Chapter 3- State Benefits Flashcards
Which act introduced universal ?
Welfare reform act 2012
Who is eligible for the Bereavement Support Payment?
Anyone irrespective of age, who’s spouse has passed away?
How is the Bereavement Support Payment taxed?
It isn’t and is not included in the benefit cap.
How much does the Bereavement Support Payment pay out?
With children - £3500 then £350 a month for 18 months
Without children- £2500 then £100 a month for 18 months
What benefits did the Bereavement Support Payment replace from April 2017?
Bereavement Payment, Widowed parents allowance and Bereavement allowance
What was the age limit for the Bereavement Payment?
SPA
How much was the Bereavement Payment?
£2000 tax free (dependant on deceased’s NICs)
How much was the basic Widowed Parents Allowance?
£121.95 a week, taxable and dependent of NICs
How long was the Bereavement Allowance paid for?
52 weeks
Who was eligible for the Bereavement Allowance?
Between 45 and SPA with sufficient NICs and not entitled to widowed parents allowance
What is the usual limit to be eligible for income related benefits?
Capital over £16,000
Who is eligible for income support?
Between 16 and SPA Not in full time education Low income Work less than 16hrs a week Not receiving JSA or ESA
What are the conditions for contribution based JSA?
NIC dependent
Not means tested
Last max 6 months
What is taken into account for income based JSA?
Claimants and partners income and savings
Who is eligible for Statutory Sick Pay?
Anyone who pays class 1 NIC and is unable to work due to sickness for over 4 days in a row
Who pays Statutory Sick Pay?
The Employer
Is Statutory Sick Pay taxable?
Yes
How much is Statutory Sick Pay?
£95.85 a week
How long does Statutory Sick Pay last?
28 weeks
What’s the aim of ESA?
To help people return to work after sickness or disability
When does ESA cease?
At SPA
How long is the assessment phase of ESA?
13 weeks
What is the outcome with regards to ESA if terminally ill?
Fast tracked to the Support group + £113.55 a week
If able to do some work, following the assessment phase, which ESA group would they go into?
Work-related activity group
74.35pw
Work focused interviews from wk 8
What is ESA being replaced by?
Universal Credit
When was Personal Independence Payment introduced?
Welfare Reform Act 2012
What is PIP replacing?
Disability Living Allowance
What are the features of PIP?
- Non means tested,
- Non NIC dependent
- Tax free
- Consists of a daily living component and mobility component
Who is eligible for PIP?
Age 16 - SPA
Difficulties with activities of daily living or mobility which have lasted at least 3 months and are expected to persist for at least 9 months,
Who is eligible for Attendance Allowance?
SPA+ suffering from severe disability for over 6 months
What are the features of Disability Living Allowance?
Tax free, not means or NIC dependent
Who is eligible for Carers Allowance?
Cares for DLA, PIP or AA recipient.
Working Age earning less than £128 a week after certain deductions.
Who is eligible for Child Benefit?
Anyone with children up to 16/20 in full time education
up to earning £50,000 after which amount is reduced 1% for every 100 over the limit
Is Child Tax Credit means tested?
Yes
What is the max amount of Child Tax Credit you can receive?
£545 a year
Who is eligible for Child Tax Credit?
Earning below £16,385 after which it is reduced by 41p for every £1 over, based on joint income
What tactic can be used to reduce income to receive CTC?
Pay into a personal pension plan
Who is eligible for Working Tax Credit?
Over 16 and working at least 16 hours with children or Over 25, working 30+ hours without kids or Over 16, over 16 hrs and disabled
What is the aim of Working Tax Credit?
To top up earnings for those on low incomes
Who pays and administers Tax Credits?
HMRC and DWP respectively.
What is the aim of Housing Benefit?
To help with costs of rent.
Who is entitled to Housing Benefit?
Anyone eligible for job seekers allowance, income based ESA or pension guarantee credit will be ‘passported’.
How long before Support for Mortgage Interest is paid and in what form?
After 39 weeks
Straight away if on Pension Credit
As a loan until property is sold
What benefits is Universal Credit replacing?
- Income support,
- Income based JSA,
- Income related ESA,
- Housing benefit,
- CTC
- WTC
How is Universal Credit paid?
Monthly, tax free, into a bank account by DWP
How is the Benefit Cap applied?
As a deduction in housing benefit
How long must you have paid NICs to receive the full state pension?
35 years
What is the minimum number of NICs needed to claim any state pension?
10 years
What is the future for SPA?
Nov 2018- 65 for both
2020- 66
2026-2028- 67
2037-39 - 68
What were the 3 components of the legacy State Pension?
Basic state pension,
SERPS (State Earnings Related Pension Scheme)
S2P (State Second Pension)
Is JSA taxable?
Yes
Is Income Support Taxable?
No, unless on strike.
In claiming ESA how long will it take to enter the assessment phase?
28 weeks for employed
3 days for Self-employed
What is State Pension Credit?
Available to those 65+ before 6 Apr 2016
Guarantee Credit
Savings Credit
