State Benefits Flashcards
Which benefits did Universal Credit replace from 2013?
- Income Support- Income-based Jobseeker’s Allowance- Income-related Employment and Support Allowance- Working Tax Credit and Child Tax Credit- Housing Benefit
Which benefits remain outside of Universal Credit?
Carers Allowance- Contribution-based Jobseeker’s Allowance and Contribution-based Employment and Support Allowance- Disability Living Allowance/Personal Independence Payment- Child Benefit- Statutory Sick Pay- Statutory Maternity Pay- Attendance Allowance
Outline features of Working Tax Credit.
- Designed to top up earnings of employed or self employed on low incomes.Extra for:- Working households in which someone has a disability- Costs of qualifying childcare.
Outline features of Support for Mortgage Interest Loan
- Those in receipt of Income Support, Jobseeker’s Allowance, Universal Credit or Pension Credit can apply.- SMI will pay interest on mortgage of up to £200,000 (£100,000 if made with pension credit).- SMi loan is subject on interest.
Outline features of Statutory Maternity Pay.
Benefit paid by employer to women who become pregnant provided that:- average weekly earnings are above a certain threshold- working for their employer continuously for 26 week prior to their ‘qualifying week’ which is 15th week before their baby is due.- SMP payable for 39 weks. Earliest is 11 weeks before the baby is due, latest when baby is born.
Outline features of Maternity Allowance
For people who can’t claim SMP.- Paid by department for Work and Pensions.- Not available to all. Certain criteria.- Paid at a lower rate than SMP.- No tax or NICs on amount paid.- Payable for 39 weeks. - Earliest it can begin is 11 weeks before baby is due and latest is when baby is born.
Outline features of Child Benefit
- Tax free benefit available to parents.- Does not depend on having paid NICs nor is it affected by receipt of other benefits.- Available for each child under 16, continuing up to 19 if child is in full time education or approved training programme.- Higher rate for eldest and lower rate for the rest.- Child benefit is means tested. Either individual has over £50,000 tax charge applied at 1% for every £100 over £50,000. (ie £60,000 would be 100%).
Outline features of Statutory Sick Pay.
Paid by employers to employees who are off sick for four days or longer provided their average weekly earnings are above the level at which NICs are payable.- Paid for max 28 weeks.- Subject to tax and NI deductions
Outline features of Employment and Support Allowance.
For people who are ill or disabled.- Contribution based - Eligible for Universal Credit, depends on NICs. -Not means tested and taxable.- Income based no NICs, means tested, not taxable.- Work capability assessment carried out.- Income based ESA in process of being replaced by Universal Credit but people can still claim contribution based ESA if they have enough NI contributions.
Outline Attendance Allowance.
- Benefit for people over 65 who need help with personal care due to sickness or disability.- Not means tested and does not depend on having paid NICs.- Two rates: people who need help during day or day and night.
Outline Disability Living Allowance and Personal Independence Payment.
- DLA is a tax- free benefit for people help with personal care.- Being replaced by PIP for people aged 16-64.Two components:- Care component for daily tasts- Mobility component: difficulty in walking etc.
Outline Carer’s Allowance.
- For people caring for a sick person.- Does not depend on having paid NICs. Taxable.- Affects other benefits of claimant as well as the other person.
Outline Basic State Pension
- Paid the employed and self employed people who have made sufficient NI contributions. At least 30 years.- Those not enough NICs may receive Category B based on spouse or civil partner.
What is the Triple Lock Guarantee?
Both basic state pension and single-tier state pension increase by the minimum of:- Earnings (measured by Average Weekly Earnings Index)- Prices (CPI)- 2.5%
