Unit 5:17 Protection Types (Benefit System)

Question 1

Means Tested Benefits

Answer 1

• Universal Credit has replaced multiple previous benefits
• Incorporates Income Support
• Replaces Income-Based Jobseeker’s Allowance (JSA)
• Replaces Income-Based Employment and Support Allowance (ESA)
• Includes Housing Benefit component
• Integrates Child Tax Credit
• Incorporates Working Tax Credit

Question 2

Universal Credit Eligibility Criteria

Answer 2

• Are 18 years old or above (with certain exceptions for 16- and 17-year-olds)
• Have a low income or are unemployed
• Are under state pension age, either individually or as part of a couple
• Have less than £16K saved

Question 3

Statutory Sick Pay

Answer 3

• Employers pay Statutory Sick Pay (SSP) to eligible employees
• Applies when absent from work due to sickness or disability
• Payment begins after four consecutive days of absence
• Employee must meet qualifying conditions to receive SSP
• Lasts 28 weeks
• Must be above Lower Earnings Limit

Question 4

Employment and Sickness Allowance

Answer 4

• Designed for individuals facing disability or health conditions impacting work capacity
• To qualify, claimants must have made sufficient National Insurance Contributions (NICs)
• Contribution requirements based on the last two to three years
• Provides financial support for those unable to work due to health limitations

Question 5

Attendance Allowance (Not Means Tested)

Answer 5

• Attendance Allowance is a tax-free benefit specifically for retirees
• Available to those beyond state pension age requiring care assistance
• Not means-tested (available regardless of income or savings)
• Eligibility based solely on care needs due to sickness or disability

Question 6

Personal Independence Payment

Answer 6

• PIP assists individuals who have experienced difficulties with daily living or mobility
• Must have had difficulties for at least three months
• Condition expected to persist for at least another nine months
• Not means-tested (available regardless of income or savings)

Question 7

Carers Allowance

Answer 7

• Carer’s Allowance is a benefit for individuals caring for someone seriously ill or disabled
• Provided to those who spend significant time providing care
• Recipients must meet eligibility criteria regarding care provided
• Care recipient must be receiving qualifying disability benefits
• Must provide at least 35 hours of care per week for someone receiving certain disability benefits

Question 8

Support for Mortgage Interest (SMI)

Answer 8

• Support for Mortgage Interest (SMI) operates as a loan, not a benefit
• Provides help to individuals struggling with mortgage payments
• Covers Interest payments on a mortgage
• Must be repaid with interest when property is sold or transferred
• £200,000 max, £100,000 with pension credit

Question 9

Support for Mortgage Interest (SMI) CONT.

Answer 9

• 3 month wait after successful claim
• Attached as second charge loan, loan must be repaid
• Pay fixed assumed interest rate
• The money goes directly to Lender
• Wait times to claim are 52 weeks but if you need support again you don’t have to wait
• “Mortgage Interest run on” will get paid for 4 weeks