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September 2016
Welfare Reform and the Proposed
Mitigation Schemes in Northern Ireland
Summary
Welfare reform is being implemented in Northern Ireland throughout 2016/2017 under
the Northern Ireland (Welfare Reform) Act 2015. With it come the biggest changes to
the social security system in many years.
The information contained in this document is a brief overview of the main changes
which may affect carers and the people they look after. It does not cover all of the
changes which are due to be introduced.
The Northern Ireland Assembly has agreed a system of 'welfare supplementary
payments' to help mitigate the effects of welfare reform. Specifically, these mitigations
will act as a buffer against some of the harsher effects of welfare reform and help to
cover financial loss of those affected by the changes to the benefits system. Those who
are eligible will not have to apply for these payments as they should be made
automatically.
These mitigation measures have been introduced following 'A Fresh Start: the Stormont
Agreement and Implementation Plan' which agreed the implementation of welfare
reform in Northern Ireland and the setting up of a working group to put forward
proposals for mitigating the effects of welfare reform.
www.northernireland.gov.uk/sites/default/files/publications/nigov/a-fresh-startstormont-agreement_0.pdf
The legislation is currently making its way through the Northern Ireland Assembly and
up to date information on these measures is available at
www.nidirect.gov.uk/welfarechanges
Note: This is a rough timeline which could substantially change as the implementation
of welfare reform develops in Northern Ireland.
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The main points for carers
Carer’s Allowance
While Carer’s Allowance is not changing with the introduction of welfare reform, carers’
entitlement to Carer’s Allowance may be affected if the person they look after loses
their disability benefit when they are reassessed for Personal Independence Payment
(PIP) (the new benefit replacing Disability Living Allowance for people of working age).
See below for further information on PIP.
Under the new mitigation scheme carers affected in this way will receive a
supplementary payment to cover their financial loss for a period of one year. This
will give carers time to seek expert advice and submit fresh benefit claims if
appropriate. The payment will stop if the person being cared for is successful in
appealing their benefit decision and the carer should be advised by the Social Security
Agency of their re-entitlement to Carer’s Allowance.
Benefit Cap
Carers NI and Carers UK successfully campaigned for carers on Carer’s Allowance to
be exempt from the benefit cap. See below for further information on the benefit cap.
Universal Credit
Carers who qualify for Universal Credit (which is replacing means-tested benefits and
tax credits), and who meet certain conditions, will receive a carer element as part of
their Universal Credit award. See below for further information on Universal Credit.
Employment and Support Allowance (ESA)
ESA is the main benefit for people who are unable to work because of ill health and has
replaced Incapacity Benefit and other sickness benefits.
There are two types of ESA: income-related ESA which is based on your and any
partner’s income and savings; and contributory ESA which is based on national
insurance contributions you have made.
Both groups of claimants go through an assessment process and are then placed either
into the work related activity group (WRAG) or the support group.
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From 31st October 2016, receipt of contributory ESA (unless the claimant is in the
support group) will be limited to one year.
This applies retrospectively, so those who have been in receipt of this benefit for one
year or more on 31st October will lose their entitlement immediately. This means that
people who have paid national insurance contributions for some years will receive less
help than they might have expected and they may not be eligible for the income-related
type of ESA due to their or their partner’s income or savings.
For people affected by these changes to ESA, the mitigation measures are:

Claimants should be given three months warning that their entitlement will
soon end. This will give them time to seek advice or reassessment if there are
grounds for considering that they should be in the support group.

An automatic check should be made to determine whether or not they will
be entitled to income-related ESA when their contributory ESA ends.

Where neither of these measures are of help to the claimant a
supplementary payment is to be made for the full equivalent of the loss for
a period of one year (as long as they have limited capability for work).
Personal Independence Payment (PIP)
PIP is the new benefit replacing Disability Living Allowance (DLA) for people aged 1664. It has two components: ‘Daily Living’ and ‘Mobility’ which can be paid at either
standard or enhanced rates. Eligibility is points based and the claimant needs 8 points
for the standard rate and 12 points for the enhanced rate.
For detailed information about the assessment criteria you can download our PIP
factsheet at www.carersuk.org/pip. While this is based on the criteria used in GB, they
are likely to be similar or the same in Northern Ireland.
From 20th June 2016 there have been:


No new claims for DLA for people aged 16 and over, and people will apply for
PIP instead.
A ‘natural reassessment’ process of DLA claimants who are aged 16 and over
for PIP (eg where a claimant reports a change of circumstances).
From late 2016 DLA renewal claims will be reassessed for PIP and the managed
reassessment process of existing DLA claimants for PIP will start.
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Note: If someone is aged 65 or over on 20th June, they will retain their DLA.
In order for a carer to qualify for Carer’s Allowance, the person being looked after must
be in receipt of the Daily Living component of PIP at either rate.
The mitigation measures to support people currently receiving DLA and left
financially worse off after they have been assessed for PIP are:

Supplementary payments (equal to the benefit in payment) should be made
to DLA claimants who have been refused PIP on reassessment and who
lodge appeals to challenge the decision. This payment will stop if the appeal
is unsuccessful but will not be recoverable.

Supplementary payments should be made to those who qualify for PIP
after reassessment or appeal, but at a reduced rate, where their weekly
loss is more than £10. The payments will be made for one year from the
point at which PIP is reduced, and be equal to 75% of the loss. For
example, if the difference is £20 they will receive £15.

For those with a conflict-related injury who were getting DLA and who are
refused PIP on reassessment, if they score at least four points in the
reassessment they can get a payment equal to the standard rate of either
the daily living component or the mobility component (which one depends
on their circumstances).
Disability Premiums
Disability Premiums are not standalone benefits but additional amounts of money paid
with means-tested benefits (such as Income Support, income-based Jobseeker’s
Allowance, income-related Employment and Support Allowance, rate relief and Housing
Benefit ) A similar ‘addition’ is also paid with Pension Credit.
These premiums add significant amounts to the incomes of those in need and there is a
concern that the loss of DLA on reassessment for PIP may result in the loss of these
premiums as well.
As a mitigation measure, claimants who lose entitlement to the disability
premium, enhanced disability premium or severe disability premium in the
reassessment of DLA to PIP will receive supplementary payments for one year.
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Universal Credit (UC)
Universal Credit will be introduced during 2017.
UC is a single means-tested benefit replacing Income Support, income-based
Jobseekers Allowance, income-related Employment and Support Allowance, Housing
Benefit, Child Tax Credit and Working Tax Credit. As with current benefits such as
Income Support, UC will be made up of a personal allowance (dependant on your
circumstances) and ‘elements’ rather than the existing premiums, for example a carer
element paid to certain carers.
There will be transitional protection for certain people who are migrated from these
benefits to UC to ensure there is no financial loss. For example, if someone’s Income
Support entitlement is more than their UC entitlement at the point of migration, they will
receive a payment to bridge the gap.
Unlike the rest of the UK where UC is paid monthly, in Northern Ireland it will be paid
fortnightly and housing costs will be paid directly to the landlord rather than being part
of the overall UC payment.
For further information about UC visit our website at
www.carersuk.org/universalcredit. While this is based on how UC is administered in
GB, it is likely to be broadly similar in Northern Ireland apart from the mitigations
mentioned here.
The detail of this support has yet to be finalised and agreed by the Northern
Ireland Assembly. However, the mitigation proposals include:

A ‘cost of working allowance’ as part of the new Discretionary Support
Scheme. Special weighting should be given to lone parents, taking into account
the cost of childcare.

A UC emergency fund when the roll out of UC is due to start, to make
emergency payments where hardship occurs as a result of difficulties which are
not due to any fault of the claimant.
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Bedroom Tax’ (social sector size criteria)
The "bedroom tax" will apply in Northern Ireland from January 2017.
However, under the mitigation measure people will not actually have to pay any
extra money to their landlords because of this change until 2020 at the earliest
The ‘bedroom tax’ means that working age people who get help towards their rent
through Housing Benefit will have the amount they can receive restricted if they are
considered to have too many bedrooms (similar rules will also apply to people who
claim Universal Credit).
For one excess bedroom there is a 14% reduction in the eligible rent figure used to
calculate Housing Benefit and for two or more excess bedrooms there is a reduction of
25% in the eligible rent figure used to calculate Housing Benefit.
Benefit Cap
The benefit cap was introduced on 31st May 2016 and limits the amount a person can
receive in benefit payments to:


£350 a week for single claimants
£500 for couples (with or without dependent children) and lone parent families
The cap will not apply where the person claiming or her/his partner is receiving:








Carer’s Allowance
Disability Living Allowance (including if received for a dependent child)
Personal Independence Payment (including if received for a dependent child)
Attendance Allowance
Working Tax Credit
Industrial Injuries Disablement Benefits
Employment and Support Allowance, if paid with the support component
War Widow's or War Widower's Pension.
The cap will also not apply where the person claiming or her/his partner had, in at least
50 out of the last 52 weeks, been in employment and not entitled to Income Support,
Jobseekers Allowance or Employment and Support Allowance. In these circumstances,
the cap will not apply for 39 weeks from the day after the last day of employment.
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For further information about the benefit cap visit our website at
www.carersuk.org/benefitcap. While this is based on how the benefit cap is
administered in GB, it is likely to be broadly similar in Northern Ireland.
Mitigation measures mean that any family with children not exempt under the
above provisions will receive a supplementary payment to compensate for any
deduction made as a result of the cap being applied. This applies for up to four
years.
Households affected by the benefit cap after 31 May 2016 may also be entitled to
a supplementary payment, provided they have been in receipt of one of the
benefits included in the benefit cap calculation since 31 May 2016.
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Contact us
If you would like further advice or information about the benefit changes in Northern
Ireland, contact the Carers NI Adviceline:
T: 028 9043 9843
E: [email protected]
Keep up to date with our campaigns and research:
www.carersni.org
www.facebook.com/CarersNorthernIreland
www.twitter.com/CarersNI
Carers Northern Ireland
58 Howard Street
Belfast
BT1 6JP
T: 02920 811 370
E: [email protected]
carersNI.org
Carers UK is a charity registered in England and Wales (246329) and in Scotland (SC039307) and a
company limited by guarantee registered in England and Wales (864097). Registered office 20 Great
Dover Street, London, SE1 4LX.
Briefing | 2016 | Welfare Reform and the Proposed Mitigation Schemes in Northern Ireland