State Benefits Flashcards
Where are good places to look up about state benefits?
Gov.uk
Ageuk.org.uk
Gov.uk/benefit-cap
Who are most benefits paid by?
The department for work and pensions.
What is the previous state pension and top-up pension?
SERPS
S2P
What date is the cutoff for previous pensions?
6 April 2016
What classes of NIC must have been paid or credited as paid, and for how long to receive the full state pension?
Tier 1 employed
Tier 2 self-employed
For 35 years
What circumstances might NIC be credited?
When receiving certain benefits or caring for a young child/disabled person.
How is the state pension paid?
Not means tested.
Paid without tax but is taxable
Uses tax allowances, meaning other incomes pay tax.
When was the state pension equalised between men and to what age?
November 2018
65
What happened to the state pension age in 2020?
It rose to 66.
What has the government committed to regarding the state pension age?
To review it every 5 years. The next one will likely raise the pension age to 67
What 5 points are universal credit payments based on?
Single/couples
Above/bellow 25
Additional elements:
Children/carers.
Housing
Sick/unable to work
How is universal credit claimed?
Online
What 6 benefits does universal credit replace?
Income support
Income-based jobseekers allowance
Income related employment and support allowance
Housing benefit
Child tax credit
Working tax credit
What has been applied alongside universal credit?
A benefits cap.
What 3 benefits are exempt the cap on benefits?
Personal independence payments
Disability living allowance
Bereavement payments
What is the exemption on the benefit cap regarding time worked?
16 hours a week for 50 of the last 52 weeks will be exempt the first 39 weeks of making a claim.
Who gets statutory sick pay (SSP, and for how long?
Employees who don’t receive pay from their employer.
Paid for up to 28 weeks
What forms of ESA are there?
Contribution based
Income based
What are the eligibility and tax considerations for contribution ESA?
Non means tested and taxable
Describe the eligibility and tax implications for income ESA.
Means tested for those with insufficient NIC or those whose contribution based ESA has come to an end.
Tax-free.
When claiming ESA, how long is the assessment phase?
And what is received during this time?
13-weeks
One of 2 rates depending on above or below 25 years.
What benefits are paid for ability and care?
Personal independence payments (PIP)
Disabilty living allowance (DLA) (forerunner to PIP)
Attendance allowance (AA)
Describe PIP/DLA
Tax free
Needs tested
Paid to those between 16-64
DLA being transferred to PIP
How is PIP daily living component paid?
2 rates dependent on the level of care needed.
Measured by a number of simple tasks
How is PIP mobility component paid?
Paid at 2 rates depending on the level of need.
Often exchanged for mobility vehicle.
Describe AA
Needs tested and not taxed.
Two rates based on whether help is required at day/night or both.
Who is carers allowance avialble to?
Paid to low income earners who are looking after someone who qualifies for PIP/AA or DLA.
Who is carers allowance not avilable to?
Those earning over £139 per week after tax.
In full-time education
In recept of full state pension, though they might receive a top-up if they receive less than £139
What 3 payments did bereavement support payment (BSP) replace, and when?
Bereavement allowance
Bereavement payment,
Widowed parents allowance
April 2017.
How does BSP get paid?
Children £3500 then £300 for 18 months
£2500 then £100 for 18 months
Tax free and benefit cap exemption
What might some people still be on for bereavement payments?
Widowed Parents Allowance
How does widowed parents’ allowance work?
Contribution tested on deceased, or they died due to their work.
Claimant has or is carrying their child
Taxable
Ceases when entering new relationship.
What rule is in place for under 35s on housing benefit?
Restricted to a room in a shared house unless they have children.
What benefits can housing benefit be passported through?
ESA
Jobseekers allowance
What happened to SMI as a benefit?
Became a loan on 6 April 2018
When is SMI repayed?
With interest when house is sold, transfered or on death.
What option were people given if they were on the old system of SMI?
Move to the new system or have payments cease.
What is the waiting period for SMI?
39 weeks
Describe child care payments
30 free hours
38 weeks of the year
From 9 months to school age
Who pays working tax credit?
Paid by HMRC but will be DWP under Universal Credit.
Who pays child tax credit
The HMRC, but will be the DWP under Universal Credit.
What are the 2 elements of child tax credit?
Family element - available to those who had a child before 6 April 2017.
Child element payable per child for first 2 children, unless exceptions apply.
Additional payments for disabled.
How is job seekers’ allowance paid?
Taxable
Contribution based- non means tested, paid for 52 weeks
Income related- means tested
What amount is taxable on redundancy payments?
Above £30,000
What is savings credit?
A reward benefit for those who reached state pension age prior to 6th April 2016.
Based on wealth meaning people with more get less.
What is guarantee credit?
A guarantee that each person will have at least a subsitence level of income in retirement.
Means tested
Who gets winter fuel payment?
Those born before 26th September 1955
How is universal credit paid?
Directly into a bank account.
What must claimants of universal credit do?
Sign an agreement agreeing to certain actions for their benefit.
How is universal credit tested?
How is it taxed?
Means tested but not taxed.
Who is eligible for the benefits cap?
Anyone between 16 and state pension age
Except those in the exemption period or
those claiming guardians allowance, carers allowance or carers element of universal credit.
What are the groups for ESA?
Work related activity group (get back to work)
Support group. (Unlikely to go back to work)
Higher amounts are available for the support group and even higher for severly disabled.
How is housing benefit paid and decided for private renting?
Maximum rate set by local house prices and paid to tenant.
How is housing benefit paid to local authorities or housing associations?
Payed to landlord for local authorities/housing association.
Who is housing benefit not available? Since when?
18 to 21 year olds unless vulnerable or worked for 6 months.
April 2017
What can be done to pay of SMI early?
Partial payments of at least £100 can be made anytime.
What rules are there for an SMI loan?
No negative equity guarantee. (No more than the value of the house)
Max of up to £200,000 interest at government rate 2.25%
If reciving pension credit, what does this mean for SMI?
No 39-week waiting period
Only gets up to £100,000 of mortgage interest.
What 3 categories are paid working tax credit?
Over 16, with a child, working 16 hours pw.
Over 25, working 30 hours pw
Over 16 with a disability
What can determine how much working tax credit is paid?
Amount earned and other conditions such as child care and disabilty.
Who can receive child tax credit?
Someone that has a child living with them under 16 or 19 in education.
How is child tax credit tested?
Means tested 41p in £1
