In the news

JUNE 2020

Widespread calls to remove benefit cap

There have been widespread calls for a removal or temporary lifting of the benefit cap this month as COVID-19 related benefits' increases have pushed many people's earnings over the cap limit.

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A Policy in Practice report, commissioned by the GLA analyses the relationship between COVID-19 increases in benefits and the benefit cap shows that benefit capped households in London are set to double.

Pre COVID-19 figures show that around 80,000 households in Britain were subject to the benefit cap in February 2020. These are likely to go up significantly from April 2020.

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Shelter, Citizens Advice and CPAG (among others) have all called for an immediate removal of the cap, which disproportionately affects those on the lowest incomes.

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The problem has also been highlighted in a case recently taken on by Leigh Day of a mother of four for whom the benefit cap has effectively cancelled out any COVID-19 related benefits increases.

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The Bishop of Durham, Paul Butler, is one of many anti-poverty campaigners to have called for the removal of the benefit cap

TaTax credits regulations amended

Tax credits regulations have been changed to provide further protection to workers during lockdown.

The amended regulations follow an announcment by HMRC confirming that people who are not working their usual hours during the COVID-19 pandemic will retain their entitlement to tax credits.

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From 23 May, there are various changes to working tax credit entitlement, including:

• allowing WTC entitlement for up to 8 weeks after CRJS ends so claimants can establish hours normally worked.

• allow claimants impacted by COVID-19 but not participating in the CJRS or SEISS to continue to satisfy the ‘hours normally worked’, 'working for’ or ‘in expectation of payment’ conditions of WTC;

• preventing furloughed workers from combining furloughed hours with hours worked in extra jobs if they did not meet WTC 30 hour element conditions before COVID-19

• Temporarily increasing the time limit for critical workers to report changes of circumstances to HMRC to three months.

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Animation featured in the government's new Test & Trace campaign

SelfSmoothing the rough edges

The effect of the benefit cap is just one of many 'rough edges' of the government's emergency response to COVID-19.

The Social Security Advisory Committee has asked the DWP to address several issues as part of its ongoing scrutiny of the government's response.

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Other areas of concern are for people on legacy benefits who are not receiving the same COVID-19 related rise in benefits as those on UC or Working Tax Credits; those who may be missing out on the Self Employment Income Support Scheme and the effect of surplus earnings rules for self employed people on UC.

And when some furloughed employees can 'earn' up to £2500 a month through government schemes, while others lose their job or are already unemployed and receiving Universal Credit, the 'stark disparity' in protection offered to different groups during the COVID-19 pandemic threatens a further growth in inequalities, according to a report by the IPPR.

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Pre-appeal PIP awards under pressure

The DWP has responded to a Freedom of Information request about pressure put on claimants to accept lower PIP awards over the phone before appeal hearings take place.

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The government has denied that pressure is being put on claimants but admits that it does 'not want the process to be unduly delayed'

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It does however acknowledge that phone calls should be made to a representative if there is one, rather than to the claimant themselves.

SelfStatutory sick pay for self isolators

Statutory sick pay has been extended to allow claims not only from those with COVID-19 and those who are shielding (most at risk from COVID-19 due to other health conditions), but also those who have been told to self isolate as a result of contact with someone who is infected with COVID-19.

From 28 May 2020, new legislation comes into effect so that anyone who is self-isolating for 14 days from the period of last contact with the infected person will be deemed incapable of work.

It remains to be seen how many more people will soon be in self-isolation following the launch of the government’s new Test & Trace programme, which was announced on the same day. The TUC has already called for a further extension of SSP for everyone, increased to the level of the real Living Wage.

NONO RECOURSE TO PUBLIC FUNDS

The Prime Minister has promised to investigate how many people, including families with children born in the UK, have been unable to access benefits such as Universal Credit during the COVID-19 outbreak.

During a Liaison Committee meeting of all the select committee chairs, Boris Johnson showed ‘clear surprise’ that some people could not claim UC or other benefits, despite the Work & Pensions Committee Chair Stephen Timms claim that Ministers have been promising to act ‘for two months’.

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The question followed, but did not mention, a recent non-COVID19 related High Court ruling that the government’s ‘no recourse to public funds’ regime is unlawful in cases where the applicant will imminently suffer inhuman or degrading treatment without recourse.

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