Welfare Rights Welfare Rights

Benefit Training Benefit Training

20122012

Looking at the various benefits available D.L.A, Looking at the various benefits available D.L.A, E.S.A, J.S.A , Attendance Allowance, Carers E.S.A, J.S.A , Attendance Allowance, Carers Allowance, Working Tax Credit etc. Allowance, Working Tax Credit etc.

How you qualify for them and the amounts How you qualify for them and the amounts involved. involved.

Mention the benefit cap due in next April. Mention the benefit cap due in next April.

If you get time move on to a brief overview of If you get time move on to a brief overview of how housing benefit is calculated.how housing benefit is calculated.

The benefits system?The benefits system?

Benefits divide into 2 main groups:Benefits divide into 2 main groups:

Non-means-tested benefits & Non-means-tested benefits & Means-tested benefits

There are other benefits that do not neatly fit into There are other benefits that do not neatly fit into either group. For example 'back to work' benefits. either group. For example 'back to work' benefits. 

Benefits are administered by the Department for Benefits are administered by the Department for Work and Pension (DWP), HM Revenue and Work and Pension (DWP), HM Revenue and Customs or local authority.  Customs or local authority.  

The benefitsThe benefits

Non means tested benefitsNon means tested benefits

Each of these benefits has different rules. Once a person Each of these benefits has different rules. Once a person satisfies these rules they usually get the benefit regardless of satisfies these rules they usually get the benefit regardless of any other income / savings that they have. any other income / savings that they have.

Additional amounts may be claimed for adult dependants before Additional amounts may be claimed for adult dependants before April 2010.  Additions for children were replaced by Child Tax April 2010.  Additions for children were replaced by Child Tax Credit for new claimaints from 7 April 2003. Credit for new claimaints from 7 April 2003. 

These Non-means tested benefits are split into 2 main headings These Non-means tested benefits are split into 2 main headings of ‘contributory’ and ‘non - contributory’.of ‘contributory’ and ‘non - contributory’.

Contributory benefitsContributory benefits

In order to qualify a person must have paid enough ‘National In order to qualify a person must have paid enough ‘National Insurance contributions’ Insurance contributions’

-Which are usually deducted from a person’s wage. Which are usually deducted from a person’s wage.

-HM Revenue and Customs national contributions office keeps HM Revenue and Customs national contributions office keeps a record of all contributions paid. a record of all contributions paid. 

Non contributory benefitsNon contributory benefits

To get these benefits, a person does not have to have paid To get these benefits, a person does not have to have paid National Insurance contributions, they just have to satisfy the National Insurance contributions, they just have to satisfy the basic conditions. The benefits are also usually paid whatever basic conditions. The benefits are also usually paid whatever other income / savings a person has.other income / savings a person has.

Means tested benefitsMeans tested benefits

Means tested benefits are not affected by how much National Means tested benefits are not affected by how much National Insurance contributions a person has paid. They are affected by Insurance contributions a person has paid. They are affected by the claimant's circumstances, capital and income and involve a the claimant's circumstances, capital and income and involve a calculation. calculation.

Each means tested benefit has its own qualifying rules.Each means tested benefit has its own qualifying rules.

AmountsAmounts

Each benefit has its own rate - which is fixed by Parliament.  It can Each benefit has its own rate - which is fixed by Parliament.  It can be one single amount or various elements (Premiums ect) which be one single amount or various elements (Premiums ect) which can be part of a calculation. Particularly with means tested can be part of a calculation. Particularly with means tested benefits.benefits.

Most benefits are 'uprated' each April and at other times througout the year. Most benefits are 'uprated' each April and at other times througout the year. 

Income Support (IS)Income Support (IS)

Can be claimed by people who do not have to be Can be claimed by people who do not have to be available for and actively seeking work. For available for and actively seeking work. For example, carers or lone parents. example, carers or lone parents. 

It can be paid as the sole form of income or as a It can be paid as the sole form of income or as a ‘‘top up’ to other low income. It also includes limited top up’ to other low income. It also includes limited help with mortgages and is non-taxable.  help with mortgages and is non-taxable.  

The elements for children in Income Support are The elements for children in Income Support are being replaced by being replaced by Child Tax Credit.

Examples of people who can claim Examples of people who can claim Income SupportIncome Support

Incapable of work - under very limited circumstances Incapable of work - under very limited circumstances 

Entitled to Statutory Sick PayEntitled to Statutory Sick Pay

Registered blind (replaced by Registered blind (replaced by Employment and Support Allowance for most new claims from for most new claims from December 2009)December 2009)

The number of hours or wages capacity are reduced by 75% The number of hours or wages capacity are reduced by 75% due to a disability (replaced by due to a disability (replaced by Employment and Support Allowance for most new claims for most new claims from January 2010)from January 2010)

Some people can still get Income Support on these grounds.

Lone parent - until youngest child reaches a certain age (5) (5)

On parental or paternity leave On parental or paternity leave

Pregnant and within 11 weeks of birthPregnant and within 11 weeks of birth

Fostering a childFostering a child

Certain carersCertain carers

Certain pupils or students or traineesCertain pupils or students or trainees

Some refugeesSome refugees

Jobseekers Allowance - income based (JSA - IB)Jobseekers Allowance - income based (JSA - IB)

This is the equivalent of Income Support for those who This is the equivalent of Income Support for those who sign on as available for and actively seeking work.  sign on as available for and actively seeking work. 

The requirement to sign on applies to both in a couple claim - unless exempt. .

Can be paid as a ‘top up’ to Can be paid as a ‘top up’ to Jobseekers Allowance – contribution based (JSA – CB). (JSA – CB).

Also includes limited help with mortgages. It is taxable. The Also includes limited help with mortgages. It is taxable. The elements for children in Jobseekers Allowance - income elements for children in Jobseekers Allowance - income based are being replaced by based are being replaced by Child Tax Credit..

Pension Credit

Introduced on 7th October 2003, Pension Credit is administered by the Pension Service which is part of the DWP.

Pension Credit has two elements:

The Guarantee Credit Is basically Income Support for people of pension age and over.

The Savings Credit. The way this is claculated is different from other means tested benefits: People aged 65 and over, get 60p a week for every pound they have 'saved' for retirement above a certain level. This includes income from capital and private and occupational pensions. But it only goes up to certain limits and is reduced as these 'savings' get higher.

Pension Credit is not taxable.

Social Fund

The Social Fund is a system of non-taxable grants and loans.

For most of them, the claimant has to be on a particular benefit, for example, Income Support. 

Capital over a certain amount may be taken into account  unless the claim is for a Sure Start Maternity Grant, a Cold Weather Payment or a Winter Fuel Payment.

The Social Fund can be divided into two parts - the discretionary Social Fund and non discretionary Social Fund.

Discretionary Social FundDiscretionary Social Fund

Budget-limited and discretionary. Types of payment:-Budget-limited and discretionary. Types of payment:-

Budgeting loansBudgeting loans

Repayable, interest-free loans for those who are Repayable, interest-free loans for those who are on Employment and Support Allowance (income on Employment and Support Allowance (income related), Income Support, JSA - IB or Pension Credit related), Income Support, JSA - IB or Pension Credit (Guarantee Credit). (Guarantee Credit).

Loans may be made for intermittent expenses, for Loans may be made for intermittent expenses, for example, clothes, cooker.example, clothes, cooker.

Community Care Grants

Non-repayable amounts to help those on Employment and Support Allowance (income related), Income Support, JSA - IB or Pension Credit (Guarantee Credit).

Payments can be made in the following situations:

When moving into the community from an institution

To help remain in the community & avoid moving into an institution

To help set up home in the community after an unsettled way of life

To ease exceptional pressure on a family

For certain travel expenses, for example, visiting someone who is ill

Crisis loansCrisis loans

Repayable, interest-free loans for those who have short term Repayable, interest-free loans for those who have short term needs in a crisis. needs in a crisis.

A claimant does not have to be in receipt of benefit to claim.A claimant does not have to be in receipt of benefit to claim.

A cap of 3 crisis loans for general living expenses in a rolling A cap of 3 crisis loans for general living expenses in a rolling 12 month period may apply.12 month period may apply.

Non discretionary Social FundNon discretionary Social Fund

Regulated and not discretionary. Regulated and not discretionary.

Types of payment:-Types of payment:-

Cold Weather PaymentsCold Weather Payments

Made automatically in periods (seven consecutive days)  of Made automatically in periods (seven consecutive days)  of exceptionally cold weather and you get a benefit like Pension exceptionally cold weather and you get a benefit like Pension Credit or Income Support (with a certain premium), or have a Credit or Income Support (with a certain premium), or have a child under five, or on Child Tax Credit with a disability element.child under five, or on Child Tax Credit with a disability element.

Funeral Expenses PaymentsFuneral Expenses Payments

Help with funeral costs for a 'close relative' of the deceased. Help with funeral costs for a 'close relative' of the deceased.

You must be on a certain benefit, like Income Support or You must be on a certain benefit, like Income Support or Housing Benefit. Housing Benefit. 

Payment may be refused if, for example, there is another close Payment may be refused if, for example, there is another close relative not also getting a qualifying benefit. relative not also getting a qualifying benefit.

The amount paid only covers certain basic costs.The amount paid only covers certain basic costs.

Sure Start Maternity GrantsSure Start Maternity Grants

Those on a benefit like Income Support or Child Tax Credit (atThose on a benefit like Income Support or Child Tax Credit (ata certain rate) who have received health and welfare advice a certain rate) who have received health and welfare advice from a health professional will get £500 for having a baby. from a health professional will get £500 for having a baby.

However, from April 2011, an award cannot be made where However, from April 2011, an award cannot be made where there is another child under 16 in the family at the date of there is another child under 16 in the family at the date of claim. Exceptions to this rule apply. claim. Exceptions to this rule apply. 

Winter Fuel PaymentsWinter Fuel Payments

A single lump sum payment for those A single lump sum payment for those pension age and over in in winter.winter.

Tax CreditsTax Credits

In April 2003, Tax Credits replaced:In April 2003, Tax Credits replaced:

Working Families Tax Credit, Disabled Persons Tax CreditWorking Families Tax Credit, Disabled Persons Tax Credit

Childrens Tax Credit (the tax allowance which used to be Married Childrens Tax Credit (the tax allowance which used to be Married Man's Tax Allowance)Man's Tax Allowance)

Child additions for some non means tested benefits (although they Child additions for some non means tested benefits (although they continue for existing claimants)continue for existing claimants)

Child elements in Income Support and Jobseekers Allowance - Child elements in Income Support and Jobseekers Allowance - income based. income based.

Existing claimants with child additions can choose to continue until Existing claimants with child additions can choose to continue until they are transferred to Child Tax Credits.they are transferred to Child Tax Credits.

Tax Credits consists of two separate credits:Tax Credits consists of two separate credits:

Child Tax CreditChild Tax Credit

For people with children. Paid to the main carer. For people with children. Paid to the main carer.

Working Tax CreditWorking Tax Credit

For people working 16 or more hours a week and eitherFor people working 16 or more hours a week and either

have children lone parents (24 hour for many couples now)have children lone parents (24 hour for many couples now)

are disabled, or are disabled, or 

are 25 and over and work 30 hours or more a week (relaxed to are 25 and over and work 30 hours or more a week (relaxed to 16 hours a week for those 60 and over from april 2011).16 hours a week for those 60 and over from april 2011).

Includes help with child care costsIncludes help with child care costs

Tax Credits awards are calculated annually and re-Tax Credits awards are calculated annually and re-assessed every April but can be changed in between. assessed every April but can be changed in between.

They are administered by HM Revenue and Customs.  They are administered by HM Revenue and Customs. 

Tax Credits are not taxable.Tax Credits are not taxable.

Council Tax BenefitCouncil Tax Benefit

Paid to help people on a low income pay their Council Tax. Paid to help people on a low income pay their Council Tax.

Paid by the local authority. Paid by the local authority.

It is not taxable.  It is not taxable. 

Discretionary payments can be made for people on Council Tax Benefit who are in financial hardship

Education BenefitsEducation Benefits

Paid for some children at school by the local council's Paid for some children at school by the local council's Education Department and includes:Education Department and includes:

Free school meals for children of families receiving Free school meals for children of families receiving Employment and Support Allowance (income Employment and Support Allowance (income related), Income Support, JSA - IB, Pension Credit related), Income Support, JSA - IB, Pension Credit Guarantee or Child Tax Credit (where income is below Guarantee or Child Tax Credit (where income is below £15,860 or if the maximum Working Tax credit is paid in £15,860 or if the maximum Working Tax credit is paid in Scotland only)Scotland only)

Education Maintenance Allowance for some young people  for some young people staying on at school or college where household income is staying on at school or college where household income is below £20,351 with one child or £22,403 if more than one below £20,351 with one child or £22,403 if more than one child is in the household EMA is £30 weekly.child is in the household EMA is £30 weekly.

Employment and Support Allowance (income related)Employment and Support Allowance (income related)

(ESA(IR)) replaced Income Support on grounds of incapacity or (ESA(IR)) replaced Income Support on grounds of incapacity or disability for new claims from 27 October 2008. disability for new claims from 27 October 2008.

It can be paid as the sole form of income or as a 'top up' to other It can be paid as the sole form of income or as a 'top up' to other income. income.

There is also a contributory form of Employment and Support There is also a contributory form of Employment and Support Allowance. ESA(IR) can be paid to 'top up' Allowance. ESA(IR) can be paid to 'top up' ESA (contribution based).

ESA(IR) can be claimed by people who have "limited capability for ESA(IR) can be claimed by people who have "limited capability for work". work".

It is paid at a basic rate for the first 13 weeks. An additional component It is paid at a basic rate for the first 13 weeks. An additional component is paid from the 14th week (But only once the medical has been is paid from the 14th week (But only once the medical has been passed). passed). 

ESA(IR) is not taxable.ESA(IR) is not taxable.

Housing Benefit (HB)

Paid to tenants who are on a low income and pay rent.

It is paid whether or not the claimant is working and can be paid with other social security benefits or by itself.

Administered by the local authority and is non-taxable.

From April 2008 Local Housing Allowance introduced a change to Housing Benefit for private tenants.

Discretionary payments can be made for people on Housing Benefit who are in financial hardship.

Contributory benefitsContributory benefits

In order to qualify a person must have paid enough In order to qualify a person must have paid enough National Insurance contributions

The main contributory benefits are:The main contributory benefits are:

Bereavement BenefitsBereavement Benefits

Paid to some people whose spouse has died. Paid to some people whose spouse has died. Entitlement depends mainly on the national insurance Entitlement depends mainly on the national insurance contribution record of the late spouses or if they died as contribution record of the late spouses or if they died as a result of an industrial accident or disease and the a result of an industrial accident or disease and the claimant's age at death. claimant's age at death.

There are three different bereavement benefits:There are three different bereavement benefits:

Bereavement AllowanceBereavement Allowance

Paid for one year to bereaved if over 45 but under pensionable age who are Paid for one year to bereaved if over 45 but under pensionable age who are not receiving Widowed Parents Allowance. It is taxable.not receiving Widowed Parents Allowance. It is taxable.

Bereavement PaymentBereavement Payment

A tax-free lump sum payment of £2,000. The bereaved must be under A tax-free lump sum payment of £2,000. The bereaved must be under pension age when their spouse dies or if older, the spouse was not entitled pension age when their spouse dies or if older, the spouse was not entitled to a Category A Retirement Pension when they died.to a Category A Retirement Pension when they died.

Widows BenefitsWidows Benefits - no new claims from 9.4.2001 however some women will - no new claims from 9.4.2001 however some women will continue to receive these benefits.continue to receive these benefits.

Widowed Parents AllowanceWidowed Parents Allowance

Paid to bereaved with children, or who are pregnant by late husband and Paid to bereaved with children, or who are pregnant by late husband and under pension age when spouse died. It is taxable.under pension age when spouse died. It is taxable.

Employment and Support Allowance (contribution based)Employment and Support Allowance (contribution based)

(ESA(C)) replaced Incapacity related Benefits for people(ESA(C)) replaced Incapacity related Benefits for peoplewho cannot work because of illness or disability, for new who cannot work because of illness or disability, for new claims from 27 Ocotber 2008. claims from 27 Ocotber 2008.

It can be topped up by It can be topped up by Employment and Support Allowance (income related)

ESA(C) can be claimed by people who have "limited ESA(C) can be claimed by people who have "limited capability for work". capability for work".

It is paid at a basic rate for the first 13 weeks. An It is paid at a basic rate for the first 13 weeks. An additional component is paid from the 14th week once additional component is paid from the 14th week once the medical has been passed.the medical has been passed.

Incapacity BenefitIncapacity Benefit

Incapacity Benefit was replaced for new claims from 27 Incapacity Benefit was replaced for new claims from 27 October 2008 by October 2008 by Employment and Support Allowance..

People already getting it on 27 October 2008 stay on in it until People already getting it on 27 October 2008 stay on in it until they stop being entitled or are gradually tested under the ESA they stop being entitled or are gradually tested under the ESA test. This change over has started to happen from February test. This change over has started to happen from February 2011.2011.

Incapacity Benefit is paid to people who cannot work because Incapacity Benefit is paid to people who cannot work because of illness or disability. This has to be shown, in most cases, by of illness or disability. This has to be shown, in most cases, by completing a long form (IB50) and satisfying the 'Personal completing a long form (IB50) and satisfying the 'Personal Capability Assessment'. This is where the claimant has to Capability Assessment'. This is where the claimant has to score a certain amount of points (15) for not being able to do score a certain amount of points (15) for not being able to do certain physical and mental activities.certain physical and mental activities.

Jobseekers Allowance - Contribution basedJobseekers Allowance - Contribution based

Paid to people who are unemployed or who are Paid to people who are unemployed or who are working less than 16 hours a week but only if they have working less than 16 hours a week but only if they have paid enough National Insurance contributions at the paid enough National Insurance contributions at the right time. right time.

It is paid for 6 months and is taxable. It is paid for 6 months and is taxable.

There are strict labour market conditions that must be There are strict labour market conditions that must be satisfied. For example, having to be available for work. satisfied. For example, having to be available for work.

Earnings and occupational and personal pensions over Earnings and occupational and personal pensions over £50 weekly are taken into account.£50 weekly are taken into account.

Retirement PensionRetirement Pension

Paid to those people over pensionable age. Paid to those people over pensionable age. 

A common pension age of 65 for both men and women has A common pension age of 65 for both men and women has been introduced. This change will be phased in for been introduced. This change will be phased in for women born on or after 6 April 1950 between 2010 and women born on or after 6 April 1950 between 2010 and 2020. 2020. 

There are two categories of Retirement Pension: A or B. There are two categories of Retirement Pension: A or B.

Category A pensions are payable on a person's own Category A pensions are payable on a person's own National Insurance contribution record throughout his/her National Insurance contribution record throughout his/her working life. working life.

Both categories are taxable.Both categories are taxable.

Non contributory benefitsNon contributory benefits

To get these, a person does not have to have paid To get these, a person does not have to have paid National Insurance contributions, they just have to satisfy the they just have to satisfy the basic conditions. basic conditions.

The benefits are also usually paid whatever other income a The benefits are also usually paid whatever other income a person has. person has.

This means they share the general title of “non-means-tested This means they share the general title of “non-means-tested benefits” with contributory benefits. benefits” with contributory benefits.

The main non-contributory benefits are: The main non-contributory benefits are: 

Attendance Allowance (AA)Attendance Allowance (AA)

Paid to ill or disabled people who first claim aged 65 andPaid to ill or disabled people who first claim aged 65 andover, who have care / attention or supervision needs. over, who have care / attention or supervision needs.

There are two rates of payment depending on the level of There are two rates of payment depending on the level of care or supervision needed. care or supervision needed.

Low rate £51.85 weekly High Rate £77.45 weeklyLow rate £51.85 weekly High Rate £77.45 weekly

It is non-taxable.It is non-taxable.

Carers Allowance Carers Allowance

Paid to people who spend at least 35 hours a week caring Paid to people who spend at least 35 hours a week caring for someone who gets either Attendance Allowance or for someone who gets either Attendance Allowance or Disability Living Allowance care component - higher or Disability Living Allowance care component - higher or middle rate or Constant Attendance Allowance of £63.30 middle rate or Constant Attendance Allowance of £63.30 or over weekly. or over weekly.

The carer must not be in full time education (Over 21 The carer must not be in full time education (Over 21 hours) or earning above a certain amount (£100) after hours) or earning above a certain amount (£100) after allowable deductions. allowable deductions.

Dependents additions may be payable. Dependents additions may be payable.

It is taxable.It is taxable.

Child BenefitChild Benefit

Paid for children under 16 years old. For those Paid for children under 16 years old. For those who stay on at school or take up unwaged training, who stay on at school or take up unwaged training, it can be extended up to their 20th birthday. it can be extended up to their 20th birthday.

It is non-taxable. It is non-taxable.

Administered by Revenue and Customs.Administered by Revenue and Customs.

Disability Living AllowanceDisability Living Allowance

Paid to some ill or disabled people who claimed before age Paid to some ill or disabled people who claimed before age 65. 65.

It is made up of 2 components -It is made up of 2 components -

Care componentCare component - for people who need attention or - for people who need attention or supervision due to an illness or disability or are unable to supervision due to an illness or disability or are unable to prepare a main meal for one person, andprepare a main meal for one person, and

Mobility componentMobility component - for people who have problems - for people who have problems walking or need supervision while walking.walking or need supervision while walking.

This is the only benefit available to childrenThis is the only benefit available to children

There are three rates of payment of the care There are three rates of payment of the care component and two rates of the mobility component and two rates of the mobility component. component.

The highest of each component can be paid at the The highest of each component can be paid at the same time or any other combination. same time or any other combination.

It is non-taxable.It is non-taxable.

Request a date stamped  DLA claim pack on 0800 Request a date stamped  DLA claim pack on 0800 88 22 0088 22 00

Guardians AllowanceGuardians Allowance

A tax free benefit paid to people looking after children who A tax free benefit paid to people looking after children who are effectively orphans or parents in prison. are effectively orphans or parents in prison.

Administered by Revenue and Customs.Administered by Revenue and Customs.

Industrial Death BenefitIndustrial Death Benefit

Paid to the widow or widower and children of an employee Paid to the widow or widower and children of an employee who died who died before 11 April 1988before 11 April 1988  due to an accident or  due to an accident or disability caused by work.disability caused by work.

Industrial Injuries BenefitIndustrial Injuries Benefit

For people who are disabled because of their employment. For people who are disabled because of their employment.

There are various tax-free allowances including There are various tax-free allowances including Disablement Benefit where the amount of benefit paid Disablement Benefit where the amount of benefit paid depends on the percentage of disability. depends on the percentage of disability.

Reduced Earnings Allowance is also payable in certain Reduced Earnings Allowance is also payable in certain circumstances.circumstances. Other schemes may apply. Other schemes may apply.

For example, possible lump sums for exposure to For example, possible lump sums for exposure to asbestosis causing mesothelioma.asbestosis causing mesothelioma.

Maternity AllowanceMaternity Allowance

For pregnant women who have recently worked or are For pregnant women who have recently worked or are unable to get Statutory Maternity Pay from their employer. unable to get Statutory Maternity Pay from their employer.

Generally this means having been employed or self Generally this means having been employed or self employed for at least 26 weeks in the 66 weeks employed for at least 26 weeks in the 66 weeks immediately before the expected week of confinement and immediately before the expected week of confinement and average earnings must have been at least £30 a week. average earnings must have been at least £30 a week.

It lasts for 39 weeks. It is paid at one of two rates It lasts for 39 weeks. It is paid at one of two rates depending on recent earnings from employment or self depending on recent earnings from employment or self employment. employment. 

Dependants additions were abolished in April 2010. Dependants additions were abolished in April 2010.

It is non-taxable.It is non-taxable.

Severe Disablement AllowanceSevere Disablement Allowance

This non-taxable benefit was abolished in April 2001. This non-taxable benefit was abolished in April 2001.

People already on it before this date continue to receive it if People already on it before this date continue to receive it if still eligible. still eligible.

Paid to people who were incapable of work but had not Paid to people who were incapable of work but had not paid sufficient National Insurance contributions to qualify paid sufficient National Insurance contributions to qualify for Incapacity Benefit. for Incapacity Benefit.

Additions were payable for a spouse and children.Additions were payable for a spouse and children.Some people on SDA will eventually have to undergo the ESome people on SDA will eventually have to undergo the Employment and Support Allowance medical test.mployment and Support Allowance medical test.

Statutory Adoption PayStatutory Adoption Pay

Paid by employers to some employees during adoption Paid by employers to some employees during adoption leave. It is paid for a maximum of 39 weeks. leave. It is paid for a maximum of 39 weeks.

It is taxable. It is taxable. 

Statutory Maternity PayStatutory Maternity Pay

Paid by employers to some employees who are pregnant Paid by employers to some employees who are pregnant or who have recently given birth. They must remain in work or who have recently given birth. They must remain in work until 11 weeks before the baby is due. until 11 weeks before the baby is due. 

It can be taxable in certain situations. It is payable for 39 It can be taxable in certain situations. It is payable for 39 weeks. weeks. 

Statutory Paternity PayStatutory Paternity Pay

Paid by employers to some employees for parental leave following the Paid by employers to some employees for parental leave following the birth or adoption of a child. birth or adoption of a child.

It is paid for a maximum of two weeks. It is paid for a maximum of two weeks.

It is taxable. It is taxable.

Additional Statutory Paternity PayAdditional Statutory Paternity Pay

Mothers can give some of their maternity leave and pay to the father. Mothers can give some of their maternity leave and pay to the father.

This also applies to adoption pay and leave. If a birth is due or This also applies to adoption pay and leave. If a birth is due or notification of an adoption match falls on or after 3 April 2011, a father, notification of an adoption match falls on or after 3 April 2011, a father, partner or carer can receive additional SPP of up to 26 weeks. partner or carer can receive additional SPP of up to 26 weeks.

It allows the parents to swap who is the main carer from 20 weeks after It allows the parents to swap who is the main carer from 20 weeks after the child is born or adopted.the child is born or adopted.

Statutory Sick Pay (SSP)Statutory Sick Pay (SSP)

This benefit is for employed people who are sick for four or more work This benefit is for employed people who are sick for four or more work days in a row. It is claimed from an employer and can be paid for a days in a row. It is claimed from an employer and can be paid for a maximum of 28 weeks. A person may be entitled to company or maximum of 28 weeks. A person may be entitled to company or contractual sick pay in addition to SSP. contractual sick pay in addition to SSP.

A person does not have to claim SSP. Their employer will arrange to A person does not have to claim SSP. Their employer will arrange to pay the SSP usually when a person gives in medical certificates after pay the SSP usually when a person gives in medical certificates after more than seven days of sickness. If an employer cannot pay SSP or more than seven days of sickness. If an employer cannot pay SSP or entitlement has been used up Employment and Support Allowance entitlement has been used up Employment and Support Allowance should be claimed. should be claimed.

Remember Employment and Support Allowance can be paid even if Remember Employment and Support Allowance can be paid even if wages are still being paid.wages are still being paid.

There are no additions for dependants. It can be taxable in certain There are no additions for dependants. It can be taxable in certain situations.situations.

War Pensions and Armed Forces Compensation SchemeWar Pensions and Armed Forces Compensation Scheme

For people who are either injured or disabled whilst working or For people who are either injured or disabled whilst working or serving in the armed forces. It can also be paid to widows and serving in the armed forces. It can also be paid to widows and widowers of those who have served or worked in the armed widowers of those who have served or worked in the armed services. services.

There are various tax-free allowances similar to There are various tax-free allowances similar to Industrial Injuries BenefitsIndustrial Injuries Benefits. .

It changed to Armed Forces Pension and Compensation It changed to Armed Forces Pension and Compensation Scheme in April 2005 with equal treatment for other ranks and Scheme in April 2005 with equal treatment for other ranks and unmarried partners. unmarried partners.

Can choose to stay on War Pension.Can choose to stay on War Pension.

Back to work and training benefitsBack to work and training benefits

Extended payments of Housing and Council Tax BenefiExtended payments of Housing and Council Tax Benefitt  

Mortgage interest 'run-on'Mortgage interest 'run-on'

Job GrantJob Grant    

Return to work creditReturn to work credit  

In work creditIn work credit      

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Disability Living Allowance Disability Living Allowance

What is it?What is it?

A non-means tested non-taxable, Social Security A non-means tested non-taxable, Social Security Allowance paid to people who need supervision or help Allowance paid to people who need supervision or help with their daily or nightly care needs or are unable to with their daily or nightly care needs or are unable to prepare a main meal for one or have mobility problems.prepare a main meal for one or have mobility problems.

It is paid in two parts, the care component (Low £20.55, It is paid in two parts, the care component (Low £20.55, Middle £51.85, High £77.45) and mobility component (Low Middle £51.85, High £77.45) and mobility component (Low £20.55, High £54.05) you can have one on its own or both £20.55, High £54.05) you can have one on its own or both together.together.

You should have needed the help or had mobility You should have needed the help or had mobility problems normally for three months before you problems normally for three months before you claim and they should be expected to last at least claim and they should be expected to last at least another six months. another six months.

It can be claimed for the first time by anyone under It can be claimed for the first time by anyone under 65, this includes children.65, this includes children.

For people over 65 needing help for the first time For people over 65 needing help for the first time the equivalent benefit is the equivalent benefit is Attendance AllowanceAttendance Allowance..

Any award of D.L.A increases the amount you or Any award of D.L.A increases the amount you or your family could receive in means tested benefits your family could receive in means tested benefits such as such as Income SupportIncome Support, , Jobseekers AllowanceJobseekers Allowance, , Employment Support Allowance Income RelatedEmployment Support Allowance Income Related, , HousingHousing and and Council Tax BenefitCouncil Tax Benefit, and Health , and Health Benefits. Benefits.

Certain levels also acts as a passport to, the Certain levels also acts as a passport to, the disability element in disability element in Working Tax CreditsWorking Tax Credits, , Child Tax CreditsChild Tax Credits, Various Grants, , Various Grants, Carer AllowanceCarer Allowance, Blue Badge, Car Tax Exemption, , Blue Badge, Car Tax Exemption, Driving Licence at age sixteen, etc, etc.Driving Licence at age sixteen, etc, etc.

You should have a full benefit check done if you or any of You should have a full benefit check done if you or any of your family are awarded any level of D.L.A or an increased your family are awarded any level of D.L.A or an increased rate 01387 266888.rate 01387 266888.

Important note:Important note:

This benefit is paid for your care, supervision and mobility This benefit is paid for your care, supervision and mobility needs needs you can get the benefit even if you live alone with no you can get the benefit even if you live alone with no help or supervision. As long as any help or supervision is help or supervision. As long as any help or supervision is reasonably required you should still qualify for D.L.A.reasonably required you should still qualify for D.L.A.

Attendance AllowanceAttendance Allowance

Attendance Allowance is a tax free non-means tested Attendance Allowance is a tax free non-means tested Social Security allowance. Social Security allowance.

Paid to people over 65 when first claimed, to help with the Paid to people over 65 when first claimed, to help with the cost of their care or supervision needs, which should have cost of their care or supervision needs, which should have existed for six months before claiming unless terminally ill. existed for six months before claiming unless terminally ill.

If your care or supervision needs start before age 65 the If your care or supervision needs start before age 65 the almost equivalent benefit is almost equivalent benefit is Disability Living AllowanceDisability Living Allowance

If you are over 65 with daily or nightly care or supervision If you are over 65 with daily or nightly care or supervision needs then you can claim Attendance Allowance.needs then you can claim Attendance Allowance.

It is paid at two levels:It is paid at two levels:

Low rate: £51.85 weekly or £207.40 four weeklyLow rate: £51.85 weekly or £207.40 four weekly

High rate: £77.45 weekly or £309.80 four weeklyHigh rate: £77.45 weekly or £309.80 four weekly

Any level of Attendance Allowance can increase your Any level of Attendance Allowance can increase your entitlement to entitlement to Pension CreditPension Credit,, Housing Housing and and Council Tax BenefitsCouncil Tax Benefits, and health benefits, etc., and health benefits, etc.

Important note:Important note:

This benefit is paid for your care or supervision This benefit is paid for your care or supervision needsneeds. You . You can get the benefit even if you live alone with no help. As can get the benefit even if you live alone with no help. As long as any help or supervision is long as any help or supervision is reasonably required reasonably required you could still qualify for Attendance Allowance.you could still qualify for Attendance Allowance.

Carers AllowanceCarers Allowance

What is it?What is it?

This is an allowance for people who spends at least 35 hours This is an allowance for people who spends at least 35 hours each week caring for a severely disabled person. each week caring for a severely disabled person.

Who has either Who has either Attendance AllowanceAttendance Allowance or the middle or high rate  or the middle or high rate care component of care component of Disability Living AllowanceDisability Living Allowance or  or Constant Attendance AllowanceConstant Attendance Allowance of £63.30 or over (Part of  of £63.30 or over (Part of War Disablement PensionWar Disablement Pension or or Industrial InjuriesIndustrial Injuries).).

You do not have to be related to this person, or living with them. You do not have to be related to this person, or living with them. You can get C.A if you have never worked. You can get C.A. If You can get C.A if you have never worked. You can get C.A. If you also have you also have Attendance AllowanceAttendance Allowance or or

Disability Living AllowanceDisability Living Allowance yourself. yourself.

If you are paid C.A. or have claimed C.A. but are unable to If you are paid C.A. or have claimed C.A. but are unable to be paid it due to having another benefit in your own right, be paid it due to having another benefit in your own right, you will have the carer premium (£32.60) included in your you will have the carer premium (£32.60) included in your applicable amount for applicable amount for Employment Support Allowance (Income Related)Employment Support Allowance (Income Related),  ,  Income Support (I.S)Income Support (I.S), , Income Based JobseekersIncome Based Jobseekers, , Pension CreditPension Credit, Housing and Council Tax Benefits., Housing and Council Tax Benefits.

If you are actually paid If you are actually paid ANYANY Carers Allowance the person Carers Allowance the person you care for will not receive the Severe Disability Premium you care for will not receive the Severe Disability Premium (£58.20 wkly) in their (£58.20 wkly) in their Income Support (I.S)Income Support (I.S), , Income Based Jobseekers (IBJSA)Income Based Jobseekers (IBJSA), Pension Credit, , Pension Credit, Housing and Council Tax benefits calculations. Because of Housing and Council Tax benefits calculations. Because of this it is not always advantageous for you to claim C.A. this it is not always advantageous for you to claim C.A. Even if you are eligible. You and the person you care for Even if you are eligible. You and the person you care for should Seek Advice. before claiming.should Seek Advice. before claiming.

C.A. is not means tested and does not depend on your C.A. is not means tested and does not depend on your previous years National Insurance Contributions, it is previous years National Insurance Contributions, it is taxable. It also gives you the Carers Credit / National taxable. It also gives you the Carers Credit / National Insurance Credit and a second State Pension.Insurance Credit and a second State Pension.

You cannot be paid C.A. if your earnings are over £100 You cannot be paid C.A. if your earnings are over £100 weekly, after deducting Tax , National Insurance, half of weekly, after deducting Tax , National Insurance, half of any contribution you make towards an occupational or any contribution you make towards an occupational or personal pension, and up to half your net earning if you pay personal pension, and up to half your net earning if you pay someone other than a close relative to care for the disabled someone other than a close relative to care for the disabled person or your child under sixteen.person or your child under sixteen.

If your partner earns over £34.40 weekly you will be unable If your partner earns over £34.40 weekly you will be unable to have an addition for them, no new additions allowed to have an addition for them, no new additions allowed after April 2010, if your partner earns over £215 in any after April 2010, if your partner earns over £215 in any week you lose an addition for one child, and for each £28 week you lose an addition for one child, and for each £28 over this amount you lose for another child. These child over this amount you lose for another child. These child additions would only apply to existing claims with additions would only apply to existing claims with transitionally proteced child additions already included transitionally proteced child additions already included before April 2003 when Child Tax Credits were first before April 2003 when Child Tax Credits were first introducedintroduced

You cannot be paid C.A. If you already receive the same You cannot be paid C.A. If you already receive the same amount or more from any of the following benefits, Severe amount or more from any of the following benefits, Severe Disablement Allowance, Incapacity Benefit, Contributory Disablement Allowance, Incapacity Benefit, Contributory Employment Support Allowance, Employment Support Allowance, Contribution Based JobseekersContribution Based Jobseekers, State Training Allowance, , State Training Allowance, Unemployability Supplement, Retirement Pension, or Unemployability Supplement, Retirement Pension, or Widows Benefits.Widows Benefits.

The C.A. Rules allow breaks in care of up to 12 weeks The C.A. Rules allow breaks in care of up to 12 weeks within any six month period without you losing payment of within any six month period without you losing payment of C.A. Up to 4 weeks can be for any temporary breaks in C.A. Up to 4 weeks can be for any temporary breaks in care, such as holidays or respite care, during this 4 week care, such as holidays or respite care, during this 4 week temporary break in care temporary break in care you areyou are allowed to earn over the allowed to earn over the normal £100 weekly limit on earnings and normal £100 weekly limit on earnings and not losenot lose your your C.A. The remaining 8 weeks allow for either the carer or C.A. The remaining 8 weeks allow for either the carer or the disabled person to undergo medical or other treatment the disabled person to undergo medical or other treatment as an in- patient in hospital. as an in- patient in hospital.

Note that if the disabled person is in hospital for over four Note that if the disabled person is in hospital for over four weeks, or for children 12 weeks, they will lose their weeks, or for children 12 weeks, they will lose their qualifying benefit for you to be able to claim C.A., so your qualifying benefit for you to be able to claim C.A., so your C.A. could be stopped sooner than 12 weeks. If you go into C.A. could be stopped sooner than 12 weeks. If you go into hospital your C.A. will continue for 12 weeks as long as you hospital your C.A. will continue for 12 weeks as long as you have not already had time off during the last six months.have not already had time off during the last six months.

If you were entitled to C.A. before the date you claim and If you were entitled to C.A. before the date you claim and can show that you meet all the qualifying conditions then can show that you meet all the qualifying conditions then C.A. can be backdated for up to three months. C.A. can be backdated for up to three months.

If the person you care for has claimed or is trying to If the person you care for has claimed or is trying to increase their existing increase their existing Attendance Allowance (AA)Attendance Allowance (AA) or  or Disability Living Allowance (D.L.A)Disability Living Allowance (D.L.A) award but is still waiting  award but is still waiting for a decision you will have three months from the letter for a decision you will have three months from the letter awarding the qualifying benefit or increase to claim Carers awarding the qualifying benefit or increase to claim Carers Allowance and it will still be fully backdated to the original Allowance and it will still be fully backdated to the original date date D.L.AD.L.A or or A.AA.A was first award or increased even if this  was first award or increased even if this a lot more than three months ago.a lot more than three months ago.

Employment Support AllowanceEmployment Support Allowance

Employment and Support Allowance (ESA) is a new benefit Employment and Support Allowance (ESA) is a new benefit that has replaced that has replaced Incapacity Benefit (IB)Incapacity Benefit (IB) and and Income Support (IS)Income Support (IS) paid on the grounds of ill-health or paid on the grounds of ill-health or disability.  Introduced from 27th October 2008.disability.  Introduced from 27th October 2008.

What is Employment Support Allowance?What is Employment Support Allowance?

ESA will have a new structure that has both a contributory ESA will have a new structure that has both a contributory element and a means-tested element, very similar to element and a means-tested element, very similar to Incapacity Benefit (IB)Incapacity Benefit (IB) and  and Income Support (IS)Income Support (IS) paid paid previously or now for some with transitional protection.previously or now for some with transitional protection.

The test of entitlement to the contributory element The test of entitlement to the contributory element will be similar to that currently used for will be similar to that currently used for Incapacity Benefit (IB)Incapacity Benefit (IB), i.e. sufficient national , i.e. sufficient national insurance contributions paid in previous years.insurance contributions paid in previous years.

The test of entitlement for the means-tested The test of entitlement for the means-tested element will be similar to that currently used for element will be similar to that currently used for Income Support (IS)Income Support (IS) now i.e. a means tested / now i.e. a means tested / income-based assessment.income-based assessment.

ESA RatesESA Rates

There will be a 13-week assessment phase for all new ESA There will be a 13-week assessment phase for all new ESA claimants. During this period, claimants aged over 25 years will claimants. During this period, claimants aged over 25 years will be paid an 'assessment phase' rate of ESA, equivalent to the be paid an 'assessment phase' rate of ESA, equivalent to the weekly rate of weekly rate of Jobseekers AllowanceJobseekers Allowance payable for people aged payable for people aged over 25 (Currently £71). For those under 25, a reduced weekly over 25 (Currently £71). For those under 25, a reduced weekly rate of ESA will be payable, again in line with rate of ESA will be payable, again in line with Jobseekers AllowanceJobseekers Allowance rates (£56.25 for under 25 year old rate). rates (£56.25 for under 25 year old rate).

After the 13-week assessment phase, there will be an additional After the 13-week assessment phase, there will be an additional element payable on top of the basic rate of ESA. Claimants element payable on top of the basic rate of ESA. Claimants placed in the 'support group' will receive a slightly higher element placed in the 'support group' will receive a slightly higher element than claimants in the 'work-related activity group'. The support than claimants in the 'work-related activity group'. The support component is worth £34.05 per week and the work-related component is worth £34.05 per week and the work-related activity component is worth £28.15 per week. There are no activity component is worth £28.15 per week. There are no increases in these components for couples.increases in these components for couples.

Claimants under 25 years that have completed the 13-Claimants under 25 years that have completed the 13-week assessment phase will receive the full basic ESA rate week assessment phase will receive the full basic ESA rate rather than the reduced amounts payable in the rather than the reduced amounts payable in the assessment phase referred to above.assessment phase referred to above.

For claimants with partners? Additions are still For claimants with partners? Additions are still available under the new means tested ESA system, as well available under the new means tested ESA system, as well as various premiums such as the Severe Disability as various premiums such as the Severe Disability Premium, Pensioner Premium, Carer Premium and Premium, Pensioner Premium, Carer Premium and Enhanced Disability Premium, currently payable with Enhanced Disability Premium, currently payable with Income Support (IS)Income Support (IS)..

Housing costs (mortgage interest) will also be paid where Housing costs (mortgage interest) will also be paid where appropriate in means tested ESA.appropriate in means tested ESA.

All new ESA claimants will have to serve the 13-week All new ESA claimants will have to serve the 13-week assessment phase, before moving onto the higher rates of assessment phase, before moving onto the higher rates of ESA, regardless of their circumstances, except in cases ESA, regardless of their circumstances, except in cases where the claimant has a terminal illness who will go where the claimant has a terminal illness who will go straight to the main phase rates.straight to the main phase rates.

ESA only increases after 13 weeks once the medical test ESA only increases after 13 weeks once the medical test has been passed, this could be a lot later than 13 weeks, has been passed, this could be a lot later than 13 weeks, the extra amount due will be backdated.the extra amount due will be backdated.

Contribution conditions for ESA (CB)Contribution conditions for ESA (CB)

The first contribution condition for Employment The first contribution condition for Employment Support Allowance Contributory (ESA CB) is that you Support Allowance Contributory (ESA CB) is that you must have actually paid or treated as paid 26 weeks must have actually paid or treated as paid 26 weeks Class 1 or class 2 national insurance contributions on Class 1 or class 2 national insurance contributions on earnings at the lower earnings limit in one of the last earnings at the lower earnings limit in one of the last three tax years before you claim. three tax years before you claim.

The second contribution condition is that you must The second contribution condition is that you must either have paid or been credited with class 1 or class either have paid or been credited with class 1 or class 2 contributions on earnings of 50 times the lower 2 contributions on earnings of 50 times the lower earnings limit in each of the last two tax years before earnings limit in each of the last two tax years before you claim. you claim.

However, you may be able to satisfy this first However, you may be able to satisfy this first contribution condition with contributions paid in contribution condition with contributions paid in any tax year, if you haven’t been able to pay any tax year, if you haven’t been able to pay contributions recently – contributions recently –

For example, because you were getting Carer’s For example, because you were getting Carer’s Allowance or Incapacity Benefit, or if you were Allowance or Incapacity Benefit, or if you were getting Working Tax Credit with a disability getting Working Tax Credit with a disability element before you became incapable of work.element before you became incapable of work.

Lower earnings limits?Lower earnings limits?

2009/10 contributions on earnings at £4,7502009/10 contributions on earnings at £4,7502010/11 contributions on earnings at £4,8502010/11 contributions on earnings at £4,850

Jobseekers AllowanceJobseekers Allowance

The Jobseekers must either satisfy the Contribution-based The Jobseekers must either satisfy the Contribution-based conditions or the means tested Income-based conditions conditions or the means tested Income-based conditions for the benefit to be payable.for the benefit to be payable.

Taxable:Taxable:

The Jobseeker's Allowance personal allowance is taxable, The Jobseeker's Allowance personal allowance is taxable, any amounts payable above the personal rate are not any amounts payable above the personal rate are not taxable, e.g. Premiums for children.taxable, e.g. Premiums for children.

Jobseeker's Allowance is paid to unemployed people or Jobseeker's Allowance is paid to unemployed people or people who work under 16 hours and their earnings are people who work under 16 hours and their earnings are low.low.

An unemployed person will be entitled to a Jobseeker's An unemployed person will be entitled to a Jobseeker's Allowance if they:Allowance if they:

* Are available for employment;* Are available for employment;* Have entered into a Jobseeker's agreement;* Have entered into a Jobseeker's agreement;* Are actively seeking employment;* Are actively seeking employment;* Satisfy the contribution-based conditions or the income-* Satisfy the contribution-based conditions or the income-based conditions;based conditions;* Are not engaged in remunerative work;* Are not engaged in remunerative work;* Are capable of work;* Are capable of work;* Are not receiving relevant education;* Are not receiving relevant education;* Are under pension age.* Are under pension age.

Contribution-based Jobseeker's Allowance will be limited to Contribution-based Jobseeker's Allowance will be limited to six months.six months.

Income-based Jobseeker's Allowance will be paid for as Income-based Jobseeker's Allowance will be paid for as long as the person's income is less than the applicable long as the person's income is less than the applicable amount and the conditions for benefit are met.amount and the conditions for benefit are met.

People who are working for, on average, 16 hours or more People who are working for, on average, 16 hours or more a week (24 hours or more in the case of partners in a week (24 hours or more in the case of partners in Jobseeker's Allowance (Income based)) are not normally Jobseeker's Allowance (Income based)) are not normally eligible for Jobseeker's Allowance.eligible for Jobseeker's Allowance.

New claims after April 04 will need to claim New claims after April 04 will need to claim additions for children via additions for children via Child Tax CreditsChild Tax Credits..

Housing costs (mortgage) will also be paid where Housing costs (mortgage) will also be paid where appropriate, from January 2009 this help is limited appropriate, from January 2009 this help is limited to 2 years.to 2 years.

Recipients of Jobseeker's Allowance (Income Recipients of Jobseeker's Allowance (Income based) will normally qualify for full-rate Housing based) will normally qualify for full-rate Housing Benefit without having to complete a separate Benefit without having to complete a separate

means test.means test.

Contribution conditions for JSA (CB)Contribution conditions for JSA (CB)

The first contribution condition for Jobseekers The first contribution condition for Jobseekers Allowance Contributory (JSA CB) is that you must Allowance Contributory (JSA CB) is that you must have actually paid or treated as paid 26 weeks Class 1 have actually paid or treated as paid 26 weeks Class 1 national insurance contributions on earnings at the national insurance contributions on earnings at the lower earnings limit in one of the last three tax years lower earnings limit in one of the last three tax years before you claim. before you claim.

The second contribution condition is that you must The second contribution condition is that you must either have paid or been credited with class 1 either have paid or been credited with class 1 contributions on earnings of 50 times the lower contributions on earnings of 50 times the lower earnings limit in each of the last two tax years before earnings limit in each of the last two tax years before you claim. you claim.

Lower earnings limits?Lower earnings limits?

2009/10 contributions on earnings at £4,7502009/10 contributions on earnings at £4,7502010/11 contributions on earnings at £4,8502010/11 contributions on earnings at £4,850

If you do not meet the contribution conditions If you do not meet the contribution conditions for contributory JSA, you may still qualify for for contributory JSA, you may still qualify for income-related JSA if your income and capital income-related JSA if your income and capital are low enough.are low enough.

Working Tax CreditsWorking Tax Credits

You can apply for two tax credits, Child Tax Credit and You can apply for two tax credits, Child Tax Credit and Working Tax Credit.Working Tax Credit.

The general rule is that to qualify for tax credits you must The general rule is that to qualify for tax credits you must be aged 16 or over and usually live in the United Kingdom.be aged 16 or over and usually live in the United Kingdom.

Couples must make a joint tax credits application. If you Couples must make a joint tax credits application. If you are part of a couple, you cannot decide to apply as a single are part of a couple, you cannot decide to apply as a single person.person.

Working Tax Credit is for people who are employed or self-Working Tax Credit is for people who are employed or self-employed (either on their own or in a partnership), who employed (either on their own or in a partnership), who usually work 16 hours or more a week, and expect to work usually work 16 hours or more a week, and expect to work for at least 4 weeks and who are – for at least 4 weeks and who are –

A single parent aged 16 or over and responsible for at least A single parent aged 16 or over and responsible for at least one child one child

Aged 16 or over and disabled Aged 16 or over and disabled

Over 60 with no children Over 60 with no children

Most couple with children now need 24 hours weekly.Most couple with children now need 24 hours weekly.

Others usually need to work at least 30 hours a week.Others usually need to work at least 30 hours a week.

Working Tax Credit is paid to the person who is working 16 Working Tax Credit is paid to the person who is working 16 hours or more a week. hours or more a week.

Couples, if both of you are working 16 hours or more a Couples, if both of you are working 16 hours or more a week, you must choose which one of you will receive it. week, you must choose which one of you will receive it.

You should not receive Working Tax Credit if you are NOT You should not receive Working Tax Credit if you are NOT working 16 hours at the date of claim and should NOT keep working 16 hours at the date of claim and should NOT keep it if you stop working less than 16 hours after being it if you stop working less than 16 hours after being awarded it, although new rules from January 2008 allow it awarded it, although new rules from January 2008 allow it to be paid for four weeks after you stop working.to be paid for four weeks after you stop working.

People on Statutory Sick Pay (SSP), Maternity Benefits People on Statutory Sick Pay (SSP), Maternity Benefits and parental benefits can keep it while not workingand parental benefits can keep it while not working

Child Tax Credit is for people who are responsible for at Child Tax Credit is for people who are responsible for at least one child or qualifying young person. least one child or qualifying young person.

Child Tax Credit is paid if you work or not, and is paid direct Child Tax Credit is paid if you work or not, and is paid direct to the person who is mainly responsible for caring for the to the person who is mainly responsible for caring for the child or children. If you are a lone parent you will receive child or children. If you are a lone parent you will receive the payment.the payment.

As part of Working Tax Credit you may qualify for help As part of Working Tax Credit you may qualify for help towards the costs of childcare. If you receive the childcare towards the costs of childcare. If you receive the childcare element of Working Tax Credit, this will always be paid element of Working Tax Credit, this will always be paid direct to the person who is mainly responsible for caring for direct to the person who is mainly responsible for caring for the child or children, alongside payments of Child Tax the child or children, alongside payments of Child Tax Credit.Credit.

The amount of tax credits you receive will depend on your The amount of tax credits you receive will depend on your annual income from the previous year April - April.annual income from the previous year April - April.

You are allowed to earn over this previous years income by You are allowed to earn over this previous years income by £10,000 without this extra amount effecting the on-going £10,000 without this extra amount effecting the on-going award, as long as this previous years income was award, as long as this previous years income was NOTNOT an an estimate given by you.estimate given by you.

However anything extra over this £10,000 will reduce your However anything extra over this £10,000 will reduce your entitlements for this year. entitlements for this year.

It will be noticed when the Inland Revenue re-calculate It will be noticed when the Inland Revenue re-calculate your next award from next April, this could result in an your next award from next April, this could result in an overpayment.overpayment.

Benefit capBenefit cap

From April 2013 a cap will be introduced on the From April 2013 a cap will be introduced on the total amount of benefit that working age people total amount of benefit that working age people can receive. can receive.

This will mean that workless households should no This will mean that workless households should no longer receive more in benefits than the average longer receive more in benefits than the average earnings of working households. earnings of working households.

The cap will be administered jointly by DWP and The cap will be administered jointly by DWP and local authorities through deductions from Housing local authorities through deductions from Housing Benefit payments. In the longer term it will form Benefit payments. In the longer term it will form

part of the new part of the new Universal CreditUniversal Credit system. system.

What is the benefit cap?What is the benefit cap?

The benefit cap will mean that working age people can't The benefit cap will mean that working age people can't receive more than a set amount in benefits, even if they receive more than a set amount in benefits, even if they would otherwise be entitled. would otherwise be entitled.

The cap will be set at the average net earned income of The cap will be set at the average net earned income of working households. working households.

This is estimated currently to be £350 per week for a single This is estimated currently to be £350 per week for a single adult with no children and £500 per week for a couple or adult with no children and £500 per week for a couple or lone parent.lone parent.

How will the cap be applied?How will the cap be applied?

When the cap is brought in it will be applied via the Housing When the cap is brought in it will be applied via the Housing Benefit system, so will be administered by Local Benefit system, so will be administered by Local Authorities. Authorities.

This means the effect of applying the cap will depend This means the effect of applying the cap will depend entirely on a household's Housing Benefit entitlement.entirely on a household's Housing Benefit entitlement.

A household receiving enough Housing Benefit to A household receiving enough Housing Benefit to apply the cap in full:apply the cap in full:

If a household is £50 per week above the benefit cap level, If a household is £50 per week above the benefit cap level, after income from all appropriate benefits are added after income from all appropriate benefits are added together, their Housing Benefit award will be reduced by together, their Housing Benefit award will be reduced by £50 per week to bring them within the benefit cap.£50 per week to bring them within the benefit cap.

A household not receiving enough Housing Benefit to A household not receiving enough Housing Benefit to apply the cap in full:apply the cap in full:

If a household is £50 per week above the benefit cap level, If a household is £50 per week above the benefit cap level, but receive less than £50 per week in Housing Benefit, their but receive less than £50 per week in Housing Benefit, their Housing Benefit award will be reduced so just 50p remains.Housing Benefit award will be reduced so just 50p remains.

This means the household could still receive income from This means the household could still receive income from benefits which is higher than the benefit cap level.benefits which is higher than the benefit cap level.

A household receiving no Housing Benefit:A household receiving no Housing Benefit:

Some households may receive no Housing Benefit but still Some households may receive no Housing Benefit but still exceed the benefit cap level. These households will exceed the benefit cap level. These households will not have their benefit income reduced as the cap cannot be not have their benefit income reduced as the cap cannot be applied.applied.

Once Once Universal CreditUniversal Credit is brought in (October 2013 pilot starts) is brought in (October 2013 pilot starts) the benefit cap will be applied by restricting the Universal Credit the benefit cap will be applied by restricting the Universal Credit payment. payment.

This will enable all households affected to be capped in full.This will enable all households affected to be capped in full.

Broadly, the cap will affect large families with several children Broadly, the cap will affect large families with several children who are potentially in receipt of higher than average amounts of who are potentially in receipt of higher than average amounts of Child Tax Credit and are more likely to live in larger Child Tax Credit and are more likely to live in larger homes meaning more Housing Benefit.homes meaning more Housing Benefit.

It is estimated that 27% of households affected will have 5 or It is estimated that 27% of households affected will have 5 or more children. 69% will have 3 or more children.more children. 69% will have 3 or more children.

However, smaller households may still be affected if they live in However, smaller households may still be affected if they live in high rent areas and are therefore receiving larger amounts high rent areas and are therefore receiving larger amounts

in Housing Benefit.in Housing Benefit.

•Which benefits are included in the cap?Which benefits are included in the cap?

To work out if you are within the benefit cap the To work out if you are within the benefit cap the Department for Work and Pensions (DWP) will add Department for Work and Pensions (DWP) will add together your income from the following benefits:together your income from the following benefits:

Bereavement AllowanceBereavement Allowance, , Carer'sCarer's Allowance Allowance, , Child BenefitChild Benefit, , Child Tax CreditChild Tax Credit, , Employment and Support AllowanceEmployment and Support Allowance (except when in the support group), (except when in the support group), Guardian's AllowanceGuardian's Allowance Housing Benefit (HB), Housing Benefit (HB), Income SupportIncome Support, , Industrial Injuries Disablement BenefitIndustrial Injuries Disablement Benefit (except when getting  (except when getting Constant Attendance AllowanceConstant Attendance Allowance), ), Jobseeker's AllowanceJobseeker's Allowance, , Maternity AllowanceMaternity Allowance, , Reduced Earnings AllowanceReduced Earnings Allowance, , Severe Disablement Allowance, Universal Credit, Severe Disablement Allowance, Universal Credit, Widowed Parent's AllowanceWidowed Parent's Allowance

Households that aren't affected by the cap?Households that aren't affected by the cap?          The cap won’t apply to households where a partner or any The cap won’t apply to households where a partner or any dependant child qualify for Working Tax Credit or receive dependant child qualify for Working Tax Credit or receive any of the following:any of the following:

Disability Living Allowance Disability Living Allowance Personal Independence Payment Personal Independence Payment Attendance Allowance Attendance Allowance Constant Attendance Allowance Constant Attendance Allowance Employment Support Allowance with support component Employment Support Allowance with support component Armed Forces Compensation Scheme payments Armed Forces Compensation Scheme payments War Pension Scheme payments (including War War Pension Scheme payments (including War Widow’s/Widower’s Pension and War disablement Widow’s/Widower’s Pension and War disablement Pension).Pension).

Or Or

If you become unemployed after being employed for 12 If you become unemployed after being employed for 12 months continuously prior to claiming benefits, and you lost months continuously prior to claiming benefits, and you lost your job through no fault of your own. your job through no fault of your own.

In this case the household receives 9 months protection In this case the household receives 9 months protection from cap. from cap.

To date there is no current definition for what constitutes To date there is no current definition for what constitutes employment.employment.