3. State protection provision Flashcards
What is the assessment of income for state benefits? (4)
Total income less:
- rent (less housing benefit) or mortgage interest
- 80% of council tax
- income tax & NI
- 50% of occupational/personal pensions conts
What is included in the assessment of savings for state benefits?
- bank accounts
- NS&I products
- gilts, shares, unit trusts, investment trusts
Personal possessions excluded
What is the savings threshold for state benefits?
<£6k full entitlement
£6k - £16k tapered down
>£16k no entitlement
What are the criteria to claim JSA? (3)
What is the tax treatment of benefits? (2)
Aged 18 - SPA
Unemployed and actively seeking work OR
Working <16hrs per week on average
JSA income is taxable
Claimants receive NIC credits
Describe the following types of JSA:
New Style (4)
Contribution-based
Income-based
New Style:
- dependent on having paid sufficient Class 1 NICs
- fixed rate regardless of savings or partner’s earnings
- no additional payments for dependents
- payable for up to 182 days
Contribution-based:
Same as New Style but also need to have been entitled to the severe disability premium
Income-based:
Replaced by Universal Credit
What are the criteria for claiming New Style JSA? (6)
- Previously worked as employee
- Paid Class 1 NICs in last 2-3 years
- Capable, seeking & available for 40hrs /wk work
- Out of work or working <16hrs /wk
- Not in FT education
- Signed Jobseeker’s Agreement
Statutory Maternity:
- Criteria (2)
- Payment period
- Payment amount (2)
- Tax treatment
Criteria:
- worked for employer for 26 weeks up to 15th week before baby is due
- average earnings above LEL
Payable for 39 weeks, starting up to 11 weeks before due date
Paid 90% average weekly earnings for first 6 weeks, then lower standard rate thereafter
Taxable & subject to NI
Statutory Paternity:
- Criteria (4)
- Payment period
Criteria:
- biological father, adopter or spouse of mother/adopter
- employed for 26 weeks up to 15th week before due date or when matched with child
- continue to work for employer until birth or adoption
- earnings above LEL
Payable for 2 weeks
Maternity Allowance:
- Criteria (3)
- Payment period
- Payment amount (2)
- Tax treatment
Criteria:
- employed or self-employed for 26 weeks out of the 66 weeks before due date
- meet minimum earnings threshold
- not entitled to SMP
Paid for 39 weeks directly from DWP
Paid 90% earnings if between min and LEL
If earnings > LEL then standard rate
Tax-free
Statutory Adoption Pay:
- Criteria (2)
- Payment period
- Payment amount (2)
- Tax treatment
Criteria:
- been notified of matching with child
- employed for 26 weeks before notification
Paid for 39 weeks
Paid 90% average weekly earnings for first 6 weeks, then lower standard rate thereafter
Taxable & subject to NI
Shared Parental Leave feature & criteria (3)
Enables 50 weeks to be shared, 37 of which paid (39 minus 2 weeks paternity)
One parent employed >26 weeks by 15th week before due date
Other parent worked for 26 weeks in 66 weeks preceding due date/notification of matching
- earned >£390 in total for 13 of those weeks
Statutory Shared Parental Pay feature, criteria (2), payment amount
Enables 37 weeks to be shared
Criteria:
- employee eligible for SMP or SAP OR
- eligible for SPP and partner eligible for SMP, MA or SAP
Paid at lower of statutory amount and 90% earnings
Child Benefit key features (2) & tax treatment (3)
Payable for children from birth to 16yo
Higher rate for firstborn, lower for each subsequent
Tax treatment based on adjusted net income of any person in household:
<£50k; tax free
£50k - £60k; income tax charge at 1% for every £100 earned above £50k
>£60k; benefit paid but 100% tax charge
Working Tax Credit feature & basic adult element criteria (3+4)
Payment to top up low pay
Criteria:
- paid
- expect to work for 4+ weeks
- aged 16+
ANY OF:
- parent/guardian or disabled working >16hrs /wk
- parent/guardian and claimant or partner works >16 hrs /wk and >24hrs jointly
- aged 25-59 working >30hrs /wk
- aged 60+ working >16hrs /wk
Working Tax Credit additional elements (5)
- single parent
- second adult, if claiming jointly with partner
- age >25 working >30hrs /wk
- (severe) disability
- childcare; paid to carer
Child Tax Credit criteria (2) & elements (4)
Rules for new claimants (2)
Criteria:
Children living with claimant up to 31 Aug following 16th birthday or <20yo in FT education
Claiming WTC
Elements:
Family; basic amount per household
Child; additional amount per child
Baby; higher rate for <1yo
Disabled child
New claimants; no family element & child element capped at 2
Statutory Sick Pay
Criteria (3)
Payment period (2)
Tax treatment
Criteria:
- employee off work for 4+ days
- earning >£123/ wk pre-tax
- told employer of sickness within internal timeframe or 7 days
Paid for 28 days per spell excl first 3 “waiting days”
- spells <8 weeks apart are counted as one spell
Subject to tax & NI
Incapacity Benefit key features (3)
Closed to new claimants - moved to JSA or ESA
Claimed for those ineligible for SSP e.g self employed
Need to have paid sufficient Class 1/3 NICs
Employment & Support Allowance
Criteria (5)
Phases (2+2)
Criteria:
- aged 16-SPA
- worked as employee or self-employed, but no longer
- paid sufficient NICs
- not claiming JSA
- not have previously had SSP which has now stopped
Assessment phase; 13 weeks - basic rate
Main phase; from week 14 placed in either group:
- work-related activity; take part in work focused interviews etc. - receive additional component for 1yr
- support; illness/disability preventing work - receive additional component indefinitely
Attendance Allowance key features (3)
Reached SPA and need personal care
Not means tested or dependent on NICs
Higher rate if care needed day + night
Personal Independence Payment key features (2+2)
Replaced Disability Living Allowance
2 components:
- daily living; 10 activities tested
- mobility; 2 activities tested
Universal Credit key features (4) & additional elements (4)
Claimed per household
Means-tested on all household members
Phased from 2013, still ongoing
Single basic allowance paid monthly
Additional elements for:
- carers
- (disabled) children
- housing/childcare costs
- limited capability for work
Bereavement Support Payment key features (4)
Lump sum + income tax-free for up to 18 months
Higher amount if have children <20 in FT education
Claim within 3 months of spouse’s death for full payment, tapered down if claimed up to 21 months
Deceased had to have paid sufficient NICs
Support for Mortgage Interest
Key features (3)
Eligible benefits (5), waiting periods and max periods
Loan to cover interest on up to £200k mortgage
Paid directly to lender
Calculated at standard interest rate (not actual product rate)
Payable if in receipt of / waiting period / max period:
Income support / 39wks / no max
Income-based JSA / 39wks / 104 wk max
Income-related ESA / 39wks / no max
Universal Credit / 3mths / no max
Pension Credit / none / no max
