Welfare Rights Training 2009Welfare Rights Training 2009

INCOME MAXIMISATIONINCOME MAXIMISATION

What’s this all about?What’s this all about?

The ability to listen, fact find, and notice The ability to listen, fact find, and notice that something is missing, advise that something is missing, advise accordingly, helping to identify further accordingly, helping to identify further claims due. claims due.

Thus increasing the weekly income of any Thus increasing the weekly income of any client.client.

How do you do this?How do you do this?

INCOME MAXIMISATIONINCOME MAXIMISATION

Interview and listen carefullyInterview and listen carefully

Think aheadThink ahead

Write down the facts / Write down the facts / information giveninformation given

Check this information again Check this information again at the endat the end

Calculate using the above Calculate using the above informationinformation

Submit and backdate any and Submit and backdate any and all claims identified at this stageall claims identified at this stage

Identify any possible new Identify any possible new claimsclaims

Re-calculate again as if these Re-calculate again as if these claims where awarded / paidclaims where awarded / paid

Submit any and all claims that Submit any and all claims that would become payable if / would become payable if / when these new claims are when these new claims are

paid / awardedpaid / awarded

Clearly explain to the client Clearly explain to the client what will or will not happenwhat will or will not happen

If your unsure call your If your unsure call your

Help-Line onHelp-Line on

0800 161 38 390800 161 38 39

The following are real casesThe following are real cases

He is 62, has Incapacity Benefit at £89.80 and He is 62, has Incapacity Benefit at £89.80 and Low rate Care at £18.65, he claims HB & CT Low rate Care at £18.65, he claims HB & CT Benefit paying no Rent, he has savings at Benefit paying no Rent, he has savings at £12,400. Benefit check requested.£12,400. Benefit check requested.

Interview, think ahead, write down, and checkInterview, think ahead, write down, and checkagain, all done.again, all done.

CALCULATE (Ignore DLA)CALCULATE (Ignore DLA)

Income now £ Applicable amount £Income now £ Applicable amount £

Incapacity Benefit 89.80 Incapacity Benefit 89.80

Tariff on Savings 13.00 Pensioner Single 130.00Tariff on Savings 13.00 Pensioner Single 130.00 Total 102.80 Total 130.00 Total 102.80 Total 130.00

ANY CLAIMS? NEW CLAIMS?ANY CLAIMS? NEW CLAIMS?

RE-CALCULATE (Ignore DLA)RE-CALCULATE (Ignore DLA)

Income now £ Applicable amount £Income now £ Applicable amount £

Incapacity Benefit 89.80 Pensioner Single 130.00 Incapacity Benefit 89.80 Pensioner Single 130.00

Tariff on savings 13.00 Tariff on savings 13.00

Pension Credit 27.20 Pension Credit 27.20

Total 130.00 Total 130.00Total 130.00 Total 130.00

Claims: Claims:

Pension Credit £27.20 weeklyPension Credit £27.20 weekly

(£130.00 - £102.80 = £27.20 PC due)(£130.00 - £102.80 = £27.20 PC due)

Arrears 13 x £27.20 = £353.60 (27/10/08Arrears 13 x £27.20 = £353.60 (27/10/08limited backdating to three months)limited backdating to three months)

This man had been claiming HB & CTB for overThis man had been claiming HB & CTB for overtwo years when we advised him to claim andtwo years when we advised him to claim andbackdate a Pension Credit claim, all the abovebackdate a Pension Credit claim, all the aboveinformation had been given to HB & CTB manyinformation had been given to HB & CTB manytimes on previous occasions. times on previous occasions.

This failure lost him thousandsThis failure lost him thousands

Couple: Couple:

Both over 65, one has DLA at Both over 65, one has DLA at Middle Rate Care (£47.10) and Middle Rate Care (£47.10) and the other has Attendancethe other has Attendance

Allowance (£70.35). Allowance (£70.35).

The AA has only recently been The AA has only recently been awardedawarded

Other incomes? Other incomes?

Both have Retirement Pensions atBoth have Retirement Pensions at£150 & £90. They pay rent @ £9.43£150 & £90. They pay rent @ £9.43weekly and Council Tax @ £2.90weekly and Council Tax @ £2.90weekly. They live aloneweekly. They live alone

Interview, think ahead, write down, andInterview, think ahead, write down, andCheck again, all done ?Check again, all done ?

Income now £ Applicable amount (Before AA) £Income now £ Applicable amount (Before AA) £ Retirement Pension 150 Pensioner Couple 198.45Retirement Pension 150 Pensioner Couple 198.45 Retirement Pension 90 Retirement Pension 90

Total 240 Total 198.45Total 240 Total 198.45

Add full Savings Credit HB/CTB £27.03 Add full Savings Credit HB/CTB £27.03 (This is a HB CTB figure only) (225.50)(This is a HB CTB figure only) (225.50)

Rent x 65% CT x 20% Excess Income 14.50Rent x 65% CT x 20% Excess Income 14.50

Council Tax paid now £2.90 Rent paid now £9.43Council Tax paid now £2.90 Rent paid now £9.43

CALCULATE (Ignore DLA & AA)CALCULATE (Ignore DLA & AA)

ANY CLAIMS? NEW CLAIMS?

Claim:

Carers Allowance x 2

Pension Credit

Backdated three months

RE-CALCULATE

(Ignore DLA & AA)

Income now £ Applicable amount £

Retirement Pension 150 Pensioner Couple 198.45

Retirement Pension 90

Severe Disability Prem x 2

105.70

Carer Premium 29.50

Carer Premium 29.50

Total 240363.15

Savings Credit Due in full @

£27.03

Rent paid now 00.00 Pension Credit Due £123.15

Council Tax paid now 00.00 (£363.15 - £240 =

£123.15)

Claims?Claims?

Carers Allowance £53.10 x 2 (Underlying only) backdated three months Carers Allowance £53.10 x 2 (Underlying only) backdated three months

Pension Credit GT On-Going @ £123.15 weekly Backdated 13 weeks Pension Credit GT On-Going @ £123.15 weekly Backdated 13 weeks @ £1,600.95 @ £1,600.95

Pension Savings Credit On-Going @ £27.03 Backdated 13 weeks Pension Savings Credit On-Going @ £27.03 Backdated 13 weeks @ £351.39@ £351.39

Housing Benefit increase @ £9.43 weekly Backdated 13 weeks Housing Benefit increase @ £9.43 weekly Backdated 13 weeks @ £122.59 @ £122.59

Council Tax increase @ £2.90 weekly Backdated 13 weeks Council Tax increase @ £2.90 weekly Backdated 13 weeks @ £37.70 @ £37.70

£162.51 weekly increase in income (PC/GT £123.15, PC/SC £27.03, Rent £162.51 weekly increase in income (PC/GT £123.15, PC/SC £27.03, Rent / HB £9.43, Council Tax £2.90) / HB £9.43, Council Tax £2.90)

Arrears paid @ £2,111.83 (PC/GT £1,600.15, PC/SC £351.39, HB Arrears paid @ £2,111.83 (PC/GT £1,600.15, PC/SC £351.39, HB £122.59, CT £37.70) £122.59, CT £37.70)

Carers Allowance will be awarded but not be Carers Allowance will be awarded but not be PAID,PAID, due to the Retirement Pensions of a due to the Retirement Pensions of a higher value, however underlying entitlement higher value, however underlying entitlement will give the Carer/s Premiums x 2 (£29.50) will give the Carer/s Premiums x 2 (£29.50) within their applicable amount so additional within their applicable amount so additional PC will be due PC will be due

Rent & Council Tax will be nil due to PC/GT Rent & Council Tax will be nil due to PC/GT

Due to backdating Pension Credit client will Due to backdating Pension Credit client will get a refund of any Rent & Council Tax get a refund of any Rent & Council Tax already paid for that time.already paid for that time.

SDP X 2 WILL STILL BE PAID AS SDP X 2 WILL STILL BE PAID AS UNDERLYING CARERS DOES NOT STOP ITUNDERLYING CARERS DOES NOT STOP IT

Asset rich cash poorAsset rich cash poor Remember the following paragraph from earlier?Remember the following paragraph from earlier?

“ “The assessed income period and change of The assessed income period and change of circumstances”circumstances”

If you are over the age of 65 you may be given If you are over the age of 65 you may be given an award that lasts for 5 years. This is known as an award that lasts for 5 years. This is known as the Assessed Income Period (AIP). During this the Assessed Income Period (AIP). During this period annual adjustments will be made period annual adjustments will be made automatically for increases in your state and automatically for increases in your state and private pensions but you do not need to report private pensions but you do not need to report changes such as increases in your savings or changes such as increases in your savings or pension income. If your income goes down you pension income. If your income goes down you will be able to ask for your benefit to be will be able to ask for your benefit to be reassessed. You also need to report certain reassessed. You also need to report certain changes such as if you move home, marry, are changes such as if you move home, marry, are widowed, your earnings change or you go into widowed, your earnings change or you go into hospital. hospital.

Single: Single:

Aged 74 has Pension Credit Aged 74 has Pension Credit Guarantee at £72.95 weekly Guarantee at £72.95 weekly and her basic Retirement and her basic Retirement Pension at £57.05 weekly Pension at £57.05 weekly giving a weekly total income giving a weekly total income of £130.00. of £130.00.

She owns her own house with no mortgageShe owns her own house with no mortgage

She has an AIP lasting until 2013She has an AIP lasting until 2013

She feels the house is too big for her and has been finding the She feels the house is too big for her and has been finding the stairs difficult stairs difficult

She has recently been allocated a rented sheltered property by She has recently been allocated a rented sheltered property by the Council / Housing Association the Council / Housing Association

She pays no Rent or Council Tax as the old house is up for sale She pays no Rent or Council Tax as the old house is up for sale (Value is ignored while up for sale for 6 months or longer)(Value is ignored while up for sale for 6 months or longer)

Housing Benefit pays her rent in full @ £55 weekly direct to the Housing Benefit pays her rent in full @ £55 weekly direct to the Council / Housing AssociationCouncil / Housing Association

Council Tax Benefit pays her Council Tax due at £16 weeklyCouncil Tax Benefit pays her Council Tax due at £16 weekly

She has since sold her old house for £166,000She has since sold her old house for £166,000

How will having this new capital How will having this new capital affect her On Going Pension affect her On Going Pension Credit Guarantee claim?Credit Guarantee claim?

How will £166,000 in savings How will £166,000 in savings affect her Housing Benefit & affect her Housing Benefit & Council Tax Benefit claims?Council Tax Benefit claims?

ENDEND

Questions and Answers?Questions and Answers?