What exact changes of circs will trigger move from ESA+HB to UC?

We have a single client in their 50s who has been on Income Related ESA for some years plus is getting HB for their mooring fee. The navigation authority recently gained new powers (Middle Level Act 2018) to demand fees for the use of its waterways. Therefore the client will get their first ever bill for a ‘licence fee’ soon (some may know that the situation is more complex than that, but it doesn’t alter the key question here).

Will the addition of a ‘licence fee’ to the client’s existing Housing Benefit claim trigger the client being moved off ESA and onto UC against their will?

The client’s circumstances have otherwise not changed at all. They do not, as far as I know, get either PIP or SDP.

Many thanks to anyone who can provide a definitive answer or refer me to regulations that answer the question.

PS See https://www.rightsnet.org.uk/forums/viewthread/16272/ for info about Upper Tribunal confirmation that boat licence fees qualify for HB/ UC housing costs.

HI, 

I have not any experience with dealing with the type of fees you have discussed, so this may be totally wrong.  However i think a basic principle is that you can not be ‘forced’ to claim Universal Credit (other than the compulsion to do so because you would be better off if you did claim).  I would assume it is a case of reporting the change in circumstance to Housing Benefit and then they make a new decision accordingly?

Hi Panda

If he’s already getting HB it will just be a change of circs for his HB claim. It’s only where someone needs to make a new claim for a benefit they’d shift to UC.

There is a lot of disinformation about this; culturally a lot of HB depts simply hand out new claim forms as it’s cheaper than printing batches change of circs forms; “oh you’ll have to make a new claim” has sunk in to a lot of authorities where, really, it’s only a CoC.  A lot of people have been misadvised to claim UC as those HB dept’s don’t properly discriminate between a change of circs and a new claim.

However; if your client’s not on PIP he’ll likely be better off, cash wise, claiming UC anyway thanks to the Covid uprating. If he’s in the Support Group of ESa he will probably be considerable better off in claiming UC.

Keep well

We’ve routinely heard about local authorities insist people claim UC when they report these type of change of circumstances so be prepared to be a bit pushy here.

Dan Manville - 30 September 2020 04:17 PM

However; if your client’s not on PIP he’ll likely be better off, cash wise, claiming UC anyway thanks to the Covid uprating.

 

I agree with everything else Dan has said, but given the Chancellor’s recent refusal to commit to extending the Covid uprating beyond April, I am exercising caution on this advice point at the moment. I have a client who has a low rate NDD from her HB and is getting ESA WRAG. So if she claimed UC she’d gain the Covid uprating but have a higher NDD. For now, that would leave her about £80 per month better off, but if the uprating is removed in April it will leave her £6 worse off. Of course it’s likely that she won’t see all of the increase because of deductions (and possibly zombie debts). So it would be a bit of a gamble for her. And while it’s tempting to think that £80 extra for six months will cover £6 less for 80 months, the reality is that money doesn’t work like that when you’re poor.

Thank you wbamic, Dan, Paul and Timothy, your knowledge is extremely helpful - we are bound to get more than one case like this following the 2018 Act.