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Disability and universal credit. Evidence session Wednesday 11 th July. Introduction. Issues and scenarios Child disability addition No equiv of severe disability premium No equiv of disability element of WTC if fit for work About the review – read more scenarios and complete survey at - PowerPoint PPT Presentation
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Introduction
• Issues and scenarios– Child disability addition– No equiv of severe disability premium– No equiv of disability element of WTC if fit for work
• About the review – read more scenarios and complete survey at
http://www.citizensadvice.org.uk/universalcredit
Child Disability Additions
• Support for children with disabilities are to be substantially cut under Universal Credit, through replacement of the disability element of child tax credit with a “disability addition” for a child.
• The money is being moved into a substantial increase in the support component of ESA for disabled adults.
• Changes could cost parents of disabled children up to around £1400 per year.
• This could amount to substantially more than £22,000 over the childhood of a disabled child, (for a family with two disabled children this loss could be more than £44,000.)
• The Government estimates that 100,000 children could be affected by this change.
Child disability addition
They cant work
They can work without incurring childcare costs
Will be worse off if:
Parents of children who are not entitled to the highest rate of disability addition
They can only work with high childcare costs
Will be better off despite the cut if:
Households who are unable to work or can only work with high childcare costs will be worse off
Lone parent
unable to work
because of caring
responsibilities –
weekly loss of
about £30
Lone parent
unable to work
because of caring
responsibilities –
weekly loss of
about £30
Couple – one
earning about
£350 and other
caring – slightly
better off
Severe Disability Premium
• SDP gives additional support to disabled adults with no other adult to provide care for them. helps to cover the additional costs of living with a disability but no carer.
• The Government is abolishing the Severe Disability Premium through the introduction of the Universal Credit.
• This will cost families up to £58 per week (over £3000 per year). This cut could be equivalent to 20% of household income after housing costs.
• There is particular concern that disabled Lone Parents will lose this support so children will have to take on even greater caring responsibilities. Around 25,000 Lone Parents with disabled children receive the SDP.
No equivalent of severe disability premium –severely disabled adults who live on their own will be worse off
Severely disabled people in the support group:
if they live with a child but no other adult
if they live with another severely disabled adult
They live with a partner or have a carer (when savings allow)
They live with a partner who works
Will be worse off if:
They live on their own and don’t have a carer
Will be better off if:
Children who are carers – loss of £58 addition to basic amountAdults caring and working fulltime – gain of £33 to basic amount
Disabled lone parent
cared for by child –
disposable income
drops to £180 -
weekly loss of about
£60
Disabled lone parent
cared for by child –
disposable income
drops to £180 -
weekly loss of about
£60
Couple – one disabled
and cared for by
partner who is
working – disposable
income rises to £380 -
weekly gain of about
£55
Disability element of Working Tax Credit
• Currently, additional support for disabled adults who are in work is provided through the “disability element” of Working Tax Credit
• This support is currently worth an additional £54 per week and recognises additional costs of work for people with a disability
• 116,000 families with disability element WTC
• No additional help within Universal Credit for those with disabilities who are found fit for work.
No equivalent of disability element of WTC if fit for work
Disabled people who are found fit for work will get no extra help. This will include for example:
Someone who can self propel a wheelchair 50 metres
Someone who is able to do some work but not work fulltime because of fatigue caused by a condition such as MS
Disabled people found fit for work will get no more extra help than someone who is not disabled
Disabled person
found fit for work –
about £45 less per
week than current
system
Disabled person
found fit for work –
about £45 less per
week than current
system
Disabled person in
support group of
ESA but able to
work fulltime will
be better off
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