Download - Welfare Rights Training 2010 INCOME MAXIMISATION What’s this all about? The ability to listen, fact find, and notice that something is missing, advise.

Welfare Rights Training 2010Welfare Rights Training 2010

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

new claims where awarded / new claims where awarded /

paidpaid

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

01387 - 26688801387 - 266888

The following are real casesThe following are real cases

He is 62, has Incapacity Benefit at £91.40 and He is 62, has Incapacity Benefit at £91.40 and Low rate Care at £18.95, he claims HB & CT Low rate Care at £18.95, he claims HB & CT Benefit paying no Rent, he has savings at Benefit paying no Rent, he has savings at £15,400. Benefit check requested.£15,400. 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 91.40 Incapacity Benefit 91.40

Tariff on Savings 11.00 Pensioner Single 132.60Tariff on Savings 11.00 Pensioner Single 132.60 Total 102.40 Total 132.60 Total 102.40 Total 132.60

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

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


Incapacity Benefit 91.40 Pensioner Single 132.60 Incapacity Benefit 91.40 Pensioner Single 132.60

Tariff on savings 11.00 Tariff on savings 11.00

Pension Credit 30.20 Pension Credit 30.20

Total 132.60 Total 132.60Total 132.60 Total 132.60

Claims: Claims:

Pension Credit due £30.20 weeklyPension Credit due £30.20 weekly

(£132.60 - £102.40 = £30.20 PC due)(£132.60 - £102.40 = £30.20 PC due)

Arrears 13 x £30.20 = £392.60 Arrears 13 x £30.20 = £392.60

(27/10/08 limited backdating to three months)(27/10/08 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 (£47.80) and Middle Rate Care (£47.80) and the other has Attendancethe other has Attendance

Allowance (£71.40). Allowance (£71.40).

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 @ £6.83£150 & £90. They pay rent @ £6.83weekly and Council Tax @ £2.10weekly and Council Tax @ £2.10weekly. 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 202.40Retirement Pension 150 Pensioner Couple 202.40 Retirement Pension 90 Retirement Pension 90

Total 240 Total 202.40Total 240 Total 202.40

Over 65 So Add full Savings Credit To HB/CTB 27.10 Over 65 So Add full Savings Credit To HB/CTB 27.10 (This is a HB CTB figure only) (229.50)(This is a HB CTB figure only) (229.50)

Rent x 65% CT x 20% Excess Income 10.50Rent x 65% CT x 20% Excess Income 10.50

Council Tax paid now £2.10 Rent paid now £6.83Council Tax paid now £2.10 Rent paid now £6.83

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 202.40

Retirement Pension 90

Severe Disability Prem x 2

107.30

Carer Premium 30.05

Carer Premium 30.05

Total 240369.80

Savings Credit Due in full @

£27.10

Rent paid now 00.00 Pension Credit Due £129.80

Council Tax paid now 00.00 (£369.80 - £240 =

£129.80)

Claims?Claims?

Carers Allowance £53.90 x 2 (Underlying only) backdated three months Carers Allowance £53.90 x 2 (Underlying only) backdated three months

Pension Credit GT On-Going @ £129.80 weekly Backdated 13 weeks Pension Credit GT On-Going @ £129.80 weekly Backdated 13 weeks @ £1,687.40 @ £1,687.40

Pension Savings Credit On-Going @ £27.10 Backdated 13 weeks Pension Savings Credit On-Going @ £27.10 Backdated 13 weeks @ £352.30@ £352.30

Housing Benefit increase @ £6.83 weekly Backdated 13 weeks Housing Benefit increase @ £6.83 weekly Backdated 13 weeks @ £88.79 @ £88.79

Council Tax increase @ £2.10 weekly Backdated 13 weeks Council Tax increase @ £2.10 weekly Backdated 13 weeks @ £27.30 @ £27.30

£165.83 weekly increase in income (PC/GT £129.80, PC/SC £27.10, Rent £165.83 weekly increase in income (PC/GT £129.80, PC/SC £27.10, Rent / HB £6.83, Council Tax £2.10) / HB £6.83, Council Tax £2.10)

Arrears paid @ £2,155.79 (PC/GT £1,687.40, PC/SC £352.30, HB £88.79, Arrears paid @ £2,155.79 (PC/GT £1,687.40, PC/SC £352.30, HB £88.79, CT £27.30) CT £27.30)

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 (£30.05) will give the Carer/s Premiums x 2 (£30.05) 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

Couple under 40:Couple under 40:

She has DLA at Middle Rate Care and Work She has DLA at Middle Rate Care and Work Related Employment Support Allowance at Related Employment Support Allowance at £91.40 weekly. £91.40 weekly.

He partner is off work sick and has Statutory He partner is off work sick and has Statutory Sick Pay from work at £79.15 weekly. Sick Pay from work at £79.15 weekly.

She claims HB & CTB and they now pay She claims HB & CTB and they now pay rent at £14.20 and Council Tax at £4.37 both rent at £14.20 and Council Tax at £4.37 both weekly.weekly.

Income now £ Applicable amount £Income now £ Applicable amount £ Employment Support 91.40 Couple ESA Work Related Employment Support 91.40 Couple ESA Work Related 128.70 128.70 Statutory Sick Pay 79.15 SSP Disregard 20.00 Statutory Sick Pay 79.15 SSP Disregard 20.00 Total 170.55 Total 148.70 Total 170.55 Total 148.70

Excess Income £21.85 (£170.55 - £148.70 = £21.85) Excess Income £21.85 (£170.55 - £148.70 = £21.85)

Rent x 65% = £14.20 Council Tax x 20% + £4.37 Rent x 65% = £14.20 Council Tax x 20% + £4.37

Any claims? Any claims?

Can he claim Carers Allowance Can he claim Carers Allowance

while on Statutory Sick Pay?while on Statutory Sick Pay?

Income now £ Applicable amount £Income now £ Applicable amount £ Employment Support 91.40 Couple ESA Work Related Employment Support 91.40 Couple ESA Work Related 128.70 128.70 Statutory Sick Pay 79.15 SSP Disregard 20.00 Statutory Sick Pay 79.15 SSP Disregard 20.00 Carers Allowance 53.90 Carer Premium 30.05 Carers Allowance 53.90 Carer Premium 30.05

Total 224.45 Total 178.75 Total 224.45 Total 178.75


Rent x 65% = £29.70 Council Tax x 20% = £9.14 Rent x 65% = £29.70 Council Tax x 20% = £9.14


Swap the Housing Benefit Swap the Housing Benefit

claimants?claimants?

Income now £ Applicable amount £Income now £ Applicable amount £ Employment Support 91.40 Couple 102.75 Employment Support 91.40 Couple 102.75 Statutory Sick Pay 79.15 SSP Disregard 20.00 Statutory Sick Pay 79.15 SSP Disregard 20.00 Carers Allowance 53.90 Carer Premium 30.05 Carers Allowance 53.90 Carer Premium 30.05 Disability Premium 39.85 Disability Premium 39.85 Total 224.45 Total 192.65 Total 224.45 Total 192.65


Rent x 65% = £20.67 Council Tax x 20% = £6.36 Rent x 65% = £20.67 Council Tax x 20% = £6.36

Julie is 47 and asks for your Julie is 47 and asks for your help to increase her DLA Care help to increase her DLA Care Component which is paid at the Component which is paid at the low rate, her condition has got a low rate, her condition has got a lot worse over the last year and lot worse over the last year and she feels she is now due at she feels she is now due at least middle rate care least middle rate care componentcomponent

Her other income at this time is Her other income at this time is Incapacity Benefit at £106.40 Incapacity Benefit at £106.40 she pays a small amount of rent she pays a small amount of rent and council tax, she get a 25% and council tax, she get a 25% single persons council tax single persons council tax discount for living alone as well,discount for living alone as well,she has no savings.she has no savings.


Incapacity Benefit 106.40 Single Person 65.45 Incapacity Benefit 106.40 Single Person 65.45 Disability Premium 28.00 Disability Premium 28.00

Total 106.40 Total 93.45 Total 106.40 Total 93.45


Rent x 65% = £8.40 Council Tax x 20% + £2.58 Rent x 65% = £8.40 Council Tax x 20% + £2.58


If middle care awarded?If middle care awarded?

Income Now Applicable AmountIncome Now Applicable Amount

Incapacity 106.40 Single 65.45Incapacity 106.40 Single 65.45 Disability Premium 28.00 Disability Premium 28.00 Severe Disability 53.65 Severe Disability 53.65

Total £106.40 £147.10Total £106.40 £147.10

Income Support due? £40.70 weeklyIncome Support due? £40.70 weekly

Rent saved £8.40 Council Tax saved £2.58Rent saved £8.40 Council Tax saved £2.58

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 a If you are over the age of 65 you may be given a Pension Credit award that lasts for 5 years or Pension Credit award that lasts for 5 years or longer. longer.

This is known as the Assessed Income Period This is known as the Assessed Income Period (AIP). (AIP).

Single: Single:

Aged 74 has Pension Credit Aged 74 has Pension Credit Guarantee at £75.55 weekly Guarantee at £75.55 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 £132.60 of £132.60

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

She has an AIP lasting until 2015She has an AIP lasting until 2015

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?