Topic 2 Continued Flashcards
Help for those in ‘exceptional circumstances’
Q: What was the purpose of the government-funded Social Fund from the late 1980s until April 2013?
A: It provided additional grants and interest-free loans to claimants in ‘exceptional circumstances.’
Q: What types of assistance did the Social Fund offer?
A: Community Care Grants, Crisis Loans, and Budgeting Loans.
Why were the Social Fund provisions abolished?
A: They were largely abolished under the Welfare Reform Act 2012.
Q: What did the government do after abolishing the Social Fund?
A: It gave some money to local councils to provide grants, loans, or practical assistance to people who would have been eligible for a Community Care Grant or Crisis Loan.
Q: Who decides how the money given to local councils is used?
A: Each local council has the discretion to decide how to use the money in its local area.
Q: What is replacing Budgeting Loans under Universal Credit?
A: A provision for advance benefit payments that claimants can use for occasional ‘big ticket’ items, such as furniture or kitchen appliances.
Q: What were Community Care Grants intended for?
A: To provide one-off assistance in emergency situations.
Q: What key change occurred in the provision of emergency financial assistance post-Social Fund?
A: The responsibility shifted from the central government to local councils, with greater discretion for councils on how to allocate funds.
Q: What are examples of “big ticket” items that the Universal Credit advance payments can cover?
A: Furniture or kitchen appliances.
Benefits caps
Introduced in April 2013
Max limit on the amount of income they can receive from benefits
Depends on status : single, children, couple, lone parent etc
Higher for those living in London
Personal Independence Payment (PIP)
This benefit replaces Disability Living Allowance (DLA) from April 2013 from those aged 16-64. The rate pairs depends on how a claimant’s conditions affects them, not the condition itself. This is assessed by a health professional
After April 1, 2013, why did some households see their Housing Benefit reduced?
The benefit was cut for households renting council or housing association properties larger than their needs
What were the rules for bedroom allocation under the changes to Housing Benefit after April 2013?
• One bedroom per adult or couple.
• Up to two children under 10 had to share a bedroom.
• Same-sex children aged 10-16 also had to share a bedroom
Under the Housing Benefit rules, why would a family with a boy over 10 and a girl qualify for a three-bedroom property?
Because opposite-sex children over 10 were not required to share a bedroom.
What was the government’s term for the policy that reduced Housing Benefit for larger properties, and what was its common nickname?
The government called it the “spare room subsidy,” but it was more commonly known as the “bedroom tax.”
What benefit is replacing Housing Benefit?
Universal credit
What is Universal Credit?
A: Universal Credit is a benefit introduced in the UK in 2013, aiming to simplify the benefits system by combining six existing benefits into a single monthly payment for those on a low income
Which benefits does Universal Credit replace?
A: Universal Credit replaces Income Support, Housing Benefit, Child Tax Credit, Working Tax Credit, income-related Employment and Support Allowance (ESA), and income-based Jobseeker’s Allowance (JSA)
A: Universal Credit replaces Income Support, Housing Benefit, Child Tax Credit, Working Tax Credit, income-related Employment and Support Allowance (ESA), and income-based Jobseeker’s Allowance (JSA)
How often is Universal Credit paid?
A: Universal Credit is paid once a month, unlike the previous benefits, which could be paid weekly, bi-weekly, or every four weeks
What challenges might claimants face with monthly Universal Credit payments?
A: Some claimants might struggle to budget over a month, potentially running out of money towards the end of each month
What issue do social housing tenants face with Universal Credit?
A: Social housing tenants used to receive Housing Benefit directly to pay rent but now receive the money themselves, which they must manage and pay to the landlord, leading to potential rent arrears
What are some of the reported problems with Universal Credit’s implementation?
A: Issues include payment delays, technical problems with the IT systems, and significant delays due to poor planning
Why is Universal Credit considered a “means-tested” benefit?
A: Universal Credit is income-related, so the amount received decreases gradually as the claimant’s income rises, unlike a universal benefit given equally regardless of income.
What prompted the creation of MoneyHelper?
A: The 2007–08 financial crisis highlighted the need to improve public knowledge of personal finance and reduce financial illiteracy
How is MoneyHelper funded?
A: Through a levy on financial service companies and pension schemes
What specific advice does MoneyHelper NOT provide?
A: Detailed financial advice or recommendations on individual products, which can only be offered by qualified financial advisers
