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Government sets out details of additions for longer durations on universal credit

Policy briefing also confirms 65% single taper

25 March, 2011

The government has published a policy briefing setting out details of additions for longer durations on Universal Credit.

The briefing, 'Universal Credit Policy Briefing Note 1', is one of a series published in response to current parliamentary scrutiny of the Welfare Reform Bill 2011 and designed to inform legislators and the wider group of stakeholders on aspects of universal credit policy where significant developments from the White Paper position have been made.

Setting out the context to its decisions on additions under universal credit, the government says -

'Within universal credit we do not intend to replicate every aspect of this provision in the current system, which is difficult to deliver, can be prone to error and confusing for disabled people. Instead, we intend to reform the disability premiums as part of our simplification. The best way to provide additional support to severely disabled people, through universal credit, is to provide all those in the support group with an addition that is substantially higher than the current support component in ESA.'

The government also says that additions for children with disabilities have increased at a faster pace than the adult payments, leading to a lack of alignment in rates, and that it aims to align child and adult payments through the proposed reforms.

Key proposals set out in the briefing include -

• two additions consisting of a higher addition (support component equivalent), ultimately worth £74.50 per week 'as resources become available' and a lower addition (work-related activity component equivalent), worth £25.95 per week;
• equalised additions for adults and children including increased support for the most severely disabled children - the cash additions for families with disabled children and the cash additions for adults will be aligned, with the lower rate as around £25.95 and the upper rate at £74.50 per week;
• the extension of eligibility for the higher rate to children who are severely visually impaired (currently only entitled to the disabled child element); and
• within universal credit individuals will only qualify for either a disability or a carer addition, not both - however, as now, couples will be able to get a disability addition for one member and the carer addition for the other partner.

The briefing also confirms that that there will be a higher earnings disregard which allows people to earn between £2,080 a year (i.e. the disregard floor) and £7,000 a year before a standard universal credit taper of 65% applies.

The government's universal credit briefing notes are available on the Welfare Reform Bill 2011 page of the DWP website.