets the income support they need and support the livelihoods of those who do lose their jobs.

Our safety net has been dramatically undermined after years of underinvestment. The UK has avoided mass unemployment since the recession of the early 1990s, and the devastating unemployment of the early 1980s. Those experiences left deep scars, which we are still seeing the legacy of today. It is vital the government does everything it can to keep people in work now.

But even in the 1990s, our safety net was stronger. In 1993, the last time the unemployment rate went over 10 per cent, the basic rate of unemployment benefit was worth around a fifth of average wages. In 1984, when unemployment was over 11 per cent, the benefit was worth a quarter of the average wage. And in 1979, it was worth 30 per cent of the average wage. Today – even after the welcome recent increase by £20 a week – the basic rate of universal credit is worth around a sixth of average weekly pay (17 per cent).

UC

The UK system also compares poorly to the support provided internationally. In most European countries, unemployment benefits are related (at least in the initial period of unemployment) to previous wages to cushion income shocks, ranging from 60 per cent of previous wages in Germany to 90 per cent in Denmark.

In a new report we call for a new plan to fix the social safety net, building on our previous reports on sick paya job retention scheme, and support for the self-employed. We call on the government to urgently raise the basic level of universal credit. Restoring ‘replacement rates’ to the level seen before the long dismantling of the safety net began in the 1980s, would mean increasing the payment of universal credit to £165 a week – around 30 per cent of average wages.

But we think the government should be more ambitious to protect against this income drop. We recommend raising the basic rate of universal credit for this period to the value of 80 per cent of weekly earnings at the national living wage – or £260 a week.

In addition government should:

  • Suspend any conditionality requirements with universal credit, as well as parts of the application process. Applications for universal credit are being delayed by the need to carry out a telephone appointment with a work coach. The requirement to hold a phone interview should be suspended, in addition to any work-related conditionality within the Universal Credit system.
  • Remove the savings rules in universal credit to allow more people to access it.
  • End the five week wait by converting emergency payment loans to grants.
  • Significantly increase Child Benefit payments. Child Benefit is the simplest, quickest and most effective way to get money to households with children. The level has long been too low. This payment would also recognise the additional costs many parents will face with having children at home because schools are closed.
  • Ensure nobody loses out as a result of these changes. The benefits cap should be lifted so that these increases do not just mean a change in the composition of the benefits someone receives. As well as this, no one on legacy benefits should lose the protection of the managed transition to UC as part of this change.
  • Remove the minimum hours requirements in working tax credits. Families still claiming tax credits must work a minimum number of hours to be eligible. This rule should be removed with immediate effect.

Government has acted swiftly to protect jobs. But for those who do lose work it’s vital the safety net is strengthened – fast.

Delay to social security devolution

Social Security Secretary Shirley Anne Somerville has updated Parliament on the impact of coronavirus (COVID-19) on social security services in Scotland.

The majority of Social Security Scotland staff are now working from home to support efforts to slow the spread of Covid-19. The delivery of existing benefits continues with applications being received, processed and payments being made.

On benefits due to be introduced from this year, the Cabinet Secretary advised that, although they were on track to deliver these benefits, plans have had to change as a result of the ongoing pandemic.

The Scottish Government, DWP, local authorities and health and social care practitioners – who are all required to develop and deliver these benefits – are currently focused on the response and recovery from COVID-19.

As a result, the introduction of Child Disability Payment and the Scottish Government’s replacement for Personal Independence Payments will be delayed.

UK Ministers have agreed that they will continue to deliver disability benefits to Scottish clients over a longer transition period.

Scottish Child Payment, which was due to be introduced from this autumn, will also be delayed. The Scottish Government will focus its resources to deliver this as soon as practicably possible. The aim is to start taking applications by the end of 2020 with payments being made from 2021, subject to sufficient staff being in place.

In her statement, Ms Somerville also outlined the markedly different approach that the Scottish Government plans to take in its delivery of disability benefits. The new decision-making process for this in Scotland will mean no face-to-face assessments and decisions will be informed by the professional judgement of health and social care practitioners – not assessors.

The new process will involve the following steps:

  • Social Security Scotland will make decisions using the information provided by applicants and checking this against existing guidance in the first instance
  • where it is not possible to make a decision, applicants will be able to tell Social Security Scotland about the health and social care professionals who already support them. Social Security Scotland will then be able to contact those professionals to collect supporting information
  • when it is the only practical way of collecting the information, a minority of working age clients will be invited to a discussion with a health and social care practitioner. If such a client consultation takes place, it would be arranged to suit the client, and the majority of these consultations are expected to be conducted by phone.

Ms Somerville said: “Our priority is maintaining our front-line services and delivering the seven benefits we have in place to support low income families, carers and people facing a bereavement.

“The Scottish Government, DWP, local authorities and – importantly – our health and social care services are focused on responding to the ongoing pandemic. When we get through this, these organisations will then take time to recover.

“We have had to take this into consideration in our plans for future benefits. Our approach to disability assistance was grounded in the professional judgement of health and social care practitioners and they are rightly needed elsewhere at this time. We also need to factor in that there will likely be further impact on Scottish Government and partner organisations staffing levels due to illness or caring responsibilities.

“As such, I have had to take the difficult decision to halt the introduction of disability benefits that were due within the coming year. These will continue to be delivered by the UK Government. This is the only way to ensure people continue to get the financial support they need. It provides certainty and security of payment at a time of great anxiety.

“While I cannot make guarantees around a revised timeline for the introduction of these benefits, I can guarantee that the work will not stop. And I will provide an update to timelines as soon as I am able to do so.

“We will prioritise delivering the Scottish Child Payment and we will do everything humanly possible to deliver this payment as soon as practicably possible. This new payment will play a major part in tackling child poverty, helping those who may be facing even more hardship as a result of coronavirus, and our remaining resources will be directed at that.”

Granton Information Centre: still here for you

Due to the Coronavirus outbreak our office is currently closed to the public – but  GIC is still operating!

Call us Monday – Friday, 9.30am – 4pm on on 0131 551 2459 or 0131 552 0458 if:

•You would like to arrange a telephone appointment to discuss money, benefits, housing or debt

•You wish to discuss an existing case

•You require a foodbank referral

All messages will be returned as long as you leave a clear telephone number for us to reach you on.

Emails will be checked daily: our email address is info@gic.org.uk

Claimants asked to apply online as Jobcentres limit access

People are being urged to use online services before turning to the telephone for help with their benefit claim

With a rise in new claims, and with demand for support over the phone increasing, the Department for Work and Pensions is taking unprecedented action to make sure people can get the support they need, including moving 10,000 existing staff to focus on processing new claims.

In line with recent Government guidance and to best serve those who need support, the Work and Pensions Secretary has taken the decision to limit access to jobcentres from tomorrow, with members of the public not admitted into jobcentres unless they are directed to do so with a booked appointment.

Only the most vulnerable claimants who cannot access DWP services by other channels will be invited to attend, with the public urged to use online services.

In addition, the Secretary of State has also today announced that reviews and reassessments for disability benefits are being suspended for the next three months. The suspension will be kept under regular review and extended if necessary.

These stronger measures come in response to the changing situation and mean more staff are being deployed to process new claims and make payments, with remote support a top priority for the department.

Around 10,000 existing staff will be moved to process new claims, with 1000 already in place. In addition, the Department is expecting to recruiting 1500 extra people to aid the effort.

The changes are part of the Government’s effort to stop the spread of the virus, supporting people to stay at home, protect the NHS and save lives.

The measures follow Government guidance last week that people were not expected to attend face to face jobcentre appointments, and the suspension of face-to-face assessments for all sickness and disability benefits for the next 3 months.

In the meantime, all services can be accessed online and over phone with the Work and Pensions Secretary Therese Coffey is urging people to use online services first, helping keep phone lines free for those who really need them.

Secretary of State for Work and Pensions Therese Coffey said: “Our jobcentres are fully committed to supporting people facing challenges during these extraordinary times.

“To help people most effectively and efficiently, we need people to claim online. If you cannot get online, phone us for help and we will only see people face to face in our jobcentres if invited.”

Those looking to put in a claim for Universal Credit or Employment and Support Allowance should apply online.

For more information visit Understanding Universal Credit

 

Face-to-face health assessments for benefits suspended

Face-to-face assessments for all sickness and disability benefits will be suspended for the next 3 months, the government announced yesterday.

The temporary move, effective today, is being taken as a precautionary measure to protect vulnerable people from unnecessary risk of exposure to coronavirus as the country’s response ramps up in the ‘delay’ phase. The DWP says they will ensure those who are entitled to a benefit continue to receive support, and that new claimants are able to access the safety net.

It affects claimants of Personal Independence Payment (PIP), those on Employment and Support Allowance (ESA) and some on Universal Credit, and recipients of Industrial Injuries Disablement Benefit.

The suspension of face-to-face assessments also covers new claims to those benefits.

Work and Pensions Secretary Thérèse Coffey said: “As we move into the next phase of our response to coronavirus, it is right we take steps to protect those with health problems.

“Temporarily suspending face-to-face assessments for sickness and disability benefits will allow us to ensure we continue to provide a safety net for those in need, while removing unnecessary risk of exposure to this disease.”

Anyone who has a face-to-face assessment appointment scheduled from today – Tuesday 17 March – onwards does not need to attend and will be contacted to discuss next steps and alternative arrangements, which could involve either telephone or paper-based assessments. DWP expect this measure will be in effect for the next 3 months but will regularly review the position in line with Public Health advice.

No further action is required by any claimant as a result of this change. They will be contacted with advice on next steps.

DWP continues to accept new claims for all benefits. Anyone already receiving PIPESA, Universal Credit or Industrial Injuries Disablement Benefit, will continue to receive their current payments as normal while alternative arrangements are put in place to review or reassess their claim.

Suspending face-to-face health assessments is a precautionary measure which reflects the Prime Minister’s decision to trigger the ‘delay’ phase. It is important to note that this change does not affect or change any existing public health advice.

Read the current NHS guidelines on coronavirus, including advice on those who should stay at home.