Tag: benefits

Tax credits customers warned about scammers posing as HMRC

HM Revenue and Customs (HMRC) is warning tax credits customers to be aware of scams and fraudsters who imitate the department in an attempt to steal their personal information or money.

About 2.1 million tax credits customers are expected to renew their annual claims by 31 July 2022 and could be more susceptible to the tactics used by criminals who mimic government messages to make them appear authentic.

In the 12 months, to April 2022, HMRC responded to nearly 277,000 referrals of suspicious contact received from the public. Fraudsters use phone calls, text messages and emails to try and dupe individuals – often trying to rush them to make decisions. HMRC will not ring anyone out of the blue threatening arrest – only criminals do that.

Typical scam examples include:

·         phone calls threatening arrest if people don’t immediately pay fictitious tax owed. Sometimes they claim that the victim’s National Insurance number has been used fraudulently

·         emails or texts offering spurious tax rebates, bogus COVID-19 grants or claiming that a direct debit payment has failed

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We’re urging all of our customers to be really careful if they are contacted out of the blue by someone asking for money or bank details.

“There are a lot of scams out there where fraudsters are calling, texting or emailing customers claiming to be from HMRC. If you have any doubts, we suggest you don’t reply directly, and contact us straight away. Search GOV.UK for our ‘scams checklist’ and to find out ‘how to report tax scams’.”

HMRC does not charge tax credits customers to renew their annual claims and is also urging them to be alert to misleading websites or adverts designed to make them pay for government services that should be free, often charging for a connection to HMRC phone helplines.

Customers can renew their tax credits for free via GOV.UK or the HMRC app and are advised to search GOV.UK to get the genuine information and guidance.

Renewing online is quick and easy. Customers can log into GOV.UK to check the progress of their renewal, be reassured it is being processed and know when they will hear back from HMRC. Customers choosing to use the HMRC app on their smartphone can:

  • renew their tax credits
  • update changes to their claim
  • check their tax credits payments schedule, and
  • find out how much they have earned for the year

HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.

If there is a change in a customer’s circumstances that could affect their tax credits claims, they must report the changes to HMRC. Circumstances that could affect tax credits payments include changes to:

·         living arrangements

·         childcare

·         working hours, or

·         income (increase or decrease)

Tax credits are ending and will be replaced by Universal Credit by the end of 2024. Many customers who move from tax credits to Universal Credit could be financially better off and can use an independent benefits calculator to check.

If customers choose to apply sooner, it is important to get independent advice beforehand as they will not be able to go back to tax credits or any other benefits that Universal Credit replaces.

“Significant achievement” in delivery of social security – but “huge amount of work remains”

More than £3.9 billion to benefit 1 million people in 2022-23

A report published today by Audit Scotland has highlighted the Scottish Government’s “significant achievement” in the scale and pace of delivering the devolved programme of social security benefits in Scotland, including seven new payments unavailable anywhere else in the UK.

The report notes that this work continued despite ongoing challenges due to the pandemic. The report further acknowledges that the Scottish Government has continued to successfully deliver existing social security benefits and introduce complex new ones – including Scottish Child Payment, Child Disability Payment and Adult Disability Payment – in challenging circumstances.

The report also recognises the importance of social security in our collective national mission to tackle child poverty, mitigating the cost of living crisis and addressing inequalities.

In line with Scottish Fiscal Commission forecasts, the Scottish Government has committed over £3.9bn for benefit expenditure in 2022-23, providing support to more than one million people. This is over £360m above the level of funding to be received from the UK Government through Block Grant Adjustments.

Stephen Boyle, Auditor General for Scotland, said: “Successfully launching new benefits during the pandemic has been a significant achievement for the Scottish Government, but a huge amount of work remains.

“The government now needs to plan how it will manage to pay for greater social security spending alongside other policy initiatives.

“To demonstrate how it is achieving value for money, it also needs to be clearer about how this extra spending will improve the lives of people living in Scotland.”

Responding to the report, Minister for Social Security Ben Macpherson said: “I am pleased that this Audit Scotland report recognises the significant progress we have made in building a new public service from scratch since 2018 and delivering 12 benefits – seven of which are completely new forms of financial support that are not available anywhere else in the UK.

“We have successfully introduced a range of benefits that are now supporting carers and low-income families with their living costs, including with heating and we are helping disabled people to live full and independent lives.

“This year will see us deliver even more for the people of Scotland. Our Scottish Child Payment will be extended to eligible children aged under 16 and be increased to £25 per week per child by the end of the year, supporting over 430,000 eligible children; and in winter 2022/23 we will introduce our new winter heating payment for low-income households – a stable £50 payment that will support 400,000 low-income households with their heating costs.

“We will also continue to roll out Adult Disability Payment, our most complex benefit, and significantly progress transferring tens of thousands of Scottish disability benefit cases from the DWP to Social Security Scotland.

“I am proud that we have built our social security system with the people who will use it, and appreciate that the report acknowledges our focus has delivered a service built on our principles of dignity, fairness and respect. The report also notes the positive feedback people have shared about their experiences of engaging with Social Security Scotland.

“We have been ambitious in our delivery timeline – including introducing new benefits while dealing with the pandemic – and we are ensuring that we transfer tens of thousands of cases safely and securely from the DWP to Social Security Scotland.

“As well as delivering benefits now and in the period ahead, we are responsibly and ambitiously developing a new social security system that will serve Scotland for many years to come, putting people at the heart of everything we do.”

Social Security Scotland currently administers 12 benefits:

Carer’s Allowance Supplement
Pregnancy and Baby Payment
Early Learning Payment
School Age Payment
Best Start Foods
Funeral Support Payment
Young Carer Grant
Job Start Payment
Scottish Child Payment
Child Winter Heating Assistance
Child Disability Payment

Adult Disability Payment is the replacement for the UK Government’s Personal Independence Payment. It is being introduced in phases ahead of national rollout on 29 August.

nr_220519_social_securityDownload

Extra support for 30,000 families

Best Start Foods eligibility to widen 

Plans to remove all income thresholds from Best Start Foods by 2023-24 have been announced as part of the second Tackling Child Poverty Delivery Plan, ‘Best Start, Bright Futures’.

This will increase eligibility to all people in receipt of a qualifying benefit. As a result, an additional 30,000 people are expected to benefit from Best Start Foods.

Best Start Foods is delivered via a prepaid card and provides £18 every four weeks throughout pregnancy, £36 every four weeks from birth until a child turns one, then £18 every four weeks from one until a child turns three. 

The implementation of this change will be part of the successful delivery in the coming years of our significant, wider benefits programme.

Minister for Social Security Ben Macpherson said:  “Tackling child poverty is a national mission for us. We continue to take the necessary steps to reach the ambitious targets set out in our Tackling Child Poverty Delivery Plan. Social security is one of the main pillars of this plan and will help us to  deliver support directly into the pockets of those families who need it the most.

“The cost of healthy food was already a pressure for parents and carers, and the cost of living increases are only making this more challenging. We will remove the income thresholds for Best Start Foods so that around 30,000 additional people who receive tax credits or certain benefits will be able to receive Best Start Foods by the end of financial year 2023-24.”

Sharon Hill, the Development Manager of Mayfield and Easthouses Development Trust, which runs a community pantry in Midlothian serving local people, said:  “We have been operating the pantry for less than a year but it is clear that people from all walks of life and backgrounds are looking for ways to cut costs when it comes to doing their essential food shopping.

“We encourage people to ensure that they get all the benefits that are available to them and we welcome any move to open that support up to include more people.

“Like many people involved in community pantries and food banks our aim is to help people get to a place where they don’t require these services any more.”

Background

  • The Scottish Government replaced the UK Healthy Start Voucher scheme in Scotland with Best Start Foods on 12 August 2019
  • Best Start Foods aims to help tackle the impacts of child poverty by supporting low income families to buy healthy foods
  • Best Start Foods is delivered via a prepaid card and provides £18 every four weeks throughout pregnancy, £36 every four weeks from birth until a child turns one, then £18 every four weeks until a child turns three
  • The card can be used to buy healthy food, including eggs, milk, fruit, vegetables and pulses
  • Applicants under 18 will be eligible for Best Start Foods during pregnancy and up until their child turns one, without the need to be in receipt of benefits
  • Applicants over 18 need to be in receipt of a qualifying benefit. At present, income thresholds also apply for some of these qualifying benefits.  These income thresholds will be removed by 2023-24
  • Eligible families, and carers can find out more and apply at mygov.scot/beststart or by calling Social Security Scotland free on 0800 182 2222
  • Best Start Foods is part of a package of Five Family Payments. By the end of 2022, the Scottish Government’s package of Five Family Payments for low income families will be worth up to a maximum of over £10,000 by the time a family’s first child turns 6, and £9,700 for second and subsequent children

Social Security Scotland: You may be entitled to Young Carer Grant

Are you aged 16 to 18 and caring for someone 16 hours a week on average? The Young Carer Grant is now £326.65!

This is available on an annual basis so if you got the payment a year ago, and still care for someone, don’t forget to apply again.

Find out more: https://bit.ly/youngcarergrant

Automatic awards to make accessing family benefits simpler

Plans have been announced to automatically pay the Best Start Grant Early Learning and School Age Payments to parents and carers who already receive Scottish Child Payment when their children become eligible.

The change will be introduced later this year when Scottish Child Payment is extended to under-16s and increased to £25 per child, per week.

This builds on extensive work already done to make applying for the Scottish Government’s five family payments as straightforward as possible.

It includes the ability to apply for all children in a household on a single form. The form can be completed online, by phone or on paper. Parents and carers contributed to the design of the form to make sure the language was clear and easy to navigate.

As set out in the recent Tackling Child Poverty Delivery Plan ‘Best Start, Bright Futures’, the introduction of automatic awards will remove the need for eligible families receiving Scottish Child Payment to reapply when their child becomes eligible for the Early Learning and School Age Payments.

This will mean less paperwork for tens of thousands of families and ensure that families automatically receive the support to which they’re entitled.

On a visit to FARE Scotland in Glasgow, Minister for Social Security, Ben Macpherson said: “Tackling child poverty is a key mission for the Scottish Government and automating payments, where we already have all of the information we need to do so, will mean parents and carers automatically getting the financial support they are eligible for paid directly to them.

“Since launching Best Start Grant in December 2018, we’ve made more than 177,000 payments, totalling £55.3 million in support, families who need it most. Automating payments, where we can, will enable us to help even more families.

“We are committed to making sure that receiving our five family payments is as straightforward as possible. Automatic awards, increasing Scottish Child Payment to £20, and again to £25 by the end of the year, and uprating eight Scottish benefits by 6% are some of the ways we are using our limited social security powers and resources to help families in need.”

Jimmy Wilson, Chief Executive of FARE Scotland, said: “There are families who aren’t aware of all the benefits to which they’re entitled so anything that can be done to make the process simpler is to be welcomed.

“It’s more important than ever that people understand the help which is there for them.

“The advantages in having automatic awards could be significant. We hope this move has a positive impact on take up rates which could help to reduce and prevent child poverty and support family wellbeing.”

  • Best Start Grant Early Learning Payment and Best Start Grant School Age Payment are part of a package of Five Family Payments. This package also includes Best Start Grant Pregnancy and Baby Payment, Best Start Foods and Scottish Child Payment. By the end of 2022, the Scottish Government’s package of Five Family Payments for low-income families will be worth up to a maximum of over £10,000 by the time a family’s first child turns 6, and £9,700 for second and subsequent children
  • The Early Learning Payment opened for applications on 29 April 2019 and provides £267.65 per child to support child development, for example travel costs, changes of clothes for messy play, trips out and toys for home learning
  • The long application window, from 2-3½, captures the 2 common ages for starting nursery, depending on whether parents qualify for a free nursery place when the child is 2 or 3. There is no requirement to take up a place at nursery to qualify for a payment
  • The School Age Payment opened for applications on 3 June 2019 and provides £267.65 per child to help with the costs of preparing for school, for example educational toys or after school activities. Eligibility is based on the child’s age and relates to when a child is first old enough to start school. The application window runs from 1 June in that year until the last day in February the following year. There is no requirement to take up a place at school to qualify for a payment
  • Between launching on 10 December 2018 and 28 February 2022, more than 177,000 Best Start Grant payments had been authorised. This figure does not include Best Start Foods
  • In 2022-23 we expect 52,000 households will receive £18 million of support through Best Start Grant (Scottish Fiscal Commission report published 9 December 2021). With projected take up rates of 76% for Pregnancy and Baby first births, 77% for Pregnancy and Baby subsequent births, 82% for Early Learning Payment and 80% for School Age Payment
  • The Scottish Fiscal Commission (report published 9 December 2021) has forecast that 20,000 people will receive the Early Learning Payment and 22,000 people will receive the School Age Payment during the 2022-23 financial year
  • Eligible families, and carers can find out more and apply at mygov.scot/beststart or by calling Social Security Scotland free on 0800 182 2222