Chp 3 State Benefits Flashcards
What is contributory benefit?
Only paid to those who have made certain NICs
What is non-contributory benefits & means tested?
Paid only to those with incomes or capital below a certain level - now called income based benefits
What did the Welfare Reform Act 2012 introduce?
Benefit cap & the roll out of universal credit - full transition completed by 2024 for all previous claimants
Bereavement Support Payment post April 2017
Lump sum & 18 monthly instalments - more money when dependent children are involved
Bereavement Allowance Pre April 2017
The Bereavement Payment (lump sum tax free), Widowed Parents Allowance (taxable weekly - child benefit), Bereavement allowance (taxable 52 weeks)
Income related benefits are all…
Means tested - not over £16k income reduced £1 per every £250 savings
Income Support definitions
Age 16 - SPA with low income
working less then 16 hrs
Not receiving job seeker or ESA
Not taxable
Jobseekers Allowance definitions
16 - SPA not student
Fit for work 7 actively seeking
CB - 6 months
Statutory Sick Pay Def
NIC based 4+ days in a row Not means tested Paid by employer Taxable & NICs
Employment & Support Allowance (ESA)
Illness or disability Help to return to work CB - taxable non means tested IB - non taxable, means tested - UC replace ESA after 28 weeks SSP employed ESA 3 days no SSP Assessment & main phase Support group & work-related activity group
Personal Independence Payment
Replaced Disability Living Allowance
Tax Free not NIC or means tested
Everyday life activities assessment
Daily living component & mobility
Attendance Allowance
Over SPA suffering disability over 6 months
Discontinued after 4 weeks for all local authority care homes
Carer’s allowance
Taxable
working age who care for someone disabled
Child Benefit
Child under age 16 or under 20 in education
Tax free not means or NIC tested
High Income Child Benefit Charge
One parent adjusted net income over £50,000
1% for every £100
Child Tax Credit
Children under 16 or between 16 - 19 in education
Extra for disabled children
After April 17 only first 2 children
Working Tax Credit
Top up earnings
Hours worked, singled or couples, children or not
More for disabled children
HMRC pay
Housing Benefit
Means tested Help with rent Age, relationship & dependants Location - cheapest 30% in area Level of rent - not utility bills
Support for Mortgage Interest (SMI)
Ability to apply for a loan
Pay interest up to £200,000
Universal Credit
Replacing - Income support, income based JSA & ESA, Housing benefit, Child tax credit, Working tax credit
Means tested, tax free, paid monthly
Benefit Cap
16 - 64
Max benefit entitlement per household
State Pension
Full = 35 NIC yrs
Protected payments
Pension Credit
Age, income & savings
Gurantee credit & savings credit
