Coronavirus and welfare benefits
The Coronavirus outbreak has been a source of uncertainty and stress for many families. As well as worries about the health loved ones, you may also have concerns about the financial implications for your family, particularly if you or a partner are likely to have to stop working or see a significant drop in earnings.
This page answers some of the common questions about benefits that parents with a disabled child might have.
There have already been a number of changes to the benefits system in response to the current outbreak. It is likely that further changes will be announced in the near future so this webpage will be updated regularly.
What benefits can I claim if I need to take time off work because I have coronavirus or am following government guidance and self-isolating?
You may be entitled to certain sickness benefits if you cannot work because you either:
- Have coronavirus.
- Have coronavirus symptoms, for example a high temperature or new continuous cough.
- Someone in your household has coronavirus symptoms or has tested positive for Coronavirus.
- Someone in your extended household (or 'support bubble' in Scotland or Wales) has coronavirus or coronvirus symptoms
- you've been advised to self-isolate by health professional because you are going into hospital for surgery
- You're a disabled person who is classed as extremely vulnerable and have been advised to shield yourself at home and you live in an area where local restrictions are in place.
If this applies to you, you may be able to claim Statutory Sick Pay (SSP) or new style Employment and Support Allowance (new style ESA). However, these payments may be a lot lower than your normal earnings. For that reason, you may also need to claim means-tested benefits to top these up.
Who can claim statutory sick pay (SSP)?
Employees who are unable to work because they are either unwell or sharing a household with someone who has coroavirus symptoms should be able to claim SSP, so long as their earnings are usually more than £120 per week. Employees on a zero hours' contract can still claim SSP as long as they meet the normal rules.
New rules state that SSP is payable from day one of your isolation. SSP is claimed from your employer. The maximum rate of SSP is currently £94.25 per week. Depending on your contact of employment you may also be entitled to occupational sick pay.
Who can claim new style Employment and Support Allowance (new style ESA)?
Some people are not eligible for SSP. For instance, self-employed people or employees who usually earn less than £118 per week. If you cannot get SSP, you may be able to claim new style ESA instead.
New style ESA is a contributory benefit. This means that whether you get new style ESA will depend on your national insurance record. For people aged over 25, new style ESA is usually £73.10 per week, although it may increase after 3 months depending on the outcome of a medical assessment.
Do I need to submit medical certificates to claim these benefits?
Normally in order to claim benefits like new style ESA or Universal Credit on the basis of ill-health, you need to submit medical certificates from your GP, known as a statement of fitness for work. However, people who are claiming these benefits on the basis that they have coronavirus or coronavirus symptoms can claim these benefits without the need for a medical certificate. Instead you can get a 'isolation note' from the NHS website to give to your employer when you claim SSP.
If you've been notified by the NHS or public health authorities that you've come into contact with someone with coronavirus, your notification is proof.
If you've been advised by your doctor or healthcare professional to self-isolate before going into hospital for surgery, your letter confirming the date of your procedure is proof.
If you live in an area with local restrictions that include advice to shield and you need to take extra precautions, you should get a letter from your doctor or a health authority telling you this.
In England, low-income workers who who are asked to self-isolate by the NHS Test and Trace Service, and who are unable to work from home during their period of self-isolation and who lose money as a result, can apply to their local authority for a £500 payment.
You can apply if you are employed or self-employed and have claimed at least one of the following benefits: Universal Credit, Working Tax Credit, income-related Employment and Support Allowance, income-based Jobseeker's Allowance, Income Support, Pension Credit or Housing Benefit.
Local authorities also have the discretion to make a payment to workers who aren't on one of these benefits, but who are on low incomes and who face financial hardship as aresult of not being able to work.
The £500 payment applies to those who start to self-isolate from 28 September 2020 onwards. Local authorities in England may not start making payments until 12 October, but those who start to self-isolate from 28 September can get payments backdated.
In Scotland a similiar £500 payment known as the Self Isolation Support Grant is available from 12 October 2020. This can be claimed from the Scottish Welfare Fund run by local authorities. To apply, you must have been told to self isolate by the Test and Protect Programme in Scotland and who will face a loss of income as a result of having to self-isolate.
The grant is targeted at those in receipt of certain means-tested benefits, but local authorities have some discretion to make payments to others in financial hardship.
The Welsh government has also announced its intention to introduce a £500 payment for people on low incomes who face hardship as a result of being asked to self-isolate.
In Northern Ireland a person (or their immediate familiy memeber) who has Covid-19, or who has been told to self-isolate in accordance with the latest guidance published by the Regional Agency for Public Health and Social Well-being, may be able to access a discretionary Support COVID-19 (Coronavirus) Short-term Living Expenses grant. To be eligible, your your annual income, including the income of your partner, must not be above £20,405.
To apply, contact the Finance Support Service in Northern Ireland.
Claiming means-tested benefits and tax credits
If you do not qualify for SSP or new style ESA, you may be able to get help via means-tested benefits instead. You may also be able to get means-tested benefits to top up your SSP or new style ESA if this is not enough for you to live on.
If you are not off work because you are unwell or self-isolating but are not working for other reasons, you may also be able to claim means-tested benefits, as can some people whose earnings have reduced, including the self-employed. Whether you get means tested benefits and the amount paid will depend on your individual family circumstances
Already on means-tested benefits or tax credits?
If you are already on means-tested benefits like Housing Benefit or tax credits, tell the relevant office paying you this benefit about your reduced income. This may lead to an increase in the means-tested benefits that you receive.
However, if you receive tax credits this is based on your annual income rather than your weekly or monthly income. This means that the Tax Credits Office will need you to provide an estimate of what your annual income is likely to be in 2020/21 before they can work out your tax credits.
If you underestimate your likely income, this could result in you receiving an overpayment that you are asked to pay back at a future date. Another particular issue with tax credits is that the first £2,500 of any drop in annual income is not taken into account.
You have the option of claiming Universal Credit rather your current means-tested benefits. However, if you do this your current means-tested benefits and tax credits will stop and you will not be able to reclaim them at a later date. Some people are worse off if they move from existing benefits to Universal Credit. The mere act of making a claim for Universal Credit will bring any existing means-tested benefits and tax credits to an end - this remains the case even if you are found to have a nil entitlement to Universal Credit (for example because you have capital in excess of £16,000).
You can check what benefits you might receive and how much your payments would by using an online benefits calculator such as those available at:
Even if you are better-off on Universal Credit in the short term during the current crisis, you need to take into account whether being on Universal Credit is likley to leave you worse off on Universal Credit in the longer term once the situation normalises. This is because once you claim Universal Credit, you cannot revert back to your old means tested benefits at a later date.
What happens to my Working Tax Credit if I am unable to go to work during the outbreak?
Normally Working Tax Credit can only continue for the first four weeks after you stop working, unless you are off work due to sick leave, in which case it can continue to be paid for 26 weeks.
However, during the Coronavirus outbreak HMRC are applying a different policy. If due to the Coronavirus outbreak you are temporarily not working or are on reduced hours, this will be ignored by the Tax Credits Office. This applies both to employees and self-employed people.
Our family finances adviser Derek explains temporary changes to the rules around working hours and Working Tax Credit during the Covid-19 pandemic.
HMRC have said that you do not need to contact the Tax Credits Office about a temporary drop in hours or the fact that they are temporarily not working. Instead they will continue to treat you as if you were still working your normal hours.
You should still report any other changes in income, in your childcare costs or if you decide to change your hours in the longer term. You must also tell them if you or your partner lose your job, are made redundant or cease trading.
HMRC has said that this policy will last until the end of April 2021.
Not currently getting any means-tested benefits or tax credits?
It is no longer normally possible for most people to make new claims for income-related benefits such as tax credits, housing benefit or income support. Instead new claims for these benefits have been replaced by Universal Credit.
Universal Credit is a means-tested benefit so whether you get Universal Credit will depend on your income and savings (and those of your partner if you have one) as well as your other family circumstances.
If I claim Universal credit will I still have to wait 5 weeks for a payment?
Unfortunately, no changes have yet been announced concerning payment of Universal Credit. The benefit is paid monthly in arrears, so new claimants will usually have to wait around five weeks before receiving their first monthly payment.
You can apply for an advance payment. This is a loan payment and will be expected to repay it by way of regular deductions from your monthly Universal Credit payments once these start.
If I claim benefits like Universal Credit will I have to attend interviews or meetings at my local jobcentre?
The government has announced that for a three-month period starting on 19 March 2020, people receiving benefits will not be required to attend any job centre appointments. Job Centres will remain open to help anyone who is unable to claim benefits on-line or by telephone.
Some people claiming Universal Credit or other benefits such as Job Seekers Allowance are asked to look for work as a condition of claiming benefit. However, these work search requirements have all been suspended for a period of at least 3 months.
Will I be able to claim Carer's Allowance for looking after someone in my household who has Coronavirus?
You can only claim Carer's Allowance if you are looking after someone who is on qualifying disability benefit such as the care component of Disability Living Allowance (DLA) at the middle or highest rate or the daily living component of Personal Independence Payment.
These disability benefits are only paid to people with long-term disabilities or illnesses. Because of this you are unlikely to be able to claim Carer's Allowance for looking after someone with Coronavirus unless they are already getting a qualifying disability as a result of pre-existing disabilities or health problems.
If your child gets the relevant rates of DLA or PIP you may be able to claim Carer's Allowance if your earnings have stopped or have dropped below £128 per week after deductions.
Changes to Carer's Allowance rules during Coronavirus outbreak
The government has changed the Carer's Allowance rules so that a break in caring can be ignored if it is caused by either the disabled person or their carer having Coronavirus symptoms.
Alongside this, the charity Carers UK say that they have been told by the Department for Work and Pensions that emotional support, such as that provided by telephone or social media, will count as care in assessing if a carer is providing at least 35 hours per week care. This is likely to help those carers who don't share a household with the person that they look after and who may have reduced physical contact during the current outbreak.
Carer's allowance claimants in Scotland receive supplementary payments from the Scottish Government. This is done by a lump sum payment twice a year. Normally carers in Scotland receive a payment of £230.10 twice a year. However in June 2020 the payment is doubled to £460.20. This is because there will be an extra one-off supplement in recognition of the extra pressure carers are under due to the Coronavirus outbreak.
The Furlough Scheme (now extended to March)
The 'Coronavirus Job Retention Scheme' is a type of financial support from the government that helps employers to carry on paying their workers. It is better known as the furlough scheme. Under this scheme employers can apply to the government for help to pay the wages of workers who are unable to work during the Coronavirus outbreak.
The furlough scheme was originally supposed to close on 1 November, when it was to be replaced by two new Job Support Schemes. However the government have now extended the furlough scheme until the end of March.
Our Family Finances Adviser Derek explains theCoronavirus Job Retention Scheme, the government's initiative tofinancially support people unable to do their jobs during thecoronavirus outbreak.
If your employer has furloughed you, they can apply to HMRC for a grant to help pay your salary. The government will pay 80% of your wages (up to a maximum of £2500 a month) with your employer only being asked to meet any pension and national insurance contributions. Your employer can choose to make up the extra 20% of your wages but is not obliged to do so.
If they choose not to, you should seek advice about whether you qualify for any income-related benefits to top up your reduced earnings. This will depend on your individual family circumstances. If you already get income-related benefits such as Housing Benefit or tax credits, these may be increased as a result of your lower earnings. Alternatively you may be able to claim Universal Credit instead.
What can I do if my employer says they want to end my furlough and that I need to return to work?
You do not have a right to remain on furlough if your employer doesn't agree to this. This means that they can ask you to return to work. If this happens, seek advice from an employment adviser. This is particularly important if you think you may have been discriminated against or if returning to work would place your health and safety at risk. You should also look into whether you have a right to take any leave such as parental leave.
Who can be furloughed?
In order to be furloughed under the extension scheme you need to have been on your employers payroll by 30 October 2020 at the latest. You don't need to have been furloughed previously and it doesn't matter if your employer didn't make use of the furlough scheme earlier in the year.
Originally it was thought that you could only be furloughed where there was no work for you to do. However, subsequent guidance makes clear that people who are unable to come to work due to caring responsibilities or who are shielding a vulnerable family member can also be furloughed. However it is up to your employer whether they agree to continue furloughing you; they cannot be forced to agree to this.
Government guidance says that it you were made redundant in the period after 23 Sept, your employer can choose to re-employ you and furlough you under the scheme. For this to apply you must have been on your employers payroll before 23rd Sept and have either been made redundant or left voluntarily after that date.
The scheme only applies to employees and not to self-employed people.
Any payments you receive under this furlough scheme will be treated as earnings for benefits and tax credits in the normal way.
Can I work part-time while furloughed?
Initially furloughed workers were not allowed to undertake any work for their employer. However the government has said that you can do some part-time work while on furlough. We expect this to mean that you will be paid by your employer in full for the hours you work and that they can get help with 80% of your wages for the hours you don't work. However further detailed guidance is awaited.
How is the figure for 80% of my wages calculated under the scheme?
The amount paid by the government under the scheme is 80% of your usual pre-tax monthly salary. Usually this will be based on your February pay, but if your earnings vary it will either be based on your earnings in the same month of the previous year or your average earnings over the year 19/20.
If you've worked for your employer for less than a year, it'll be averaged over the period since you've worked there.
What sorts of earnings are included in the calculation?
The 80% figure is based on your regular contractual pay. If will only include overtime if you are guaranteed that overtime in your contract of employment. If you earn a commission it will only include any commission that your employer is contractually obliged to pay.
It won't include the value of any benefits in kind nor any payments that are made at the discretion of the employer, for example discretionary bonuses.
Does the extended furlough scheme only apply to England?
Although the extended furlough scheme was announced at the same time as the second national lockdown in England, the scheme will also be open to businesses in all parts of the UK, regardless of the different restrictions that are in place.
When will the furlough scheme end?
The government has said that the furlough scheme will be extended until late March 2021, and will be reviewed in January.
Once it does end it is likely to be replaced by two new schemes. There will be an job support scheme for open businesses helping employers to pay the wages of staff who are working reduced hours. Alongside this a job support scheme for closed businesses is expected help pay 2/3 of wages for employees in businesses that have had to close due to COVID-19 restrictions. These schemes were supposed to commence in November when the furlough scheme was originally planned to end. However they have now been postponed as a result of the extension in the furlough scheme.
The job support scheme for open businesses is designed to help employers meet the wages of staff who they have asked to work reduce hours. To qualify for help under the new scheme you must be an employee who is working at least 20% of your normal hours. The scheme was originally expected to start in December buit has now been postponed.
Your employer will continue to pay you for these hours you actually work. But of the remaining hours you aren't working, the government will pay 62% and your employer another 5%. The government contribution is capped at £1541.75 per month. Unfortunately you will not be paid for the other 33% of non-working hours unless your employer chooses to also meet these costs.
The new scheme will be open to employers across the United Kingdom, even if they have not previously used the furlough scheme. However, it is targeted at small and medium sized businesses. Larger businesses will only be able to use the scheme if they can show that their turnover has fallen through the period of the coronavirus outbreak.
The scheme will be open to those working irregular hours although how your 'normal' hours will be assessed has not yet been made clear.
The scheme is expected to last at least five months. Your employer can put you on and off the scheme but each period of short-term working must last at least 7 days.
How do I apply for a payment from the job support scheme?
Your employer has to apply to the government rather than you. They will be reimbursed monthly in arrears.
From December the UK government will also provide temporary support for businesses and employees that are legally required to close their premises due to the Coronavirus restrictions at local or national level.
The scheme covers all four nations of the UK.
Who qualifies for the scheme?
To be eligible, your place of employment must have been instructed to close as a result of restrictions set by one or more of the four governments in the UK.
You must be instructed to and stopped work for at least seven consecutive days.
What will I be entitled to?
Employees in the scheme will receive 2/3 of their normal pay up, to a maximum of £2,100 per month.
Your employer has to pay your National Insurance and pension contributions, but can choose whether or not to pay a top up of wages.
How do I apply?
It is your employer that applies if they agree to using the scheme.
Your employer must use the scheme to cover your wages and pay relevant payroll taxes. The whole of the grant must be used to meet employee costs.
What help is available for self-employed people whose business is adversely effected by the pandemic?
Self employed people who have lost profits as a result of the coronavirus outbreak may be able to apply to HMRC for a grant via the self-employment income support scheme. Depending on your circumstances you may also be able to claim means tested benefits.
The first grant under this scheme covered the three month period from March-May 2020 and covered 80% of your average monthly profits. A second grants also covered three months and met 70% of profits. However, applications for the first and second grants have now closed so it is too late to apply.
A third and fourth grant will now be made available by government. The third grant is a lump sum that will cover a three month period from November to January. The grant will meet 80% of average profits capped at a total of £7500. The fourth grant will cover February-April 2021. As yet the government have not confirmed what percentage of profits the fourth grant will meet nor whether there will be any changes to the qualifying rules.
You will be able to apply for the third grant, regardless of whether or not you chose to apply for the first grant. Because it is a grant rather than a loan, you will NOT have to pay it back.
You can apply for this third grant if your business is adveresly affected by the coronavirus on or after 1st November. The grant is aimed at people who have lost profits as a result of the Coronavirus outbreak. You can apply even if you still have some income from self-employment. You don't have to show that you have no work coming in. Applications will be accepted on-line from the 30th November.
Listen to our Family Finances Adviser Derek explain the government's scheme to help self-employed workers through the coronavirus outbreak in the UK.
You are eligible for this HMRC grant if all of the below apply to you:
- You have lost profits as a result of the coronavirus outbreak in the period between the 1 November and the date of your application.
- You are already in self-employment and have filed a tax return for year 2018/19. This means the scheme is not open to those who started self-employment more recently.
- You have traded during tax year 19/20 and are still trading (or would be were it not for the pandemic) and intend to continue trading in 2020/21.
- Your trading profit is no more than £50,000.
- The majority of your income is from self-employment.
Any income you receive from this scheme will be treated as earnings when calculating entitlement to means tested benefits and tax credits.
I started self-employed after April 2019. Does this mean I can't get help under this scheme?
Unfortunately, this scheme is only open to self-employed people who have a tax return for 18/19. If you weren't self-employed until after tax year 2018/19 you aren't eligible for the Self Employment Income Support Scheme.
However, if you live in Scotland you may instead be able to instead apply for a grant under a new scheme called the Newly Self-Employed Hardship Fund.
It would also be worth getting advice about other sources of finacial support such as the Coronavirus Small Business Grants scheme and the Coronavirus Discretionary Grants Fund.
You may also be able to access financial support in the form of loans available to small and medium businesses or other financial assistance. Most of the schemes are UK-wide, but in some of the nations additional support may be available.
For more information see:
You should also seek advice about whether you can claim any additional support via the benefits system.
If I am self-employed and claim Universal Credit, will I be treated as having an assumed minimum income from my business?
Normally some self-employed people who claim Universal Credit are treated as having an assumed income from self-employment. This is called the Minimum Income Floor (MIF) and is based on the equivalent national minimum wage that would be paid for the number of hours you work.
However the MIF has been temporarily removed for all self-employed people who are claiming Universal credit. This was originally planned to end in October but the government has now said that the MIF will not be put back in place until the end of April 2021.
My child's DLA award is due to run out soon. Will I need to make a new claim to get their benefit renewed?
The government announced that it was suspending all disability benefit reviews and reassessments for a period of at least 3 months, starting from 23 March 2020. This means that if your child's award was due to run out, it should have been temporarily extended with your child's renewal form being sent out at a later date.
At the current time it is not clear how long this policy of suspending reassessments will last. If your child's DLA or PIP award is coming to an end and you haven't received a renewal form or been told in writing that it will be temporarily extended, call the relevant DWP office to confirm if there is anything you need to do to ensure their award doesn't stop.
Child on DLA turning 16
If your child is on DLA and turns 16, they are usually invited to claim Personal Independence Payment (PIP) shortly after their 16th birthday. Initially during the Coronavirus outbreak the DWP had been extending DLA awards temporarily and asking young people to claim PIP at a later date. However this policy has now ended and young people on DLA should once more be invited to claim PIP shortly after their 16th birthday (18th birthday in Scotland). If your child is approaching 16 and you have not been contacted by the DWP in writing to explain what to expect, call the DLA Helpline.
As well as the specific measures mentioned above the government have announced a number of changes to the benefits rules to help during the Coronavirus outbreak. These include:
- Increasing the Universal Credit standard allowance and the basic element of Working Tax Credit by £20 per week. This increase will apply for a temporary period of 12 months.
- Increasing the local housing allowance rate used in capping the amount of help with rent private tenants get under Housing Benefit and Universal Credit. This will be increased to ensure that it covers at least 30% of rents in any particular area.
- Provided local authorities in England with a £500 million Council Tax Hardship Fund to use in reducing council tax bills and to fund emergency support such as local welfare or hardship schemes.
- Suspending the recovery of all benefit overpayments, tax credit debts and social fund loans from benefit awards.
- Allowing Child Benefit claims to be made for new-borns without a birth needing to be registered, while General Register Offices remain closed due to the outbreak.