3: State Benefits Pt. 2

Question 1

What benefit did PIP replace for eligible working-age individuals?

Answer 1

Disability Living Allowance

Question 2

What are the two main components of PIP?

Answer 2

The daily living component and the mobility component.

Question 3

What does the PIP assessment focus on?

Answer 3

An individual’s ability to carry out essential daily activities

Question 4

Is Personal Independence Payment and Disability Living Allowance means-tested?

Answer 4

No

Question 5

Is Personal Independence Payment and Disability Living Allowance based on NIC history?

Answer 5

No

Question 6

What are two mobility-related criteria for receiving the mobility component of PIP?

Answer 6

Difficulty leaving the house and moving around

Question 7

At what age can someone start receiving Personal Independence Payment, and when does it end?

Answer 7

From age 16 to State Pension age

Question 8

How long must a claimant’s difficulty with daily living or mobility last to qualify for Personal Independence Payment?

Answer 8

At least three months, with an expectation to continue for at least nine months.

Question 9

Under what circumstance can a claimant qualify for Personal Independence Payment more quickly?

Answer 9

If they are terminally ill and expected to live for fewer than six months.

Question 10

A person may be eligible for the daily living component of Personal Independence Payment if they need help with (name up to 6 things)

Answer 10

• preparing or eating food;
• washing and bathing;
• dressing and undressing;
• communicating;
• managing their medicines or treatments; and
• making decisions about money.

Question 11

Why are some people still claiming Disability Living Allowance?

Answer 11

Because they might be under 16. Personal Independence Payment only pays for 16 years old and up until SPA.

Question 12

Under what conditions is the care component of Disability Living Allowance suspended?

Answer 12

If the claimant is admitted to a State-funded hospital or care home for more than four weeks (mobility element will not be suspended)

Question 13

How long does a person need to satisfy the eligibility criteria before receiving Disability Living Allowance?

Answer 13

For at least three months and likely for a further six months.

Question 14

The care component and the mobility component are components of which disability related benefit?

Answer 14

Disability Living Allowance

Question 15

Disability Living Allowance is tax-free, true or false?

Answer 15

True

Question 16

Is Attendance Allowance taxed?

Answer 16

No

Question 17

Is Attendance Allowance means-tested?

Answer 17

No

Question 18

Attendance Allowance is payable to people aged over SPA who have been suffering from severe disability for a period of how long?

Answer 18

6 months

Question 19

Attendance Allowance is not available while a person is in an NHS hospital or a local authority-funded home. True or false?

Answer 19

True

Question 20

What are the income and education restrictions for Carer’s Allowance?

Answer 20

The carer must not have net earnings over £151 per week or be in full-time education.

Question 21

What is Carer’s Allowance, and who is eligible for it?

Answer 21

A taxable benefit for working-age individuals who care for someone severely disabled receiving DLA, PIP, or Attendance Allowance.

Question 22

Parents of children of what age can claim Child Benefit?

Answer 22

A child under 16 or under 20 in full-time education.

Question 23

Child Benefit is non-contributory, not means-tested, and tax-free. True or false?

Answer 23

True

Question 24

Child benefit can be backdated but to which period in the past?

Answer 24

3 months maximum from when they would have first become eligible

Question 25

What is the High Income Child Benefit Charge?

Answer 25

A tax charge that applies if at least one parent or partner has an income over £60,000.

Question 26

How is the High Income Child Benefit Charge calculated?

Answer 26

1% of Child Benefit is charged for every £200 of income above £60,000.

Question 27

Who is affected by the High Income Child Benefit Charge in a household with two high earners?

Answer 27

The person with the higher income.

Question 28

Calculate the High Income Child Benefit Charge a parent who earns £65,000 per year.

Answer 28

1. £65,000 - £60,000 = £5,000 over 2. £5,000 / £200 = 25 segments 3. (£2,212.60 x 1%) x 25 = £553.25

Question 29

Tax Credits and Universal Credit can be claimed at the same time. True or false?

Answer 29

False

Question 30

Who is eligible to claim the family element of Child Tax Credits?

Answer 30

Parents with children living with them: Aged under 16, or Between 16 and 19 and in full-time education... provided their first child was born prior to 6 April 2017.

Question 31

How many children can you claim Child Tax Credits for?

Answer 31

The first two, unless an exemption applies.

Question 32

How are Child Tax Credits claimed and how far can they be backdated?

Answer 32

Child Tax Credits must currently be claimed from HMRC, and claims cannot be backdated by more than one month.

Question 33

How are Tax Credits tapered based on income?

Answer 33

The tax credit is normally reduced by 41p for every £1 of income (joint if applicable) over £19,995.

Question 34

Which 4 factors affect the amount of WTC received?

Answer 34

Hours worked, whether the claimant has a child, marital status, and total income.

Question 35

Does WTC apply only to parents with children?

Answer 35

No

Question 36

Who pays Working Tax Credits for employees and the self-employed?

Answer 36

HMRC

Question 37

How many hours must someone work a week to qualify for Working Tax Credits, assuming they are aged over 25, have no children and do not have a disability?

Answer 37

30 hours

Question 38

What are the two phases of ESA?

Answer 38

Assessment phase Main phase

Question 39

Who determines ESA eligibility?

Answer 39

State-appointed doctor or nurse (not claimant’s GP)

Question 40

What groups might you find yourself in after a successful Employment and Support Allowance assessment, and roughly which proportions end up in which?

Answer 40

You will be placed in either the work-related activity group (90%) or the support group (10%)