Topic 5 - State Benefits and HMRC Tax Credits

Question 1

How does state benefits affect financial planning?

Answer 1

1- affect need for financial protection (additional cover needed is based on their income vs cover already have)

2- financial circumstances can affect entitlement to benefits (certain benefits are reduced if income exceeds certain amount - income support)

Question 2

Support available for low income

Answer 2

Universal credit
Working tax credit
Income support
Jobseeker’s Allowance
Support for mortgage interest loans

Question 3

Support available for bringing up children

Answer 3

Statutory maternity pay
Maternity allowance
Child benefit
Child tax credit

Question 4

Support for people who are sick or disabled

Answer 4

Statutory sick pay
Employment and support allowance
Attendance allowance
DLA & PIP
Carers allowance

Question 5

Support available for people in retirement

Answer 5

Basic state pension
Additional state pension
New state pension