3: State Benefits Pt. 2 Flashcards
What benefit did PIP replace for eligible working-age individuals?
Disability Living Allowance
What are the two main components of PIP?
The daily living component and the mobility component.
What does the PIP assessment focus on?
An individual’s ability to carry out essential daily activities
Is Personal Independence Payment and Disability Living Allowance means-tested?
No
Is Personal Independence Payment and Disability Living Allowance based on NIC history?
No
What are two mobility-related criteria for receiving the mobility component of PIP?
Difficulty leaving the house and moving around
At what age can someone start receiving Personal Independence Payment, and when does it end?
From age 16 to State Pension age
How long must a claimant’s difficulty with daily living or mobility last to qualify for Personal Independence Payment?
At least three months, with an expectation to continue for at least nine months.
Under what circumstance can a claimant qualify for Personal Independence Payment more quickly?
If they are terminally ill and expected to live for fewer than six months.
A person may be eligible for the daily living component of Personal Independence Payment if they need help with (name up to 6 things)
- preparing or eating food;
- washing and bathing;
- dressing and undressing;
- communicating;
- managing their medicines or treatments; and
- making decisions about money.
Why are some people still claiming Disability Living Allowance?
Because they might be under 16. Personal Independence Payment only pays for 16 years old and up until SPA.
Under what conditions is the care component of Disability Living Allowance suspended?
If the claimant is admitted to a State-funded hospital or care home for more than four weeks (mobility element will not be suspended)
How long does a person need to satisfy the eligibility criteria before receiving Disability Living Allowance?
For at least three months and likely for a further six months.
The care component and the mobility component are components of which disability related benefit?
Disability Living Allowance
Disability Living Allowance is tax-free, true or false?
True
Is Attendance Allowance taxed?
No
Is Attendance Allowance means-tested?
No
Attendance Allowance is payable to people aged over SPA who have been suffering from severe disability for a period of how long?
6 months
Attendance Allowance is not available while a person is in an NHS hospital or a local authority-funded home. True or false?
True
What are the income and education restrictions for Carer’s Allowance?
The carer must not have net earnings over £151 per week or be in full-time education.
What is Carer’s Allowance, and who is eligible for it?
A taxable benefit for working-age individuals who care for someone severely disabled receiving DLA, PIP, or Attendance Allowance.
Parents of children of what age can claim Child Benefit?
A child under 16 or under 20 in full-time education.
Child Benefit is non-contributory, not means-tested, and tax-free. True or false?
True
Child benefit can be backdated but to which period in the past?
3 months maximum from when they would have first become eligible
What is the High Income Child Benefit Charge?
A tax charge that applies if at least one parent or partner has an income over £60,000.
How is the High Income Child Benefit Charge calculated?
1% of Child Benefit is charged for every £200 of income above £60,000.
Who is affected by the High Income Child Benefit Charge in a household with two high earners?
The person with the higher income.
Calculate the High Income Child Benefit Charge a parent who earns £65,000 per year.
- £65,000 - £60,000 = £5,000 over
- £5,000 / £200 = 25 segments
- (£2,212.60 x 1%) x 25 = £553.25
Tax Credits and Universal Credit can be claimed at the same time. True or false?
False
Who is eligible to claim the family element of Child Tax Credits?
Parents with children living with them:
Aged under 16, or
Between 16 and 19 and in full-time education…
provided their first child was born prior to 6 April 2017.
How many children can you claim Child Tax Credits for?
The first two, unless an exemption applies.
How are Child Tax Credits claimed and how far can they be backdated?
Child Tax Credits must currently be claimed from HMRC, and claims cannot be backdated by more than one month.
How are Tax Credits tapered based on income?
The tax credit is normally reduced by 41p for every £1 of income (joint if applicable) over £19,995.
Which 4 factors affect the amount of WTC received?
Hours worked, whether the claimant has a child, marital status, and total income.
Does WTC apply only to parents with children?
No
Who pays Working Tax Credits for employees and the self-employed?
HMRC
How many hours must someone work a week to qualify for Working Tax Credits, assuming they are aged over 25, have no children and do not have a disability?
30 hours
