UC capital income Flashcards
uc capital limit
16k
what capital is disrergarded
premises business assets pension scheme sum life assurance funeral plan proceeds intended for house purchase repairs arrears payment of some SS bens 6 months disregard for some types of capital or such time as is reasonable
valuing capital
start with value less encumbrance less 10% selling costs not sterling- less bank and commission capital held jointly - shared equally
deprivation of capital
when not deprivation
where CL has deprived themselves of capital or assests in attemp to secure SS bens or increase the award
known as notional capital and is taken into account
not deprivation if used to repay debts or make reasonable purchases or services
diminishing notional capital
if over 16 then capital is reduced by what the award of UC would have been
if 5 to 16 then reduced by the tarriff income
tarriff income
4.35 for every 250 over 6k
no tariff income for disregarded cap or capital which is generating an annuity income
eardnings disregards and tapers
applied to make a clearer financial gain from working
to allow folk to see that they are keeping some of the money they are earning when they move into work before it starts affecting their benefits
how are disregards set
disregards set in line with gov spending committments
groups for earnings disregards work allowance
single or couple no kids nil nil
lone parent one or more kids 287 503
couples one or more kids 287 503
disabled single or couple 287 503
why earnings work allowance greater for those with housing costs
those with UC housing costs will have a greater award of UC so to try to make it fairer, those with little or no housing costs keep more of their earnings
what is earnings taper
taper is the rate at which benefit is reduced to take account of earnings
UC has standard taper so folk can see whether they will be better off in work more easily
taper is 63% - give example
taper is applied EI after tax nino and pension
earnings definition
paye income
employment income as defined s 683 of income tax earnings and pensions act 2003
includes non allowable expenses
does not count expenses wholly and exclusively incorred in the duties of employment
can include benefit in kind and some salary sacrifice
earnings paid at end of emp are counted redundancy is capital
what counts as earnins
EI SSP SMP ordinary stat paternity pay additional stat paternity pay stat adot pay
many counted as the disregard and taper makes folk better off if their income is counted as earnings rather than unearned income
calculating earnings
gross
less tax nino and 100% of pension
month as reported by CL or RTI
whatever is earned in the assessment period
UC payments
paid in arrers
earnings info collected by end of the asssessment period
initial decision could be estimated
reporting earnings for UC
where poss RTI if not reportable via RTI (amount less than IR amt) then CL must provide if required and not provided can result in suspension whole or part and then termination - subject to the D &A regs
UC unearned income
sources of UC EI are as prescribed in the regs - if they are not prescribed in the regs then they are disregarded
prescribed income
income available to meet dailing living costs - like SL ESA conts occ pen II B in these cases UC reduced pound for pound
unearned income (prescribed) is converted to monthly not 4 weeks one month and 5 the next
not prescribed
income relating to additional costs or expensed incurred beyond basic dailing living needs eg
DLA
PIP
LA social service payments
same stuff that’s disregarded in IS is disregarded in #uc including Armed forces compensation scheme payments these are disregarded
deprivation of income
unpaid labour or work paid at less than the going rate - the going rate is assumed
unless it is chartiy or volunteer work or approved emplpoyment training
income derived from payments thro personal injury compensation scheme which have been used to purchase annuity are disregarded as is
CJD
london bombings
blood transfusion victims
funds paid to partner or child of these are disregarded for 2 years after the death of the original payee
payment of the UC
paid 7 days after the end of the assessment period eg claimed on 19 oct - ass period ends 18 nov and payment by 25 nov
alternative payments
and how are the need for these identified
provided to those with additional support needs these are:
managed payment to LL
more frequent payments
split payments
identified by work coach JCP info frofm support worker info from clt LL where arrears hits a trigger
considered on case individual basis after discussion with the CL and the UC DM on behalf of S of State will make the decision about alternative payments
alternative payments order of priority
payment direct to LL
more frequent payment
split payment - finacial abuse break up but living together and only one eligible
