Jun 252022
This may be helpful to quote if LAs try to include the extra cost of living support payments in your financial assessment for charges!
[ Text below from Hansard]
“Clause 6 confirms that the administration rules used for each cost of living payment are the same as the benefit or payment that conferred the eligibility.
Clause 7 provides for co-operation between the Secretary of State, the Department for Work and Pensions and HMRC in the delivery of cost of living payments.
The scale and scope of the measure also require collaboration with other colleagues across government.
Together, the bodies set out in the clause ensure that the intended recipients of the cost of living support are paid.
There is a need to have data sharing to minimise the risk of duplicate payments and to support operational delivery.
On clause 8, some important points have been raised on this already on Second Reading. It ensures that the cost of living payments are disregarded for the purposes of tax and social security.
I can confirm that the cost of living and the disability cost of living payments are exempt from tax.
Payments will not affect a person’s entitlement to social security benefits or tax credits, either as capital or as income. I can also confirm that the payments will not be subject to the benefit cap.
Nigel Mills
When my hon. Friend says that they will be disregarded as capital, does that mean that, if somebody quite prudently puts the money in the bank and saves for their high energy bills in the winter, that would not take them over the £16,000 savings limit for universal credit?
Effectively, they could ignore not just the receipt of the income, but that part of their savings as well if they were to treat them in that way.
David Rutley
Just to clarify, yes. That is the important thing. The clause ensures that every person who is entitled to a cost of living payment receives every penny, as all Members across the Chamber will want to see
This is good to hear. On a slightly different topic/take, what do DPAC & other knowledgeable people think about the forced “migration” from ESA to UC? In my view I don’t see what the migration means, as you’re told your ESA will stop & you then have to make a hew claim to UC, online. The other very concerning part of this, that I’ve heard from some disability groups online is, if you haven’t had a WCA for some time, DWP will say you have to have one in this UC “migration”? If that happens, I’m presuming you would go on basic UC, until outcome of WCA decided?!! Would you still get the Transitional Protection for losing the SDP premium?
As I’m just about a WASPI woman, denied a pension until age 67, I have 6 more years of ESA/UC & it’s a frightening thought, like the hassle will never end! Thanks.