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R05 - 2023 > 3 - State Benefits > Flashcards

3 - State Benefits Flashcards

1
Q

Contributory benefit Definition

A

Only paid to those who have made certain National Insurance Contributions

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2
Q

Non-contributory benefit definition

A

Paid only to those with incomes or capital below a certain level

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3
Q

When was the first Universal credit rolled out for new claimants?

A

Late 2018

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4
Q

When did Universal Credit take place

A

2013 after The Welfare Reform Act 2012

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5
Q

When did Pension Act 2014 take place for new claims for bereavement

A

2017/2018

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6
Q

What did the Bereavement Support Payment replace? What year did it replace this?

A
  • Bereavement Payment
  • Widowed Parent’s Allowance
  • Bereavement Allowance

Replaced in 2017/2018 for new claims -> as part of Pensions Act 2014
Old system still in place if people have claimed before. It is for new claims

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7
Q

What year did it change for cohabiting partners (Bereavement Support Payment)

A

2023

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8
Q

Support given for Bereavement Support Payment

A

Claimants without dependent children - Lump sum of £2,500 - 18 months of £100 (paid monthly)
Claimants with dependent children - Lump sum of £3,500 - 18 months of £350 (paid monthly

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9
Q

What is the date that claims for bereavement support payment to be reduced

A

Partner died after 9th February 2023 and claim is made more than three months after partners death

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10
Q

Is the Bereveament Support Payment taxed? Does it have any impact of purposes of benefit cap, or affect any other concurrent entitlement benefits?

A

Not taxed
Not included in assessment of benefit income for purposes of benefit cap
Does not affect persons concurrent entitlement to contributio nbased - JSA or contributiory ESA

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11
Q

Welfare Reform and Pensions Act 1999 - when did it take place?
What other elements did it consist of?

A

**April 2001 - April 2017 **

Bereavement Payment
£2000 tax free

**Widowed Parents Allowance - taxable weekly benefit payable if - **
* Deceased spouse had satisfactiory NIC record or death was caused by job
* Surivivor is entitled to child benefit
* Or expecting a child from late husband

Allowance: £139.10 a week
£11.35 additional child per week
£8 a week to first child if child benefit is being paid
Child Tax Credit payments are payable if those widowed after April 2003
Additional S2P and SERPS if deceased spouse was member

Bereavement Allowance
* Taxable benefit payable for 52 weeks after partner death
* If deceased spouse/civil partner had satisfactory NIC record or death caused by job
* Surviving spouse is at least 45 at date of death
* Surviving Spouse is not entitled to widowed Parent Allowance

Allowance: £139.10 a week for those aged 55+ at death
£41.73 and £129.36) - a week for those between 45-54

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12
Q

When do Bereavement benefits cease

A

Remarriage
Cohabitation
Reaching State Pension Age

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13
Q

Is bereavement Allowance and Widowed Parent Allowance included in benefit cap

A

Yes

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14
Q

What is the criteria to receive Income related benefits

A

Capital < £16,000
Reduced by £1 a week for every £250 of savings (or part thereof) below this limit but in excess of £6,000

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15
Q

Income Support (legacy claimants) - criteria

A
  • Not in full time study (with exceptions)
  • Have low income and no more than £16,000 in savings
  • Working less than 16 hours pw or partner who works less than 24hrs pw
  • Not receiving JSA or ESA

Note only for legacy claimants - It is replaced by Universal Credit now

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16
Q

JSA Criteria

A

Fit to work, available for work, actively seeking employment and have made claimant commitment

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17
Q

New JSA pay

A

Contribution based benefit dependent on sufficient employee NICs. Not mean tested but payable for maximum six months

Weekly rates
£67.20 <25

£84.80 > 25

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18
Q

What happens after six months of New JSA and still unemployed

A

New claimants may be entitled to Universal Credit.
Legacy cliamants may have moved to income-based JSA MEANS TESTED

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19
Q

Statuory Sick Pay (SSP)

Definition. How much do they get paid? How long are they paid for

A

Unable to work due to sickness for at least 4 days or more in a row
£109.40 per week Gross earnings must be >£123per week
Only payable for 28 weeks

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20
Q

Employment and Support Allowance

What were the two original ESAs

A

**Originally **
Contribution based
Income based

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21
Q

Contribution based ESA

What are the criteria?

A

**New style ESA **
NOT MEANS TESTED
Depends on Claimant NIC history
Taxable

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22
Q

Income Based ESA

What is criteria

A

Does not depend on NIC
IS Means Tested
NOT taxable

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23
Q

How is ESA processed

Employed people
Unemployed People/Self employed people

How many phases

A

Split into 2 phases

  1. Assessment Phase (13 weeks)
  2. Main Phase

Employed People
SSP continues to apply for 28 weeks before an individual can claim ESA
Enter Assessment Phase when SSP CEASES after 28 weeks

Unemployed People Self-employed people
Enter Assessment Phase three days

Once claim has initiated 13 week assessment phase starts
Claimant paid up to £84.40 pw (lower rates <25 and higher rates to couples and those on income-related ESA)

Claimant completes questionnaire and attends assessment centre where a doctor (not their own) determines eligibility for ESA. Then the Work capability assessment determines what work they can do (if they can) (not if they are terminally ill)

Support Group
Unable to work. From wk14 receive up to £128.70 pw

Work related activity group
Since April 2017group will receive basic level payments paid to >25s during assessment phase. Same level as JSA (£84.80pw)

Extra premiums
Those who qualify for legacy income related esa receive enhanced disability premium.

24
Q

What are the conditions for work related activity group to receive benefits (ESA)

What week must they start work

A

Start from Week 8 of claim

25
Q

When are the conditions for PIP (Personal Independence Payment)

Age criteria

A

16-State pension age

26
Q

What does PIP consist of?

Two components
Is it means tested?
Based on claimants Nics?

A

Daily Living component:
Enhanced rate: £101.75
Standard rate: £68.10

Mobility Component
Enhanced Rate: £71.00
Standard Rate: £26.90

Not means tested
Not based on claimants NICs

27
Q

How can you qualify for PIP?

A

Claimants must have difficulty with activities of daily living or mobility that lasts for at least three months, and is expected to continue for nine months

Or **terminally ill ** and not expected to live for longer than six months

28
Q

How can you be eligible for Daily living component (PIP)

A
  • Eating food
  • Washing
  • Dressing
  • Managing medicines
  • Making decisions about money
29
Q

Disability living Allowance

Definition

A

Tax-free benefit for people under SPA who need personal care, help moving about or both.

Replaced by PIP (April 2013)
However because of long-term nature of some conditions some people still claim DLA rather than PIP

30
Q

DLA components

How much do they recieve as well?
Is it means tested?
Is it based on cla

A

Care Component
Highest Rate: £101.75
Middle Rate: £68.10
Lowest Rate: £26.90

Mobility Component
Highest rate: £71.00
Lower Rate: £26.90

Not means tested
Not based on claimants NICs

31
Q

Criteria for DLA

A

Individual must satisfy criteria for three months and likely to do for further six months

Payment suspended of care element if claimaint is admitted to a hospital or care home financed by state for more than four weeks. Mobility component will continue

Terminally ill people qualify without satisfying three month rule

32
Q

Attendance Allowance criteria

A

Attendance Allowance is payable to people aged over SPA who suffer from disability for six months or longer

33
Q

Key facts about Attendance Allowance

Means tested? Nics? When does it stop?

A

Not taxed
Paid on top of other benefits and not means tested
Not based on NICs
Not available while a person in NHS or state funded home

Stops after four weeks if in state funded home (same as care componenet of DLA)

34
Q

Carer’s Allowance

Definition, criteria

A

Taxable benefit for those who spend time caring for someone severley disabled who receives DLA, PIP or Attendance Allowance

Carer must not have earnings more than £139 nor full time education

35
Q

Child Benefit - What is it

Payment, is it means tested? Tax? Contributory?

A

For a child under age of 16 or who is aged under 20 and in full time education.

Payment for first child is £24.00
Subsequent £15.90

Non contributory
Not means tested
Tax free

36
Q

High income Child benefit

Criteria

A

For those who over £50,000 (Household)

1% of child benefit for every £100 that exceeds £50,000
If income is £60,000 -> tax will be equivalent to value of child benefit (cancels out)

The primary caregiver will still receive claim but higher earner will be liable for the tax so technically not means-tested

37
Q

Child Tax credit

Definition, how much can they receive

A

Children living with parents aged under 16 or between 16-19 and in full time education can claim family element of CTC worth up to £545 (if child is born prior to April 2017

In addition, eligible parents can receive the child element at a rate of £3,235 per child

38
Q

Child Tax credit disabled children

How much can they receive

A

Extra payment of £3,905 for each disabled child
Extra payment of £1575 for severley disabled child

39
Q

How many children can you have for Child Tax credit

A

2 after April 2017, before this claims for children will still be paid

40
Q

How is the tax credit reduced for child tax credit?

A

Reduced by 41p for every £1 over £18,725

41
Q

Can tax Credits and Universal Credit be claimed at the same time

A

NO

42
Q

Working Tax credit

Definition

A

Payment to top up earnings of working people on low incomes including those who do not have children

43
Q

Working Tax credit criteria

A
  • Those responsible for child, 16+ and work 16 hours a week
  • Without children, 25+, work 30+ hours a week
  • Without children, 16+, 16+ hours a week and disabled
44
Q

Who is Tax Credit paid by? (Working and Child Tax)

A

HMRC

45
Q

Housing Benefit

A

Means tested to help those in rented accomodation

46
Q

Criteria for housing benefit

A

35, single and no children - limited to cost of renting a room in shared house
18-21 not automatically entitled to claim unless they have a child, vulnearble or have worked for at least six months prior to making claim
Has to be cheapest 30% of accomodation in area for private rent accomodation
Utility may not be included

47
Q

Housing benefit and JSA/ Income based ESA

A

If claimant has other means-tested benefits, they are more likely to claim housing benefit. However limited to benefit cap. If exceeding Housing benefit may be restricted

Bedroom tax -> property too large for needs, Under-occupancy charge.(Leads to restrictions)

48
Q

Support for Mortgage Interest (SMI)

A

DWP will pay interest up to £200,000 of mortgage borrowing at a standardised rate on a mortgage

Standard rate = BOE monthly average mortgage interest rate. Only change if published rate changes 0.5%

Waiting period of 3 months since Spring 2023 (used to be nine months)

49
Q

SMI and Pension credit recipients

What do they receive

A

Only first £100,000 of mortgage is covered
No waiting period before SMI is paid

50
Q

What does Universal Credit Replace

6 benefits

A
  • Income Support
  • Income-based JSA
  • Income-related ESA
  • Housing Benefit
  • Child tax credit
  • Working Tax credit
51
Q

How many other elements are there for universal credit after standard allowance

A

Five
1. Child/disabled child addition
2. Childcare
3. Carer
4. Limited capability for work
5. Housing

52
Q

What is the grace period before cap applies to claimants who have been in employment

A

39 weeks

53
Q

State Pension Credit

Two components

A

Two components:
Guarantee Credit
Savings Credit:
Legacy benefit only those who turned 65 before April 2016

54
Q

State Pension before April 2016 - death of spouse

What can they claim?

A

Remaing spouse may be able to claim NICs of deceased as their own and qualify for part of individual state pension benefits if they do not have enough qualifying Nics of their own

55
Q

State Pension after April 2016

What can they claim?

A

Where one member of the couple reached SPA prior to 6 April 2016 and one post-6 April 2016, the **survivor may still be able to use the NI record of the deceased **and may also be able to inherit Additional State Pension.

Where both partners reached SPA after 6 April 2016, the only entitlement that may be passed on is 50% of any protected payment that exists.

R05 - 2023 (11 decks)

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