Chapter 3 - State Benefits Flashcards
What is the difference between contribution art and non-contribution based policies
Contribution based policies work off things such as national insurance contributions and so will only have benefits at a certain level of contributions
Whereas non-contribution based benefits are means tested, and so I only paid for those with specific incomes or capital below a certain level
How much can a claimant claim under the bereavement support payment benefit with details
Claimant without dependent children-lump sum of £2500 monthly instalments of £100 for 18 months
Claimant with dependent children-lump sum of £3500 plus monthly instalments of £350 for 18 months
This is paid tax free and is not included in the assessment of benefit income for the purposes of the benefit cap
This is been in acting since April 2017
This seceded the bereavement allowance
Describe income related benefits
These are not normally available with anyone with capital over £16,000 and are reduced by £1 a week for every £250 of savings plus this limit but in excess of £6000. This means income related benefits means tested which takes into account, not only the own income and capital put the resources of the civil spouse partner if living together.
Describe income support
This is an old income related benefit, which was succeeded by universal credit what does remain in force for some legacy claimants
It is for people who are not in full-time study, have low income and no more than 16,000 in savings work less than 16 hours a week or his partner is working less than 24 hours a week and I’m not receiving either jobseekers allowance or employment and support allowance 
This benefit is not generally taxable, but could be if the claimant is on strike or involved in a trade dispute 
Describe jobseekers allowance
 Though an aspect of jobseekers allowance (JSA) was replaced by universal credit it is still a policy with claimants. Claimants must be able to show that they are fit for work, available for work, and actively seeking employment and have made a claimants commitment.
This is contribution based and not means tested. It is payable for a maximum of six months at a rate of £61.05 under the age of 25 and £77 per week for those over 25 once the six months are up if the claimant does not have a job, then they are that entitled to universal credit
Describe statutory sick pay
This is not means tested as it is for those who earn enough to pay class one NICs. And is paid when unable to work due to sickness for at least four or more days in a row. This is not means tested as it is payable by the employer, it is taxable as earned income and the employee must also pay class one NIC as if they were earnt
The rate of SSP is £99.35 per week, and to qualify the employee must gross earnings of £123 per week or more. The benefit is paid for up to 20 weeks after that claimant must claim employment and support allowance.
Describe employment and support allowance
Employment and support allowance is paid to people unable to work due to illness or disability with the stated. Aim of helping them return to work. There are two types of employment and support allowance.
The new style which is contribution based, and is not means tested, is dependent on the claims NICs history and is taxable
Income based ESA, which is not dependent on NICs and it means tested, and is not taxable
ESA is split into two phases assessment phase and main phase. For employed statutory sick pay continues to apply for the first 28 weeks whereas for self-employed it will be three days.
The assessment says lasts 13 weeks where claimants get up to £77 a week.
The claimants are put into two groups one which is the support group. This is where the claimant is unable to work and so will receive £117.60 per week from week 14 onwards. Then there is the work-related activity group where the claimants will receive at £77 per week 
Describe personal Independence payments 
This replaced disability allowance in 2012 eligible for working age, people 816 to state pension age. It is tax free and is not means tested or based on the claimants Nic history.
This is comprised of two components
Daily living which can pay at enhanced rate £92.40 per week and standard rate £61.85 per week
Mobility component with an enhanced rate of £64.50 per week and a standard rate of £24.45 per week
To claim a claimant must have difficulty with activities of daily living or mobility for at least three months and expected to continue for at least nine months or the autumn, Leo and not expected to live longer than six months
They live in components are preparing or eating food, washing and bathing, dressing and undressing, communication, managing medicine/treatments and making decisions about the money 
Describe disability living allowance
DLA replaced PIP in April 2013 for disabled people aged between 16 and state pension age. This is also a tax-free benefit.
This is also not means, tested, or based on claimants NIC history
This is made up of two components
Care component with a high rate of £92.40 per week, middle rate of £61.85 per week and low rates of £24.45 per week
Mobility component with two components at a higher rate of £64.50 per week and lower rate of £24.45 per week
It has similar criteria to the personal Independence payment
Describe attendance allowance
This is for people over the age of the state pension age who have been suffering from severe disability for a period of six months or longer
Has two levels one of a higher rate which gives £92.40 per week. This is worker’s news on a 24-hour basis.
And a lower rate of £61.85 per week if needed. Night by night or day by day, but not night and day.
This is not taxed and is paid on top of other benefits, as well as not being means, tested or based on claimants NIC history
Describe carers allowance
This is a taxable benefit for those of working age, who spend time caring for someone severely disabled who receives DLA, PIP or attendance allowance. The benefit is £69.70 per week. Keiran was not have net earnings of more than 132£132 per week.
Bernie has died, aged 80 and has been receiving the basic state pension. What benefits if any could his wife, Betty age 78 beentitled to
Betty can claim state pension based on Bernies N I, record, if this is better than her own
Eric is single and without children age 29, and is in recipt of universal credit. As part of this he receives housing benefit which is limited to the cost of renting a room…
In a shared house
Sonia has worked all her life, but recently lost her job. She has few savings and is about to receive her first payment of job six Lawrence whilst she looks for work, Sonia should be aware that I benefit is
Payable for up to 6 months if she has made sufficient national insurance contributions
Statutory sick pay could be payable to which individual who is off work sick
Joe, who works part time for employer and earned £75 per week
Joel who is self-employed announce £350 per week part time
Jake, who is self-employed plumber, earning £15,000 per year
Jazz, who is the employed painter, earning £20,000 per year
Jazz
Chris, age 26 has no children or disabilities.
If he wanted to claim working tax credit, he must work a minimum of how many hours
30 hours with payments made by HMRC
Hey, successful claim for support for mortgage interest, for a 30-year-old would grant
Interest payments on the first £200,000 of mortgage
Describe working tax credit
A payment to top up the earnings of working people on low incomes
For those responsible for a child, who themselves are 16 or over and work at least 16 hours per week
Those without children who are 25 or over and work at least 30 hours per week or those without children who are 16 or over work 16 hours per week and have disability
This is means tested, and is currently paid by the HMRC for employees and the self-employed
What is state pension age?
66
Describe tax credits
Two types of tax credits both are payable by HMRC It is means tested
Child tax credit has a child under 16 or in full-time education up to age 19 this is paid at a rate of £2940 for each child with an extra payment of £3545 for each disabled child and a further £1430 for severe disabilities however, this only relates to the first two children
Working tax credit for a top up to earnings of working people on low incomes, which is means tested
Describe support for mortgage interest
This is for all mortgages DWP will pay interest on up to £200 of mortgage borrowing at a standardised rate when people are unable to pay their mortgage. However, this is in the form of a loan which has interest payable to
Describe universal credit
An integrated benefits, which replaces the following benefits, income support, income, based JSA, income related ESA, housing, benefit, child, tax, credit, and working tax credit
It is means tested, tax-free and paid monthly into a bank or building society account that pays a standardised allowance of £334.91. A month 
What are the benefit cap levels?
Central London for a couple of single people with children. It is £442.31 a week equalling £23,000 a year and £296.35 a week for single people with no children which equals £15,410 a year
Elsewhere it is £384.62 per week which equals 20 grand per year for couples or single people with children and £257.69 a week or £13,400 a year for single people with no children
What are protected payments?
Protected payments are part of the new state pension and is in effect of the replacement of the legacy system for anyone who had built up entitlements greater than the amount of the full new pension under the legacy schemes will be entitled to a protected payment on top of the scheme, ensuring that nobody loses out
What do you need, to benefit from the full new state pension?
And how do NICs work?
A total of 35 years, NIC contributions must either be paid or deemed to be paid by virtue of NIC credits. To benefit from any pension, at least 10 years worth of contributions or deemed contributions will be required.
The benefit is taxable, not means, tested and unaffected by the receipt of other Social Security benefits. Providing a weekly level of new state pension at £185.15.
There are multiple classes of NICs,
class one which is for employees,
class two and four, which are for the self-employed where close to nicks build up the entitlement, while class for contributions contribute to the common fund.
Class three, which are voluntary contributions for individuals who want to build up entitlement but do not pay Either class 1 or class 2
You can also have an eye credits, which are granted to those who do not pay NICs because they have been in receipt of a range of qualifying benefits
What are SERPS and S2P
State earnings related pension scheme and its late replacement state second pension were top up state pension schemes in which employees liable to class one NICs made contributions and received taxable benefits from the S.p.a.
Describe state pension credit
There are two components guarantee credit which aims to provide a minimum level of income for those over a certain age, being the state pension age
Savings credit component, which is a legacy benefit
After what period does jobseekers allowance become means tested?
Six months
Who pays statutory sick pay?
This is paid by the employer
How many hours must someone work a week to qualify for working tax credit, assuming that they are aged over 25, have no children and do not have a disability
30 hours per week
Is the new state pension contributory
Yes
How long is statutory sick, pay payable?
28 weeks
What does supports for mortgage interest cover?
For all mortgages, the DWP will pay interest on a £200,000 of the mortgage borrowed at a standardised rate
How would the income from an income protection insurance policy affect someone’s personal Independence payments?
The payment will not be affected at all
What is the maximum permitted level of savings before which any income related Benefits are reduced
£6000
To what extent if I tall are the costs of life cover taken into account by the reduction in yield figures of a whole of life policy
They are excluded
If someone is struggling on a low income job which state benefit could potentially help
Universal credit
What payments of personal Independence payments based off?
They are not means tested or based on national insurance contributions
Is someone retiring who is date of birth is the first of the November 1965. Han, in how many years time can we expect to receive his new state pension?
10 years this is because of the rising state pension age which currently is 66 however is rising to 67
How far back can I claim for child tax credit be backdated if at all
A claim for child tax credit can be backdated, no more than one month
When a client is in receipt of state, pension credit and then receive support from mortgage interest loan payments, how would the payment be made?
Immediately, up to £100,000 of any mortgage covered with no limits on the length of claim
Karen is approaching her state pension age and has been told that she will receive a protective payment, what is this?
It is an additional element to the new state pension that is based on her previous S2P or SERPS entitlement
For what reason might you not qualify for the guaranteed elements of the state pension credit?
If you are an income of over £300 per week
