GUIDANCE on assessing financial hardship

The following guidance has been produced by UNISON Welfare – There for You and is intended to help branches in determining applications for hardship payments arising out of industrial action.

Criteria and administration

General points to note

  1. Applicants must be full members.
  1. Applications should ideally be made within two months of industrial action having taken place.
  1. Hardship payments should not exceed ‘actual’ loss (see evidencing hardship below) since the effect of taking industrial action may result in a tax refund etc.
  1. Branches should be satisfied that the applicant has demonstrated exceptional financial hardship as a direct consequence of taking industrial action.
  1. Hardship payments cannot be made ahead of any planned industrial action or, before any salary deduction relating to industrial action has been made.

Exceptional financial hardship can be described as circumstances that:

  1. Severely affects the applicant’s ability to provide life essentials such as food, heat, travel or medication for her/himself and/or their family.
  1. In cases of debt, places an unacceptable level of stress on the applicant e.g. where a bill/payment goes unpaid in the pay period of industrial action, and legal enforcement would result in the applicant losing their home or ownership of personal property e.g. a suspended judgement for eviction or warrant for possession of goods is in place. Also in cases where the individual is subject to other legally binding agreements i.e. bankruptcy order or an IVA (Individual Voluntary Agreement). In these circumstances, applicants should always be referred in the first instance to UNISON Welfare – There for You for advice or UNISON Debtline.

Exclusions:

  1. Members should always be referred to UNISON Welfare – There for You – for financial support and advice where it is evident:
  • That industrial action has brought pre-existing financial difficulties to the surface rather than being the primary cause of hardship.
  • Other unforeseen circumstances occurred during the period of industrial action putting pressure on the household finances e.g. other loss of income or increase in expenditure, bereavement etc.

Evidencing hardship:

  1. Judgement as to whether a member is experiencing financial hardship rather than simply seeking a payment to minimise any loss of income lies with the Branch Industrial Action Committee (IAC).
  1. Branch IAC’s may consider the signed application formprovides sufficient information. However, where tangible evidence of hardship is required and, so that the best use of limited funds is made, any of the following additional information may be requested:
  • Two most recent pay-slips to include that showing the deduction arising from taking industrial action in order to determine the ‘actual’ loss.
  • Proof of partner’s income – this may be evidenced by copy of a bank statement.
  • Two most recent bank statements – to determine that there is no scope to recover from short-term hardship i.e. there is no disposable income or bank overdraft limit reached
  • Proof there is a real risk the member may lose their home or other personal property.

Important: State benefits awarded to those who need help with personal care and/or getting around because of their illness or disability should be disregarded for the purposes of any assessment of hardship.

Administration of hardship payments:

  1. Branches should establish an Industrial Action Committee (IAC) that includes the branch treasurer and branch welfare officer.
  1. The Branch IAC is responsible for deciding and administering payments agreed in relation to exceptional hardship as a direct result of taking industrial action.
  1. The IAC should ensure that applications are considered within an agreed time-frame so that a member in hardship is not overly distressed.
  1. Discussions about a member’s circumstances must remain confidential at all times and restricted to those officers that make up the IAC.
  1. All paper records must be kept locked and secure.
  1. All personal documentation should be returned to the member as soon as all auditing processes are completed. Photocopied documentation should be securely shredded.

Financial assistance & Support contact:

or call 020 7121 5620.

Debt advice contact:

UNISON Debtline 0800 3893302

SAMPLE UNISON HARDSHIP CLAIM FORM

CONFIDENTIAL

IMPORTANT: For guidelines on how to complete this form please see attached. [Branches to attach any specific instructions e.g. request for payslips, details of where/who to return forms to etc].

PERSONAL DETAILS
Forename : Surname:
Address (including postcode):
Membership No: / Branch: / Employer:
INCOME DETAILS
What is your gross annual income?
What is your usual net take-home pay?
What was the actual net loss after the strike pay deduction?
Are you paid monthly [ ], fortnightly [ ], weekly [ ], other [ ] ......
If you have a partner, is s/he in work? YES [ ] NO [ ] / £
Please indicate if any of the following ‘additional’ deductions are made from your pay:
[ ] Car loan
[ ] Child maintenance
[ ] Credit union loan/savings
[ ] Rent
[ ] Season ticket loan / [ ] Council tax
[ ] Court order e.g. attachment of earnings
[ ] Salary overpayment
[ ] Other (give details) ......
Please use this space to describe why you are applying for a hardship payment(continue on a separate sheet if necessary)
Bank details – only complete this section if you require payment direct into your bank account. This should be the bank account you normally have your salary paid into. (Please note not all branches will have the facility to make payment by BACs) / Bank name:
Account number:
Sort code:
Member’s signature:
For branch use only
Amount to be paid £
Payment reference:
Authorised by Branch IAC Committee meeting held on: / Signed:
Position:
Declaration: I confirm that the information provided is a true and accurate reflection of my situation. I understand that I may be required to provide supporting information and that any award will be at the discretion of the branch and will not exceed the ‘actual’ loss arising from industrial action.
Signed: Date: