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Forum Home  →  Discussion  →  Covid-19 issues  →  Thread

Test & Trace Support Payment versus Self-isolation in High Risk Areas Support

Gareth Morgan
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Can anyone explain to me how the £500 new scheme works with the the £130 / £182 of the old ( 3 weeks old) scheme?

Which or both?

I’m gazing at a Reckoner development with no idea of what the results should be.

Still it’s an algorithm, so it needn’t work, I suppose.

Charles
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My understanding was that the £500 scheme would replace the original trial which gave £130/£182. I could be wrong though!

Gareth Morgan
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That was my guess, but it’s not been stated anywhere I can see.  There are some potential overlaps for late September claims, as well as issues around the schemes being England only.

Vonny
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it looks like we (wales) are now going to get the £500 payment, although no details yet (even less because I was watching bake-off not Drakeford)

Daphne
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Much more fun to be fair ;)

Andrew Dutton
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This £500 is taxable - I’ve seen nothing abut treatment as income/capital, but would that not mean that it counts as income for WTC?

Damo
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Local Welfare Provision payments are taxable? are they sure about this? I have read that DHP’s are not taxable but cannot pin down the legislation. Does anyone know where to look?

Andrew Dutton
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6. Will these payments be taxed?
These payments will be subject to income tax. They will not be subject to National Insurance contributions. We will work with local authorities on the appropriate process to ensure that central government can collect income tax.

[Briefing and Q&A for Local Authorities on
changes to Self-Isolation]

Damo
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I think I found the legislation in S677 of the ITEP Act 2003. DHP’s were inserted in there in 2019, but I can’t see anything about LWP. Social Fund payments were in S677. I hope they don’t expect LA’s to deduct it from the payment.

Mike Hughes
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Daphne - 23 September 2020 09:32 AM

Much more fun to be fair ;)

Drakeford
Johnson
Bake Off

In that order, and believe me I have to work hard to put Johnson above anything in a list.

Stuart
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Andrew Dutton - 24 September 2020 04:30 PM

6. Will these payments be taxed?
These payments will be subject to income tax. They will not be subject to National Insurance contributions. We will work with local authorities on the appropriate process to ensure that central government can collect income tax.

[Briefing and Q&A for Local Authorities on
changes to Self-Isolation]

here’s a link to the DHSC briefing Andrew refers to from the LGA website

Edit: the above link now doesn’t point to the document - a link to the briefing is included in our news story Local authorities in England will have discretion to award the £500 self-isolation payment to those who do not receive qualifying benefits

[ Edited: 28 Sep 2020 at 01:51 pm by Stuart ]
Gareth Morgan
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That briefing just says, inter alia,:

To be eligible for the Test and Trace Support Payment, an individual must:
● have been asked to self-isolate by NHS Test and Trace either because they’ve tested
positive for coronavirus or have recently been in close contact with someone who has
tested positive;
● be employed or self-employed;
● be unable to work from home and will lose income as a result; and
● be currently receiving Universal Credit, Working Tax Credit, income-based
Employment and Support Allowance, income-based Jobseeker’s Allowance, Income
Support, Housing Benefit and/or Pension Credit.

As some of the benefits are joint claims, does that mean that both members of a couple can receive the payment?

Stuart
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Department of Health and Social Care has confirmed today that -

‘Councils will also have discretion to make payments to those who don’t receive the qualifying benefits, but are on a low income and could suffer financial hardship as a result of not being able to work.’

... see our rightsnet news summary for more details…

 

[ Edited: 28 Sep 2020 at 01:49 pm by Stuart ]
Stuart
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More detail on the treatment of payments in explantory memorandum to new regulations SI.No.1065/2020 - confirms the £500 scheme replaces the origianal pilot and that payment is disregarded from liability to Class 1 NICs and for purposes of income tax -

‘... these payments are treated as a cash benefit-in-kind and are charged to tax under Chapters 2 to 10 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003).’

Vonny
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any news on how it will be happening in wales yet - will it be paid through daf and when is it starting?

KMJones
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Has anyone actually helped a client access a Test & Trace Support Payment from their local authority?

We’ve received lots of requests asking about how it’s working but little in the way of case studies, or even questions about local schemes.

I’d be very interested in any insights about this.

1. Is the number of people being directed to self-isolate so low that no-one’s applying to the scheme?
2. Are they ineligible? If so, for what reason?
3. Is it all running so smoothly, no further advice is required?
4. Is the payment being included in advice to self-isolating people? Or in general, in case they need to self-isolate?

If you have helped a client access Test & Trace Support Payments, please tell me about it! https://cpag.org.uk/policy-campaigns/early-warning-system or .(JavaScript must be enabled to view this email address)

shawn mach
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KMJones - 17 November 2020 12:19 PM

If you have helped a client access Test & Trace Support Payments, please tell me about it! https://cpag.org.uk/policy-campaigns/early-warning-system or .(JavaScript must be enabled to view this email address)

Do also share it here too of course ....

KMJones
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Thanks Shawn - it’s not my intention to divert evidence away from Rightsnet, just figured that went without saying!

Mike Hughes
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Not helped anyone directly but been heavily involved in directing applicants towards WR advice at the point of application so…

1 - lots of applicants.
2 - lots of rejections - too early to analyze why.
3 - we asked people to identify whether they felt they were at risk of financial hardship and would like WR advice. Lots do funnily enough. Lots!
4 - don’t know but most LA web sites seem to have omitted from their FAQs (if they have any) whether the payment is disregarded for benefit purposes and I can only find one - Hyndburn - which asserts it’s disregarded .

Paul_Treloar_AgeUK
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Mike Hughes - 17 November 2020 12:36 PM

4 - don’t know but most LA web sites seem to have omitted from their FAQs (if they have any) whether the payment is disregarded for benefit purposes and I can only find one - Hyndburn - which asserts it’s disregarded .

Do we actually know whether these payments are disregarded for MTB’s or not?

Mike Hughes
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Paul_Treloar_AgeUK - 17 November 2020 12:58 PM
Mike Hughes - 17 November 2020 12:36 PM

4 - don’t know but most LA web sites seem to have omitted from their FAQs (if they have any) whether the payment is disregarded for benefit purposes and I can only find one - Hyndburn - which asserts it’s disregarded .

Do we actually know whether these payments are disregarded for MTB’s or not?

Yes they are Paul. The only exception to that, which remains unclear, appears to be Council Tax Support. However, There is massive inconsistency across LA web sites. Some have no FAQs at all. Some only detail the tax and NI situation. Hyndburn have either made a glaring error re: CT or know something we don’t.

Paul_Treloar_AgeUK
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Mike Hughes - 17 November 2020 01:42 PM

Yes they are Paul. The only exception to that, which remains unclear, appears to be Council Tax Support. However, There is massive inconsistency across LA web sites. Some have no FAQs at all. Some only detail the tax and NI situation. Hyndburn have either made a glaring error re: CT or know something we don’t.

Thanks Mike.

BC Welfare Rights
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Kirklees has told me that it does not include it as income when assessing Council Tax Support.

gov.uk says “If you’re eligible for either the Test and Trace Support Payment or discretionary payment, you will receive the £500 payment on top of any benefits and Statutory Sick Pay that you currently receive.”  I don’t know whether CTS counts as ‘benefits’ though.

Mike Hughes
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I get the impression a fair few LAs are waiting for guidance on CTS when in reality it’s a local scheme and they may well already have the leeway to make a sensible decision.