SHIF – A Family affair David Bell – Solicitor Ruth Moore – Client Liaison Manager Irwin Mitchell LLP
Its not all about the end result Financial Issues for Clients • Financial Assistance • Benefits • Change of Needs • Change of Financial Position • Interim Payments • Final Damages Awards
Background Financial Issues for Clients • Colin Balloch – 42 year old man from East Kilbride – Wife and 7 year old daughter • They live in a 2 storey detached house – Mortgage • RTC – Prior to collision he was a Senior Chef/Assistant Manager in commercial kitchens. • Wife works 9 am - 1pm and alternative Saturdays for a jewellery firm – still works • Family life – close family, sociable, 5 a side football, plays guitar.
Financial Issues for Clients • RTC – 20th June 2011 – returning from 5 a side football – oncoming vehicle on wrong side of the road – Humbie Road, Newton means travelling towards Eaglesham. • Unconscious, trapped in the car for two hours – cut out by Fire Crew. • Royal Alexandra Hospital, Paisley • Transfer next day to Glasgow Royal Infirmary • Short stay in hospital – 11 days • Almost no community support and rehabilitation at the time of discharge.
Injuries Financial Issues for Clients • Orthopaedic - Nerve damage to right arm and elbow - Ulnar damage - Lack of sensation in 2 fingers in right hand - Skin damage - Scarring to right thigh (skin graft to head) - Limited function in right arm • Head Injury – Lost scalp (eyebrow at the back of his head) - Lost part of skull - Noticeable hair loss - Indentation in scalp (tennis ball size in middle of forehead) - Cognitive Deficit • Other – Fractured right eye socket - Metal in eye
Injuries – Continued Financial Issues for Clients • Shaking in right hand • Loss of sensation in scalp • Tinnitus • Difficulty getting comfortable i.e. Damage to the • Poor sleep Autonomic • Flickering vision Nervous • Aversion to loud noise and bright lights System • Balance problems • Urinary incontinence • Severe headaches • Increased fatigue
Impact Financial Issues for Clients • Range of emotional problems • Lack of confidence • Anxiety – car travel, particularly on Country roads • Unable to drive • Flashbacks • Angry, tearful, frustrated • Difficulty coming to terms with injury and impact • Lack of understanding of prognosis • Increased and increasing pressure on rest of the family (inc childcare) • Difficulty with communication • Can’t go out of house alone – loss of independence • 24 hour support
Financial Impact Financial Issues for Clients • Prior to 20th June 2011 • Husband - £22,000 p.a • 11 years in employment • Additional work through fine dining services • Interview for Chef Manager – had 1st Interview, 2nd interview was 7 days post accident (25k) • Now had employment terminated. • Wife – details of income
Financial Issues for Clients Current Financial Situation • SSP • 24th Dec 2011 – advised SSP now finishing • Employment terminated on 12th February 2012 • Applied for DLA in October • DLA refused – Assessed by GP, not someone with expertise in ABI • DLA appeal – November 2011 • Appeal refused – November 2011 • Tribunal – investigated he was awarded DLA 2 days before the tribunal • He now faces the changing from DLA to PIP which is very worrying.
Financial Issues for Clients Current Case • Several Interim payments • Liability Admission – Only recently • Rehabilitation – funding obtained to obtain Neuro-Psychological Assessment • Prognosis - Medical Reports – client bewildered by number of specialists involved and lack of co-ordination in NHS. • Support for Family – Financial, Practical and Emotional • Who pays for loss of income, adaptations, travelling expenses etc.
The Legal Perspective – Questions & Answers Thanks for your time! Any Questions?
Changes to Disability Benefits Ruth Moore Client Liaison Manager Irwin Mitchell LLP
Changes to Disability Benefits Outline What is happening? WELFARE REFORM
Changes to Disability Benefits Outline What is happening? Employment Support Allowance (ESA) Universal Credits (UC) Disability Living Allowance (DLA) Personal Independence Payment (PIP) Armed Forces Independence Payments (AFIP) Income related Jobseekers Allowance (IR-JSA) Carers Allowance Income Support Child tax credits Working tax credits Housing benefits
Changes to Disability Benefits Outline What is happening? When is it happening? Between October 2012 and sometime in 2017
Changes to Disability Benefits Outline What is happening? When is it happening? How will it affect me, my family or my clients? …….?
Background Ruth Moore, Client Liaison Manager at Irwin Mitchell Solicitors Helping clients with the non-legal aspects of their case. PhD Sheffield Hallam, Stroke, Motivation and Rehabilitation Technology Lecturer in Neuropsychology at Sheffield Hallam St Luke’s Hospice bereavement volunteer – 3 yrs Mother & Baby unit, Children’s homes, teenagers transitioning from care to independence MDT Brain Injury Rehabilitation Trust – Psychology, Neuropsychology MSc Neuropsychology, Bristol Mental Health Settings Theatre, television, film and the arts
Welfare Reform Child Benefit January 2013 rates frozen • £20.30 1st Child • £13.40 other children • Income threshold for taxation • Individual income between £50,000 and £60,000 – taxed 1% for every £100 over £50,000 • Individuals with income over £60,000 – can still receive Child Benefit but will taxed the same amount as child benefit received.
Welfare Reform April 2013 • Pilot of Universal Credits to new, non-complex claimants (single, unemployed people without disabilities) in Tameside, Oldham, Wigan and Warrington. • Pilot of PIP for new claimants of DLA in limited areas (Cheshire, Cumbria, Merseyside, North East & North West). • Introduction of AFIP to all new claimants (existing eligible claimants should have already been contacted) • Local Council Tax Support replaces Council Tax Benefit. • Community Care Grants and Crisis Loans for general living expenses will be abolished and replaced with local schemes. In Scotland this will be the Scottish Welfare Fund.
Welfare Reform Scottish Welfare Fund • Managed by local council instead of DWP • Replaces Crisis Loan for Living Expenses and Community Care Grant With • Crisis Grants • Providing a safety net in the event of disaster of emergency eg fire, flood, theft or loss of money or visiting a child in hospital • Community Care Grant • If you are about to leave care to live on your own in the community for example following hospital, rehabilitation or prison. Can be used to purchase essential household items • Application through local council or www.scotland.gov.uk/topics/people/welfarereform/scottishwelfarefund
Universal Credits Universal Credits replaces : • Income-related out of work benefits (ib-JSA & ir-ESA) • Income Support • Working & Child Tax credits • Housing benefit
Universal Credits • One benefit for anyone on low income or unable to work • Eligibility remains similar to Jobseekers or ir-ESA, • Eligible to lone parents, carers, those with limited capability for work and people in work on a low income – including the self employed • ‘Digital by default’ online applications with limited telephone or face to face support • One monthly payment • Income and circumstances of all members of the household over the age of 18 yrs considered. There may be more than one claim per household.
Universal Credits How the allowance will be made up: • Basic allowance • Different rate for single people and couples, lower rate for young people • Benefits cap • Plus five additional elements to consider: • Disability • Carers • Housing costs • Children • Child care costs
Universal Credits • Disability • This will mirror the two components of ESA (work related activity or support component)
Universal Credits • Disability • Carers • Carers Allowance will continue • Carer must provide minimum of 35hrs per week • Person they care for must be classed as severely disabled
Universal Credits • Disability • Carers • Housing component • Adjusted to reflect number of people in household – not the size of the property • Same gender children expected to share room until they are 16yrs • Different gender Children to share room until they are 10yrs • Family size dictates how many communal rooms a family should have • Rent included as Universal Credit and not paid directly to landlord • Deduction of 14% for one additional room and 25% for two of more additional rooms • Scottish Government are providing an additional £2.5 million to social landlords “to ensure there is advice on hand”
Universal Credits • Disability • Carers • Housing component • Children • In addition to child benefit • Additional element for disabled child
Universal Credits • Disability • Carers • Housing component • Children • Childcare cost • This replaces Child Tax Credits • 70% of up to £175 for one child or £300 for two or more • Not dependant on number of hours parent works
Universal Credits Other Information • Residency test • Family of serving armed forces personnel exempt from residency test • Earnings disregard • Working and claiming • Entitlement to PIP or AFIP will exempt applicants from benefits cap • War pension disregarded in means test • Contribution based benefits for families of service personnel living abroad – National insurance contributions
Universal Credits Additional Support • Help with budgeting • Supported accommodation housing costs • Self employed start-up period
Universal Credits October 2013 • Universal Credits rolled out to non-complex cases nationally (single, unemployed people without disabilities) – this means that claimants in receipt of ESA, working tax credit or child tax credit, will be moved over to Universal Credits at a later date (between April 2014 and 2017). • Any new claims for Housing Benefit for customers who are out of work will move to Universal Credits
Universal Credits April 2014 • Roll out of Universal Credits to all new claimants and in Northern Ireland. • All new Housing Benefit claimants will be moved to Universal Credits. April 2014 – 2017 • All existing claims transferred to Universal Credits. April 2014 • Roll out of Universal Credits to all new claimants and in Northern Ireland. • All new Housing Benefit claimants will be moved to Universal Credits. April 2014 – 2017 • All existing claims transferred to Universal Credits.
Personal Independence Payment • Not means tested • Not taxable • Available to individuals in or out of work
Personal Independence Payment Qualifying period • Also known as the ‘required period condition’ • Condition must be present three months prior to claim and be expected to be present for nine months after the claim.
Personal Independence Payment Applications • Digital by default • Other formats available on a needs based assessment • All applicants seen by a healthcare professional • Each applicant will have to complete an ‘activities test’ • Each component will have a score between 0 - 12
Personal Independence Payment Award • Daily living component • Mobility component Rates • Standard – 8 points • Enhanced – 12 points
Personal Independence Payment Assessment • Daily Living • Preparing food • Taking nutrition • Managing therapy or monitoring health • Washing & bathing • Managing toileting need or continence • Dressing & undressing • Communicating verbally • Reading and understanding signs, symbols and words • Engaging with others face to face • Making budgeting decisions • Mobility • Planning and following journeys • Moving around
Personal Independence Payment Award Length and Reassessment • 2, 5 or 10 year award • Some on going awards but these will still be subject to review • You will be re-contacted during an award period and you may be reassessed. • At the end of an award period you may reapply – no auto-renewal is currently in place
Personal Independence Payment Switching from DLA to PIP • Between April 2013 and 2016 you be contacted for reassessment. If you meet the criteria you will be switched to PIP • New applicants will be assessed for PIP from Spring 2014 • Under 16’s will remain on DLA until they are 15yrs and 8 months. They will then be invited to apply for PIP • If you are on DLA and reach 65yrs before PIP is introduced, you will remain on DLA • If you are on PIP and reach 65yrs you will remain on PIP • New applicants over the age of 65yrs can apply for Attendance Allowance (AA)
Armed Service Independence Payments Armed Service Independence Payments • Severely injured armed service personnel (AFCS GIP 1-8 or GIP of 50% based on multiple tariff 9) • Not available to veterans injured before the introduction of AFCS in 2005 • Age range 16 to 64 yrs • Not means tested, not taxable • Lifetime award • Exempt from reassessment
Armed Service Independence Payments Armed Service Independence Payments • No residency test • Continues if claimants goes into care or prison • Continues if claimant goes into hospital (except the Royal Chelsea) • Exempt from benefits cap • Equivalent to enhanced rate PIP (£134.40 Feb 2013) • Claimants in receipt of AFIP will be eligible for the disability premiums in Universal Credit, Housing benefit and council tax reduction scheme.
Armed Service Family Armed Service Family • In order to maintain Class 1 National Insurance contributions, immediate family (not siblings, grandparents, uncles, aunts or cousins) of armed service personnel serving abroad, will be able to claim contribution based benefits and will be exempt from the residency test for income related benefits.
Personal Independence Payment Passport Benefits • Carers Allowance – standard or enhanced rate or daily living component • Motability – enhanced rate of mobility component • Reduced VAT for grant-funded installation of heating equipment, security goods or connections of gas supply – any rate or component • Treatment of hire cars for disabled people as short life assets – any rate of mobility component • Insurance premium tax exemption for vehicle leased through Motability – enhanced rate mobility • Zero vat for vehicles leased through Motability – enhanced rate mobility • Cancellation of student loans – any rate or component • Concessionary travel pass – 8pts+ moving around or communicating verbally • Blue Badge - 8pts+ moving around
Changes to Disability Benefits STOP PRESS! Fact Sheets Updated www.Irwinmitchell.com
Changes to Disability Benefits Any Questions?