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LAW AND BENEFIT REVIEW[part of the 'Disability Matters' & 'Law and Benefit Review' Group]
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2009 2008 2007 2006 |
May we wish the compliments of the forth coming season to all our readers and a Very Happy New Year. The support we have received during 2008 from many hundreds of you has been fantastic, and much appreciated, particularly after our two financial crisis’s, lets hope 2009 will keep us financially secure. Your support means everything to us, and make’s all the effort worth while. Thank you all very much. Space is once again at a premium, so lets go. 2008 PRE-BUDGET REPORT The Pre-Budget Report [or PBR] report took place on Monday 24 November, 2008 at 3.30. p.m. and was presented by the Chancellor of The Exchequer . The following matters will be of interest to the elderly and disabled and are only a brief interpretation of the Chancellor’s announcements : INFLATION REMAINS at 4.5 per cent [1] VAT: Valued Added Tax is reduced from 17.5% down to 15% until the end of 2009. VAT cannot be reduced any lower at this time due to European Union rules. [2] TAX CREDITS AND PERSONAL ALLOWANCES: The 10 per cent base rate has been confirmed as now being permanent with the basic rate of personal allowance being increased by £140 per annum. [3] NATIONAL INSURANCE CONTRIBUTIONS: These contributions paid by all employers are to be increased from 2011 by 0.5% to offset the Value Added Tax reduction to 15%. This means that clients of the Independent Living Fund employing carers or personal assistants, will have an additional 0.5% of their care funding taken away. We intend to write to the Chancellor saying this is a further erosion of funding provided by the government for home care. The Government financially supported ILF fund is provided for seriously ill disabled/elderly people to employ staff to care for them in there own homes, but out of the funding awarded after assessment both income tax and national insurance contributions are taken back by the government which for those who have to pay these ‘taxes’ reduces the award of the care funding. We have always think thought this to be grossly unfair, so we have decided to make it one of the projects for 2009 to see if we can pursued the HM Revue to reduce these payments so that the funding provided may be used for what is what awarded for - care, not taxation. [4] TAX INCREASES: The higher rate of income tax is o be increased to 45% in 2009/2010. This is hardly like to affect elderly and disabled people on state benefits. [5] FUEL AND VEHICLE EXCISE DUTY: The government has already delayed the introduction of an increase in fuel duty that was due to come into force in October 2008 following public protest. In the April 2008 full Budget announcement, changes in vehicle excise duty were announced which significantly increased the cost to drivers of so-called ‘gas guzzler’s‘. Many disabled people purchase 4 x 4 vehicles for their accessibility and space to hold powered wheelchairs and scooters. The PBR announced that in 2010, £5.00 will be added to all levels of vehicle excise duty apart from those vehicle’s with a Nil rating. From 2010, the maximum vehicle excise taxation will be capped at £30.00 or £2.50 a month for the higher rate vehicles and a ‘one-off‘ payment of approximately £900 per vehicle for all new ‘gas-guzzlers‘ will be payable. [6] FUEL DUTY: The income from VAT on fuel has been offset to re-pay the VAT increases. This means that instead of the price of fuel being increased by 2.5%, the increase will be offset by the VAT reduction. So in other words, the cost of fuel should not increase as a result of the UK budget. [7] STAMP DUTY ON LOW PRICED HOUSES: Stamp duty on houses costing less than £175,000 was scrapped in September 2008. Designed to kick-start the housing market, the new threshold was intended to last a year, but the £175,000 figure has been increased to £200,000 from 2009. In addition, people struggling with mortgage payments will be given a three month grace before proceedings may be commenced to re-possess homes by banks and mortgage companies, allowing owners to negotiate a new payment package. An extra sum of £775 million is also to be provided by the government for social housing which includes adapted properties for elderly and disabled folks. [8] STATE BENEFITS BOOST: Although not part of any economic stimulus package, the chancellor had already decided to increase the Winter Fuel Payment [WFP] priory to the PBR. This increase is already in many pensioners and disabled peoples bank accounts and shows a one-off increase of £50 this winter for the 60 plus and the over 80s were given an extra £100, so no further increase here for the 2009/2010 winter period, BUT [9] CHRISTMAS BONUS: The current Christmas Bonus was £10.00, but this is to be increased by £50.00 making a total of £60.00 being paid in December 2008 although some reports say January 2009. [10] PENSION CREDIT/OLD AGE PENSION/BENEFITS: A treble winner. Pension Credit is to increase from £124.00 to £130.00 for a single person and £189.00 to £198.45 for a couple from April 2009. State Pension has also increased. A single persons increase’s are from £90.70 to £95.25 per week, and a couple’s payment will increase by 2.5% or in line with Recommended Price Indiex [RPI], which is ever the higher in April 2009. [11] WINE, SPIRITS AND TOBACCO: All up 8%. No indication was give by the Chancellor as to how much state benefits will increase in April 2009, but it is assumed they will increase at the same rate as both Pension Credit and the State Pension, i.e. 2.5 % or in line with the RPI. [12] OFGEM is being granted full control over gas and electricity prices. We will investigate this matter as very little else was said about this statement. [12] AIR TICKETS: The cost of an air ticket will be increased by the calculation of the more miles travelled by air, the more the ticket will cost. These measures already operate when airlines increased ticket prices to off-set the cost of aviation fuel earlier this year. Now the ticket price will rise again instead of increasing the cost of aviation fuel and tickets already purchased should not be affected by these new charges All in all, we think it is a good budget for all pensioners and many disabled people in receipt of state benefits. What do you think? SCOTTISH PENSIONERS MISS OUT ON £350,00 Pension Credit claimants in the Highlands have been underpaid by £350,000, according to a north MP Danny Alexander's calculations, following official statistics showing at least £2.6 bn in UK benefits was lost to fraud and errors in the last financial year. The Liberal Democrat MP said about 3,400 pensioners across the region had missed out. The Department of Work and Pensions said most UK pensioners were paid correctly. Mr Alexander said the Pension Credit system was too complicated and required a complete overhaul. Last week, official statistics confirmed that 2% of the total benefit bill was overpaid between April 2007 and March this year. The figure, the same amount as in 2005-6, included a £380m overspend on Pension Credit - 5.1% of the total spending on that benefit. Meanwhile, £1.1 bn that should have been paid in benefits was not handed over - just under 1% of the total bill. The underpayment covered people who were not paid as much as they were entitled to. It did not include people who were entitled to benefits and failed to apply, or those whose benefits were incorrectly rejected. The figures, collected from a sample of cases, might not paint the whole picture of fraud and errors in the benefits system, the Department for Work and Pensions (DWP) warned. Minister for Pensions Reform, Rosie Winterton, said last Friday: "The vast majority of our pensioners are getting the right amount of Pension Credit. 70% of all official under and over payments relate to amounts less than £2 a week. "We recognise all error is unacceptable and are working harder than ever before to reduce the amount of error in the system." Sounds like a political bun-fight to us. 600 LEGAL AID JOBS TO BE AXED A Government agency which provides legal advice to millions of people is to cut 600 jobs and close a number of offices so staff have been told. 600 Legal Aid jobs are to be axed. The GMB union said it was told that the Legal Services Commission planned to reduce its workforce from 1,700 to 1,100 over the next three years. The job losses will be phased as offices close in Brighton, Cardiff, Cambridge, Reading, Leeds, Chester and Birmingham, according to the union. The grim news was given to union officials at a recent meeting. The Commission is a Government agency providing information, advice and legal representation to two million people a year in England and Wales. The service helps people with civil legal problems such as family breakdown, death and housing. Rehana Azam, an official of the GMB, said: "This is very disappointing news for the Legal Services Commission staff and for people seeking legal aid. It is essential to ensure that legal aid services to the public are maintained in these times of recession, and it is particularly important there are no cutbacks in the services to people facing debts and housing problems. It is almost unbelievable that the government should announce these job loses. It would appear that slowly slowly, the services that the elderly, disabled and low income families often require are being eroded, but in Scotland, they have just announced that they are extending these legal services to include thousands of people who did not receive them previously. JUDGEMENT ANNOUNCED CONCERNING OVERSEAS STATE PENSIONS On November 4 08, the European Court of Human Rights delivered its judgement on the case of a UK pensioner who requested a judicial review of the decision not to update her UK State Pension. The Court has found in favour of the UK government. The Department for Work and Pensions issued a statement: "We note that the Court has found in favour of the UK government. We do not plan to make any changes to the current arrangements regarding the freezing of UK State Pensions. We will, nonetheless, study the terms of the judgement carefully to ensure that we continue to comply with our obligations under the terms of the European Convention on Human Rights. MRSA Ancient healing methods could be the key to fighting the deadly hospital super-bug. Scientists say that making door handles, taps and light switches from copper could stop the spread of the modern-day killer. Bacteria is unable to survive on the metal, so copper surfaces could succeed where other infection controls have not been as successful. The healing power of copper has been used by Egyptians, Greeks and Romans to treat wounds but has only been considered as a modern solution since a study at Birmingham's Selly Oak Hospital. Microbiologist Tom Elliott said: "It is what I would call an intelligent metal. The copper is quietly working away in the background, killing organisms all the time." MRSA is often passed on through contact with surfaces. When tested, the copper items had 95% fewer bugs on them than those made from materials like stainless steel. But campaigners are cautious about the results of the 18 month study. "No one magic bullet will cure the problem," said Derek Butler from MRSA Action UK. "However, put them all together and you have quite a powerful weapon there to take on the bacterium, which we need to deal with now because it is the future generations that are going to pay the heaviest price if we do not tackle these bugs at this moment in time". According to the National Audit Office, at least 300,000 patients pick up infections every year in the UK, and around 5,000 people are likely to die as a result. Now researchers hope this ancient remedy will help fight modern infections, which cost the NHS an estimated £1bn each year. "Once we started looking into it we found we'd forgotten what we'd learned 6,000 years ago", says Mark Turk from the Copper Development Association. "Copper kills bugs and the application of it through science has given us that extra foundation we need these days for a proper assessment of copper." If further trials are successful, researchers hope hospitals across Europe will switch to fittings containing what they think is a precious metal. C. DIFF TESTING IS OFTEN WRONG Many carriers of the potentially lethal Clostridium difficile bug are missed by unreliable tests, researchers say. Analysis of 18 studies by St George's, University of London, found one test had wrongly given the all-clear to a quarter of those infected. The variation in performance between the six tests studied could mean misleading infection rate comparisons between different hospitals. While deaths related to the "super-bug" MRSA have shown falls in recent years, those related to Clostridium difficile are rising fast. The bug is found naturally in the gut of approximately 3% of adults, and presents no threat as long as the normal balance of gut bacteria is maintained. However, in weak or frail patients, particularly those on antibiotics, which can disrupt this balance, the bacterium can cause diarrhoea and severe inflammation of the bowel, which can be fatal. Quick and accurate diagnosis is key, so that patients can be isolated, and other measures taken to try to control the spread of the bug to other vulnerable people. Currently, a single test is used on a stool sample from the patient, looking for higher levels of a toxin produced by the active bacteria. However, the London analysis suggests this may not be enough to find the right patients. While most tests produce a small proportion of "false positives" and "false negatives", the percentage of cases missed ranged from 5% to just over 24.3%, and the percentage of "false positives" ranged from 3% to 45%. Conversely, patients receiving a false positive result may receive inappropriate treatment and be placed in wards along with infected patients, putting them at risk of contracting the infection. The recommendations are improving the performance of the tests by using a second test to check the first one. MORE UNHAPPINESS WITH ENERGY FIRMS The number of customers dissatisfied with their gas and electricity suppliers has grown after this year's price rises, a survey has said. The study by price comparison website USwitch found that 41% of customers are now unhappy with the big six energy suppliers, compared with 33% last year, but an industry body said that official complaints statistics have actually been falling. Meanwhile, the Government has signalled the end of estimated bills by 2020. The uSwitch survey questioned 5,465 customers at the end of September 2008 and found that only 45% of people said energy companies offered value for money. "Price rises this year's have hit people exceptionally hard, and inevitably it has damaged their perception of the industry," said Ann Robinson, consumer policy director at USwitch. Its finding comes after Gordon Brown called for firms to cut bills to reflect the recent falls in oil prices. Average gas and electricity prices have risen 38% in 2008, eclipsing 2006 when average prices rose by 32%. The poll comes after the government signalled the introduction of smart meters in all homes in the UK by 2020. These meters mean information can be exchanged between the user and the supplier in real time, including daily usage and the cost of the energy being used. This would mean the end of estimated bills. The House of Lords heard that 47 million smart meters would need to be put in. It would take two years to work out how this would be organised and another decade for them to be installed into every home. The ERA described the move as "a momentous decision for households across Britain". TOP-UPS BAN LIFTED Patients in England who are waiting to hear whether they will be able to top up their NHS care by paying for drugs privately and not be excluded from the NHS have some good and bad news. The bar on topping up NHS care by paying for drugs not available on the health service is to be lifted under plans drawn up by ministers in England, but strict rules are to be applied meaning patients will also have to pay for staff time and the scans and blood tests associated with the extra care. The Department of Health said it was also looking to ensure more drugs were available on the NHS. PROPOSALS: AT A GLANCE Patients get right to pay for top-ups without losing their basic NHS package of care. Those paying for extra drugs will also have to cover the cost of any staff time, tests and scans associated with that treatment and patients paying for their own treatment will also have to have it done away from NHS wards - either in private centres or private wings of NHS hospitals and out of the way from NHS ward’s to avoid patients in beds next to each other getting different quality care and this could well attract costs of £400 per day for the privilege of being in a private ward. Critics accused the government of creating a "two-tier" system. Current rules state that people should be excluded from the NHS if they pay for treatment not freely available, although practices do vary from place to place with some trusts ignoring the guidance. The review was announced after an outcry from patients over what was considered a hard-line stance and mounting evidence of an inconsistent approach by individual NHS trusts. Apart from allowing many NHS patients to purchase their own drugs because of the NHS ‘post-code’ lottery, and remain NHS patients, not much seems to have changed, taking into account the government proposals shown above - £400 per day approx. to stay in a NHS hospital private wing? A TAXING PROBLEM Older people still cannot claim disability living allowance if they become disabled after the age of 65, and this has serious repercussions for the car tax they have to pay. In 2007, Gordon Brown promised he would deliver “no discrimination” on the basis of race, gender, disability, sexuality, age or faith. Yet age discrimination in the benefits system is still rife. EXTRA PENSION WILL COST NOTHING Only one in five of the people who the government promised a bigger state pension last week will in fact get it. The minister in charge of the project has stated that she expects just 110,000 to apply successfully. Under the plans, anyone - man or woman - who reached pension age on 6 April 2008 or later and whose state pension is reduced because they have an inadequate contribution record, will be able to buy an extra six years national insurance (NI) contributions to fill the gap back to 1975/76. These extra contributions will be in addition to the six years back to 1996/97 that can already be bought and could boost the reduced pension by £14 a week now and more than £20 a week from April 2010. Most of those who benefit will be married women, as they are less likely to have a full working record than men. Women will not be allowed to buy contributions for any years they were paying the reduced rate married woman's contribution. There will be about half a million people who will be eligible, most of them women, who could only buy back the last six years - maybe about 110,000 will actually take it up. UK PENSION POT SLASHED IN VALUE Millions of pounds have been wiped off the value of the UK's private pension pot in the last year as shares have fallen. The value of employees defined ‘contribution pensions’ has dropped by nearly a third from £552bn to £395bn, according to research by Aon. About four million people in the UK are in so-called "defined contribution" pensions provided by their employer. An advice body says they are encouraged to take too many investment risks. Defined contribution schemes are different from a final salary scheme, which guarantees a pension based on end-of-career earnings and length of service. Under a defined contribution scheme, workers and their employers make contributions which are invested in shares and bonds, but the size of the final pension is not guaranteed as it depends on market performance. Research by Aon Consulting suggested that the value of defined contribution assets dropped by 28% to £395 bn between October 2007 and October 2008. We know that many of your that read the Law and Benefit Review do not receive state benefits, but are interested in our articles anyway. What this fall in the amount of ‘private’ pension means is that the amount of future spending power you once thought you had, might now have unfortunately declined. NEW STATE PENSIONS WILL BENEFIT FEMALES Women aged 53 to 60 will soon be able to pay a further six years worth of national insurance (NI) contributions to boost their state pensions. It raises to 12 the number of extra years of contributions that can be topped up, going back to 1975. The government's decision is included in an amendment to the Pensions Bill currently going through Parliament. The change is aimed at helping some women who left the workforce to raise families or care for other relatives. The extra six years of contributions will generate extra pension of about £18 a week from 2010. The change applies to those people, men and women, who reach state pension age between 6 April 2008 and 5 April 2015. Currently, up to five million existing women pensioners fail to get a full state pension because they spent years raising children, caring for relatives or working part-time. Last December the government dropped an years, from six to nine. Its change of heart comes on top of substantial reforms to the state pension system that have already been passed into law by the 2007 Pensions Act. In 2010 the number of years of NI contributions needed to qualify for a full basic state pension will come down to 30 for both men and women. Currently the number of years needed are 39 for women and 44 for men. PENSION CREDIT The latest change will not benefit everyone. People who want to take advantage of the ability to buy six extra year's worth of contributions will have to have paid for a minimum of 20 years already. The cost of buying those extra contributions will also go up, from the current rate of £8.10 per week. The government means tested benefit called the pension credit, which guarantees to top up pension income to £124.05 regardless of NI contributions, so anyone who is single, and who does not have enough contributions or enough other income would not want to top up in any case as they will get more for doing nothing. It will not help people who won't qualify for pension credit, and who can afford to pay approximately £2500 for the extra credits and who qualify with 20 years contributions already. AIRLINES SORRY FOR FALSE LEGS CHARGES This story concerning a disabled person travelling by air takes the biscuit, and occurs after the European Union introduced tough regulations regarding disabled travellers travelling by air. The airline, Jet2, has apologised for charging an amputee who wanted to take a spare pair of prosthetic legs on holiday an additional £10 each way. The aggrieved wanted to take a spare pair of false limbs on his holiday to Majorca next May, but Jet2 told him he would have to pay a surcharge. The airline has now refunded the money, and said it had changed its guidelines. Jet2 also said it was allowing Mr Skee, the aggrieved party to fly for free on the holiday by way of an apology. Mr Skee said it was "ridiculous" that he could take a wheelchair on the flight free of charge, but his spare prosthetic legs would cost him extra. The airlines announced that they “ have now reviewed their guidelines and are moving forward. Requests such as Mr Skee's will be covered under our mobility guidelines rather than our medical excess guidelines." Words fail us. PET OWNERS FACE £15 ADDITIONAL CHARGE ON MEDICATION Thousands of pet owners face having to pay more to treat their sick animals after vet prescription fees have been reintroduced. It means a bill of around £15 on top of the average £30 consultation fee for 120,000 owners who opt to buy drugs from cheaper online pharmacies rather than their vet. There are fears the higher cost will leave some owners, particular pensioners and those on state benefits unable to afford treatment. For the past three years those who wish to buy medicines from pharmacies have been able to obtain a prescription from their vet at no extra cost due to a Government ban on fees. The prescription allows them to order the drugs - often at a lower price than at the vet’s - although they still have to pay for the medicines, are having a ‘stranglehold’ on the medicines market and the Competition Commission found consumers were getting a poor deal, however, surgeries can once again start charging as ministers have decided that the market is now competitive enough, and there is no upper limit on the amount vets can demand for each prescription. This is rubbish, as the practice of obtaining a prescription from veterinary practises inside the European Union countries, and then attending a pharmacy is widely continually practiced. We are aware that many elderly people have their ‘babies’ because they send photographs of them to us, birds, dogs and cats being the favourites. Pets are obtained for companionship, company, and friends and rightly so. These new charges are totally unaffordable, for low income families, and those receiving state benefits/pensions, so we written to the Veterinary Association and the Government requesting that this charge be rescinded, sooner than later, for the elderly and disabled people in receipt of state benefits. We will bring any responses to you in due course. EUROPEAN UNION RAIL PASSENGERS’ RIGHTS Railway companies commit to cooperate on the implementation of the regulation on rail passengers During the consumer liaison working group of the Community of European Railways (CER) on 15 April, attended by EDF policy officer Maria Nyman, the CER and UIC (Union Internationale de Chemin de Fer) committed to set up a new task force for ensuring a smooth and correct implementation of the new regulation 1371/2007 on the rights and obligations of rail passengers. This regulation was adopted in July 2007 and will enter into full application in December 2009. The regulation contains a specific chapter on the rights of rail passengers with disabilities and includes in particular an obligation not to refuse the carriage of a person with a disability and to provide him or her with some basic assistance. WOMEN IN LINE FOR PENSIONS BOOST Hundreds of thousands more women will be able to claim a full state pension from 2010, ministers have announced. Currently 90% of men but 35% of women qualify for the full £87 a week - many gave up work to care for children so did not make sufficient NI payments. They had been able to "buy back" up to six years but a Pensions Bill amendment will allow people to buy another six years with a one-off payment. The changes would affect men and women who reach state pension age between 5 April 2008 and 5 April 2015 and already have 20 years on their National Insurance record. It is estimated that 90% of those who will benefit will be women. In 2007 the government was defeated in the House of Lords who voted through a similar amendment on the Pensions Bill. Up to 555,000 people could benefit from the policy change, according to the Department for Work and Pensions. The Pensions Bill means that by 2010 about 75% of women reaching state pension age would be entitled to a full basic state pension, and by 2025 that would rise to 90%. It is also expected that an announcement concerning a new system of NI credits which will recognise caring for children or a disabled person in the same way as paid work. WAR PENSIONERS TO GET FREE TRAVEL UK war pensioners and their dependants are now able to travel free of charge on public transport in London. The scheme, announced by Mayor Boris Johnson, offers free travel on services including buses, the Underground, trams and London over-ground services. It benefits those aged under 60 who get a pension under the War Pensions Scheme or Armed Forces Compensation Scheme. People over 60 already get free travel. The scheme is expected to benefit about 2,600 war pensioners living in London. ELDERLY SUFFER POOR DENTAL CARE Elderly people are suffering because of poor access to dentistry services, experts say. Improvements in dental care following the creation of the NHS mean that many pensioners have kept their own teeth, but Help the Aged said this was now causing a problem as elderly people in care homes or who were housebound were struggling to see a dentist. The government said it recognised the importance of providing dental services for everyone. More than a third of over 75s fail to have regular check ups - the highest for any age group, according to Help the Aged. Experts said one of the key problems was a lack of mobile dental units to tour the community. Charlotte Potter, a senior health policy officer at Help the Aged, said: "It is a particularly acute problem for people in care homes. Services are just not flexible enough and it means that elderly people often go without treatment, and now more and more are keeping their own teeth into old age it is becoming a major problem. WINTER DEATHS IN SCOTLAND FALL The number of winter deaths in Scotland fell last year, latest figures showed that the seasonal difference - the increased number of deaths in winter compared to the rest of the year - was 2,180, down from the previous year's 2,750. Statistics from the Registrar General showed there were 19,900 deaths in Scotland over the period December 2007 to March 2008. This was down from the total of 20,384 for the same period in 2006-07 and the lowest for half a century. The Registrar said the lowest increase in deaths over the winter period had been in 2005-06, when the seasonal difference was 1,780, and that the second lowest was in 2001-02, when it was 1,840. The past seven years have seen three of the five lowest seasonal differences in a series that goes back to 1951-52. The long-term trend is clearly downward, but the figures can fluctuate from year to year. Of the 2,180 additional deaths last winter, most were among the elderly, with 850 in those aged 85 and over, 880 in the 75 to 84 age range, 320 in the 65 to 74 age group and 130 in those aged 64 and under. Already this year, The Highlands of Scotland have experienced heavy snow falls, blocking passes in some places. In England, Yorkshire, Norfolk and other east coast counties have experienced four inches of snow and temperatures of -5C or below. For so-called ‘winter-deaths’ to be falling is good, lets see what England and Wales shows during the 2008/2009 winter period. More on this next month.
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