Latest updates

New student finance guide 

The RCN has launched a new interactive finance guide for nursing students. Moneysmart provides advice on bursaries, budgeting, benefits and housing as well as top tips on how to make the most of your money.   
 
Take a look (PDF 5.21MB). See how to access PDF files.

The Welfare Reform Bill received royal assent on 8 March 2012 and is now the Welfare Reform Act 2012

Many of the regulations are still only in draft form so there will undoubtedly be many changes implemented following the original proposals of the bill. Some of the changes taking effect soon are listed below. If you would like to find out more about the act, visit the Department of Work and Pensions website. you can do so here www.dwp.gov.uk/policy/welfare-reform/

Contribution-based ESA

From April 2012 new legislation comes into force that time-limits the entitlement of contribution-based ESA to 12 months, for those claimants in the Work Related Activity Group. After 12 months these claimants will be expected to claim income-related ESA - this is a means-tested payment.

This rule will be for new claimants and also backdated for existing claimants across 365 days. For example: John first claimed contribution-based ESA on 30 April 2011 and is in the Work Related Activity Group of claimants. He receives notification from the DWP that his entitlement to contribution-based ESA ends on 30 April 2013 and asked if he wants to be considered for income-related ESA.

• Claimants affected by this rule who have income from another sources such as pension or a partner's income will either receive a reduced amount of income-related ESA or may lose entitlement altogether. Capital will also affect entitlement.  
• If you are appealing a decision that you are fit for work, you receive employment and support allowance at the assessment phase rate. Your contribution-based employment and support allowance will be subject to time-limiting. You will also be subject to time-limiting if you are appealing against a decision to place you in the work related activity group.
• If your appeal is successful, you will be paid arrears for the time you were appealing, including any time that you were not receiving contribution-based employment and support allowance because it was time-limited.
• If you move into the support group following your appeal, your employment and support allowance will not be time-limited. This means the time you spent appealing, and the assessment phase immediately before this, will not count towards your 365 day time-limit if you move out of the support group in the future.
• Claimants being transferred from incapacity benefit to contribution-based ESA start their 12-month entitlement period at the point of successful migration on to ESA.
• Those claimants placed in the support group remain entitled to receive contribution-based ESA. 
  

Important news of changes to ESA decision making process

From 31 October 2011, decision makers at the Department for Work and Pensions will be calling new claimants of ESA and those being reassessed through the Work Capability Assessment, if their claim is likely to be unsuccessful.

The decision maker should call the claimant to check that they have all the available evidence and to explain what will happen next with the claim.

Here are some useful points if you are called by a decision maker about your claim.

1. Ask the decision maker to write to you with their questions. However, they may decline to do this.
2. Ask if they have been in touch with any health care professionals you listed on your ESA50, if you haven't already provided evidence from them as part of your claim.
3. If the decision maker has not contacted the relevant health care professionals you named on your ESA50, ask them why not and stress that their failure to do so may form part of your grounds of appeal.
4. Ask if the call is being recorded and if it is, request a copy of the transcript. If it isn't, ask the decision maker for a copy of any notes they make of your conversation.
5. Make your own notes of the conversation if you are able. You could record it also as you do not need permission to do this if the recording is for your own personal use; you may need this information as part of your appeal.
6. If your claim is unsuccessful you can appeal the decision and we can advise and assist you by providing paper representation, preparing a written submission for your appeal - current statistics show that around 40 per cent of appeals are successful. The Welfare Rights and Guidance Service currently operates a 100 per cent success rate with ESA appeals on behalf of our members.

State retirement pension

From 2020 the state retirement age will increase to 66 for both men and women.

Pension credit 

Entitlement to Pension Credit is now in line with the rise of retirement age for State Retirement Pension. The maximum savings credit award is to be frozen for four years. 

Working tax credit (WTC)

From 6 April 2012 new regulations come into force that will bring changes of entitlement to some people in receipt of tax credits.

• Couples claiming tax credits must work 24 hours per week between them to qualify, with one working at least 16 or more hours per week. 
• There will be no protection for couples already receiving WTC because one is working 16-23 hours a week. They will lose entitlement unless they can increase their working hours.
• There is an exemption for couples where the non-working partner is receiving specified benefits for illness or disability, in hospital or in prison.
• Couples where there is a disabled worker, or a worker aged 60 or over, will still qualify by working at least 16 hours a week.
• If income in 2012/13 is reduced to lower than that of 2011/12 by more than £2,500, tax credits will be increased but only after adding £2,500 to the current year's income for example Ian's income in 2011/12 was £14,000. In 2012/13 it reduces to £7,000 so his tax credits for 2012/13 will be based on income of £9,500.  
• Fifty plus rules are abolished and there is no protection for people who were entitled under the rules for part of 2011/12 - they will lose entitlement to this element of WTC from 6 April 2012 unless they fall into one of the other categories of eligibility.

Child tax credit (CTC)

Many middle income families who have been in receipt of CTC at the family element only (£545 a year) will lose their entitlement from April 2012. This is a result of the second income threshold of £40,000 being abolished.

From 6 April 2012, new claims for tax credits can only be backdated 31 days - this is reduced from 93 days. There are some exceptions to this for WTC claims.   

Seek advice from the Welfare Rights and Guidance Service if you feel you may be affected by these changes.  

Universal credit

Universal Credit will be introduced in October 2013. We have recently produced a briefing sheet about Universal Credit which highlights the main changes that the introduction of this benefit will introduce. Regulations are still being made so we will publish more detailed guidance about this in the coming months. You can find a copy of the Universal Credit briefing sheet on our factsheets page. 

Contact the RCN for support

The RCN Welfare Rights and Guidance service assists members in making benefit claims and appealing benefit decisions. If you need advice about welfare benefits or are concerned about the impact of the changes due through the introduction of the Welfare Reform Act 2012 upon your benefit entitlement, you can contact us on 0345 408 4391 (press option 3) or mss@rcn.org.uk.