UC capital income

Question 1

uc capital limit

Answer 1

16k

Question 2

what capital is disrergarded

Answer 2

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

Question 3

valuing capital

Answer 3

start with value 
less encumbrance
less 10% selling costs 
not sterling- less bank and commission 
capital held jointly - shared equally

Question 4

deprivation of capital

when not deprivation

Answer 4

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

Question 5

diminishing notional capital

Answer 5

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

Question 6

tarriff income

Answer 6

4.35 for every 250 over 6k

no tariff income for disregarded cap or capital which is generating an annuity income

Question 7

eardnings disregards and tapers

Answer 7

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

Question 8

how are disregards set

Answer 8

disregards set in line with gov spending committments

Question 9

groups for earnings disregards work allowance

Answer 9

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

Question 10

why earnings work allowance greater for those with housing costs

Answer 10

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

Question 11

what is earnings taper

Answer 11

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

Question 12

earnings definition

Answer 12

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

Question 13

what counts as earnins

Answer 13

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

Question 14

calculating earnings

Answer 14

gross
less tax nino and 100% of pension
month as reported by CL or RTI
whatever is earned in the assessment period

Question 15

UC payments

Answer 15

paid in arrers
earnings info collected by end of the asssessment period
initial decision could be estimated

Question 16

reporting earnings for UC

Answer 16

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

Question 17

UC unearned income

Answer 17

sources of UC EI are as prescribed in the regs - if they are not prescribed in the regs then they are disregarded

Question 18

prescribed income

Answer 18

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

Question 19

not prescribed

Answer 19

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

Question 20

deprivation of income

Answer 20

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

Question 21

payment of the UC

Answer 21

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

Question 22

alternative payments

and how are the need for these identified

Answer 22

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

Question 23

alternative payments order of priority

Answer 23

payment direct to LL
more frequent payment
split payment - finacial abuse break up but living together and only one eligible