Tag: DWP

2022 biggest year yet for Scottish social security system

 The introduction of Adult Disability Payment, further automation and the increase and extension of Scottish Child Payment has seen more people apply for and get financial support they are entitled to.

Thousands of people have also had their benefit awards transferred to Social Security Scotland from the Department of Work and Pensions.

In March, Adult Disability Payment, which replaces the UK Government’s Personal Independence Payment and is the most complex benefit to be introduced so far, was launched as a pilot project before being made available to eligible disabled adults aged 16 to state pension age in Scotland at the end of August.

In November, Scottish Child Payment increased to £25 and was extended to include eligible children up to age 16 and around 385,000 children are now expected to be eligible.

At the same time, Social Security Scotland introduced further automation. Families and carers who already get Scottish Child Payment will now automatically be paid Best Start Grant Early Learning and School Age payments when their child is eligible.

Automatic payments continued for around 90,000 carers eligible for the December payment of Carers Allowance Supplement, as well as around 23,000 disabled children and young people who received Child Winter Heating Assistance to help heat their homes.

Minister for Social Security Ben Macpherson said: “There is no doubt that 2022 has been the biggest and most complex year yet for Social Security Scotland. Creating a new social security system at pace has not been a simple task, but the progress made since 2018 has been substantial.

“Introducing Adult Disability Payment to replace the DWP’s Personal Independence Payment was a significant milestone in the growth of the Scottish social security system and marked a step change, delivering an improved experience for disabled people that is compassionate and rooted in trust.

“With many people facing financial hardship during the ongoing cost of living crisis, extending the Scottish Child Payment to under 16 year olds means that now hundreds of thousands more children will get much needed extra financial support.

“Investing in social security is a priority for the Scottish Government. Our commitment in the 2023-24 Budget to uprate benefits by 10.1% will mean more support going to people on low-incomes, disabled people, carers and young people right across Scotland at a time when many are facing tough financial challenges.

“Though there is still much work to do, we are creating a system to be proud of  and building strong foundations to serve Scotland for generations to come, treating people with dignity, fairness and respect. Social security is a human right and an investment in creating a fairer society, together.”

Dad Martin, whose daughter has learning difficulties, says receiving benefits helped his daughter flourish.

He said: “I went on the website and applied for Child Disability Payment. When I got accepted I went from having nothing at the end of the month to having £97 left. This enabled me to do so many things with my daughter and because of that she has flourished.”

Another young woman who received the Young Carer’s Grant this year, said: “It had a positive impact because I needed new clothes so I spent about £100 on clothes and then I shared the rest of the grant with my brother and sister.”

A mum who received School Age Payment for their child said: “I applied for this grant for my child when she started primary one. It was a great help to us to cover the costs of school uniforms and accessories required for school. I would urge all parents to apply for this grant.”

Eligible families and carers can find out more and apply for social security payments at scot/benefits or by calling Social Security Scotland free on 0800 182 2222

Don’t miss out: 10 days to claim pension credit and qualify for extra £324

The average Pension Credit award is worth over £3,500 a year and those who claim by 18 December could also be entitled to an extra £324 cost of living payment

  • Minister for Pensions Laura Trott urges pensioners to check if they qualify for Pension Credit
  • Claims can be made online and over the phone, with the Pension Credit calculator on hand to help pensioners see if they’re likely to be eligible and get an estimate of what they may receive.

Minister for Pensions Laura Trott is today calling on pensioners across the country to check if they are entitled to Pension Credit as soon as possible to ensure they stand the best chance of qualifying for an extra £324 cost of living payment.

Checking eligibility and applying by 18 December 2022 – just ten days away – will mean pensioners could also receive a £324 boost thanks to Pension Credit backdating rules.

This is because successful Pension Credit claims can be backdated for up to 3 months – as long as the applicant was also eligible to receive it during that time.

The average Pension Credit award is worth over £3,500 a year and even a small Pension Credit award can provide access to a wide range of other benefits – such as help with housing costs, council tax or heating bills – in addition to the extra cost of living payments.

Minister for Pensions Laura Trott said: “The run up to Christmas is always a busy time, but one thing to make sure that’s on your list over the coming days is to find out whether you or your loved ones could be eligible for Pension Credit.

“Pension Credit can make a real difference and I am determined to make sure this support – worth an average of £3,500 per year – is reaching everyone who needs it.”

Pension Credit is designed to help people over State Pension age and on a low income with daily living costs, though you do not need to be in receipt of State Pension to receive it.

It tops up a person’s income to a minimum of £182.60 per week for single pensioners and to £278.70 for couples.

To ensure that a successful backdated claim falls within the qualifying period for the extra £324 cost of living help, eligible pensioners are being urged to claim Pension Credit by no later than 18 December 2022.

Currently, around 1.4 million pensioners in Britain receive Pension Credit. However, many are still not claiming this extra financial help.

One of those who recently claimed is Arthur from Lincolnshire. After learning about Pension Credit from his neighbour, Arthur successfully applied by calling the Pension Credit claim line on 0800 99 1234.

Arthur said: “Highly delighted with the Pension Credit award we received – the money was quicker arriving than expected and all in all very pleased with the result. I’d really encourage other pensioners to check if they’re eligible – it’s made a real difference to me.“

Pension Credit can be claimed by phone and online, ensuring that older people can apply safely and easily, wherever they are. The online Pension Credit calculator is also on hand to help pensioners check if they’re likely to be eligible and get an estimate of what they may receive.

Cost of Living Crisis: £324 payment to hit bank accounts from today

Almost one in four families across the UK will receive £324 from the government this month as the latest Cost of Living Payments are sent out from today (8 November 2022).

Over 8 million households in England, Wales, Scotland and Northern Ireland who claimed qualifying means-tested benefits during the eligibility period will be automatically paid £324 this month, as part of £1,200 worth of direct help for households.

  • over 8 million benefit claimants to receive £324 this month as part of Cost of Living support
  • DWP claimants will receive their second Cost of Living payment by 23 November 2022, and eligible tax credit claimants, on no other means-tested benefits, will receive it between 23 and 30 November 2022
  • payments will automatically be made to everyone eligible, with no need for anyone to apply

The payments, starting today from the Department for Work and Pensions, are made directly into eligible recipients’ bank accounts, with no need for people to apply or do anything to receive it.

The payment reference on DWP recipients’ bank accounts will be their national insurance number, followed by “DWP COL”. For HMRC recipients the payment reference will be “HMRC COLS”.

Work and Pensions Secretary, Mel Stride said: “We understand that people are struggling and that is why we’ve consistently acted to ensure millions of low-income families are supported. We will continue to act with compassion as we navigate challenging global economic circumstances.

“As part of a wider £37 billion package of support, this latest £324 payment will help the most vulnerable people in our society who are worrying about their finances through the winter months.”

The UK government’s £1,200 support package contains £400 for energy bills that is being paid in monthly instalments to all domestic energy customers between now and March 2023. It also includes a £150 Council Tax rebate for 85% of all UK households and the previous £326 Cost of Living Payment made by DWP in July and by HMRC in September.

On top of this, nearly one in ten people received the £150 disability payment in September, and a £300 addition to Winter Fuel Payments will go to over eight million pensioner households over the winter.

Chancellor of the Exchequer, Jeremy Hunt added: “Prices are rising across the world as we manage the aftershock of COVID-19 and Putin’s invasion of Ukraine. We recognise that families back home are struggling, which is why we’ve taken decisive action to hold down energy bills this winter, and provided hundreds of pounds of cash support for each vulnerable household.

“As part of that support, over 8 million vulnerable households – almost a quarter of families in the UK – will automatically receive a second cost of living payment worth £324 in their bank account from today.

“And while we can’t completely protect people from rising prices, my priority at the upcoming Autumn Statement will be to protect the poorest in society as we take the tough decisions necessary to fix our public finances.”

Those eligible to receive the second cost of living payment from today include people on:

  • Universal Credit
  • Income-based Jobseekers Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Income Support
  • Pension Credit

To be eligible, claimants must have been claiming and entitled to a payment between 26 August and 25 September 2022, with the exception of pensioner households, who may be able to have a new Pension Credit claim backdated.

They have until 18 December 2022 to submit a valid claim for Pension Credit, which could entitle them to the £324 Cost of Living payment. Anyone can check their eligibility for Pension Credit using the online calculator or by calling the freephone claim line, on: 0800 99 1234.

Even if you are not on a qualifying DWP benefit you may still be eligible for the £324 payment, as HMRC are also making payments to over a million people who receive Working Tax Credit or Child Tax Credit and no other eligible benefits. These will be paid between 23 and 30 November 2022 and customers do not need to contact the government or apply for the payment at any stage

The £324 payment and the overall £1,200 package come on top of wide-ranging government support with the cost of living this winter, including an extension to the Household Support Fund, which is providing an extra £421 million between October and March to help vulnerable people with the essentials.

As well as this, the Energy Price Guarantee is ensuring people across the country pay significantly less for their energy bills, with a typical household saving around £700 this winter.

Almost 6 million £150 Cost of Living Payments processed for disabled people, says DWP

As of today (30 September) the Department for Work and Pensions has processed almost six million £150 Disability Cost of Living payments worth around £900 million.

Almost 6 million £150 Disability Cost of Living Payments processed for disabled people

This follows the government’s announcement on 20 September that those who had confirmed payment of their disability benefit for 25 May will receive the £150 automatically, with the vast majority to be paid by early October.

The vast majority of eligible claimants who were due to receive the one-off £150 payment from the DWP by early October have now had their payment processed.

The payment will help disabled people with the rising cost of living, acknowledging the higher costs they often face, such as for care and mobility needs.

There will be some cases – such as those who gained entitlement to this payment at a later date or where payments were rejected due to invalid account details – who will not be paid by the beginning of October. These will be paid automatically as soon as possible.

The £150 cost of living payments for disabled people from the government are part of a £37 billion package of support, which will see millions of low income households receive at least £1,200 this year to help cover rising costs.

This also follows the Prime Minister’s announcement of a new Energy Price Guarantee for the next two winters, saving households on average £1,000 a year on their energy bills.

Further information

  • The Energy Price Guarantee (EPG) will apply from 1 October and will discount the unit cost for gas and electricity use. This guarantee, which includes the temporary suspension of green levies, means that from 1 October a typical household will pay no more than £2,500 per year for each of the next two years. This is in addition to the £400 Energy Bill Support Scheme.
  • On top of the EPG and £150 Disability Cost of Living Payment, there is an extra £150 for properties in Council Tax bands A-D in England. On top of this, disabled people on low incomes may also be eligible for the other Cost of Living payments totalling up to £650 – households in receipt of a means-tested benefit received the first of the two automatic Cost of Living payments of £326 from 14 July. The second means-tested payment of £324 will be issued later this year.

Eligibility

  • Those who receive the following disability benefits may be eligible for the one-off payment of £150 in September: Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Scottish Disability Benefits (Adult Disability Payment and Child Disability Payment), Armed Forces Independence Payment, Constant Attendance Allowance and War Pension Mobility Supplement.
  • The majority of those who had confirmed payment of their disability benefit for 25 May have now been paid. For those who have still to be paid, are awaiting confirmation of their disability benefits on 25 May, or who are waiting to be assessed for eligibility to receive disability benefits, the process may take longer but payments will still be automatic.
  • You must have received a payment (or later receive a payment) of one of the qualifying benefits for 25 May 2022 to get the payment.

Cost of living support

Chancellor Kwasi Kwarteng ‘to get Britain working again’

  • The Chancellor is expected to announce reforms to the welfare system that will encourage thousands more into work and to boost their earnings, helping grow the economy.
  • Around 120,000 more benefit claimants will be asked to take active steps to seek more and better paid work, or face having their benefits reduced.
  • Over 50s to get more support to find work, boosting economic growth.

The Chancellor is this week expected to announce changes to Britain’s welfare system that will help boost people’s earnings, get them into work and support economic growth.

Changes to Universal Credit expected to be announced later this week will require benefit claimants working up to 15 hours a week at National Living Wage to meet regularly with their Work Coach and take active steps to increase their earnings or face having their benefits reduced.

This gradual expansion is an increase from the 12-hour threshold and will bring an additional 120,000 benefit claimants into the Intensive Work Search Regime.

With more than 1.2 million job vacancies across the UK, Work Coaches will set clear expectations with claimants and make sure they stick to their commitments. These commitments could include applying for jobs, attending interviews or increasing their hours. People who don’t fulfil their job-search commitments without good reason could have their benefits reduced in line with existing benefit sanctions policy.

Eligible claimants over 50 years old, including new claimants and the long-term unemployed, will also get extra support from Work Coaches. The newly unemployed will get 9 months of targeted sessions, and people who are long-term unemployed will receive a booster session followed by 3 months of intensive employment support.

Rising economic inactivity in the over 50s is contributing to shortages in the jobs market, driving up inflation and limiting growth. Returning to pre-pandemic activity rates in the over 50s could boost the level of GDP by up to 1 percentage point.

Chancellor Kwasi Kwarteng said: “Our jobs market is remarkably resilient, but it is not perfect. While unemployment is at is at its lowest rate for nearly fifty years, the high number of vacancies that still exist and inactivity in the labour market is limiting economic growth.

“We must get Britain working again. These gradual changes focus on getting people back into work and maximising the hours people take on to help grow the economy and raise living standards for all.

“It’s a win-win. It boosts incomes for families and helps businesses get the domestic workers they need, all while supporting economic growth.”

Secretary of State for Work and Pensions Chloe Smith MP said: “As we continue to face economic challenges and labour market shortages, we are committed to helping people on lower incomes to boost their pay – because we know work is one of the best ways to support your family and help grow our economy.

“Whether it’s increasing their hours in their current role, entering a new sector or switching careers, we want people of all ages and all stages to be able to progress into fulfilling careers.

“The expertise our dedicated DWP Work Coaches bring, will help to drive this change by removing barriers to progression and opening up opportunities for training and building skills, to increase earnings.”

These changes will be Great Britain-wide and, in line with usual practice, the UK Government will work with the Northern Ireland Civil Service to determine the most suitable way to deliver support in Northern Ireland in due course.

Certain groups will remain exempt from sanctions, including people who are unable to work due to long-term sickness or a disability.

£150 Disability Cost of Living Payments begin this month

From today (20 September) around six million disabled people in the UK will start to receive their one-off £150 Disability Cost of Living payment

  • Six million people who are paid certain disability benefits will begin to receive a one-off payment of £150 from today
  • Payments are part of the government’s wider £37 billion support package, including the Energy Price Guarantee and cost of living payments totalling £650

Those who had confirmed payment of their disability benefit for 25 May will receive the £150 automatically, with the vast majority to be paid by early October.

The payment will help disabled people with the rising cost of living, acknowledging the higher disability-related costs they often face, such as for care and mobility needs.

The cost of living payments from the government are part of a £37 billion package of support, which will see millions of households receive at least £1,200 this year to help cover rising costs, and follows the Prime Minister’s announcement of a new Energy Price Guarantee for the next two winters saving households on average £1,000 a year on their energy bills.

Work and Pensions Secretary Chloe Smith said: “We know disabled people face additional costs and this government is listening and taking decisive action to protect the most vulnerable in our society.

“In addition to the £150 Disability Cost of Living payment, households will save an average of £1,000 a year through our new Energy Price Guarantee and the lowest-income households will receive at least £1,200 to help with the rising cost of living this year.

“This multi-billion-pound package of support reinforces our commitment to help UK households, particularly those with disability challenges, through the tough times ahead.”

UK Chancellor of the Exchequer Kwasi Kwarteng said: “The government is providing vital support to shield the most vulnerable from rising prices caused by global economic challenges.

“From today, a one-off £150 payment will automatically land in over six million disabled peoples’ accounts. This is in addition to the decisive action we took last week to hold down energy bills over the next two years, saving the average household £1,000 a year.

“The government is standing behind people this winter, and in the longer term we are focusing on driving economic growth – the only way to permanently boost everyone’s living standards.”

Benefits and credits to be paid early ahead of Her Majesty Queen Elizabeth II’s State Funeral

  • People expecting to receive benefits and credits on Monday 19 September will be paid early
  • Benefits and credits will be paid on Friday 16 September, the last working day before the bank holiday

The Department for Work and Pensions and HM Revenue and Customs have put arrangements in place to ensure all benefits and credits due to be paid on this date – now a bank holiday for Her Majesty Queen Elizabeth II’s State Funeral – will be delivered in advance.

People who are due to receive payments on Monday 19 September will instead be paid on Friday 16 September, the last working day before the State Funeral.

This arrangement follows standard DWP and HMRC protocol that sees benefit and credit payment dates brought forward in line with national bank holidays.

Further Information

The full list of payments affected are:

  • Attendance Allowance
  • Carer’s Allowance
  • Disability Living Allowance
  • Employment and Support Allowance
  • Income Support
  • Industrial Injuries Disablement Benefit
  • Jobseeker’s Allowance
  • Pension Credit
  • Personal Independence Payment
  • State Pension
  • Universal Credit
  • Child Benefit/Guardian’s Allowance
  • Working Tax Credits
  • Child Tax Credits

7.2 million Cost of Living payments made to low-income families

Over 7.2 million payments of £326 have been made to help households through the UK government’s Cost of Living support.

  • 7.2 million payments of £326 – worth a total of £2.4bn – made in first week of Cost of Living support rollout
  • Payments mark the first half of the £650 Cost of Living payment for low-income families, with the second half coming in the autumn
  • Additional support for disabled people and pensioners will follow later this year

This means £2.4bn has been paid out to low-income families in England, Wales, Scotland and Northern Ireland, with the second instalment of £324 arriving later this year.

The first payments were made on 14 July 2022, meaning the government has paid on average over a million families every working day since then.

This is all part of the government’s £37 billion support package for households. Millions will get £1,200 this year to help them with rising costs, including this £650 payment, a £400 grant to help with energy bills, and a £150 Council Tax rebate for the 80% of households in bands A-D.

And in addition to this, nearly one in 10 people will get a £150 disability payment this autumn, while over eight million pensioner households could receive an extra £300 through their Winter Fuel Payments in November and December.

Work and Pensions Secretary, Thérèse Coffey said: “This government said that we would protect those on the lowest incomes, and we have delivered what we said with over 7 million households receiving £326 in the last week.

“There is more help to come for households, with the second half of the £650 payment arriving later this year and further payments for pensioners and disabled people also on the way.”

Chancellor of the Exchequer, Nadhim Zahawi said: “I know that people are finding things difficult with rising prices and increasing pressure on household budgets.

“That’s why we’re taking action to control inflation and providing immediate help for households. It’s so important that over 7 million vulnerable households have received £326 direct payments so far and there is also more help to come, with 8 million of the most vulnerable households receiving £1,200 of direct support to help with bills over the winter.”

In total, over eight million families will be eligible for this payment, with around one million eligible because they receive tax credits and no other eligible benefits. These families will receive their first instalment from HMRC in the autumn, and the second instalment in the winter.

DWP will administer payments for customers on all other eligible means-tested benefits, and no one needs to contact the government or apply for the payment at any stage.

Those who are eligible should look out in their bank accounts for a payment of £326 with the reference “DWP Cost of Living” in their bank accounts. This payment is made automatically, meaning no one has to apply or do anything to receive it.

Eligible claimants who have not received their payment yet should not be concerned, as the DWP expects some payments may take until 31 July 2022 to come through.

One in four families will receive first Cost of Living Payment from today

Almost one in four families across the UK will get £326 sent directly to them from today, with the second instalment of £324 sent later this year as part of the UK Government’s £37 billion support package.

  • £326 – the first of two cost of living payments – will automatically hit seven million bank accounts between today and 31 July 2022 as part of the government’s £37 billion support package
  • Second instalment of £324 will follow from the autumn, with separate payments for pensioners and disabled people also coming later this year
  • Tax credit claimants will receive their first cost of living instalment by autumn

Over eight million households on means-tested benefits will automatically get the first instalment of £326 from this month.

This means that, combined with other support, millions of low-income households across the UK will receive at least £1,200 from the government by Christmas to ease Cost of Living pressures.

On top of that, nearly one in ten people will get the £150 disability payment this Autumn, and over 8 million pensioner households could get an extra £300 from Winter Fuel Payments in November and December.

Prime Minister Boris Johnson said: “Just as we looked after people during lockdown, we will help them get through these tough economic times.

“Today’s payment is the signal to millions of families that we are on their side and we have already promised more cash in the autumn, alongside other measures – including our Help for Households – to support the vulnerable and ease the burden.”

Work and Pensions Secretary, Thérèse Coffey said: “Our help for households will begin landing in bank accounts today as we make sure those on the lowest incomes get the support they need in the face of rising costs.

“This first instalment of £326 should reach all eligible low-income households by the end of July.”

Chancellor of the Exchequer, Nadhim Zahawi said: “It’s great that millions of the families who are most in need are starting to receive their Cost of Living Payments, which I know will be a massive help for people who are struggling.

“Alongside tax cuts, changes to Universal Credit and the Household Support Fund, these payments are a vital part of our £37 billion support package to help people deal with rising prices.”

Most people entitled to the first instalment of the Cost of Living payment will receive it between now and 31 July 2022. Households who are eligible because they receive tax credits and no other eligible benefits will receive their first instalment from HMRC in the autumn, and the second instalment in the winter.

DWP will administer payments for customers on all other eligible means-tested benefits, and customers do not need to contact the government or apply for the payment at any stage.

In addition to the £650 Cost of Living Payment, all domestic energy customers in the UK will receive a £400 grant to help with energy bills, and those in Council Tax bands A-D in England will get an extra £150, which has already been sent to many households. This brings support for millions to £1,200 by the end of the year.

The disability and pensioner payments come in addition to this, as does any support from the Household Support Fund, which was recently extended through to March 2023 with £421 million additional funding.

It is now worth £1.263 billion, and combined with £237 million for devolved nations, means this support package now stands at £1.5 billion. The Household Support Fund is designed to help low-income households in England with food and energy bills, and is distributed by local authorities, who know their areas best.

Total UK Government support this year for low-income families stands at £37 billion, a figure which includes a recent rise to £12,570 for the National Insurance starting thresholds. This will benefit 30 million working people and is worth £330 to a typical employee.

Curfews proposed for parents who fail to pay child maintenance

Parents who refuse to pay child maintenance could face curfews, as Ministers plan new powers for the Child Maintenance Service.

The change is being considered as part of fresh proposals that will get more of the money that is owed to the children of separated parents.

The Child Maintenance Service (CMS) collected or arranged £1 billion in child maintenance payments last year, operating as a crucial weapon in the battle against child poverty. Child support payments help lift around 140,000 children out of poverty each year.

Curfew orders would be another method of enforcement, alongside current powers which include passport and driving license confiscation and earnings deduction orders, to tackle parents who continually refuse to pay maintenance owed.

As an alternative sanction to prison, which is costly and prevents maintenance getting to children, curfews would act as a deterrent by restricting and disrupting non-compliant parents’ lifestyles, stopping them, for example, from going out for dinner, to the pub or going on holiday.

The curfews would be monitored by an electronic tag with an electronic monitoring service applying the tag, monitoring and making sure the parent complies with the rules of the tag. If parents fail to comply, the CMS would be able refer them back to court which might then extend the curfew order or impose a prison sentence.

DWP Lords Minister Baroness Stedman-Scott said: “For children in low-income households, maintenance payments can make all the difference, lifting them out of poverty.

“We are not afraid to go after those parents who deliberately and repeatedly refuse to pay for their children.

“Curfew orders are another step towards providing the CMS with a full arsenal of powers to make sure children get the financial support they need to have the best start in life.”

This builds on a new powers introduced earlier this year to digitise all communications to parents and improvements to help the service trace the paying parent, calculate maintenance and enforce arrears more effectively.

The consultation is published here and closes on 12 August 2022.