ST C 7

Question 1

1. Identify three means-tested and two non-means-tested benefits.

Answer 1

Means-tested:

• Pension Credit;
• Employment and Support Allowance; and
• Carer’s Allowance.

Non-means tested:

• Attendance Allowance;
• Personal Independence Payment; and
• Disability Living Allowance.

Question 2

2. Brian has been in hospital for 50 weeks now and his stay is likely to last for another 10 weeks. What is the position regarding the payment of his new State Pension?

Answer 2

Brian should continue to receive his new State Pension in full while he is in hospital.

Question 3

3. Describe who will benefit from ESA and how the benefits paid under it are made.

Answer 3

ESA is primarily designed to help people with disability and illness to get back to work and provide a minimum level of income.

Key elements:

• It consists of two elements:

a contribution-based element whe!re adequate national insurance contributions have been paid, or
income-related element if there is iinadequate national insurance contributions, income or savings (household income of less than £16,000).
It is potentially payable up to the respective State Pension age.

Question 4

4. Is Carer’s Allowance:
   a. dependent on NI contributions;
   b. taxable?

Answer 4

a. It is not dependent on NI contributions.

b. Benefits are taxable.