topic 5 - state benefits & hmrc tax credits

Question 1

Universal credit

Answer 1

The amount of universal credit awarded to claimants depends on their income and personal and financial circumstances. There is a basic allowance with different rates for single claimants and couples. Additional amounts for disabilities, care responsibilities, housing costs, and children/childcare costs.

Question 2

benefits outside of universal credit

Answer 2

• Carers allowance
• New style Jobseekers allowance and new style Employment and support allowance
• Disability living allowance
• Child benefit
• Statutory sick pay &maternity pay
• Maternity allowance
• Attendance allowance (over state pension age anyway)

Question 3

New style JSA

Answer 3

• only eligible if paid sufficient Class 1 NI contributions.
• Paid at a fixed rate for a maximum of 6 months.

Question 4

Statutory maternity pay

Answer 4

• Women who become pregnant while employed may receive SMP from employer, proved that:
• Their average weekly earnings are above a threshold
• Have been working for their employer continuously for 26 weeks prior to their qualifying week.
• Available for a max of 39 weeks.
• Taxable and NICs are due on amount paid.

Question 5

Maternity allowance

Answer 5

• For some who are unable to claim SMP, including those who are self-employed, recently changed jobs or stopped working.
• It is paid by the Department for Work and Pensions and not employers
• The amount payable depends on employment status and is not subject to tax or NICs.

Question 6

Disability Living Allowance and Personal Independence Payment

Answer 6

• DLA is tax free, for people who need help with personal care and/or need help getting around.
• Currently being replaced by PIP.