We would like to share with you some information that may help you during the Coronavirus emergency. This includes advice about our financial support - especially if you have reduced hours or are unable to work.
Our Rents Team are ready to help with any queries regarding your rent if you are worried about your ability to pay. We can support you to access benefits such as Universal Credit.
Contact your Rents Team on 0333 3212 200 who can give support and advice, its really important for you to tell us if you are struggling so we can help.
We also have our own Financial Inclusion Team ready to go if you need support with more than just rent - 0333 3212 200.
This page has been designed to provide our customers with the options available to them where they have seen an impact on their household finances due to COVID-19. The impact on finances is likely to affect a number of priority payments, for example your rent. If you have seen a downturn in your household income and this is likely to affect your weekly or monthly rent payment, please contact your rent officer on 0333 3212 200 (selecting option 2) to discuss this.
Statutory Sick Pay (SSP)
You might be able to get either:
You can’t get SSP and ESA at the same time. It’s usually best to get SSP if you can.
You might get statutory sick pay (SSP) if you’re following government guidance to self-isolate or you’re shielding. You could get SSP if:
Working Tax Credit (WTC)
GOV.UK - As part of a number of measures to support the country during the coronavirus (COVID-19) pandemic, Working Tax Credits payments will be increased by £1,045 to £3,040 per year from 6th April 2020 until 5th April 2021.
The amount a claimant or household will benefit from will depend on their circumstances, including their level of household income. But the increase could mean up to an extra £20 each week. You don’t have to take any action or contact HMRC - the increase in your payments will start from 6th April 2020.
*Note – Most people cannot claim Tax Credits, please check if you can here
Employees who are sick or self-isolating might see their wages drop from their normal wage to Statutory Sick Pay. Or, if their earnings have been too low for them to qualify for SSP, they might possibly qualify for New Style ESA instead.
Whilst you are self-isolating and receiving Statutory Sick Pay or ‘New-Style’ Employment and Support Allowance, you are then treated as still working your normal hours whilst you are receiving these benefits for up to a maximum of 28 weeks. So your Working Tax Credit is unaffected.
HMRC has announced that people temporarily working reduced (or no) hours due to coronavirus, or who are being furloughed, will not have their Tax Credits payments affected if they are still employed or self-employed as they will be treated as working their normal hours until the Job Retention Scheme and Self-Employment Income Support Scheme close in October, even if they are not using either scheme. They do not need to contact HMRC about this change.
Where a self-employed Tax Credit claimant decides to close their business permanently, then they will need to report this to HMRC as this is not a temporary change. They will be entitled to the 4 week run-on. Once the WTC has ended (i.e. after the 4-week run-on) they would need to think about claiming Universal Credit.
They might want to consider whether they could be better off claiming Universal Credit sooner ie rather than after the 4 week on (e.g. if they have rent to pay and they are not getting any Housing Benefit). Please speak to a Benefit Adviser if you need to consider this.
Self Employed Income Support Scheme
The Self-Employed Income Support Scheme provides taxable grant payments to many self-employed workers who have been adversely affected by the Coronavirus outbreak.
There have already been two grant payments - with two more in the next 6 months (now that the scheme has been extended) that a self-employed worker may be entitled to.
The second payment was open to applications until October 19th.
The Self Employed Income Support Scheme is being extended until the end of April 2021 for those who are actively trading but who are experiencing reduced demand due to the Coronavirus outbreak. It will work in the similar way as before but with a reduced payment. The third payment covers November to January 2021; the fourth February to April 2021. The payment for the period November to January will be based on 80% of average monthly profits, capped at £7500.
The current plan is for February to April's payment to be worth 40% of average monthly profits, up to a total of £3750, but this may be reviewed. Grants can be claimed online from November 30th - the government have said they will provide further details about applying in due course.
How will this grant affect my other benefits?
Universal Credit
It will be treated as earnings for the Monthly Assessment Period in which it is paid. Therefore it will not result in any overpayment (i.e. no need to reassess entitlement for the period that the grant covers).
If you are reporting a loss every month up to then. Then this can be offset against the grant and only the difference will be treated as earnings. However, for some it may mean that their UC award reduces to nil (and will need to reclaim) and/or the 'surplus earning' rules may then apply.
NOTE - The Minimum Income Floor has also been suspended until the end of April 2021 due to the Coronavirus outbreak therefore the UC award will be based on actual income and allowable expenses.
Tax Credits
As it is taxable payment, it is treated as an income payment so forms part of the claimant's self-employed income for 2020/21 and can be offset by allowable expenses. So the grant payment only affects their Tax Credits if they expect their total profits for 2020/21 overall to be more than £2,500 greater than their profits for 2019/20.
Housing Benefit
The payment is treated as income so it forms part of their self-employed income and can be offset by allowable expenses. If their projected income is now higher than the income the HB Office has been using then they should inform the HB Office who may adjust their ongoing HB award. HB Regulations are very flexible and while you could make a case for taking the income into account over a whole year, you could also justify spreading it over three months.
Alternative Benefits
Universal Credit (UC)
For tenants affected by the changes to their income as a result of COVID-19, support is available with your rent charge, which is the Housing Cost Element in Universal Credit.
If you care for someone in your household or family, and if you have a limited capability for work then please ensure you include this on your claim for Universal Credit.
The government has increased the Standard Allowance within Universal Credit by £20 per week, which is in addition to the uprating to benefit amounts effective from April 2020. This change will apply to both new and existing claims.
Employment & Support Allowance (ESA)
You can use form SSP1 to support your application
You can apply for ESA if you’re under State Pension age and you have a disability or health condition that affects how much you can work.
You can apply whether you’re in or out of work. Most new claims are for ‘new style’ ESA.
Guidance now states that if you’re not already claiming Universal Credit, you can apply for New Style ESA online or by calling the UC helpline. (If you’re already claiming UC you can discuss claiming New Style benefits with your work coach.)
Be aware that the new online process asks several questions, which seem to be aimed at assessing entitlement to UC, before the claim process actually starts.
GOV.UK has been updated to say you can claim the benefit if you are shielding.
Please note if you require help towards your rent you would still need to claim this through Universal Credit.
Another alternative benefit to claim if you find yourself ‘out of work’ is Jobseekers Allowance (JSA). Again if you are applying for JSA but require help towards your rent you would need to claim this element through Universal Credit.
Certain rules for customers currently in receipt of or making claims for UC, ESA, JSA or a combination (also including disability benefits) have been relaxed & adapted to coincide with the affect of COVID-19. This is detailed by accessing this link
Council Tax Support
If you are currently in receipt of Housing Benefit, or Universal Credit, and see a drop in your income, you may be entitled to claim a reduction in your Council Tax – you can make this claim online:
https://shropshire.gov.uk/benefits/apply-for-housing-benefit-or-council-tax-support/
Council Tax Support is separate to any discount you may already receive, for example, as a single occupier.
If your income decreases, and you are already receiving Housing Benefit and/or Council Tax Support, please notify the local authority on 0345 678 9001.
You may also declare your change in circumstances by e-mail – benefits@shropshire.gov.uk (Supporting documentation can be attached with your e-mail as proof of your income)
By notifying these changes, may result in your Housing Benefit & Council Tax Reduction increasing, which would mean your liability for rent & Council Tax will reduce, thus decreasing your outgoings.
Council Tax Hardship Fund
Local Authorities in England have been given £500 million of new grant funding to support economically vulnerable people and households in their local area.
Therefore, all working age customers who receive council tax support in the period 1 April 2020 to 31 March 2021 will receive an additional award of £150 onto their council tax account (or if the outstanding liability after discounts and exemptions is less, then the award will be the sum which results in making the remaining balance nil).
Assistance provided from the Hardship Fund won't be considered a payment of income, and therefore will not affect recipients’ eligibility for other benefits.
If you're eligible for this award, you don't need to apply for it. Shropshire Council will automatically award your entitlement and you'll receive a new bill showing your award.
In addition to this, you may currently be paying Council Tax over 10 instalments, with your last instalment for 2020/2021 being January. However, you can discuss with Shropshire Council Tax amending your payments to March 2021.
If you need to discuss your Council Tax in more detail please contact the Local Authority on 0345 678 9002.
You may also declare your change in circumstances by e-mail – benefits@shropshire.gov.uk
(Supporting documentation can be attached with your e-mail as proof of your income)
By notifying these changes, may result in your Housing Benefit & Council Tax Reduction increasing, which would mean your liability for rent & Council Tax will reduce, thus decreasing your outgoings.
Essential Contact Numbers
Jobseekers Allowance - 0800 055 6688
New Style Employment & Support Allowance - 0800 328 5644 (choose option 3)
For Universal Credit, you will need to apply online, and you can do this by following this link:
https://www.gov.uk/apply-universal-credit
Alternatively, if you cannot make a claim online call 0800 328 5644 (choose option 2)
Other reminders
Please note phone lines for Child Benefit and Tax Credits have been reduced due to redistribution of staff. They’ve been temporarily changed to Monday to Friday - 8am to 4pm.
Application forms for the Discretionary Housing Payment fund are available through the Housing Benefit Team, and they can be contacted on 0345 678 9001, or alternatively you can e-mail on benefits@shropshire.gov.uk
