I really do believe in the power of good advice work. In this day and age of IT, gizmos, gadgets, call centres and websites it is now often quite rare to talk to someone who knows their stuff and can really help.  

Good advice, whether over the telephone or face2face, can really make a difference to peoples lives. I see this every day at IncomeMAX but it is the same at advice centres up and down the country, with dedicated advisors providing excellent customer service and expert advice to people that had nowhere else to turn.

This is why when we hear stories about fabulous advisors we like to highlight their work and tell the world about the great work they do. Step forward therefore, Amina Begum.

Amina, a long-standing NVQ trainee was recently nominated by Advice UK for a medal for excellence for her services to Advice & Guidance.  She was awarded the medal & will pick it up at a swanky presentation evening next week!

However, there’s another award called the ‘people’s choice’ which members of the public have to vote for and Advice UK would like people to vote for Amina. IncomeMAX have voted for Amina and we’d very much like our customers and partners to do the same.

Here’s the link where people can vote for Amina via Facebook: 

http://apps.facebook.com/contestshq/contests/113133/voteable_entries/19773534

We spoke to Advice UK’s leading learning consultant and brain friendly training guru Kerry Herbert about Amina’s success. “AdviceUK NVQ candidate Amina has already been awarded a prestigious Medal for Excellence and has now been nominated for the ‘People’s Choice award’ through City & Guilds. She started as a volunteer, worked her way through the ranks and is now supporting others to achieve their own goals. She’s a shining example of the heights that young people can reach with a bit of encouragement & self belief & is a massive inspiration to others!”

“Please vote for her! Only takes a few seconds!”

To find out more about Advice UK’s NVQ and training programmes visit www.adviceuk.org.uk

The checklist is a great way of remembering all of the various benefits & tax credits that exist. At IncomeMAX our advisors use the checklist with every customer, to ensure we have considered every single benefit, tax credit or scheme available.

A2 wall posters will be available soon.

Download the 2011/2012 Benefits & Credits Checklist

If you are having trouble paying your water bills, it is important to address the problem.

Here is a quick IncomeMAX guide to the help available.

Water Sure Scheme (for those with a water meter only)

Many households can benefit from having a water meter, as you will only be billed for the water that you use.

But some households with meters face hardship because they need to use large amounts of water for essential purposes. To help support customers in this situation, there is a Water Sure scheme available.

Customers with a water meter who are accepted onto the Water Sure scheme have their new charges capped at the same amount as the average household bill.

To be eligible for Water Sure, you or a member of your household must receive one of the following benefits or tax credits:

• Income Support
• Income-based Jobseeker’s Allowance
• Housing Benefit
• Council Tax Benefit
• Working Tax Credit
• Child Tax Credit (except families in receipt of the family element only)
• Pension Credit
• Income-related Employment and Support Allowance

And in addition either:

Receive child benefit for three or more dependent children

Or:

• You or any member of your household have one a medical conditions which results in you having to use lots of water.

Note that certain medical conditions can only be accepted if the condition uses significant amounts of water and is supported by a signed certificate issued by a doctor or registered practitioner.

Water Direct (Water bills paid direct from benefit payments)

If you’ve got unpaid bills from your water supplier, and you receive:

• Income Support
• Pension Credit
• Employment and Support Allowance
• Income-based Jobseeker’s Allowance

then you can ask your benefits office to pay the supplier directly out of your benefit. This system is called Water Direct. It covers your current fuel use and also pays off a certain amount of your unpaid bill each week. Contact your water supplier to apply.

Charitable Trust Fund Payments

Some water companies have set up trust funds that may be able to help you pay your fuel bills if you are in financial difficulties. Contact your water supplier to find out if they run a scheme and how to apply.

Special Tariffs and other support

Many water companies provide other special schemes and tariffs to help you with your bills.

Southern Water for example have a New Start Scheme, where if  the customer is able to start paying what is owed for the current year by regular instalments, Southern Water will clear the same amount from the arrears.

Ofwat, the regulator for the water industry is currently working with water suppliers on possible tariff options for vulnerable customers.

Always contact your water supplier to find out the various options available to you.

If you need further advice, contact your local advice service or CAB.

Helpful Links

Water.org.uk

http://www.water.org.uk/home/resources-and-links/paying-for-water/help-from-water-companies

Advice Guide

http://www.adviceguide.org.uk/index/your_world/consumer_affairs/water_supply.htm

Direct.gov

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10025592

Ofwat

http://www.ofwat.gov.uk

The materials are a comprehensive guide to the welfare changes to be implemented in 2011.

Benefit and tax credit changes 2011

Welfare to work support 2011

Benefits rates

Tax Credit rates

Let me know if they have been useful.

Look out for IncomeMAX Benefits checklist and iBenefits updates late March/Early April 2011

IncomeMAX are pleased to announce the launch of our SUPER DUPER INSULATED HOMES PROJECT in partnership with Osborne Energy.  

The IncomeMAX Super Duper Insulated Homes Project assists low income homeowners and privately renting tenants to get FREE INSULATION for their home.

Insulation helps keep your home warm, reduces your energy use and helps the environment.

Insulation also saves you money by cutting the cost of your energy bills.

The Super Duper Insulated Homes Project will also help you to MAXIMISE YOUR INCOME by providing expert benefits and tax credits advice.

Working in Partnership with Osborne Energy

The Super Duper Insulated Homes Project is delivered in partnership with Osborne Energy, one of the UK’s leading delivery partners for the energy efficiency sector.

FREE INSULATION ELIGIBILITY CRITERIA

To qualify for free insulation you’ll need to meet the Super Priority Group criteria.

You must be;

• be aged over 60, or
• be a disabled person, or 
• have a disabled child, or 
• have a child aged under 5 

AND be in receipt of;

• Pension Credit, or
• Child Tax Credit (income below £16,190), or 
• Income-based Job Seeker’s Allowance (IB JSA), or
• Income-related Employment and Support Allowance (IR ESA) which includes a work-related activity or support component, or
• Income Support

To find out if you are eligible for free insulation call the IncomeMAX Super Duper Insulated Homes Project on 0300 777 777 2 or email info@incomemax.org.uk

IncomeMAX Managing Director Lee Healey featured on a host of BBC Television and Radio programmes this week to comment on the Government’s newly published Welfare Reform Bill.

The Welfare Reform Bill was announced at 9:30am on Thursday 17th Feb 2011 and Lee’s first radio interview was with BBC Radio Sussex on the morning of the announcements.

The bill would dominate news headlines for the next few days in what would be the biggest shake up to welfare since the 1940′s.

Next up for Lee was an hour long phone in with Julia George on BBC Radio Kent’s Friday morning breakfast show. The phone lines were red-hot, with listeners eager to find out what the welfare proposals would mean for them. Of particular concern was the lack of clarity for childcare support, changes to Disability Living Allowance and the lone parent conditionality changes meaning many lone parents will need to look for work once their youngest child is aged 5 or over.

On Friday afternoon Lee featured on BBC Radio Five Live’s drive time programme commenting on the BBC news story regarding Civic Penalties, where claimants could be fined if they do not claim correctly or if they fail to report changes of circumstances.

On Saturday morning Lee headed down to BBC Television Centre to take part in two interviews.

First up was an interview on BBC News 24 and the Your Money Programme, presented by Declan Curry. Lee and Declan looked in depth at the Universal Credit proposals, including the plan to allow claimants to keep more of their wages and benefit when they start working.

Last up was an interview with Paul Lewis on BBC Radio 4′s Money Box Programme. Lee and Paul looked at a host of issues, including the proposed benefits cap, tougher conditionality rules and the plans to replace Disability Living Allowance with a Personal Independence Payment.

By Lee Healey

The long awaited Welfare Reform Bill was introduced to Parliament today, outlining the Coalition Government’s plans for modernising the welfare system.

The bill provided further information on key elements of change previously announced by the Government, including:

• The introduction of Universal Credit
• Household benefit caps
• Uprating the Local Housing Allowance using the Consumer Price Index
• Time limiting Contribution-based Employment & Support Allowance for claimants in the Work Related Activity Group 
• Removing the Youth Condition within Contribution-based Employment & Support Allowance
• Disability Living Allowance Reform
• Fraud procedures and sanctions

Universal Credit

The introduction of Universal Credit has been by far the most dramatic change planned by the Government but unfortunately there was still a lack of detail on certain issues. For this particular benefits geek it was a bit like waking up on Christmas Day and finding you had no presents to open.

There was no further detail on the level of ‘tailored earnings disregards’ nor the help available for childcare costs and carers, or what will replace Council Tax Benefit.

There are still huge questions to be answered on the system of ‘transitional payments’ for those that may lose out financially when transferred to the new system and exactly how much the elements of Universal Credit will be, although we now know that it will be made up of a standard allowance, an amount for responsibility for children or young persons, an amount for housing, and amounts for other particular needs or circumstances.

Work and Pensions Secretary Iain Duncan Smith must have known there would be disappointment on the lack of detail on Universal Credit, quickly clarifying on BBC Breakfast that more detail will now be added at the committee stage of the bill.    

So what were we able to confirm about Universal Credit today? In a nutshell:

That there will be larger, personalised earnings disregards which will make it more beneficial for people on low incomes to work.

Basically, claimants will keep more of their wages AND their Universal Credit, meaning that it will be difficult for anyone to argue that “it’s not worth working as I’ll be worse off”. Larger earnings disregards will be particularly useful for those who want to start working a few hours. In fact, the Government have developed a new phrase, conceding that there will be particular incentives for claimants to take on ‘mini jobs’. Reading between the lines, you can only assume that the Government see the taking on of a ‘mini-job’ as an important stepping stone to full-time work.

There will be a standard 65% Universal Credit taper rate.

This is an essential element of making the Universal Credit simpler and easier to understand.

The 65% taper rate will be applied to Universal Credit payments after any earnings disregard. We are still awaiting further details, but one can only assume that it will follow a similar model to tapers currently applied to benefits such as Tax Credits or Housing Benefit.

The following is a very, very basic idea of how the 65 % UC taper might work, using (just so you are clear) completely made up UC and disregard figures! 

Minnie is a 45 year old single person renting a room and she has a current Universal Credit entitlement of £100 PW which includes help with rent.  

Minnie has a UC earnings disregard of £25 (meaning that Minnie can earn £25 PW without it affecting her UC). Minnie takes on a ‘mini job’ earning £50 PW.

The first £25 of Minnie’s earnings are ‘disregarded’. The remaining £25 is subject to the 65% taper.

65% of £25 is £16.25. Minnie’s Universal Credit will therefore be reduced by £16.25.

Minnie’s new income is now Universal Credit of £83.75 and Wages of £50 = £133.75

Minnie would therefore be something like £33.75 better off working under a Universal Credit type scheme (again, please remember I’ve made up the UC Amounts and the UC Disregard as they are not known at present).  

So how would Minnie’s case work at present, under the existing system?

Let’s say that Minnie currently gets JSA of £65.45 per week and Housing Benefit of £34.55 per week – income total of £100 PW

If Minnie took a ‘mini job’ earning £50 PW here is what would happen…

Minnie would be entitled to a £5 disregard on her JSA. Everything else she earned would be deducted from her JSA.

Minnie’s new income would be:

JSA = £20.45

Wages = £50

Housing Benefit = £34.55

Total income = £105  

So Minnie would be just £5 per week better off working under the current system.

You can see why the Government want to increase (and tailor) the earnings disregards for Universal Credit and introduce a 65% taper rate, as it (should) act as a big incentive for people to at least work part-time. 

It is worth highlighting that the Government plan to have larger earnings disregards for disabled people and parents with children (carers as well??) meaning that these customer groups should keep EVEN MORE of their earnings and their Universal Credit entitlement when they work.

Ultimately the Government, by using a 65% taper, want to ensure that claimants on the lowest incomes are better off by £0.35 for every £1 they earn over the income disregard rate. The Government also want to ensure that claimants ‘know where they stand’ as they start to increase their hours.

So what if, for example, a Universal Credit claimant wants to do some overtime and earn an extra £10 one week?

Assuming that the UC claimant is already earning over the earnings disregard level, the claimant will know that they will earn £10, lose £6.50 from their UC and keep £3.50.

It is when you drill down to it at this level that you realise that it is all a bit of an experiment. The Government are banking on the larger disregards and standard taper rate to act as an incentive to work. Will it be enough to entice people into work?

Maybe, but lets not forget that tougher conditionality may force claimants hand anyway.

Which brings me on to…

Tougher Conditionality

Underpinning all of this is a tougher regime of conditionality, meaning that there will be harsher and tougher sanctions for refusing to take a job.  

For claimants needing to meet work-related requirements, there will be a work-focused interview requirement, a work preparation requirement, a work search requirement and a work availability requirement.

There will also be a ‘claimant commitment’ which will be a record of a claimant’s responsibilities in relation to an award of universal credit.

Claimants failing to meet their responsibilities may be subject to ‘higher level’ sanctions.

That Universal Credit is being aligned to support those at the lower end of the income spectrum

The Coalition Government are making a bold clear step towards culture change with the creation of the Universal Credit. 

From 2013, welfare in Great Britain will mainly be aimed at supporting those on the lower income spectrum, with welfare no longer providing support to moderate/middle income families that may have benefited from the current generosity of Tax Credits.

The Coalition Government estimates that 1.7 million people will have reduced entitlement under the Universal Credit.

This will make the issue of transitional payments an important one. The Coalition Government have stated that no-one will be worse off financially as the new system is implemented, Mr Duncan Smith boldly saying that “nobody will be worse off, they will be cash-protected.” Having witnessed the Tax Credits overpayments problems over the years, please forgive me if I am slightly sceptical about that statement.

There is one area of contradiction here. IDS says people will be cash protected, yet the Government plan to cap benefit payments to £500 per week for couple and lone parent households and to £350 per week for single person households. How will this all fit together? It is common knowledge that families with higher numbers of children and housing benefit claimants will be the losers under these plans. But will these families be offered transitional protection? Let’s hope the Government stick to their promise to ensure that disabled people do not become worse off under the benefit cap proposals.

And the rest…

It will take time for the Government to piece all of this together. There is still so much detail required. What support will there be for carers? The Government have already admitted that they may need to widen their consultation on the Personal Independence Payment, which will replace Disability Living Allowance.

What help will there be for Childcare costs? And for Council Tax Benefit? What will be the impact of time limiting Contribution-based ESA?

IncomeMAX eagerly await the next instalment of information so that we can make an informed decision on whether the planned programme of welfare reform will create a fair and just system that supports people adequately.   

Lee Healey

IncomeMAX Managing Director

17^th February 2011

Havering MIND and IncomeMAX are proud to announce the launch of a brand new early intervention service for Carers, funded by the Department of Health.

Becoming a Carer can be a difficult time, especially if there are financial and social wellbeing implications. 

It is therefore essential that Carers get the right help, advice and support.

The Havering MIND and IncomeMAX early intervention service is available to all new Carers in Havering and provides personalised help, advice and support for issues such as support requirements, benefits and tax credits entitlement, part-time employment opportunities, information and training.  

If your organisation works with Carers in Havering and you would like to refer customers into the service please call Havering Mind on 01708 457 040 or IncomeMAX on 0300 777 777 2.

You can also download the Havering MIND and IncomeMAX Carers Early Intervention service leaflet

Existing Housing Benefit claimants will only be affected by this change from the anniversary of their claim and some customers could receive up to nine months transitional protection.

The DWP Housing Benefit Circular can be accessed here: http://www.dwp.gov.uk/docs/a25-2010.pdf

But what does the future hold for the benefits system? As we look into the IncomeMAX crystal ball, we may see a very different welfare system from 2013 onwards…

Universal Credit

Universal Credit (UC) will replace a number of current working age benefits BUT NOT ALL BENEFITS as many people seem to think. Universal Credit will definitely replace Income Support, Income-Based Jobseekers Allowance, Income-Related Employment & Support Allowance, Housing Benefit, Child Tax Credit and Working Tax Credit. Working age families will claim UC to help top up their income and the idea is that claimants will keep more of their UC when they work. This will mean increased income disregards and the use of a single taper, which is used to reduce the amount of benefit you are entitled to.

Universal Credit will be means-tested and at present the Government are planning to have a savings limit similar to what is used for benefits such as Income Support, IB JSA, IR ESA and HB. There is still an awful lot to be considered by the Government before Universal Credit is finalised and IncomeMAX will be bringing you all of the latest information.

Work Programme

There will be a main Work Programme to help most working age claimants find/stay in work.

Work Choice

There will be a separate Work Choice programme to help disabled people find employment.

Get Britain Working

The Get Britain Working initiative will provide support through Work Clubs, Work Together and Work Experience    

Contribution Based Jobseekers Allowance

There will still be a Contribution based Jobseekers Allowance, eligibility of which will be dependent on satisfying National Insurance contribution conditions. CB JSA is payable for up to six months.

Contribution-based Employment & Support Allowance

There will still be a Contribution based Employment & Support Allowance for those with limited capability of work, eligibility of which will be dependent on satisfying National Insurance contribution conditions (or, possibly, a young person as is currently the case).

Carers Allowance

Note that is unclear at present whether there will still be a form of Carers Allowance or if Carers Allowance will also be replaced by Universal Credit. The Government are committed to reforming the support available to carers so we’ve included Carers Allowance here for now.

Enterprise Allowance

There may also be an Enterprise Allowance for people who are out of work and enter self-employment. People who take up the allowance will receive a weekly payment linked to the value of their benefit for a period of up to six months

Council Tax Benefit

Council Tax Benefit will not be part of Universal Credit and will still be administered by Local Authorities. Council Tax Benefit would be available to both working age and pension age claimants.

Housing Benefit for Pension age customers

Although Housing Benefit will be part of Universal Credit for working age customers, there will obviously need to be a separate Housing Benefit scheme for pension age customers. We can only guess what the arrangements might be, but it probably will be one of two possible options a) local authorities continue to administer HB for pension age claimants or b) HB is paid within pension credit in much the same way that HB will be paid within Universal Credit

Discretionary Housing Payments

Local Authorities might still have a Discretionary Housing Payment Scheme to help claimants with additional housing costs not covered by Universal Credit/HB for pensioners  

Child Benefit

Child Benefit will still be available but will no longer be available to families where one parent or more is a high rate tax payer

Guardians Allowance

People responsible for dependent children or young people that have been orphaned might still be able to claim Guardians Allowance

Personal Independence Payments

Personal Independence Payments will replace Disability Living Allowance as the disability benefit for disabled people aged under 65 when they first claim.

Attendance Allowance

It is likely that there still be a separate disability benefit for people aged over 65 when they first claim

Pension Credit

It is likely that Pension Credit will still exist as the mean-tested top-up benefit for people that are of Pension Credit Qualifying Age.

Retirement Pension

There will of course still be a State Pension for those that are of State Pension Qualifying Age

Bereavement benefits

There will still be three benefits available: Bereavement Allowance, Widowed Parents Allowance and Bereavement Payment

Statutory Sick Pay/Statutory Maternity Pay/Statutory Adoption Pay/Statutory Paternity Pay

Statutory employee benefits will still exist

Maternity Allowance

There will still be a Maternity Allowance for Mums-to-be/New Mums

Industrial Injuries Disablement Benefit

There will still be an Industrial Injuries Disablement benefit for those left permanently disabled through industrial injury or disease

Other schemes

There will more than likely still be range of other schemes, including: Armed Forces Compensation Scheme, The Social Fund (for help with extra costs such as Funerals, Community Care Grants, Loans for essential items, Maternity Grants, Cold Weather Payments etc) Winter Fuel Payments, Health Benefits, Help with School Meals and Uniform, Blue Badge, Free bus passes, Energy Efficiency Schemes

So, next time someone tells you that all benefits are being scrapped and being replaced by Universal Credit, point them in the direction of this blog! I’d really welcome your opinions on our Crystal Ball gaze into the future…

What do you think of the governments proposals?  Will this new system really be any different from the current system? Will it be a fair system? Post your comments at the bottom of the page.

Lee Healey

IncomeMAX Managing Director