Guidance

LA Welfare Direct lite 7/2021

Updated 20 December 2021

© Crown copyright 2021

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This publication is available at https://www.gov.uk/government/publications/la-welfare-direct-bulletins-2021/la-welfare-direct-lite-72021

Contact

Queries about the:

  • technical content of this bulletin, contact details are given at the end of each article
  • general content and distribution of this bulletin, contact lawelfare.correspondence@dwp.gov.uk

Who should read

All Housing Benefit (HB) staff

Action

For information

Revisions

We apologise for any inconvenience caused but this bulletin is being reissued as it has been revised as follows:

  • the timing of the migration of the existing Disability Living Allowance for children claims in Scotland to Child Disability Payment has been updated in paragraph 13.

Reminder: The Debt Respite Scheme (Breathing Space) local authority process

1. Breathing Space was introduced on 4 May 2021 to allow the freezing of interest, fees and enforcement for people in problem debt, with further protections for those in mental health crisis treatment.

Rent and, or Council Tax Arrears that are being recovered through Department for Work and Pensions’ Third Party Deductions

2. Instructions were issued in LAWD4/2021 on the action to take when, as a creditor, a local authority (LA) receives notification from the Insolvency Service:

  • as the Department for Work and Pensions (DWP) does not receive a notification the LA must instruct DWP to cease the deductions from a claimant’s DWP benefit. Where the deduction is from a legacy benefit the LA should notify DWP by completing the creditor template, attached separately as Appendix A.

  • when a Breathing Space ends, the LA will be sent a notification from the Insolvency Service. It will inform the LA the end date of the Breathing Space. Again, the LA must notify DWP of the end date by completing the creditor template.

3. Note: Deductions will not automatically restart at the end of the moratorium period (60 days), as the claimant’s debt position may have changed and deductions may no longer be appropriate.

4. Following go-live it has been decided that:

  • if an LA requires Breathing Space to stop and deductions to restart or if the LA needs Breathing Space to stop with no restart, the LA must notify DWP by email to the addresses provided below.

Action taken if DWP is not notified at the end of Breathing Space

5. For standard Breathing Space cases, where an LA has notified DWP of the start and end date at the beginning of Breathing Space, DWP will make a note of these dates if:

  • at 60 days, the anticipated end date, DWP has not received notification from the LA a further 10 days will elapse before any action is taken.

  • at 70 days, the notification and instructions on how to proceed with the debt are not received, the debt will be returned to the LA and no further deductions will be taken.

6. For mental health crisis Breathing Space cases DWP will continue to apply Breathing Space until notified of an end date.

Notifying DWP when ending a Breathing Space – completing the creditor template

7. If Breathing Space ends and a new repayment plan has been agreed, the LA should complete:

  • columns A to G and Columns I and J on the creditor template.

8. If Breathing Space ends and no Repayment Plan has been agreed, the LA should complete:

  • columns A to G and I on the creditor template.

9. Once competed, you need to send the creditor template to:

Child Disability Payment (Social Security Scotland)

10. Child Disability Payment (CDP) is a new benefit from Social Security Scotland, which will replace Disability Living Allowance for children (DLAc) for eligible customers living in Scotland. Eligible customers must be under the age of 16 to apply but can remain entitled up to age 18.

11. A CDP pilot will begin on 26 July 2021 in the Dundee City, Perth and Kinross and the Western Isles local authority (LA) areas. Customers who live in these LA areas are eligible to make a new claim to CDP from this date.

12. CDP will be available for all eligible new claimants across Scotland from autumn 2021. Therefore, customers not in the Dundee City, Perth and Kinross and Western Isles LA areas should continue to apply for DLAc as normal until CDP is rolled out in their area. More information on the CDP rollout schedule across the rest of Scotland will be shared when it is available.

13. Existing DLAc claims in Scotland will be migrated to CDP. This case transfer will begin from autumn 2021.

14. Claimants cannot be eligible for DLAc and CDP at the same time. Therefore, at present, Social Security Scotland will disallow any new claims to CDP if the claimant is currently claiming DLAc. This will continue until the full rollout of new claims to CDP and case transfer has taken place.

15. CDP can be awarded with 2 components. As with DLAc, the care component consists of the highest, middle and lowest rate and the mobility component consists of a higher rate and a lower rate.

Impact on Housing Benefit.

16. This means LAs should follow business as usual procedures and treat CDP in the same way as they currently do with DLAc. For example, if Severe Disability Premium (SDP) is payable on a Housing Benefit (HB) claim because of a claimant’s DLAc award the same SDP will be payable as a result of their CDP claim.

Change of address to or from Scotland

17. Children aged 15 years or younger on 1 September 2020, and who have moved from England or Wales to take up permanent residence in Scotland, will continue to receive DLAc until they are 18 or their claim has transferred to Social Security Scotland, whichever is sooner. This will apply regardless of whether they live in the 3 pilot areas or not.

18. For children in receipt of CDP who move from Scotland to take up permanent residence in England or Wales, Social Security Scotland will pay CDP for a 13 week run on period. As with DLAc, the claimant should notify the LA of this change of circumstance.

19. There is no DLAc or PIP entitlement for the customer during the 13-week period and the customer will need to make a new application with DWP.

Proof of CDP award for LAs

20. As with DLAc:

  • there will not be any data share to notify LAs of the award

  • claimants will need to notify their LA about their CDP award, which they can prove using their award notice from Social Security Scotland. LAs can also find the award recorded in Searchlight.

21. LA software suppliers are making the required changes to HB systems and will provide further updates when this has been completed.

CDP and the benefit cap

22. As with current DLAc claims, DWP will notify LAs that the benefit cap does not apply where CDP has been claimed.

23. If a claimant notifies their LA that they are in receipt of CDP but no benefit cap notification has been received, the LA should complete and return the benefit cap email notification template to DWP using the existing business as usual process.

24. When CDP is awarded, and a claimant has been subjected to a benefit cap that will no longer apply, the benefit cap cessation notice will show the reason as ‘other’. This reason is not used for any other purpose, so if the claimant has a postcode in Scotland this indicates the ‘remove/lift benefit cap’ instruction is due to CDP being awarded.

Personal Independence Payment

25. From 1 March 2020, all children in Scotland under the of age 16 who receive DLAc are no longer invited to claim Personal Independence Payment (PIP) at 16 years’ old.

26. Provisions have been made for children in Scotland aged 16 from this date to receive DLAc until they are 18 or until their claim is transferred to Social Security Scotland, whichever is sooner.

27. All children aged 16 years or older on 1 September 2020 who have moved from England or Wales to take up permanent residence in Scotland, and who are currently awaiting a decision on their PIP claim, can choose between continuing with their application for PIP or remaining on DLAc.

28. Claims for PIP cannot be withdrawn after a decision has been made and the customer will continue to receive it so long as they are eligible. These customers will be transferred to Adult Disability Payment (ADP), another new Social Security Scotland benefit which replaces PIP for customers in Scotland, in the future. More information on the roll out of ADP will be made available closer to its launch.

29. If you have any questions you can email lawelfare.changemanagementoffice@dwp.gov.uk.

Crown Copyright 2021
Recipients may freely reproduce this bulletin.

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