Topic 4 - State benefits Flashcards
State benefits provided through a number of government agencies
Names and what areas they cover
- Pension service – state pension system, pension credit, advisers on hand to answer questions on pensions and benefits
- Department for Work and Pensions – responsible for a range of carer or disability benefits
- Jobcentre plus – working age people for unemployed, looking for work or unable to work because of health or disability
What does pension credit do
provides extra income for pensioners with low income
Pension credit consists of 2 parts which are:
- Guarantee Credit – tops up weekly income for those of state pension age with a low income
- Savings credit – rewards those of SPA with lower levels of income and some savings for their retirement. No longer available to those who reached SPA after 6 April 2016.
What level does Guarantee Credit provide benefit from, and from what age
Set just below the single-tier pension (state pension) which means fewer people are eligible. Minimum age this could be claimed from was 60 until 6 April 2010, age is now increasing with state pension age for women.
Under what basis is Guarantee Credit paid out, and what are the qualifying criteria
Specified minimum weekly amount for single people, higher for couples, to qualify you must:
- Live in the UK
- Reached SPA
- Weekly income below a specific amount, differs between singles and couples
If the person receiving Guarantee Credit is a carer, have severe disabilities or certain housing costs, they might qualify for
more guarantee credit
When applying for Guarantee Credit, the government looks at income and capiatl. In particular, they look at
basic and additional state pension, other pensions, income from jobs and any capital above £10,000.
Guarantee Credit is provided by topping up existing income as long as it is under the qualifying amount. Where savings are above £xxx, £x in every £xx above this amount counts as £x income per week and is reduced off the credit
£10,000
£1
£500
£1
Benefits not included when assessing for Guarantee Credit:
- Housing Benefits
- Council tax reduction
- Attendance allowance
- Personal possessions or homes
Savings Credit
Savings credit is a reward for people who have saved towards their retirement.
To be eligible for savings credit, one or a couple must meet all the following criteria:
- They or their partner reached state pension age before 6 April 2016.
- Have a level of income that is above a certain threshold depending on whether they are a single person or a couple.
- Either they or their partner are currently 65 or over.
- Be living in the UK.
- Have made some provisions for their retirement, like savings or a second pension.
- Immediately before the 6 April 2016, were entitled to savings credit.
- At all times, remained entitled to savings credit since 6 April 2016.
Savings credit is calculated by using every £x of income (made up from xxx) an individual gets above the weekly threshold, they get an extra xxp of Savings Credit up to a maximum weekly amount. Once they hit this maximum amount, their pension credit is reduced by xxp for every £x of income they receive above the level of Guarantee Credit. Higher threshold for couples.
£1
savings and other sources
60p
40p
£1
If individuals qualify for both Guarantee credit and Savings credit, Savings credit will not be reduced, as
savings credit only reduces when they earn too much to qualify for guarantee credit
People who receive the Guarantee Credit of Pension Credit could qualify for help towards health costs, including:
- Free NHS dental
- Voucher towards glasses or contacts
- Costs towards travelling to NHS treatment if referred by consultant
- Free NHS wigs and fabric supports
When assessing eligibility for Guarantee Credit, assuming SRA before 6 April 2016, income that is assessed is:
- State pension
- Other pensions
- Employment earnings
- Most social security (state) benefits
- Savings (£1 every week for every £500 above £10k)
Income that is excluded when assessing eligibility for Guarantee Credit:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Personal Independence Payment
- social fund payments like Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction
Income Support
What is it and what are the criteria to be able to claim it
Income support was a tax-free benefit for people aged between 16 and SRA if their income was below a certain level per week, and working less than 16 hours per week (if they had a partner, they also needed to work less than 24 hours per week). Available to people with no or low income.
What happened to people who had exisitng claims for income support and what replaced this benefit
People who had existing claims are still able to receive the benefit, but no new claims could be made from 2013. Universal Credit (UC) replaced this benefit and many others (Jobseekers allowance, ESA, Working Tax Credit and Child Tax Credit.
Income support is means-tested on xxx. Reduced for anyone over £xxx capital and won’t be given if over £xxxcapital.
income and capital
£6,000
£16,000
Amount payable for income support is known as the ‘xxx’
‘Applicable amount’
How is the level of benefit calculated for income support
Current weekly income is compared against fixed weekly income (set out by the government as the amount of weekly income needed to ‘live’). Difference between existing income and this fixed rate is what is given to the recipient as Income Support Payment.
The applicable amount of Income Support will vary as it is made up of 3 different parts:
- Personal allowances
- Premiums
- Payments to cover certain housing costs
Income support is a non-contributory benefit which means
means it is not dependent on NI contributions and is not taxable.
Carer’s Allowance
What is it and what is the criteria for the people claiming it
CA is taxable and paid to people who cant work full time due to caring for someone else for at least 35 hours per week, and the person being cared for must receive one of the following benefits:
- Attendance Allowance;
- Constant Attendance Allowance with Industrial Injuries Disablement Benefit or War Disablement Pension, additional conditions apply;
- the middle- or higher-rate Disability Living Allowance;
- the daily living component of Personal Independence Payment;
- Armed Forces Independence Payment;
- the middle- or higher-rate Child Disability Payment; or
- the daily living component of the Adult Disability Payment at the standard or enhanced rate.
There are a number of qualifying criteria for the person claiming Carer’s allowance:
- Claimants must be 16 or over.
- Claimants must look after someone for at least 35 hours per week and be the only or main carer for that individual; multiple people cannot receive Carer’s Allowance for caring for the same individual.
- If claimants work, they must not earn more than the weekly maximum after tax, National Insurance and expenses.
- Claimants must not get one of a list of other benefits – see below.
- Claimants must normally live in England, Scotland or Wales, and must have lived there for at least two of the previous three years (exceptions apply).
- Claimants must not be full-time students.
- Claimants must not be subject to immigration control.
Carer’s Allowance cannot usually be received if you are already in receipt of…
If you claim xxx, these may be reduced by claiming CA.
your state pension
UC
For every week that CA is received, there will usually be a class … NIC made for the claimant.
1
If a carer is not eligible for CA, then they may be eligible for xxx providing they care for someone for at least xxx hours per week. Carer’s Credit are class … NICs on the carer’s behalf.
Carer’s Credit
20
3
Claiming CA can affect
the carer and the cared for’s benefits and their eligibility for other benefits.
Non-Means Tested (NMT) Benefits are paid out to individuals irrespective of income or savings. 3 examples of this:
- Attendance Allowance
- Personal Independence Payment
- Disability Living Allowance
Attendance Allowance
Attendance allowance is for people aged 65 and over for people who need supervision or help because of an illness or disability. Attendance allowance is not means-tested or taxable.
Attendance Allowance is paid at 2 rates:
- Lower – people who need attention or care by day OR night
- Higher – people who need attention or care by BOTH day and night, or someone who has been given 12 months or less to live
AA can be claimed by anyone, even if they have a carer living with them, irrespective of any xxx. Conditions must be met for xxx before benefit paid out.
assistance they receive
6 months
AA claimants cannot be receiving one of the following as well:
- Disability Living Allowance
- Personal Independence Payment
- Adult Disability Payment
AA claimants may be entitled to a higher level of other benefits or credits, including:
- Housing benefit
- Council tax reduction
- Pension credit
Income from AA is usually disregarded when working out
income-related benefits.
People receiving AA and moving into a care home will continue to receive if xxx and will receive for the first 28 days inside a care home if xxx
self-funding
LA are funding
Personal Independence Payment
What is it and what are the key features/bits oif information
PIP is a tax-free benefit paid every 4 weeks. Introduced in April 2013 and replaced Disability Living Allowance for people aged between 16-64. Designed to help people with costs of long-standing illness or disability.
Amount of benefit paid by PIP is based on how the persons illness/disability affects them, rather that which difficulties they have. Needs are divided into 2 sections for PIP:
- Daily living
- Mobility
In order to claim PIP, individual must have difficulties in performing different xxx issues for at least xxx months, and condition expected to last at least another xxx months.
ADLs or mobility
3
9
ADLs are
- preparing/eating food and drinking;
- washing and bathing;
- using the toilet;
- dressing/undressing;
- reading;
- talking, listening and understanding;
- managing medicines/treatments;
- making decisions on financial matters.
Claim for PIP can also be made if someone is expected to live for less than xxx months.
3
When assessing ADLs and Mobility, DWP will assess each task in the following ways:
- whether you can do it safely
- how long it takes you
- how often your condition affects this activity
- whether you need help to do it, from a person or equipment
Current lower rates for PIP
Lower
- ADL - £72.65
- Mobility - £28.70
Current higher rates for PIP
Higher
- ADL - £108.55
- Mobility - £75.75
Disability Living Allowance
What is it and what are the key features
Tax free benefit to people who are disabled, once a claim has been made can be paid beyond state pension age.
DLA replaced with PIP but some people may still receive DLA, even some new claimants, as PIP is only for working age claimants.
People who can still claim DLA are:
- People under 16
- In some circumstances, people who were age 65 on 8th April 2013
DLA has 2 components which pay different rates depending on how bad it affects the claimant
Mobility
- Low – need help or supervision outdoors
- High – has more severs needs
Care
- Low – needs help for some of the day or with cooking
- Middle – frequent help needed through day or night
- High – help all day and night or less than 12 months to live
Claimants may receive higher amounts of other benefits if claiming DLA, such as:
- Income support
- Pension credit
- Housing benefit
- Council tax reduction
DLA income disregarded when calculating income for
means-tested benefits
Basic State Pension
BSP is a non-means tested benefit available to people who retired before 5 April 2016 (new pensioners entitled to sing-tier state pension). People who were already in receipt of basic state pension retain entitlement.
Old state pension can be contributory or non-contributory. Two categories of contributory retirement pensions are:
- Category A – based on NICs
- Category B – dependent on contributions paid by spouse/civil partner
Individual is entitled to a full state pension providing they have xx year’s NICs or credit equal to xx years.
30
Since April 2012, SP increases annually by the higher of:
- Earnings
- Prices (CPI)
- 2.5% (Fixed rate)
New (single tier) state pension
There is no additional state pension element anymore. Pensioners now split into 2 groups – those who reached SRA before and after April 6th 2016. Pre – BSP and Post – STSP. People on STSP have allowances to ensure they are no worse off than BSP claimants.
Main features of new STSP:
- Eligibility based off NICs
- Minimum 10 year’s NICs
- Maximum 35 year’s NICs (class 1,2 and 3)
- Higher pension may be available if any entitlements accrued before April 6th 2016
- STSP may be reduced if individual ‘contracted out’ within the 35 years
People who reached state pension age before xxx are entitled to additional state pensions if they qualify for them. This will supplement their xxx
6th April 2016
new STSPs.
Council Tax Reduction is also known as
Council Tax Support
Council Tax reduction
Claimed by individual’s if they are on low income or receive state benefits. Claimants can apply if they either own or rent a home, and if they work or are unemployed.
Maximum benefit of council tax reduction is a reduction of xx% and amount depends on the following factors:
100%
* Where a person lives
* Personal circumstances (income, benefits, number of children etc.)
* Household income – including savings, pensions and partner’s income
* Whether anyone else lives with the claimant
Disabled Band Reduction Scheme
DBRS is intended to ensure disabled people don’t pay higher council tax if they have to move to a bigger house to accommodate a disability e.g. wheelchair accessible home.
If criteria is met, tax goes down by one valuation band. If the house is valued in the lowest valuation band, then tax is reduced by 17%. This scheme is only available in the UK and Wales.
Council Tax Discount
Other discounts that may apply are as follows:
- 25% discount for anyone living alone
- A 50% discount if everyone in the household is disregarded for council tax purposes (all in education)
All discounts applied for or claimed through local council where the home is located
A permanent or temporary stay in a care home can affect the xxx a person is currently claiming. Most benefits will have to be used to xxx
state benefits
help fund the care
Moving into a care home should not affect the xxx part of DLA unless the xxx are paying for the care, in which case payments cease in xxx days. This part of DLA also disregarded by LA’s calculating xxx
mobility
NHS
28
care cost contributions
For PIP, people cannot claim the xxx component for the first time by a person who is living in a care home and any costs are met from xxx. This component can be claimed if the person is xxx
daily living
public funds or LA
self-funding though.
Where a person is already claiming PIP, xxx component will cease after xxx days in care home, xxx component will continue to be paid as long as still eligible.
daily living
28
mobility
If a couple are claiming income support or pension credit, and one partner moves into a care home, they should both xxx as this is counted as xxx when calculating benefits or contributions. If the stay is temporary, income support or pension credit can be claimed for up to xxx weeks.
claim separately
income
52
If a person enters a care home for a short break or temporary stay, housing benefit and council tax reduction can be rec’d for up to xx weeks. If they go in for a trial period, benefits stopped at xx weeks if they go past this.
52
13
Moving into a care home will not affect the state pension, but it will count as xxx for assessment purposes.
income
