Week 2: Welfare Flashcards
Define contributory and non contributory benefits?
Candidates should recognise that contributory benefits are based on National Insurance contributions.
Contributory benefits include the state pension, maternity and paternity allowance.
Non-contributory benefits are based on need and are assessed on income.
Non-contributory benefits include housing benefit/local housing allowance, council tax support and income support.
[Candidates may mention the roll-out of Universal Credit and that it is combining all benefit payments into one.]
Define means-tested benefits?
Means testing looks at your means (income, savings and other capital) and the amount of benefit paid (if at all) will depend on the means you have at your disposal.
Some benefits – including job seekers allowance – are means tested meaning the more you have, the less you will receive in benefits.
What are some examples of non-means tested benefits?
Child benefit
Winter fuel allowance for pensioners
Statutory Maternity and Statutory Paternity Payments
Statutory Sick Payments
What are some examples of means-tested benefits?
Income-based Jobseeker’s Allowance Income-related Employment and Support Allowance Income Support Pension Credit Tax Credits (Child Tax Credit and Working Tax Credit) Housing Benefit Council Tax Support Universal Credit
What is universal credit?
Universal Credit is a means-tested benefit for people of working-agewho are on a low income.
It replaces six existing means-tested benefits:
Income Support
Income-based Jobseeker’s Allowance
Income-related Employment and Support Allowance
Housing Benefit
Child Tax Credit
Working Tax Credit
The above six benefits are also known as legacy benefits.
Universal Creditis paid on a monthly basis although in Scotland you can request it to be paid (split) fortnightly.
How much money you will get is worked out in two steps. First the DWP works out what it thinks you should need to live on, based on your household’s circumstances. Next it takes away some of the income you have coming in.
How does UC work?
Universal Credit is paid monthly in arrears, so you’ll have to wait one calendar month from the date you submitted your application before your first UC payment is made. This is called your assessment period.
You then have to wait up to seven days for the payment to reach your bank account.
This means it can take up to five weeks before you get your first payment.
You will get the maximum award if your household has no other earnings and savings or capital of £6,000 or less.
If you or someone in your household has other earnings and/or savings, these will be taken into account when working out your Universal Credit payment.
The bedroom tax
As part of a host of benefit changes introduced on 1 April 2013 under the Welfare Reform Act 2012, the government removed what it called the spare room subsidy.
Under the changes, tenants in social housing have their benefit reduced by 14% if they have a spare bedroom or 25% if they have two or more.
Two children under 16 of the same gender are expected to share one bedroom, as are two children under 10, regardless of gender.
On average, a tenant affected by the bedroom tax is losing between £14 and £25 a week (2016).
Examples of non-contributory benefits?
Not related to a person’s national insurance contributions.
Basic job seekers allowance Income support Winter fuel allowance Child Benefit Personal Independence Payment (PIP) Carer’s allowancAs part of a host of benefit changes introduced on 1 April 2013 under the Welfare Reform Act 2012, the government removed what it called the spare room subsidy. e Disability Living Allowance
Examples of contributory benefits?
When you make National Insurance contributions, you build up your entitlement to what are known as ‘contributory benefits’. These include:
Unemployment benefits, in the form of Jobseeker’s Allowance (JSA)
and Employment and Support Allowance (ESA)
Maternity Allowance, if you don’t qualify for statutory maternity
pay Bereavement benefits (Bereavement Allowance, Bereavement Payment and Widowed Parent’s Allowance)
Incapacity Benefit, if you face long term unemployment because of illness or disability.
State pension
Benefits devolved to Scotland
- 11 benefits have been devolved to Scotland
- Attendance allowance
- Carer’s allowance
- Disability living allowance
- Personal independence payment
- Industrial injuries disablement benefit
- Severe disablement allowance
- Cold weather payment
- Funeral payment
- Sure start maternity grant
- Winter fuel payment
- Discretionary housing payments
