Welfare Rights
Training 2013
INCOME MAXIMISATION
What’s this all about?

The ability to listen, fact find, and notice
that something is missing, advise
accordingly, helping to identify further
claims due.

Thus increasing the weekly income of any
client.
INCOME MAXIMISATION
How do you do this?
Interview and listen carefully
Think ahead
Write down or record
the facts / information given
on a case record sheet
Check this information again
at the end
Calculate existing entitlements
using the above
information
Submit and backdate any and
all existing claims identified at
this first stage
Identify any possible new
claims due
Re-calculate again as if these
claims where awarded / paid
Submit any and all claims that
would become payable only if
or when these new claims are
paid / awarded
Clearly explain to the client
what will or will not happen
The following are real cases

He is 62, has Incapacity Benefit at £101.35 and
Low rate Care at £21, he claims full HB & CT
Benefit paying no Rent, he has savings at
£15,400. Benefit check requested.
Interview, think ahead, write down, and check
again, all done.
CALCULATE (Ignore DLA)
Income now
£
Applicable amount £
Incapacity Benefit 101.35
Tariff on Savings
Total
11.00
Pensioner Single 145.40
112.35
Total 145.40
ANY CLAIMS? NEW CLAIMS?
RE-CALCULATE (Ignore DLA)
Income now
Incapacity
£
Applicable amount
£
101.35 Pensioner Single 145.40
Tariff on savings 11.00
Pension Credit
Total
33.05
145.40 Total
145.40
Claims:
Pension Credit due £33.05 weekly
(£145.40 - £101.35 = £33.05 PC due)
Arrears 13 x £33.05 = £429.65
(27/10/08 limited backdating to three months)
Couple under 60:
He has since August 2012 had Employment
Support Allowance Contribution Based
(CBESA) at £71.70 weekly and also has
Disability Living Allowance at Middle Rate
Care (£53) and Low Rate Mobility (£21), she
has Carers Allowance at £59.75. They pay
no rent or council tax.
He has failed the ESA medical scoring nil
points and is looking for help to appeal.
Calculate (Ignore DLA)
Income Now
£’s
ESA
71.70
Carers Allowance 59.75
Total
131.45
Any Claims?
Applicable Amount £’s
Couple ESA
112.55
Carer Premium 33.30
145.85
Re-Calculate (Ignore DLA)
Income Now
ESA
£’s
71.70
Carers Allowance 59.75
Applicable Amount £’s
Couple
112.55
Carer Premium 33.30
Means tested ESA 14.40
Total
145.85
ESA can be backdated 3 months
145.85
He had in August 2012 the 4
week Working Tax Credit run on
at over £100 weekly so at that
time he was not due any means
tested ESA
Any other claims?
What about her claiming Income Support?
Re-Calculate (Ignore DLA)
Income Now
ESA
£’s
71.70
Carers Allowance 59.75
Applicable Amount £’s
Couple
112.55
Carer Premium 33.30
Disability Premium 44.20
Total
131.45
Income Support now due at £58.60
Means Tested ESA was due at £14.40
190.05
Couple:
Both over 65, one has DLA at
Middle Rate Care (£53) and the
other has Attendance Allowance
at (£79.15) weekly
The AA has only recently been
awarded
Other incomes?
Both have weekly Retirement
Pensions at £157 & £98
They pay rent @ £6.50 weekly and
Council Tax @ £2 weekly
They live alone
Interview, think ahead, write down, and
Check again, all done
CALCULATE (Ignore DLA & AA)
Income now
£
Applicable amount (Before AA) £
Retirement Pension 157 Pensioner Couple
Retirement Pension 98
222.05
Total
222.05
255 Total
Over 65 So Add full Savings Credit To HB/CTB
22.95
(This is a HB & CTB figure only)
(245)
Rent x 65% CT x 20%
Excess Income
10.00
Council Tax paid now £2
Rent paid now
£6.50
ANY CLAIMS? NEW CLAIMS?
Claim:
Carers Allowance x 2
Pension Credit
Backdated three months
RE-CALCULATE
(Ignore DLA & AA)
Income now
£
Applicable amount
£
Retirement Pension
157
Pensioner Couple
222.05
Retirement Pension
98
Severe Disability
Prem x 2
Total
Carer Premium
33.30
Carer Premium
33.30
407.65
255
Savings Credit Due in full @
Rent paid now
00.00
119
Pension Credit Due
(£407.65 - £255 =
£22.95
£152.65
Claims?
 Carers Allowance £59.75 x 2 (Underlying only)
Backdated 13 weeks
 Pension Credit GT On-Going @ £152.65 weekly
@ £1,984.45
Backdated 13 weeks
 Pension Savings Credit On-Going @ £22.95
@ £298.35
Backdated 13 weeks
 Housing Benefit increase @ £6.50 weekly
@ £84.50
Backdated 13 weeks
 Council Tax increase @ £2 weekly
@ £26
Backdated 13 weeks
 £184.10 weekly increase in income (PC/GT £152.65, PC/SC £22.95, Rent
/ HB £6.50, Council Tax £2)
 Arrears paid @ £2,393.30
Carers Allowance will be awarded but not be
PAID, due to the Retirement Pensions of a
higher value, however underlying entitlement
will give the Carer/s Premiums x 2 (£33.30)
within their applicable amount so additional
PC will be due
Rent & Council Tax will be nil due to PC/GT
Due to backdating Pension Credit client will
get a refund of any Rent & Council Tax
already paid for that time.
SDP X 2 WILL STILL BE PAID AS
UNDERLYING CARERS DOES NOT STOP IT
Couple with 2 children under 10
Husband works 18 hours at £130 weekly
Partner has no income at all, but she
recently got awarded DLA at Low Care
(£21) and Low Mobility (£21)
They also have Child Tax Credit at £110
and Child Benefit at £33.70
They had until April 2012 working tax credit at £70
weekly but due to the 24 hour rule this was
stopped.
They have a mortgage and are struggling to pay
the bills etc.
They already get full Council Tax Benefit
What if any claims are available to them?
What about her claiming means tested ESA if she
can get a sick line?
Calculate (Ignore DLA)
Income Now
Wages
£’s
130
Applicable Amount £’s
Couple
112.55
Earnings Disregard 20
Total
130
132.55
ESA due £2.55 not a lot to help with the mortgage
Anything else?
Now that she has the DLA she is
classed as disabled for Working
Tax Credit purposes so they are
now due Working Tax Credit even
although he only works 18 hours,
this worth at about £70 weekly.
That will help with the mortgage
Couple with one disabled child
under 16, the child recently got
the DLA at Middle Rate Care
She works 22 hours earning
£180 weekly.
They also have Child Benefit at
£20.30 and Child Tax Credit at
£65 weekly.
No Working Tax Credit paid
since April 2012 due to the 24
hour rule.
Any other claims?
The Child Tax Credit at £65 weekly is very
low for a disabled child?
Suggesting that they have failed to tell Tax
Credits that the child now has DLA?
This DLA award will increase the Child Tax
Credits by about £58 weekly, backdating is
now limited to one month.
Anything else?
He can now claim and backdate a
Carers Allowance claim worth
£59.75 weekly for him looking after
the disabled child
As he is now a Carer, she only has
to work 16+ hours now (Rather
than the previous 24 hours) to
allow Working Tax Credit to be paid
at about £70 weekly
Single person aged 48 who was
working full time but is now off work
sick.
She is getting paid basic Statutory Sick
Pay (SSP) at £86.70 weekly, she also
has Working Tax Credits at £12 weekly
and DLA at Low Rate Mobility.
Any other claims?
What about Income Support?
Calculate (Ignore DLA)
Income Now
£’s
Applicable Amount £’s
SSP
86.70
Single
Working Tax
12
Disability Prem 31
No Disregard
Total
98.70
Income Support due £4 weekly
71.70
?
102.70
SSP allows an Income Support
claim if your income/s are below
your applicable amount.
Although HB & CTB count SSP
as earnings and allow an
earnings disregard IS counts it
as other income with no earning
disregard allowed.
This man has been working part time for
the last 4 years earning just £140 weekly
for his 16 hours worked.
He has now turned 60 and is asking you
about him claiming Pension Credit?
He lives with his brother who owns the
house.
Any claims?
Pension Credit is not available at this
time unless you are over 61.5 so that is
not an option.
What about Working Tax Credit?
People aged over 60 can now get WTC
if they work over 16+ hours and their
income / earnings are low enough?
He should get about £37 weekly
This couple are both under 60
She works full time earning £400
weekly
His only income now is his
Occupational Pension at £200 weekly
They own the house with no mortgage
and pay full Council Tax
They have a disabled daughter with
Downs Syndrome in the house she is
aged 30
She has ESA (£121.65) and DLA at the
High Rate Care and High Rate Mobility
They are asking for a benefit check for
their daughter?
Clearly the daughter has her full legal
entitlements at this time!
Dad can claim and backdate Carers
Allowance at £59.75 weekly
His Occupational Pension at £200
weekly does not stop him claiming this
He should let HMRC know as Carers
Allowance is a taxable benefit so he
may pay more tax on his pension
Looking at the daughter with the High Care
of DLA and Downs Syndrome the chances
are she would fit the severely mentally
impaired criteria for Council Tax exemption
That then leaves 2 adults in the house mum
and dad.
They could both claim a Carers Exemption
from Council Tax making them both invisible
as well that leaves no adults in the house so
a 50% Council tax discount would apply.
This person has a severely disabled child
with DLA and has had Carers Allowance at
£59.75 weekly for the past two years
She also works 12 hours weekly earning
£98 so is just below the Carers earnings
limit at £100, her partner works full-time.
Her employer has asked her to work 10
hours overtime for the next 3 weeks
She is worried about her Carers Allowance
stopping and is looking for your advice?
Once you have had Carers Allowance
for over 22 weeks you are allowed 4
weeks holidays or a break from caring
just like someone employed
During this 4 week period you can go
over the normal £100 weekly earnings
limit and remain entitled to Carers
Allowance
This can be done every 22 weeks
This couple have come to you looking
for help as he has been made
redundant last week after 35 years
He is 61 years old. He got £25,000
redundancy and has a weekly company
pension at £124 weekly
She is 63 with her old age pension at
£66 weekly
He has been told by his union at work to
claim Jobseekers Allowance they say he
should get £71.70 weekly Contribution
Based JSA for 6 months due his previous
National Insurance Contributions
They have full rent to pay at £70 weekly
and full Council Tax at £25 weekly
What would you advise them to do?
He could claim Contribution Based
Jobseekers but he would get
nothing due to his works pension
as anything over £50 comes of his
JSA £ for £
So £124 - £50 = £74 excess
Their capital at £25,000 will then
stop any claim for HB & CTB
She should be advised to claim Pension Credit.
Calculation:
Income
£’s
Old Age pension 66
Work Pension 124
Savings Tariff
30
Total
220
Applicable Amount £’s
Couple
222.05
222.05
Pension Credit Guarantee due £2.05 weekly
More importantly they now get full HB at £70 & full
CTB at £25
If you come across anyone who
has full HB and/or full CTB and
they are not on a means tested
benefit alarm bells should start
ringing as they may be below
their applicable amount and
possibly should be claiming
something else?
Couple under 40:
She has DLA at Middle Rate Care and
Employment Support Allowance at £100.15
weekly.
He is off work sick and has Statutory Sick
Pay from work at £86.70 weekly.
She claims HB & CTB and they pay rent at
£16.80 and Council Tax at £5.17 both
weekly.
HB / CTB Calculation (Ignore DLA)
Income now
£
Applicable amount
£
Employment Support 100.15
Statutory Sick Pay
86.70
Couple ESA Work Related 141
SSP Disregard
20
Total
Total
186.85
Excess Income £25.85 (£186.85 - £161 = £25.85)
Rent x 65% = £16.80
Any claims?
Council Tax x 20% + £5.17
161
Can he claim Carers Allowance
while on Statutory Sick Pay?
Income now
£
Applicable amount
£
Employment Support 100.15
Statutory Sick Pay
86.70
Carers Allowance
59.75
Couple ESA Work Related 141
SSP Disregard
20.00
Carer Premium
33.30
Total
Total
246.60
Excess Income £52.30 (£246.60 - £194.30 = £52.30)
Rent x 65% = £34
Any claims?
Council Tax x 20% = £10.46
194.30
Swap the Housing Benefit
claimants?
Income now
£
Applicable amount
£
Employment Support 100.15
Statutory Sick Pay
86.70
Carers Allowance
59.75
Couple
SSP Disregard
Carer Premium
Disability Premium
112.55
20.00
33.30
44.20
Total
Total
210.05
246.60
Excess Income £36.55
(£246.60 - £210.05 = £36.55)
Rent x 65% = £23.76
Council Tax x 20% = £7.31
Asset rich cash poor
“The assessed income period and change of
circumstances”
 If you are over the age of 65 you may be given a
Pension Credit Guarantee award that lasts for 3
years or longer.
 This is known as the Assessed Income Period
(AIP).
Single:
Aged 74 has Pension Credit
Guarantee at £79.40 weekly
and her basic Retirement
Pension at £66 weekly giving a
weekly total income of £145.40
She owns her own house with no mortgage
She has an AIP lasting until 2018
She feels the house is too big for her and has been finding the
stairs difficult
She has recently been allocated a rented sheltered property by
the Council / Housing Association
She pays no Rent or Council Tax as the old house is up for sale
(Value is ignored while up for sale for 6 months or longer)
Housing Benefit pays her rent in full @ £65 weekly direct to the
Council / Housing Association
Council Tax Benefit pays her Council Tax due at £18 weekly
She has since sold her old house for £166,000
How will having this new capital
affect her On Going Pension
Credit Guarantee claim?
How will £166,000 in savings
affect her Housing Benefit &
Council Tax Benefit claims?
This middle age couple have various
benefits paid including?
Incapacity for him at £107.35, he also has
an Income Support top up at £49.40 making
a total of £156.75 weekly.
He also has DLA at Middle Care and just
recently his partner has also been awarded
Middle Care of DLA as well.
They are requesting a benefit check?
Due to the new DLA award they are
now due a double Severe Disability
Premium worth an extra £119 weekly.
Carers Allowance can be claimed by
him but it will not be paid due to his
Incapacity Benefit at a higher value.
They will still get the Carer Premium at
£33.30 added.
If his partner claimed Carers Allowance
it would be paid giving them the extra
value of the Carer Premium at £33.30
weekly.
But they would then lose one SDP
worth £59.50 weekly, so a net loss of
£26.20 weekly
Any backdated Carers Allowance does
not lose any SDP already paid.
The Severe Disability Premium
This worth £59.50 per person who qualifies and is
paid in most means tested benefits.
To qualify you must have middle or high care of
DLA, AA, PIP daily living component or certain
industrial injuries and war disablement pensions.
And
You count as living alone
And
No one gets paid Carers Allowance for you
The Carer Premium
This is worth £33.30 for each person that qualifies
and is included in means tested benefits.
To qualify you must claim and be paid Carers
Allowance or have entitlement but not paid due to
another overlapping benefit of a higher value.
Overlapping benefits include, Contribution Based
ESA, Incapacity, Severe Disablement Allowance
(SDA), Retirement Pensions, Maternity Allowance,
Contribution Based Jobseekers, Widows and
Bereavement Benefits.
No claim is needed in Universal Credit
END
Questions and Answers?