State Benefits Flashcards
What are contribution-tested benefits, and what is an example?
Contribution-tested benefits are paid if the claimant has made sufficient National Insurance Contributions. The State Pension is a primary example of this category.
What are needs-tested benefits, and what are some examples?
Needs-tested benefits are paid if the claimant meets certain disability or illness criteria. Examples include Personal Independence Payments (PIP), Disability Living Allowance (DLA), and Attendance Allowance.
What are means-tested benefits, and what are some examples?
Means-tested benefits are based on the individual’s personal assets and income. Examples include Pension Credit, Income Support, and Universal Credit.
What are the components of Pension Credit?
Pension Credit has two components: Guarantee Credit, ensuring a minimum income in retirement, and Savings Credit, rewarding those with modest personal savings or pensions.
What is the purpose of Attendance Allowance?
Attendance Allowance is designed for individuals aged 65 or older who need help with personal care due to a physical or mental disability and do not need to meet income criteria to qualify.
What is the difference between Personal Independence Payments (PIP) and Disability Living Allowance (DLA)?
PIP is for individuals aged 16-64 with a long-term health condition or disability, whereas DLA is primarily for children under 16 and adults who claimed before PIP was introduced. Both are needs-tested benefits.
How does the Savings Credit component of Pension Credit reward individuals?
Savings Credit rewards individuals who have made modest personal savings or pensions, providing additional income to those who have planned for their retirement but do not have high levels of savings.
