Transition resources Welfare Benefits

Transcription

1 Transition resources Welfare Benefits A briefing for Parent Partnership Services July 2012 Introduction 1. This information sheet provides an overview of the key welfare benefits that are currently (May 2012) available in England for disabled adults. Some of the benefits listed will change over the next 5 years as a result of the Welfare Reform Act Some well known benefits have now ceased and been replaced by the Employment Support Allowance: Incapacity Benefit (from ) Severe Disablement Allowance (from ) Income Support (from ). Some individuals are still in receipt of these benefits if they claimed before the dates given (unlikely for most young people currently aged 16 to 19). They are considered to be in a transitional group waiting to be assessed for ESA and the intention is that everyone who meets the criteria will be in receipt of ESA by Disability Living Allowance (DLA) Once a young person is aged 16 they can claim DLA in their own right (prior to age 16 a parent may claim DLA on behalf of the young person). DLA is not only extra income to help with the costs of disabled living, it is also a passport benefit. Qualifying for DLA can automatically entitle the young person to other benefits and concessions. DLA is in two parts, care component and mobility component: Care component paid at 3 levels Higher rate = Middle rate = per week needing help with personal care, which can include needing to be watched and checked day and night per week needing help with personal care frequently or supervision continually throughout the day only, or help with personal care or someone to watch over you during the night only, or someone with you while you are on dialysis. Lower rate = per week needing help with personal care either day time or night time or cooking. 1

2 Mobility component paid at 2 levels Higher rate = per week needing guidance when in unfamiliar surroundings. Lower rate = per week either unable or virtually unable to walk or some blind/partially sighted people or severely mentally impaired people with severe behavioural problems. Additional information on DLA Care Component is only paid for the first 28 days if you go into hospital, residential care or a residential school. It can then be claimed pro-rata for days spent at home (e.g. weekends, school holidays). Mobility Component continues to be paid if you go into hospital, residential care or a residential school. If the NHS is funding care home fees, both the care and mobility components can be affected. DLA is exempt from income tax, but can (under discretionary rules) be taken into account when an individual is assessed for social services. 4. Employment Support Allowance (ESA) ESA is a benefit payable to people whose ability to work is limited by ill health or disability. Income related ESA can be claimed from age 16 and is payable even if you are in a residential school or college setting if you are in the Support Group. There are two elements to ESA: 1. Contributory ESA, linked to your National Insurance record although if you have had limited capability for work from before the age of 20 (25 if in education or training) you may not have to meet the contributions record, and 2. Income-related ESA which is means-tested. Entitlement is based on a work capability assessment which divides claimants into two groups. The group that you are in determines the amount of ESA you receive: 1. The support group 2. The work related activity group ESA has replaced Incapacity Benefit (from ), Severe Disablement Allowance (from ) and Income Support (from ). Some individuals are still in receipt of these benefits if they claimed before the dates given (unlikely for most young people currently aged 16 to 19). They are considered to be in a transitional group waiting to be assessed for ESA and the intention is that everyone who meets the criteria will be in receipt of ESA by ESA is a taxable benefit 2

3 5. Job Seekers Allowance (JSA) Payable only if actively seeking work. If, because of a disability, a young person cannot work or would have difficulty working, they may be able to claim Employment and Support Allowance (ESA). 6. Motability Scheme extract from the Charity (Motability) A number of changes (to the Motability Scheme) have been announced in a statement from Motability s Chairman, Lord Sterling. Key changes include: A streamlined selection of cars available, up to a maximum Advance Payment of 2,000. (This limit does not apply to wheelchair accessible vehicles). Our policy regarding nominated drivers is that they should live at or within five miles of your address. We will, however, consider requests to include drivers outside of this range where this is essential to support your mobility needs. In these cases, we will require additional information to be provided at the time of application or renewal. Drivers under the age of 25 will be restricted to cars with an ABI Insurance Group 16 or lower and with a power output of 115 BHP or less. Nominated drivers under the age of 21 will only be permitted where they live with the disabled customer The changes are designed to ensure that Motability provides clear policies, focused on the needs of the vast majority of customers. They will also help avoid misuse and misrepresentation of the Scheme. The changes to car selection take place immediately, although Motability will honour all existing orders and commitments. Other changes will take effect from 1 January There is no change for existing contracts, or nominated drivers named on current insurance certificates, for the remainder of existing leases. 7. Welfare Reform Act 2012 In February 2011 the Welfare Reform Bill was introduced to Parliament, the Bill legislated for the biggest change to the welfare system for over 60 years by: creating incentives to get more people into work by ensuring work always pays protecting the most vulnerable in society delivering fairness to those claiming benefit and to the taxpayer The main elements of the Act are: The introduction of a Universal Credit to provide a single streamlined benefit that will ensure work always pays 3

4 A stronger approach to reducing fraud and error A new claimant commitment showing clearly what is expect of claimants while giving protection to these with the greatest needs Reform to the Disability Living Allowance, through the introduction of the Personal Independence Payment to meet the needs of disabled people today Creating a fairer approach to Housing Benefit to bring stability to the market and improve incentives to work Driving out abuse of the Social Fund system by giving greater power to local authorities Reforming Employment and Support Allowance to make the benefit fairer and to ensure that help goes to those with the greatest need Changes to support a new system of child support which puts the interest of the child first, Personal Independence Payment The proposal is to replace the Disability Living Allowance (DLA) for people of working age (16-64) with a new benefit, Personal Independence Payment from The Coalition Government have said that they are committed to supporting disabled people to lead independent lives and exercise choice and control, PIP will focus support to those individuals who experience the greatest challenges to remaining independent and leading full and active lives. DLA has not been fundamentally reviewed or reformed since 1992 when it was introduced and there has been a growing consensus that this benefit is no longer in step with the needs of disabled people, is not personalised, is complex to claim and is not sustainable in its current form. PIP considers and reflects on a broader range of impairment types than DLA and will take better account of sensory impairments, developmental disorders, learning disabilities, cognitive impairments and mental health conditions. Draft regulations and assessment criteria have been published for consultation. The draft assessment criteria focus on the ability to carry out eleven key activities which are fundamental to everyday life. These are: Daily Living component 1. Planning and buying food and drink; 2. Preparing and cooking food; 3. Taking nutrition; 4. Managing medication and monitoring health conditions; 5. Managing prescribed therapies other than medication; 6. Washing, bathing and grooming; 7. Managing toilet needs or incontinence; 8. Dressing and undressing; and 4

5 9. Communicating with others. Mobility Component 10. Planning and following a journey; and 11. Moving around. These activities have been chosen to keep a strong focus on care and mobility while also providing a more holistic assessment of the impact of a health condition or impairment on an individual s ability to participate. 8. Adult social care funding and benefits Adult social care will undertake an assessment of need and a financial assessment using the Resource Allocation System (RAS). The assessment of need is carried out under the Fair Access to Care system 1. It should be noted that there are charges for social care services, though some people on low incomes are exempt. People receiving services under section 117 of the Mental Health Act 1983 are also exempt. The financial assessment will take into account any income and benefits that the young person is receiving and any savings they may have. Parents/carers finances are not taken into account. For most services there will be a charge, the amount to be paid is dependent on income. Financial assessments are carried out under local authority policies and the criteria may differ between authorities, so check on your local authority s website. If an individual refuses to undergo a financial assessment the LA can expect them to pay the full cost of their care. 9. Health funded services NHS Continuing Healthcare is a package of care provided and funded by the NHS for people whose primary need has been assessed to be a health need. The care is provided free by the NHS. If the care is provided in a registered care home or nursing home welfare benefits can be taken into account and some may cease after a relatively short period of time. Where someone is not assessed as having a primary heath need but requires care from a registered nurse the NHS will fund this care. From April 2012 in England the standard Funded Nursing Care (FNC) rate is per week. FNC should not impact on other benefits available to the individual if they are in supported living. 1 Useful booklet can be found at 5

6 10. Benefits for carers Parents/carers need to be aware that there may be an impact on some of the benefits they are receiving in relation to their caring responsibilities once the young person is 16 and claims benefits in their own right. Child Benefit will normally cease once the young person is receiving adult benefits in their own right, or leaves school. 11. Appointeeship When a young person reaches the age of 16 the DWP (Department for Work and Pensions) will review whether they have the capacity to claim benefits in their own right. If DWP feel the young person is unable to act for themselves they will authorise an appointee (who can be the parent) as the claim/contact point for all Social Security Benefits. 6