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What's new in benefits?

Here are some changes in benefit rules and regulations for 2008.

Child Maintenance Disregard

Currently, £15 per week is disregarded as income for the purpose of calculating any Housing or Council Tax benefit entitlement. However from 27 October 2008 any child maintenance will be disregarded in full.

Employment and Support Allowance (ESA)

Employment and Support Allowance is a new benefit from The Department for Work and Pensions (DWP) and it will replace Incapacity Benefit and also Income Support on the grounds of incapacity.

It is for new customers only, anyone already receiving Incapacity Benefit or Income Support will initially continue to receive their exisiting benefits, as long as they satisfy the entitlement conditions.

ESA starts on 27 October 2008. There will be 2 phases; the assessment phase that is paid for up to 13 weeks, then the main phase with an extra component; either a work-related activity component or a support component. During the assessment phase a health care professional will carry out a Work Capability Assessment with you, to determine your level of illness or disability, and how this affects you day to day. The DWP will decide if you are entitled to ESA, and which component you should be awarded in the main phase.

How does ESA effect Housing and Council Tax Benefit?

Customers will either be awarded Employment and Support Allowance (Income Related) or Employment and Support Allowance (Contributory).

Employment and Support Allowance (Income Related) is means tested which means that it is based on the income and capital of you and your partner. The capital limit is £16,000. It is a passported benefit, just like Income Support and Job Seekers Allowance (Income based). If you are in receipt of this in either phase, you will receive full Housing and Council Tax Benefit (subject to any non-dependant deductions which may apply or any restriction to your rental charge).
Employment and Support Allowance (Contributory) is based on the amount of National Insurance contributions that you have paid in the past. It is not a passported benefit. You may not get full Housing and Council Tax Benefit if you are in receipt of this. We will also take into account any income and capital that you or your partner may have.

If you want to know more about ESA visit the Department of Works and Pensions (DWP) website or telephone on 0800 0556688