Community Services

Welfare Rights

June 2008

Please note that usual service will be available from both ‘Enquiry and Information’ and ‘Welfare Rights’ throughout the Summer period.

Pension Service has advised that they will not be operating local surgeries but are available for home visits or local appointments by telephoning: 01292 666177.
There may be a few weeks wait for an appointment.

Social Fund has advised that they are currently taking:

Time to process
Crisis loans - 3 weeks
Community Care Grants 4 – 6 weeks
Budgeting loans 10 days
Reviews - 6 weeks

They do anticipate any change to their service.

April 2008

All Jobcentres will be closed on Monday 5 May 2008 for a Public holiday.
Holiday arrangements for Crisis loans are as follows: Crisis loan applications can be made by telephone until 1pm on 02 May 2008 and the telephone service will restart on 06 May 2008.
Applications can also be made at the local Jobcentre from 1 pm on Friday 02 May 2008 until closing time.

The new 'Local Housing Allowance' takes effect from April 2008.

Prescriptions will now cost £5.00

The Pension Service and Disability and Carers Service are now a single agency.

The new Social Security Rates have taken effect with 16-17 year olds now being paid the same rate of benefit as 18-24 year olds.

Partners of people claiming Jobseekers Allowance will now have to attend regular 6 monthly work-focused interviews.

March 2008

Easter Period arrangements for Jobcentreplus:

Jobcentreplus will be closed on Monday 24 March 2008
Crisis loans: the telephone service will close at 1.00 pm on Friday 21 March and reopen on Tuesday 25 March.

February 2008

New regulations have been issued in relation to help with NHS costs in Scotland.
The National Health Service (Charges for Drugs and Appliances) (Scotland) Regulations 2008 (SI.No.27/2008) are the first step in the phased abolition of NHS prescription charges in accordance with the policy of the Scottish Government, which intends to abolish prescription charges completely by April 2011.
In force from 1 April 2008, the regulations provide for reductions in -

the prescription charge, from £6.85 to £5.00;
the cost of a pre-payment certificate, from £35.85 to £17.00 for 4 months and from £98.70 to £48.00 for 12 months; and
the charges for elastic stockings, tights, surgical brassieres, fabric supports and wigs to the level of the per item prescription charge.

January 2008

British Gas Winter Fuel Grant- British Gas has replaced their Winter fuel grant with an 'Essential Tarriff.'
If you receive any disability benefits and do not pay for your fuel by Direct Debit British Gas will reduce your tarriff to a rate that is comparable with the lower Direct Debit rate.
Please telephone British Gas on 0845 601 2006 to apply.

December 2007

Jobcentreplus Christmas Arrangements:

The offices will be closed 25 and 26 December 2007, and on 1 and 2 January 2008.

Interim payments for new claims made on or after 17 December 2007 will be paid for the period up to 4 January 2008.

Crisis Loan Telephone Service will operate until 1 pm on 24 December 2007 and re-open on 27 December 2007.
It will then close again at 1 pm on 31 December 2007 until 03 January 2007.
If a Crisis occurs after 1 pm on 24 or 31 December 2007 applications can still be made at the local office.

Abolition of prescription charges

In April of next year (2008) prescription charges will be reduced to £5.00, a cut of over 25 per cent, with further phased reduction towards a total abolition of the charges in 2011.

For single prescriptions the costs will be:-

April 08 : down from £6.85 to £5.00

April 09 : down to £4.00
April 10 : down to £3.00
Free from April 2011

For PPCs which cover a person's total prescription costs over a 12 month period:

April 08 : down from £98.70 to £48
April 09 : down to £38
April 10 : down to £28
Free from April 2011.

Prices During the Phased Abolition of Prescription Charges

Prescription pre-payment certificates: PPC 4 month Current cost £35.85, 2008-09 £17.00; 2009-10 £13.00; 2010-11 £10.00; from April 2011 Zero
Prescription pre-payment certificates: PPC 12 month Current cost £98.70 2008-09 £48.00; 2009-10 £38.00; 2010-11 £28.00; from April 2011 Zero
Cost of single prescriptions: Current Cost £6.85, 2008-09 £5.00; 2009-10 £4.00; 2010-11 £3.00; from April 2011 Zero

Currently under charge exemption rules around 50 per cent of the population qualify for free prescriptions. Around 92 per cent (68 million) of items dispensed in Scotland are supplied to patients free of charge.

November 2007

DWP strike: The DWP office will be on strike on Thursday 6th and Friday 7th December, 2007. The strike, which is due to a pay dispute, will be followed by a ban on overtime.

Child Benefit Data - Details for child benefit customers throughout Scotland went missing due to an administrative error. The Revenue Chairman has now resigned because of this error and procedures are being looked at to prevent any recurrence.

The telephone number to call with any concerns over this is: 0845 302 1444
(NB. Evidence sharing between the DWP and Local Authority has been temporarily suspended.)

October 2007

Sharing of information between Local Government and Social Security: From 31 October, 2007, Jobcentreplus will accept verified information directly from the Local Authority without making further checks.

Prescription charges in Scotland: Nicola Sturgeon has announced that prescription charges will be abolished within 4 years.

Government Websites: From April 2008 Directgov will be the main information website for the Government.

Budget announcements: Child benefit is being raised in line with inflation.

16-17 year olds: Jobseekers Allowance and Income Support benefit rates will be increased from April 2008 to align with the rates for 18-24 year olds.

Pension Credit: From April 2008 the standard minimum guarantee for a single pensioner will be £124.00 and a couple will be £189.00.

Lone parents: There are 49330 eligible lone parents in Scotland that could claim the £40.00 per week in work credit.

Income tax allowances, National Insurance contributions, Child and Working Tax Credit rates 2008-09 and other rates

A full list of all the proposed increases for other benefits will be announced later this year by the Secretary of State for Work and Pensions.

Income tax

£ per year (unless stated)	2007-08	Change	2008-09
Income tax personal and age-related allowances
Personal allowance (age under 65)	£5,225	+£210	£5,435
Personal allowance (age 65-74)	£7,550	+£1,480	£9,030
Personal allowance (age 75 and over)	£7,690	+£1,490	£9,180
Married couple's allowance* (aged less than 75 and born before 6th April 1935)	£6,285	+£250	£6,535
Married couple's allowance* (age 75 and over)	£6,365	+£260	£6,625
Married couple's allowance* - minimum amount	£2,440	+£100	£2,540
Income limit for age-related allowances	£20,900	+£900	£21,800
Blind person’s allowance	£1,730	+£70	£1,800
Pension schemes allowances
Annual Allowance	£225,000	+£10,000	£235,000
Lifetime Allowance	£1,600,000	+£50,000	£1,650,000

*Married couple's allowance is given at the rate of 10 per cent.

National insurance contributions

£ per week (unless stated)	2007-08	Change	2008-09
Lower earnings limit, primary Class 1	£87	+£3	£90
Upper earnings limit, primary Class 1	£670	+£100	£770
Primary threshold	£100	+£5	£105
Secondary threshold	£100	+£5	£105
Employees’ primary Class 1 rate between primary threshold and upper earnings limit	11%	-	11%
Employees’ primary Class 1 rate above upper earnings limit	1%	-	1%
Employees’ contracted-out rebate - salary-related schemes	1.6%	-	1.6%
Employees’ contracted-out rebate - money-purchase schemes	1.6%	-	1.6%
Married women’s reduced rate between primary threshold and upper earnings limit	4.85%	-	4.85%
Married women’s rate above upper earnings limit	1%	-	1%
Employers’ secondary Class 1 rate above secondary threshold	12.8%	-	12.8%
Employers’ contracted-out rebate, salary-related schemes	3.7%	-	3.7%
Employers’ contracted-out rebate, money-purchase schemes	1.4%	-	1.4%
Class 2 rate (per week)	£2.20	+£0.10	£2.30
Class 2 small earnings exception	£4,635 per year	+£190	£4,825 per year
Special Class 2 rate for share fishermen (per week)	£2.85	+0.10	£2.95
Special Class 2 rate for volunteer development workers	£4.35	+£0.15	£4.50
Class 3 rate (per week)	£7.80	£0.30	£8.10
Class 4 lower profits limit	£5,225 per year	+£210	£5,435 per year
Class 4 upper profits limit	£34,840 per year	+£5,200	£40,040 per year
Class 4 rate between lower profits limit and upper profits limit	8%	-	8%
Class 4 rate above upper profits limit	1%	-	1%

Working and Child Tax Credits rates

£ per year (unless stated)	2007-08	Change	2008-09
Working Tax Credit
Basic element	£1,730	+£70	£1,800
Couple and lone parent element	£1,700	+£70	£1,770
30 hour element	£705	+£30	£735
Disabled worker element	£2,310	+£95	£2,405
Severe disability element	£980	+£40	£1,020
50+ Return to work payment (16-29 hours)	£1,185	+£50	£1,235
50+ Return to work payment (30+ hours)	£1,770	+£70	£1,840
Childcare element of the Working Tax Credit
Maximum eligible cost for one child	£175 per week	-	£175 per week
Maximum eligible cost for two or more children	£300 per week	-	£300 per week
Percentage of eligible costs covered	80%	-	80%
Child Tax Credit
Family element	£545	-	£545
Family element, baby addition	£545	-	£545
Child element	£1,845	+£240	£2,085
Disabled child element	£2,440	+£100	£2,540
Severely disabled child element	£980	+£40	£1,020
Income thresholds and withdrawal rates
First income threshold	£5,220	+£1,200	£6,420
First withdrawal rate (per cent)	37%	+2%	39%
Second income threshold	£50,000	-	£50,000
Second withdrawal rate (per cent)	6.67%	-	6.67%
First threshold for those entitled to Child Tax Credit only	£14,495	+£1,080	£15,575
Income disregard	£25,000	-	£25,000

Child Benefit/Guardian’s Allowance Rates

£ per week (unless stated)	2007-08	Change	2008-09
Eldest/Only Child	£18.10	+£0.70	£18.80
Other Children	£12.10	+£0.45	£12.55
Guardian’s Allowance	£12.95	+£0.50	£13.45

State Pension / Pension Credit

£ per week (unless stated)	2007-08	Change	2008-09
State Pension
Category A or B basic pension	£87.30	+£3.40	£90.70
Category B basic pension (lower) – husband’s insurance	£52.30	+£2.05	£54.35
Category C or D – non-contributory	£52.30	+£2.05	£54.35
Pension Credit
Standard minimum guarantee – single	£119.05	+£5.00	£124.05
Standard minimum guarantee – couple	£181.70	+£7.65	£189.35

Income tax rates and allowances

All income tax allowances will be increased in line with inflation. The personal allowance will increase to £5,435. As announced at Budget 2007 the age related allowance has been raised by £1,180 above inflation to £9,030 for people aged between 65 and 74 and to £9,180 for those aged 75 and over. This will mean that in 2008-09 no one aged 65 or over need pay tax on an income of up to £173 a week. Around half of all pensioners pay no tax on their income.

National insurance contributions

The starting point for employers’, employees’ and self-employed NICs in 2008-09 will increase in line with inflation to £105 per week. NICs are not paid on earnings or profits below this amount. The upper earnings and profits limits for NICs will increase from 2008 from £670 to £770 per week. For the self-employed, the rate of Class 2 contributions will increase to £2.30 per week.

Employers’ and employees’ contributions

In line with the Social Security Contributions and Benefits Act 1992, the lower earnings limit for employees’ Class 1 contributions is to be raised to £90 a week. It is set at the level of the basic state pension for a single person from April 2008, rounded down to the nearest pound. This is the lowest level of earnings that can count towards entitlement to contributory benefits.
The primary and secondary thresholds for Class 1 contributions will increase in line with inflation to £105 a week, the same as the weekly amount of the income tax personal allowance. This means that employees will pay no tax and employers and employees will pay Class 1 contributions on earnings below this level.
The upper earnings limit for employee’s Class 1 contributions will be raised to £770 a week.
The standard main rate of employees’ Class 1 contributions below the upper earnings limit will continue to be 11 per cent, and above the limit the rate will continue to be 1 per cent.
The standard rate of employers’ Class 1 contributions will continue to be 12.8 per cent.

The self-employed

The flat rate of Class 2 contributions will increase to £2.30 a week. Those with earnings below the annual small earnings exception can apply to be exempted from paying Class 2 contributions; this limit will be raised to £4,825.
The annual lower profits limit for Class 4 contributions will increase in line with inflation to £5,435.
The upper profits limit for Class 4 contributions will be raised to £40,040, to maintain the link with employees’ earnings liable to Class 1 contributions at the main rate.
The self-employed will pay Class 4 contributions on all their profits above the lower profits limit. The rate of Class 4 contributions will continue to be 8 per cent on profits below the upper profits limit, and 1 per cent on profits above that limit.

Child and Working Tax Credits rates and Child Benefit

Child Benefit is raised in line with inflation.

The child element of Child Tax Credit (CTC) increases by £175 above average earnings indexation. The disabled child element and severely disabled elements rise with inflation. The family element (normal and baby addition) remains frozen at £545 per year. The income threshold for CTC only rises to £15,575 per year. The income threshold for CTC family element only remains at £50,000 per year.
The maximum eligible childcare costs remains at £175 for one child and £300 for two or more children. The percentage of eligible childcare costs remains at 80 per cent.
The disregard in Tax Credits for increases in income between one tax year and the next remains at £25,000.

State Pension and Pension Credit

The basic State Pension is raised in line with inflation. This means any individual entitled to a full basic State Pension will receive £90.70 in 2008/09. Married women can receive a Category B (lower) pension based solely on the pension entitlement of their husband – so, for example, a couple consisting of a woman with no entitlement of her own, and a man with full basic State Pension entitlement would receive £145.05.
The Pension Credit standard minimum guarantee is raised by 4.2%, honouring the commitment made at Budget 2007 to uprate in line with earnings growth as forecast at that time.

Tax Credits
Section 41 of the Tax Credits Act requires a report to be laid before Parliament each year reviewing the amounts of certain tax credit elements and thresholds. Section 145 of the Social Security Contributions and Benefits Act 1992 requires an annual review of Child Benefit rates. Section 150 of the Social Security Administration Act 1992 requires the weekly rate of Guardian’s Allowance to be increased in line with prices.

Income tax allowances are uprated each year by indexation unless legislation is passed to override its effects. Statutory indexation for 2008-09 is based on changes to the Retail Prices Index in the year to September 2007. A statutory instrument – the Income Tax (Indexation) (No. 2) Order 2007 – will be laid shortly, confirming the effect of indexation on the personal allowances, blind person’s allowance, the married couples’ allowances and the income limit for age related allowances for 2008-09. The above-indexation increases to the allowances for people aged between 65 and 74 and those aged 75 and over will be introduced in the 2008 Finance Bill.

September 2007

Winter fuel payments
If you received a winter fuel payment last year or are in receipt of a Social Security Benefit your £200 payment (£300 if you are over 80) will be made automatically.

If you do not fall into one of the above groups and are aged 60 or over you will need to apply before 21 September 2007 to receive your payment before Christmas.

Call: The Winter Fuel Helpline on 08459 15 15 15 to make your application.

The new National Minimum Wage From 1 October 2007 is:
Aged 22+: £5.52
Aged 18-21 years: £4.60
Aged 16-17 years : £3.40

For more information: www.chyps.co.uk/familysupport/cash-helpwork.shtml

Bereavement Benefits
Benefits for widows and widowers will be processed at a call centre in Arbroath from 15 October 2007. The new telephone number is 0845 6088602 or by textphone on 0845 603 6761.

August 2007

Elderly Carers

Changes to the rules for Carers Allowance allow elderly people to be recognised as formal carers with a right to claim Carers Allowance.

South Ayrshire Council was concerned that not all elderly people are aware of their rights.

They have arranged a joint project with the Pension Service that will hopefully encourage more elderly people to claim their full entitlement of Social Security benefits.

If you know someone that these rules may apply to or if you yourself are a Carer and would like more information.

Please call Carers Allowance Unit on 0800 88 22 00
Or contact
South Ayrshire Carers Centre, 78 Kyle Street, Ayr, KA7 1RZ
Tel: 01292 263000

Social Fund, Inverness
Crisis loans: There are changes to the way Crisis Loan applications are made.
From 20/10/2007 details for the claim will be taken by the person answering the telephone who will then arrange call back within 3 hours to complete the application and give a decision on payment.
Applications should still be made by calling 0800 328 3036.

July 2007

Tax Credits
Please ensure that you renew your claim.

Post Office Strike
Couriers will deliver Girocheques to the nearest local Post Office.
Call 0845 600 4271 to check which Post Office your payment will go to.

Help the Aged
A recent survey has found that an annual figure of £2.9 billion worth of Social Security Benefit goes unclaimed by pensioners.
Help the Aged believe that the Pensions Service should make automatic awards of benefit to prevent this happening.

Local Authority Subsidy
The government has proposed making a 5% cut in subsidy payments for the period between 2008 until 2011.
This is to follow on from a 2-year period where no increase was made for inflation.
There are concerns about the effect this will have on local authorities.

Contributions
People approaching retirement are now able to make up any shortfall in their contribution record for the previous 9 years instead of 6 years as before. This may give rise to an increase in entitlement to State Retirement Pension.

Community Services

Welfare Rights

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