Topic 2: How the State can Help

Question 1

Define Contributory and non-contributory benefits

Answer 1

Contributory - provided to eligible people based on NI contributions
Non-contributory - eligible people who haven’t paid enough NI or need a top up

Question 2

Contribution based JSA

how long is it paid for?

Answer 2

Main benefit for those working age who have paid sufficient NI
paid for 6 months

Question 3

Income base JSA

Answer 3

Support for unemployed with no time limit

but is means tested

Question 4

Means testing

Answer 4

benefits reduce if income high or savings exceed £6000

Question 5

what is statutory sick pay?

What is its time limit

Answer 5

benefit from employer, if worker off ill for more then 4 days
28 day time limit but can be expanded

Question 6

What is Employment and Support Allowance?

Answer 6

Benefit provided by the government if illness prevents work.
basic rate of 13 weeks

Question 7

Explain who can get Personal Independence Payment?

Answer 7

payable for 16 - state pension age who cant perform basic living due to illness/disability

Question 8

Attendance Allowance

Answer 8

Over state pension age who cant perform basic living activites

Question 9

what is carers allowance and who is eligible?

Answer 9

paid to over 16s who spend more than 35 hours caring for someone

Question 10

What is Housing Benefits?

How is it reduced?

Answer 10

Paid to low income individuals to support housing

Can be reduced if income increases, savings exceed 6k and home is unreasonably expensive

Question 11

Income Support

Answer 11

safety net for those who aren’t eligible for other benefits

Question 11

What is the Triple Lock Guarentee

Answer 11

Pension rises in line with Inflation, average rise in earnings or basic rate of 2.5%

Question 12

What is State pension?

Answer 12

paid to those who reach state retirement age and have paid sufficient NI contributions

Question 13

Working tax credit

Answer 13

Income support for those who don’t earn enough in employment

Question 14

Child Tax Credit

Answer 14

Paid to those in low paid work to help raise child

Question 15

Statutory Maternity Pay and Statutory Paternity Pay

Answer 15

SMP = employer pays mother up to 39 weeks during pregnancy
SPP = Payable to father to help support partner and baby for 2-3 weeks

Question 16

Child Benefits

What conditions are there

Answer 16

flat rate benefit for all families with dependent children

if earning above 50,000 additional tax added

Question 17

What is the Benefits cap and when was it introduced?

Answer 17

April 2013 claimants have cap on how much income claimed from benefits

Question 18

How much is the benefits cap weekly?

How much is it estimated to reduce government spending?

Answer 18

currently £257 per week for 1 adult
£384 per week for 2 adults, 1 adult 2 kids, 2 adults 1 kid
reduce government by £110 million

Question 19

what is universal credit and what does it replace

Answer 19

Means tested benefit that replaces

1. ESA
2. JSA
3. Income Support
4. Housing Benefit
5. Working Tax Credit
6. Child Tax Credit

Question 20

what is Money advice service and how is it funded?

Answer 20

offers variety of info to promote financial literacy

funded by financial companies

Question 21

What is citizens advice and how is it funded

Answer 21

National charity with 250 branches and website that offers impartial free advice
part funded by Government and provider

Question 22

Money Advice Trust

Answer 22

national debt line that gives free debt advice

part funded by government

Question 23

Step Change Debt Charity

Answer 23

National charity that offers free debt advice

funded by providers

Question 24

Payplan

Answer 24

free website that offers advice

not a charity funded by donations from lenders

Question 25

Loan forbearance

Answer 25

Temporary postponement on repayment of loan for lender under unforeseen circumstances