unit 1 topic 5- State benefits and tax credits Flashcards
1
Q
Which benefits did Universal Credit replace from 2013?
A
- Income Support- Income-based Jobseeker’s Allowance- Income-related Employment and Support Allowance- Working Tax Credit and Child Tax Credit- Housing Benefit
2
Q
Which benefits remain outside of Universal Credit?
A
- Carers Allowance- Contribution-based Jobseeker’s Allowance and Contribution-based Employment and Support Allowance- Disability Living Allowance/Personal Independence Payment- Child Benefit- Statutory Sick Pay- Statutory Maternity Pay- Attendance Allowance
3
Q
Outline features of Working Tax Credit.
A
- Designed to top up earnings of employed or self employed on low incomes.Extra for:- Working households in which someone has a disability- Costs of qualifying childcare.
4
Q
Outline features of Support for Mortgage Interest Loan
A
- Those in receipt of Income Support, Jobseeker’s Allowance, Universal Credit or Pension Credit can apply.- SMI will pay interest on mortgage of up to £200,000 (£100,000 if made with pension credit).- SMi loan is subject on interest.
5
Q
Outline features of Statutory Maternity Pay.
A
- Benefit paid by employer to women who become pregnant provided that:- average weekly earnings are above a certain threshold- working for their employer continuously for 26 week prior to their ‘qualifying week’ which is 15th week before their baby is due.- SMP payable for 39 weks. Earliest is 11 weeks before the baby is due, latest when baby is born.Two rates- 90 percent of employee’s average weekly earnings- After that at flat standard rate- SMP is taxable and NICs are due.
6
Q
Outline features of Maternity Allowance
A
- For people who can’t claim SMP.- Paid by department for Work and Pensions.- Not available to all. Certain criteria.- Paid at a lower rate than SMP.- No tax or NICs on amount paid.- Payable for 39 weeks. - Earliest it can begin is 11 weeks before baby is due and latest is when baby is born.
7
Q
Outline features of Child Benefit
A
- Tax free benefit available to parents.- Does not depend on having paid NICs nor is it affected by receipt of other benefits.- Available for each child under 16, continuing up to 19 if child is in full time education or approved training programme.- Higher rate for eldest and lower rate for the rest.- Child benefit is means tested. Either individual has over £50,000 tax charge applied at 1% for every £100 over £50,000. (ie £60,000 would be 100%).
8
Q
Outline features of Statutory Sick Pay.
A
- Paid by employers to employees who are off sick for four days or longer provided their average weekly earnings are above the level at which NICs are payable.- Paid for max 28 weeks.- Subject to tax and NI deductions
9
Q
Outline features of Employment and Support Allowance.
A
- For people who are ill or disabled.- Contribution based - Eligible for Universal Credit, depends on NICs. -Not means tested and taxable.- Income based no NICs, means tested, not taxable.- Work capability assessment carried out.- Income based ESA in process of being replaced by Universal Credit but people can still claim contribution based ESA if they have enough NI contributions.
10
Q
Outline Attendance Allowance.
A
- Benefit for people over 65 who need help with personal care due to sickness or disability.- Not means tested and does not depend on having paid NICs.- Two rates: people who need help during day or day and night.
11
Q
Outline Disability Living Allowance and Personal Independence Payment.
A
- DLA is a tax- free benefit for people help with personal care.- Being replaced by PIP for people aged 16-64.Two components:- Care component for daily tasts- Mobility component: difficulty in walking etc.
12
Q
Outline Carer’s Allowance.
A
- For people caring for a sick person.- Does not depend on having paid NICs. Taxable.- Affects other benefits of claimant as well as the other person.
13
Q
Outline Basic State Pension
A
- Paid the employed and self employed people who have made sufficient NI contributions. At least 30 years.- Those not enough NICs may receive Category B based on spouse or civil partner.
14
Q
Outline Additional State Pension
A
- For those who reach state pension age before 6 April 2016.- Only available to employed people who paid Class 1 NICs.
15
Q
Outline Pension Credit
A
Two elements:- Guarantee Credit - tops up and individual’s weekly income to a specified minimum amount.- Savings Credit - additional payment for people aged 65 and over who have saved money towards retirement.- Not taxable.
