Under the tax credit system you can continue to receive payments for a looked after child who is in a residential placement solely because of their disability. However, under Universal Credit you will not be able to receive payments for a child with after’ status. The only exception to this will be where a child is ‘looked after’ as part of a planned short break. ‘looked If your child is living away from home but does not have after’ status then ‘looked payments can continue but only so long as they are not expected to be absent for more than six months. If they are likely to be away from home for longer than this payments for them will stop. If your child comes home for short stays within a six month period this should mean you can continue to get benefit for them on an ongoing basis, as each return home will start a new period of absence. Cuts to the child disability addition under Universal Credit An additional amount is into your Universal Credit calculation for each child you are responsible for who receives DLA or PIP. Under Universal Credit there will be two rates of the disability addition for a child. The higher rate will be awarded for a child who is registered blind or who gets the highest rate of DLA care component or the daily living component of PIP at the enhanced rate. This will be an extra £81.22 per week the same amount as the – equivalent disability addition paid under the existing benefits system. All other children on DLA or PIP will qualify for the lower rate of the addition. This will be £28.45 per week. Given that the equivalent additional payment under the existing benefits system is £57.89 per week, this represents a cut of £29.44 per week or just over £1,500 per year. Since the addition is paid for each disabled child, those families with two children on the lower addition could lose twice this amount. Some working families may find that other Universal Credit work incentives offset the cut in their disability addition, still leaving them better off overall. But other families will be worse off over time particularly out of work families with a child – who qualifies for the lower disability addition. Even if you are in one of the groups who is at risk of being worse off you will be transitionally protected if you are an existing claimant moved onto Universal Credit and your circumstances remain unchanged. Transitional protection If you already get other benefits or tax credits you will not get Universal Credit until either you are transferred onto the new benefit or your circumstances
Under the tax credit system you can continue to receive payments for a looked after child who is in a residential placement solely because of their disability. However, under Universal Credit you will not be able to receive payments for a child with ‘looked after’ status. The only exception to this will be where a child is ‘looked after’ as part of a planned short break. If your child is living away from home but does not have ‘looked after’ status then payments can continue but only so long as they are not expected to be absent for more than six months. If they are likely to be away from home for longer than this payments for them will stop. If your child comes home for short stays within a six month period this should mean you can continue to get benefit for them on an ongoing basis, as each return home will start a new period of absence. Cuts to the child disability addition under Universal Credit An additional amount is into your Universal Credit calculation for each child you are responsible for who receives DLA or PIP. Under Universal Credit there will be two rates of the disability addition for a child. The higher rate will be awarded for a child who is registered blind or who gets the highest rate of DLA care component or the daily living component of PIP at the enhanced rate. This will be an extra £81.22 per week – the same amount as the equivalent disability addition paid under the existing benefits system. All other children on DLA or PIP will qualify for the lower rate of the addition. This will be £28.45 per week. Given that the equivalent additional payment under the existing benefits system is £57.89 per week, this represents a cut of £29.44 per week or just over £1,500 per year. Since the addition is paid for each disabled child, those families with two children on the lower addition could lose twice this amount. Some working families may find that other Universal Credit work incentives offset the cut in their disability addition, still leaving them better off overall. But other families will be worse off over time – particularly out of work families with a child who qualifies for the lower disability addition. Even if you are in one of the groups who is at risk of being worse off you will be transitionally protected if you are an existing claimant moved onto Universal Credit and your circumstances remain unchanged. Transitional protection If you already get other benefits or tax credits you will not get Universal Credit until either you are transferred onto the new benefit or your circumstances
benefits_are_changing_revised_20_dec_2013.docx