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A guide to benefits; please read before posting.
alwaysonthego_2
Posts: 8,432 Forumite
Hi, the Board guides have decided to compile a benefits guide to help posters understand benefits more easily.
If any poster would like us to include any information or believe that any part of it needs updating please email one of the Benefit and Tax Credit Board Guides.
Please note this is a working progress
If anyone would like to contribute and write one of the guides please let me know, obviously you will be acknowledged.
Update on the budget
Benefits
If any poster would like us to include any information or believe that any part of it needs updating please email one of the Benefit and Tax Credit Board Guides.
Please note this is a working progress
If anyone would like to contribute and write one of the guides please let me know, obviously you will be acknowledged.
Update on the budget
Benefits
- child benefit will be frozen for the next three years
- single parents will be required to look for work when their youngest child goes to school
- housing benefit will be limited to a maximum of £280 per week for a one-bedroom property and £400 per week for a four-bedroom house
- a package of cuts to housing benefit from April 2011
- health in pregnancy grant will be abolished from April 2011
- sure start maternity grant will be restricted to the first child only
- from 2013, a medical assessment will be applied to new and existing disability living allowance claimants
- the increase in state pension age to 66 will be accelerated
- benefits and tax credits, except for state pension and pension credit, will rise in line with consumer prices rather than retail prices
- from April 2011, basic state pension will rise in line with earnings, prices or a 2.5 per cent increase, whichever is the greater
- payments to families earning over £40,000 to be reduced next year
- an increase in the taper rate at which awards are reduced
- from April 2011, the baby element for new children will be removed
- from April 2012, the one-off payment to new workers over 50 will be removed
- a reduction in the income disregard from £25,000 to £10,000, and then £5,000
- the introduction of an income disregard for income falls
- backdating reduced from three months to one month
- from April 2011, the threshold at which employers start to pay national insurance will rise by £21 per week above indexation
- anyone who sets up a new business outside London, the south-east and east of England will be exempt from up to £5,000 of national insurance contributions for each of the first ten employees they hire
- from April 2011, the tax free personal allowance will rise by £1,000 for people under 65
- the higher rate income tax threshold will remain frozen to 2013/14
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Comments
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Acronyms
AA Attendance Allowance
CA Carers allowance
CAB Citizens Advice Bureau
CB Child Benefit
CTB Council Tax Benefit
CTC Child Tax Credits
DLA Disabilty Living Allowance
DM Decision Maker
DMG Decision maker's Guide
DWP Department for Work and Pensions
ESA Employment Support Allowance
GA Guardian's Allowance
HB Housing Benefit
HIP Health in Pregnancy Grant
HS Healthy Start
IBESAIncome based employment support allowance.
IB Incapacity Benefit
IS Income Support
JCP Job Centre Plus
JSA Job seekers allowance
LA Local Authority
LHA Local Housing Allowance
MA Maternity Allowance
NICs National Insurance Contributions
PC Pension credits
SDA Severe disablement allowance
SDP Severe disability premium
SMG Sure Start Maternity Grant
SMI Statutory Mortgage Interest
SMP Statutory Maternity Pay
SP State pension
SPP Statutory Paternity pay
SSP Statutory Sickness Pay
TC Tax Credits
TCO Tax Credit Office
WTC Working Tax Credits
WP Widow's Pension
Index to other guides
Benefits abroad
Benefit disregards
benefits and epilepsy
Bereavement allowance
Bereavement payment
Earnings disregards
Extended payments [housing costs]
Free school meals [England and Wales]
Help with health costs
In work credit
Job Grant
Overlapping benefits
Return to work credit
Self-employment credit
Tax credit overpayments information
Widowed parent's allowance0 -
Attendance Allowance
Who can apply
For over 65s who have care needs.
A non-means tested benefit and it has no impact on any other benefits and is not counted as income.
Claimants should need frequent help with personal care issues such as toileting, dressing, washing, eating and supervision to avoid harm to themselves and others.
You must have had the care needs for 6 months before a claim can be made (special rules for terminal illness).
To claim call 0800 055 66 88
More information0 -
Carer's Allowance
An applicant should be caring for an individual who recieves Attendance Allowance or Disabilty Living allowance care component at either middle or higher rate.
The applicant must be over 16 years.
They must not study more than 21 hours per week (direct tuition and time spent on the course work at home is counted within these hours)
They can earn up to £100 per week on average.
It is classed as income for other benefits and is an overlapping benefit.
Carer's Allowance will be paid up to;
12 weeks if you're in hospital;
4 weeks for any other reason such as a holiday.
It can be paid for 8 weeks after the death of the person who is being looked after.
To claim call 01253 856123 or 0800 055 66 88 (JCP)
More information0 -
Child Benefit
For parents with qualifying children. It is non-means tested and is not dependent on income.
First child = 20.20 per week
other children = £13.40
Qualifying young people
Education
Studying more than 12 hours on a non-advanced course up to level 3 (A Levels or NVQ3) or Scottish Level 2 NVQ.
Approved Training
On specified non-paid vocational training arranged by the government.
Who can claim
a) For children under 16
b) aged 16 who has left education or training until the 31st August following the child's 16th birthday whether they attend school or not.
c) Aged 16 or 17
recently left education or training and;
registered for work, education or training with an approved organisation and is within the child benefit extension period [starts on the monday after the education or training stops and lasts for 20 weeks or up until their 18th birthday, which ever is earliest].
d) aged 16 or over but under 20 and in full time education or approved training.
e)Aged 16 or over and under 20 and has completed a full time non-advanced education course or approved training and is enrolled or accepted on a continuing course before their 19th birthday.
You cannot claim CB if YOUR CHILD IS;
married or in a civil partnership
cohibiating, unless their partner is in relevant education or approved training
getting IB, IBESA, IS, IBJSA or WTC
In prison.
To claim you will usually get a application form in your Bounty pack given by the midwife or call 0845 302 1474
Further information0 -
acknowledged- hippy-chicy
Council Tax Benefit
You must be liable to pay council tax. (full time students are not eligible to pay council tax, people under the age of 18 etc)`
You must have less than £16000 in savings or capital, unless you are claiming guaranteed Pension Credits and your savings are totally disregarded.
Council tax benefit is means-tested and dependent on your household income and capital.
For working age (Under 60)
You can have up to £6000 in savings and capital before CTB is reduced by £1 for every £250 or part of above that amount.
For Pension age (over 60)
You can have up to £10 000 in savings and capital before CTB is reduced by £1 for every £500 or part of above that amount.
If you are the only adult in the household you get a 25% discount off the council tax bill.
Second Adult Rebate
Second adult rebate is awarded when a person has a second adult living in their home who has a low income. Second adult rebate can reduce your council tax bill by a maximum of 25%.
The rules for claiming second adult rebate differ from that of main council tax benefit because the income and capital of the claimant is not taken into account. It is the income and capital of the second adult(s) that is counted.A second adult is somebody who is 18 or over and who is living in your household on a non-commercial basis.
A second adult can be:
an adult son or daughter
a relative
a friend
A second adult cannot be:
a partner
a tenant/boarder/lodger
a joint tenant
a person who is disregarded for council tax purposes.
How to claim
Get an application form from your local authority .
more information0 -
Tax Credits
Tax credits are worked out on the previous tax year's income. You will avoid any overpayments as long as you notify TCO if you earn more than £25000 in the current tax year than you did in the previous tax year
If your circumstances change and you are earning less money them you can ask TCO to work out your entitlement on the current tax year, however be warned that if you under estimate your income then you are guaranteed to get an over payment, make sure you over estimate to be on the safe side.
If you are claiming disabilty benefits you maybe entitled to extra disabilty premiums.
You must notify TCO when; [you need to do this within 28 days]
you become single or part of a couple
your hours become lower than the 16 or 30 hours you need to work to be entitled
the number of children you have responsibilty of changes.
A child is no longer eligible for support [i.e if they leave full time education before they are 20]
What income is counted for TC
Employment income before tax
Self employment income
contribution based Benefit income
Other income
You should include the following types of other income - but only if the total was more than £300:- income from your savings before tax is taken off
- investments, such as company dividends
- pensions
- income from property
- income from trusts, settlements and estates
- foreign income
- notional income, for example, where income is available to you but you have not taken it
There are exceptions to this rule though. For the following types of other income you should include the full amount - don't deduct £300:- the Adult Dependant's Grant paid to you if you are a student
- miscellaneous income that is taxable
Don't include:- maintenance payments received from a former partner
- tax credit payments
- student loans
- student grants, except the Adult Dependant's Grant
- income your children have had, unless it's taxable in your or your partner's name
- the Christmas Bonus and the Winter Fuel Payment
- income from tax-free savings such as Individual Savings Accounts (ISAs), Personal Equity Plans (PEPs), index-linked and fixed-interest National Savings Certificates, Children's Bonus Bonds war pensions
- pensions or annuities paid to victims of Nazi persecution
Who can claim
If you have a child/children or a disabilty that puts you at a disadvantage of getting a job* you must be over 16. You must work at least 16 hours per week and if you are part of a couple only one of you have to work the 16 hours to be eligible, however you can combined your hours [both have to work at least 16 hours] to make them up to 30 hours.
* You have to satisfy two tests;
disabilty test - provides a number of descriptors relating to perform a range of activitites.
benefit test - is the claimant recieving IB, ESA or DLA.
If you do not have a disabilty or children you have to be 25 or over. You need to work at least 30 hours a week.
There are different salary cut off points depending on your personal circumstances i.e a single person, with no dependent children is alot lower then a couple with children.
If you are claiming SMP or MA you are still entitled to claim WTC until 39 weeks. When calculating your income for WTC which claiming MA and SMP, MA is totally disregarded and for SMP you deduct £100 per week only declaring the left over amount.
You are entitled to WTC if you are claiming SSP.
Childcare element - up to 80% of eligible childcare costs up to £175 for one child or £300 weekly for more than one child.
For children up to the september following their 15th birthday or after their 16th birthday if they are disabled.
Relevant childcare is; registered childcare providers such as nurseries, out of school clubs and child minders.
Who is entitled to claim it
For a couple both have to work 16 hours each per week; unless one of the couple is incapacitated and only one of the couple has to work 16 hours.
A single person has to work 16 hours each per week
Child Tax Credits
You must be at least 16 years old to claim CTC.
If you are part of a couple you must make a joint claim.
A child is included in the claim up until 31st August following their 16 th birthday or up to 20 if they are in full time education or on work based training.
You do not have to work to be entitled to CTC.
Elements of CTC
£545 family element
£545 baby element [paid until baby's first birthday].
£2300 child element per child
£2715 disabled child element for each child who claims DLA or is registered blind.
£1095 severely disabled child element for each child on the highest component for care in DLA.
All of these elements are reduced dependent on household income
How to claim
Ring 0845 300 39000 -
Disabilty Living Allowance
Who can claim?
You have to be under 65 year and have mobilty and/or care needs ; it does not take into consideration the name of the illness.
non-means tested benefit so is not treated as income for other benefits and is not dependent on the claimants own capital or income.
Once awarded the claimant can stay on DLA once over 65 years.
Care component
Lower care component
If you are over 16 and need help to prepare a cooked meal or need help with care needs for part of the day.
Middle or higher care component
Claimants should need frequent help with personal care issues such as toileting, dressing, washing, eating and supervision to avoid harm to themselves and others.
Special rules apply to claimants on renal dialysis; for middle care component you must undergo dialysis 2 or more times a week and require the supervison of another person because of the type of dialysis.
Mobility component
The higher rate can be claimed by disabled children from the age of 3 and the lower rate from the age of 5
The higher rate is paid if;
you are unable to walk because of a physical disabilty, or
you are virtually unable to walk because of a physical disability, or
the extertion is required to walk would constitute a danger to oyur health, or
you have no legs or feet, or
you are both deaf and blind and need hwlp outdoors, or
you get high rat DLA care component and you are severely mentally impared with severe behavioural problems.
For lower rate;
if you need guidance or supervision from someone else most of the time walking outdoors on routes you are not familiar with.
How to Claim
0800 055 66 88
0800 88 22 00
Once you recieve your form, there will be a date on the front of it when the forms to needs to be returned by.
It is recommended that you include as much evidence with your form as possible such as a doctor's letter and copies of prescriptions.
More information
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Special acknowledgment to healy
Employment Support Allowance
Who can claim
If you are unable to work or have a limited capacity to work because of a disabilty or illness.
ESA replaces IB for new claimants.
Income based ESA- based on household income and savings.
Working less than 16 hours a week and your partner must be working less than 24.
You must study less than 16 hours a week, unless you get DLA.
Contribution based ESA - is dependent on NICS;
you must have paid contribution at least 25 times the lower earnings limit in one of the last three tax years, and
paid or been credited with contributions at least 50 times the lower earnings limit during both relevant years
[Relevant years= 2007-2008 and 2008-2009]
There are special rules for some disabled people who claim wtc.
or; you were aged under 20, or in some cases 25, when your period of limited capability for work began and you had limited capabilty for work for 196 days.
The work capabilty assessment
Weeks 1-13 of your claim.
You are paid a basic allowance.
You could be entitled to severe disabilty, enhanced disabilty, carer or pensioner premiums dependent on your personal circumstances.
1) Limited capability for work assessment
This decides whether you are entitled to claim ESA, if you are turned down you will have to claim JSA.
The assessment looks at a series of activities and you are given points, if your total reaches at least 15 then you are assessed as having a limited capability for work and are entitled to ESA.
Reference
The conditions for being exempt from the ESA medical are:
You are terminally ill and your death can reasonably be expected within 6 months.
You are receiving, or recovering from receiving, intravenous, intraperitoneal or intrathecal chemotherapy.
You have a notifiable disease or have been in contact with someone with a notifiable disease.
You are a pregnant woman and there is a serious risk of damage to your health or to the health of your unborn child if you do not refrain from work.
You are a pregnant woman entitled to maternity allowance.
You are a pregnant woman within 6 weeks of your expected confinement date or 14 days after the date of your confinement where you don't have any entitlement to maternity allowance or statutory maternity pay.
2) Limited capability for work related activity
This is the second stage.
This assessment decides whether you should go in the support group or work related activity group.
This runs from the 14 weeks of your claim.
They look at descriptors such as continence, eating and drinking, communication and mobility.
3) Work-focused health related assessment
Third stage of assessment
Compulsary if you're in the Work related activity group
Assessment is conducted by a medical person in an assessment centre.
If you do not participate your benefits can be sanctioned.
If you're found capable of work you can appeal the decision within 28 days.
How to claim
0800 055 66 88 (JCP)0 -
benefits and epilepsy:
A diagnosis of epilepsy can be very traumatic,and as far as benefits are concerned one of the main criteria is wether or not your condition is controlled by medication.If it is then you should be able to live and work as normal,if it isnt you maybe unable to continue in employment,if this is the case then your GP will issue a sick-note so you can claim SSP from your employer,after that you will then move to ESA(the replacement for incapacity).
Epilepsy will often give rise to care and or mobility issues and if this is the case then you should consider applying for DLA(disabilty living allowance)a benefit that can be paid if you work or not,it also is tax free and doesnt have any affect on means tested benefits(in fact it can mean getting additional payments also)
I found in the early days following my diagnosis that the National Society Epilepsy were a great help with their free advice line and great website which also includes a forum(all free) the link for this is below,of course other organisations also do great work.
http://www.epilepsysociety.org.uk/Homepage0 -
Health in Pregnancy grant
One off non-means tested tax free grant available from the 25th week of pregnancy.
Your midwife or GP need to give you a claim form and sign it to confirm that you have had health and welfare advice.
You should send this with 31 days or you could lose your payment.
For problems concerning the HIP ring 0845 366 7885
More information0
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