For many customers, moving into employment after receiving incapacity benefits can be difficult - due to the uncertainty involved, and the fear of losing higher rates of benefit if the move is not successful.
The current 52 week linking rules allow people moving off an incapacity benefit into work or training to re-access any higher rates of benefit they previously received if their job does not work out and they need to re-claim.
The rule covers people who leave benefit for work or training (but not following a Personal Capability Assessment disallowance) who are on Incapacity Benefit or Severe Disablement Allowance. It also covers those people on Housing Benefit, Council Tax Benefit or Income Support (on the grounds of incapacity) who receive a Disability Premium. The customer must previously have requested that the 52 week linking rule apply.
Under the new measures:
A customer who moves from an incapacity benefit into a job within one month of leaving benefit, but then has to re-claim benefit, can return to the same level of entitlement as before. They can do this without previously asking for the linking rules to apply. They can also re-access certain premiums and entitlement to housing costs in Income Support, Housing Benefit and Council Tax Benefit.
The 52 week linking rule will be replaced by a 104 week period for all those leaving benefit for work or training (but not following a Personal Capability Assessment disallowance).
A customer who moves back onto benefit from work or training via the linking rules will immediately re-qualify for the linking rules if they successfully return to work or training (rather than having to spend six months on benefit first).
From 1 October 2006 - as part of the continuing initiatives to encourage people to move from benefits to work - the weekly earnings limit for permitted work will increase from £81 to £86 per week in line with the national minimum wage.
This briefing is reproduced from the September 2006 edition of Touchbase, which can be viewed at www.dwp.gov.uk/advisers.
Minister for Pensions Reform, James Purnell, issued a reminder to older people to get their applications for Winter Fuel Payments in early, to ensure they receive help heating their home before Christmas.
Over eight million households can benefit from the £200 Winter Fuel Payment this winter, with those containing someone aged over 80 receiving £300.
This year, automatic payments will be paid to over 11 million people aged 60 and over. People should not need to apply for the Winter Fuel Payment if they have received it previously, or are already claiming State Pension or another social security benefit (other than Housing Benefit, Council Tax Benefit or Child Benefit).
Those who haven't received a Winter Fuel Payment before, or who are not in receipt of a relevant social security benefit in the qualifying week, will need to make a claim.
Anyone aged 60 or over on or before 24 September 2006 may qualify for a Winter Fuel Payment of £200 per household.
Households with someone aged 80 or over could get a payment of £300.
The Winter Fuel Payments do not count as qualifying income for means-tested benefits.
For those who need to claim and wish to receive their Winter Fuel Payment before Christmas, they must submit their completed claim form by 22 September 2006. The final deadline for the receipt of claims for this winter is 30 March 2007.
