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.

Benefits: break the barriers

The UK and Scottish Governments must work more closely together to ensure people get the benefits they are entitled to, a new report by the Scottish Parliament’s Social Security Committee has said.  It is estimated that currently billions of pounds in benefits go unclaimed every year.

The Committee welcomed the Scottish Government’s statutory duty to have a benefit uptake strategy and praised the Scottish Government for their attempts to increase the take-up of devolved benefits.

However they expressed express alarm at the DWP’s lack of benefit take-up strategy. The Committee suggested that Social Security Scotland could take the lead on driving forward uptake strategies for both devolved and reserved benefits.

The report raises concerns about the lack of accurate data on estimating eligibility and take-up, meaning the full extent of the problem is not known. The Committee recommended the UK and Scottish Government commission joint research to improve the data available.

The Committee also highlight the continuing barriers which can mean people do not claim benefits they are entitled to. These include the stigma of claiming, people being unaware of what they are entitled to, onerous application processes, and those living in rural Scotland facing geographical barriers.

The report also warns that the current ‘digital by default’ approach in Universal Credit is excluding people who are not IT literate or don’t have access to the internet. The Committee wants all benefits to be available through multiple application channels.

Bob Doris MSP, Convener of the Social Security Committee said: “It is simply not good enough that billions in benefits continue to go unclaimed every year. Given one of the DWP’s stated aims with Universal Credit was to increase take-up, the fact they have no strategy to achieve this is deeply alarming.

“It is absolutely vital we get more accurate data on the numbers entitled to benefits so that any communications strategies can be targeted at those in need who are missing out.

“Data sharing across Governments and agencies is a key factor in improving take-up rates and we are adamant that GDPR must not be used as an excuse to not share data. It’s also crucial that welfare agencies are adequately funded and we are seeking increased and sustained funding for these agencies going forward.

“Our evidence has made it clear that both governments must do more to work productively together to ensure people receive the benefits they are entitled to and remove any barriers which mean people miss out.”

The convener added: “We have also heard concerns over a possible policy spillover issue where if the Scottish Government increases the uptake of a reserved benefit, then they may have to financially compensate the UK Government.

“That’s unacceptable. We need urgent clarity on this issue and a far greater level of coordination for maximising benefit take-up, whether devolved or reserved, is required”.

benefit take-up report

Sixteen year old Scots won’t face PIP ordeal

The Scottish Government will use its new benefits powers to remove the need for children to take part in Department for Work and Pensions (DWP) Personal Independence Payment (PIP) assessments.

Under current DWP rules, children getting Disability Living Allowance for Children are asked to apply for PIP six months out from their 16 birthday, but under the Scottish Government changes, young people will continue to get DLA Child, as long as they remain eligible, up to the age of 18.

This means that they will not need to do a DWP PIP application or assessment – which many people say are stressful.

The change comes as the Scottish Government takes full responsibility for disability benefits from April this year.

Social Security Secretary Shirley Anne Somerville said: “We know from people like June Jamieson, a parent who has had direct experience of the current system, that making the transition from child to adult services can be a challenging time for their child and family.

“Adding to this, young people may be going through changes in a number of other areas of their life at the same time. We’ve also been told that the fact that this transition is to PIP, creates even more stress and anxiety.

“This is why we are using our new social security powers to extend the eligibility,  ease the pressure on families and make sure young people in Scotland have adequate time to move from children to adult social security support.

“Our priority for people already getting this support from the DWP is to move them over in a safe and secure way and make sure that people get the financial support they expect, when and where they expect it.”

Ms Jamieson, from Edinburgh, has recently applied for PIP for her son Alex, who turned 16 in January. She said: “So many things are happening in a child with additional needs life when they turn 16, for example they need to think if they are staying on at school, and parents may need to apply for guardianship.

“It will really take the pressure off lots of other families not to have to worry about this. Although Alex won’t benefit from the changes I am really pleased that other people will. I have the fear of the unknown waiting to hear the outcome of his PIP application.”

More ways to apply for new benefit

Applications for the new Child Disability Payment will be available online, face-to-face and by telephone – for the first time ever.

The Scottish Government is introducing the new benefit this summer, replacing the UK Government’s Child Disability Living Allowance.

By offering a variety of ways for people to apply, the Scottish Government wants to make it as easy as possible for those applying when this first disability benefit opens to new claimants. Paper-based applications are the only possible method under the current UK Government system.

Other improvements include:

  • local delivery staff across the country to provide pre-application support
  • rolling awards with a maximum review period of ten years when the condition of applicants is unlikely to change
  • the option of financial short-term assistance if a person challenges a decision to reduce or stop their disability payment
  • Child Winter Heating Assistance will provide a £200 payment to families with disabled children who receive the highest rate of payment

Social Security Secretary Shirley-Anne Somerville said: “We want to remove barriers to accessing the financial support people are eligible for and end the stress and anxiety felt by those using the current UK Government system.

“Offering different, convenient ways to apply, as well as consistent, considerate and sensitive support through the application process, will transform the experience for parents, guardians and carers applying for their loved ones.

“These are the improvements people have told us matter to them. By listening to those with experience of the social security system we can create a system from the ground up that meets the needs of the people of Scotland.

“It is a system that recognises that social security is a human right and will treat people with fairness, dignity and respect.”

Funeral Support Payment to be increased

Extra support will be made available for people on low income benefits to pay for the cost of a funeral.

The Funeral Support Payment’s rate for expenses such as funeral director fees, a coffin, and flowers, is to be increased from £700 to £1,000 for all applications received from 1 April.

The Funeral Support Payment is made up of three separate parts: burial or cremation costs; travel costs; and a standard rate for other expenses – and it is this element which is being increased.

Introduced in September last year, the Funeral Support Payment replaced the UK Government’s Funeral Expense Payment in Scotland, greatly increasing eligibility. It is intended to help alleviate the burden of debt faced by those on low income benefits when paying for a funeral.

Social Security Secretary Shirley-Anne Somerville said: “At a time when families are struggling to come to terms with the death of a loved one, the last thing they need is extra financial stress.

“I am proud we are increasing the standard rate by 40% to £1,000 to support those paying for a funeral just months after introducing this important new payment.

“This increase, alongside the extended eligibility we have introduced, means the Funeral Support Payment is there to ease the pressures on up to 5,000 people annually at such a difficult time in their lives. So far the total average pay-out has been around £1,500.

“This benefit is part of the new Social Security system we are building from scratch for the Scottish people, with fairness, dignity and respect at its heart.”

The flat rate payment for other expenses may be used towards any other funeral expenses such as funeral director fees, a coffin, and flowers.

Those eligible for the Funeral Support Payment must be living in Scotland, have had the nearest relationship to the person who has died, be financially responsible for the funeral and be on a qualifying benefit or tax credit (e.g. Income Support, Jobseekers Allowance, Universal Credit, Employment and Support Allowance, Pension Credit, Housing Benefit, Child Tax Credit, Disability or severe disability element of Working Tax Credit).

Around 5,000 people are expected to be supported annually by the payment.

For more information or to apply online go to: https://www.mygov.scot/funeral-support-payment/