Topic 2: How the State can Help Flashcards
Define Contributory and non-contributory benefits
Contributory - provided to eligible people based on NI contributions
Non-contributory - eligible people who haven’t paid enough NI or need a top up
Contribution based JSA
how long is it paid for?
Main benefit for those working age who have paid sufficient NI
paid for 6 months
Income base JSA
Support for unemployed with no time limit
but is means tested
Means testing
benefits reduce if income high or savings exceed £6000
what is statutory sick pay?
What is its time limit
benefit from employer, if worker off ill for more then 4 days
28 day time limit but can be expanded
What is Employment and Support Allowance?
Benefit provided by the government if illness prevents work.
basic rate of 13 weeks
Explain who can get Personal Independence Payment?
payable for 16 - state pension age who cant perform basic living due to illness/disability
Attendance Allowance
Over state pension age who cant perform basic living activites
what is carers allowance and who is eligible?
paid to over 16s who spend more than 35 hours caring for someone
What is Housing Benefits?
How is it reduced?
Paid to low income individuals to support housing
Can be reduced if income increases, savings exceed 6k and home is unreasonably expensive
Income Support
safety net for those who aren’t eligible for other benefits
What is the Triple Lock Guarentee
Pension rises in line with Inflation, average rise in earnings or basic rate of 2.5%
What is State pension?
paid to those who reach state retirement age and have paid sufficient NI contributions
Working tax credit
Income support for those who don’t earn enough in employment
Child Tax Credit
Paid to those in low paid work to help raise child
Statutory Maternity Pay and Statutory Paternity Pay
SMP = employer pays mother up to 39 weeks during pregnancy SPP = Payable to father to help support partner and baby for 2-3 weeks
Child Benefits
What conditions are there
flat rate benefit for all families with dependent children
if earning above 50,000 additional tax added
What is the Benefits cap and when was it introduced?
April 2013 claimants have cap on how much income claimed from benefits
How much is the benefits cap weekly?
How much is it estimated to reduce government spending?
currently £257 per week for 1 adult
£384 per week for 2 adults, 1 adult 2 kids, 2 adults 1 kid
reduce government by £110 million
what is universal credit and what does it replace
Means tested benefit that replaces
- ESA
- JSA
- Income Support
- Housing Benefit
- Working Tax Credit
- Child Tax Credit
what is Money advice service and how is it funded?
offers variety of info to promote financial literacy
funded by financial companies
What is citizens advice and how is it funded
National charity with 250 branches and website that offers impartial free advice
part funded by Government and provider
Money Advice Trust
national debt line that gives free debt advice
part funded by government
Step Change Debt Charity
National charity that offers free debt advice
funded by providers
Payplan
free website that offers advice
not a charity funded by donations from lenders
Loan forbearance
Temporary postponement on repayment of loan for lender under unforeseen circumstances