3. State protection provision Flashcards

1
Q

What is the assessment of income for state benefits? (4)

A

Total income less:
- rent (less housing benefit) or mortgage interest
- 80% of council tax
- income tax & NI
- 50% of occupational/personal pensions conts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is included in the assessment of savings for state benefits?

A
  • bank accounts
  • NS&I products
  • gilts, shares, unit trusts, investment trusts

Personal possessions excluded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the savings threshold for state benefits?

A

<£6k full entitlement
£6k - £16k tapered down
>£16k no entitlement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the criteria to claim JSA? (3)
What is the tax treatment of benefits? (2)

A

Aged 18 - SPA
Unemployed and actively seeking work OR
Working <16hrs per week on average

JSA income is taxable
Claimants receive NIC credits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Describe the following types of JSA:
New Style (4)
Contribution-based
Income-based

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the criteria for claiming New Style JSA? (6)

A
  • 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
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Statutory Maternity:
- Criteria (2)
- Payment period
- Payment amount (2)
- Tax treatment

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Statutory Paternity:
- Criteria (4)
- Payment period

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Maternity Allowance:
- Criteria (3)
- Payment period
- Payment amount (2)
- Tax treatment

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Statutory Adoption Pay:
- Criteria (2)
- Payment period
- Payment amount (2)
- Tax treatment

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Shared Parental Leave feature & criteria (3)

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Statutory Shared Parental Pay feature, criteria (2), payment amount

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Child Benefit key features (2) & tax treatment (3)

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Working Tax Credit feature & basic adult element criteria (3+4)

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Working Tax Credit additional elements (5)

A
  • single parent
  • second adult, if claiming jointly with partner
  • age >25 working >30hrs /wk
  • (severe) disability
  • childcare; paid to carer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Child Tax Credit criteria (2) & elements (4)
Rules for new claimants (2)

A

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

17
Q

Statutory Sick Pay
Criteria (3)
Payment period (2)
Tax treatment

A

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

18
Q

Incapacity Benefit key features (3)

A

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

19
Q

Employment & Support Allowance
Criteria (5)
Phases (2+2)

A

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

20
Q

Attendance Allowance key features (3)

A

Reached SPA and need personal care
Not means tested or dependent on NICs
Higher rate if care needed day + night

21
Q

Personal Independence Payment key features (2+2)

A

Replaced Disability Living Allowance

2 components:
- daily living; 10 activities tested
- mobility; 2 activities tested

22
Q

Universal Credit key features (4) & additional elements (4)

A

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

23
Q

Bereavement Support Payment key features (4)

A

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

24
Q

Support for Mortgage Interest
Key features (3)
Eligible benefits (5), waiting periods and max periods

A

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

25
Q

How are total benefits capped?

A

Average UK wage, regionally adjusted