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