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April 2017 changes to WRAC
Can someone confirm please that planned changes to removal of WRAC for ESA and UC claimants is definitely going ahead in April. Last discussion on here was Nov 2016 but still not clear!
The government’s plan still appears to be to introduce these cuts from April and they have made some statements about who will or will not be affected. There are however still no regulations available to tell us definitively if and when this will happen and who will be affected.
There was some commotion in the commons about whether these cuts should be delayed or cancelled but nothing has happened which will prevent the government from implementing them if it still wishes to.
For more, see this commons briefing paper issued last week; http://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-7649
At the recent DWP OSEF meeting, they confirmed that they intend to introduce this cut from April 2017 and that regulations were imminent, although they couldn’t say exactly when.
Here we go… New commencement order brings into force provisions in the Welfare Reform and Work Act 2016 (and the regulation making powers) including in relation to stopping payment of the WRAC in employment and support allowance and corresponding element in universal credit (from 3 April) SI.No.111/2017. Regulations giving more details should follow.
A couple of worrying things there.
1) The explanatory note says “the fact that a claimant has limited capability for work is no longer a need or circumstance that may be prescribed”
It does achieve this by removing 12.2 of the WRA. The practical effect is that not only does the LCW element disappear but so does the work allowance. As that was the permitted work equivalent in UC, that’s a pretty horrifying thing.
2) Mortgage loans may be arriving sooner than expected.
[ Edited: 8 Feb 2017 at 11:28 am by Gareth Morgan ]A couple of worrying things there.
1) The explanatory note says “the fact that a claimant has limited capability for work is no longer a need or circumstance that may be prescribed”
It does acieve this by removing 12.2 of the WRA. The practical effect is that not only does the LCW element disappear but so does the work allowance. As that was the permitted work equivalent in UC, that’s a pretty horrifying thing.
I read the reference to s12(2) WRA 2012 as “prescribed” for the purposes of including an element (for LCW). I don’t see that the work allowance would be affected.
2) Mortgage loans may be arriving sooner than expected.
Yes, I was surprised to see the s18 commencement. The loan schemes will still need to be set up (with further regulations) so I’m not assuming that this is necessarily an acceleration of the policy.
I read the reference to s12(2) WRA 2012 as “prescribed” for the purposes of including an element (for LCW). I don’t see that the work allowance would be affected.
Agreed, That’s what comes of reading things on the train, without copies of the acts, and relying on their notes.
Could anyone confirm if there is any clarity on whether there is any transitional protection on this?
The Welfare Reform and Work Act 2016 says the secretary of state can introduce whatever transitional protections they deem suitable by statutory instrument. However, the statutory instrument referenced above does not mention transitional protection.
I am not familiar with the whole process of making law - is there likely to be further clarification pending?
my understanding is that this is only for new claims from April 2017 therefore there would not be any need for transitional protection?
pitfalls I will be looking out for are any appeals that are won after April 2017 and the WRAC not being paid out !
Could anyone confirm if there is any clarity on whether there is any transitional protection on this?
The Welfare Reform and Work Act 2016 says the secretary of state can introduce whatever transitional protections they deem suitable by statutory instrument. However, the statutory instrument referenced above does not mention transitional protection.
I am not familiar with the whole process of making law - is there likely to be further clarification pending?
I’m sure there will be further regulations covering transitional protection and consequential amendments (particularly for HB).
Thanks for your response Jon. I hope for clarity - and not just on this amendment!
Here we go:
- Regulation 2 amends provisions in the Employment and Support Allowance Regulations 2008 (S.I. 2008/794) that, amongst other things, provide for a basic rate of an employment and support allowance, and, on top of this, a work-related activity or support component .... References to the work-related activity component are omitted and other amendments consequential on the removal of that element are made. Regulation 3 makes similar amendments to the Employment and Support Allowance Regulations 2013 (S.I. 2013/379).
- Regulation 4 amends provisions in the Universal Credit Regulations 2013 (S.I. 2013/376) that provide for an award of universal credit to include an amount for the fact that a claimant has limited capability for work (“the LCW element”) .... References to the LCW element are omitted and other amendments consequential on the removal of that element are made.
See para 2-7 of Schedule 2 for ESA WRAC transitional protection ( 3rd of April 2017 is the critical date in most cases.) This also determines transitional protection for HB WRAC ( and for pension-age CTR in England).
In the information vacuum beforre these regs arrived a number of English LAs have cooked up their own ideas about transitional protection for WRAC in working-age CTR - there’s going to be a mismatch in a some cases.
In the information vacuum beforre these regs arrived a number of English LAs have cooked up their own ideas about transitional protection for WRAC in working-age CTR - there’s going to be a mismatch in a some cases.
Are you suggesting that it might have been helpful to publish the regs for all these changes more than a month before they’re supposed to be implemented? I think that counts as heresy now…
In the information vacuum before these regs arrived a number of English LAs have cooked up their own ideas about transitional protection for WRAC in working-age CTR - there’s going to be a mismatch in a some cases.
Are you suggesting that it might have been helpful to publish the regs for all these changes more than a month before they’re supposed to be implemented? I think that counts as heresy now…
Of course not - as it is they’ve spoiled the surprise by telling us what’s happening before the regs come into force.
Still nothing on two-child rule though so I shouldn’t complain.
Does anyone know if under 25s will still go on to the over 25s rate of the personal allowance once they’ve been found to have LCW? That would make them still better off on ESA than JSA so my instinct tells me that must be being changed too, but I haven’t found anything about it.