Treatment of NHS Test and Trace self-isolation payments in the calculation of income-related benefits

New DWP guidance

The DWP has issued new guidance in relation to the treatment of NHS Test and Trace self-isolation payments in the calculation of income-related benefits.

In ADM Memo 20/20 and DMG Memo 18/20, the DWP provides guidance on the NHS test and Trace self-isolation payment scheme, that started on 1 September 2020, for people on low incomes in areas with a high incidence of coronavirus (COVID-19) who need to self-isolate and are unable to work from home.

In particular, the DWP advises that the payments - that are currently restricted to people who are resident in Blackburn with Darwen, Oldham or Pendle who meet the scheme's eligibility conditions, including receipt of universal credit, working tax credit, income-related employment and support allowance (ESA), income-based jobseeker’s allowance (JSA), income support, state pension credit, or housing benefit - do not affect the calculation of income-related benefits as they are -

• not included as unearned income to be taken into account in the assessment of universal credit;
• treated as Local Welfare Provision and disregarded for the purposes of ESA, JSA and income support; and
• not included as income or capital to be taken into account in the assessment of pension credit.

ADM Memo 20/20 and DMG Memo 18/20 are available from gov.uk

NB - also published today, LA Welfare Direct 9/20 confirms that the payments meet the definition for ‘Local Welfare Provision’ in housing benefit regulations for working-age claimants and so can be disregarded, and that as the payments are not listed as income to be taken into account they can also be disregarded for pension age housing benefit claimants.