This guide is for new applicants to the Financial Assistance Scheme.

Transcription

1 Financial Assistance Scheme Detailed Guide to Financial Means Testing This guide is for new applicants to the Financial Assistance Scheme. What is financial means testing? The means test is the way that we calculate whether a household is eligible for assistance under the Financial Assistance Scheme. We do this by assessing the household weekly income and outgoings. What information will we need? The Financial Assistance Scheme is a household grant. This means that all members of the household must provide evidence of their income and outgoings, including adult children and students living at home. Evidence of INCOME: Bank or Post Office account statements showing the last 3 months transactions prior to the date of the application must be provided in each case, regardless of the benefits that are currently being received. The reason for this is the VSS has a responsibility to verify any other household income that should be included in the means test calculation. In order to conduct this verification consistently and fairly, the VSS treats every applicant in exactly the same way and therefore expects all applicants to forward the same information with their application form. Evidence of OUTGOINGS: The only outgoings included in the means test calculation are Rent/Mortgage and Rates. We will need to see evidence of these payments either: a) On the Bank or Post Office account statements; or b) On original receipts that show these bills have been paid. 1

2 Are there any exceptions? If you receive the Higher Rate Care Component of the Disability Living Allowance as a result of a conflict-related injury (or equivalent level of benefit), your application will be automatically exempt from the means test. How does VSS calculate the means test? The VSS means testing is calculated on weekly amounts of income and outgoings. The calculation process is as follows: 1. The VSS begins by obtaining a personal allowance, which is worked out according to the individual s circumstances (including his/her age, marital status, dependants, and whether or not they are in receipt of ; if they do receive, the relevant premiums are included in the personal allowance). Please see Annex 1 for the personal allowance figures. 2. Once the appropriate figures have been selected, the VSS up lifts this personal allowance by The applicant s household weekly income and outgoings are then calculated. The total amount of outgoings is subtracted from the income to calculate the net weekly income. 4. Finally, the net income is calculated against the personal allowance, to work out whether the applicant is currently above or below the personal allowance. Example calculation: John s application shows that he is 26 years old, and single. Income: Outgoings: John earns 200 per week. John pays rent of 85 per week. He does not pay rates. Personal allowance: (under 60 but over 25): (VSS uplift of 20) = Income minus outgoings: = 115 weekly net income Net income minus personal allowance: = The Applicant is over the scale rate, and is therefore not eligible for Financial Assistance. 2

3 Annex 1: Personal Allowance Figures Under 60 s Scale Rate calculator INCOME SUPPORT/ ESA Scale Rate Figures PERSONAL ALLOWANCE Under Age SINGLE Age 25 or Over Under Age 18 LONE Age 18 or over PARENT COUPLE Both under 18 Both under 18, one disabled Both under 18, with responsibility for a child Either single rate or couple rate or lone parent rate should be included in the calculation for all applicants under age 60. One under 18, one One under 18, one Both 18 or over 3

4 Premiums SINGLE COUPLE Disability Qualify if you get any level of or AA, long term incapacity benefit, SDA, disability element of working tax credit or the war pensioner s mobility supplement. Same as above but for a couple to qualify only one of them needs to get a qualifying benefit. PLUS (if applicable) SINGLE COUPLE SINGLE ESA Enhanced Disability Premium To qualify must be in receipt of High Rate care component of. Have to live on your own and no-one receives carer s allowance for looking after you COUPLE (one qualifies lower rate) Severe Disability If they both get AA or care at the middle or highest rate and one person gets carer s allowance for looking after one of them COUPLE (both qualify higher rate) If they both get AA or care at the middle or highest rate and no one else receives carer s allowance for looking after any of them CARER S ALLOWANCE Paid if claimant or his/her partner receives carer s allowance or is entitled to carer s allowance but is paid another benefit instead of it. (Paid per carer). 4

5 Components - ESA WORK RELATED ACTIVITY SUPPORT GROUP Paid in ESA if client is in receipt of work related activity group. Paid in ESA if client is in receipt of support group. Over 60 s Scale Rate Calculator Pension Credit STANDARD MINIMUM SINGLE COUPLE PENSION CREDIT Either the single or couple rate should be included in the calculation for all applicants 60 years or over. PREMIUMS SINGLE Have to live on your own and no-one receives carer s allowance for looking after you Couple (One Qualifies) ADDITIONAL If they both get AA or care at middle or high rate and one person gets carers allowance for looking after one of them Couple (Both Qualify) FOR SERVERE DISABILITY If they both get AA or care at middle or high rate and no-one else receives carer s allowance for looking after any of them ADDITIONAL FOR CARERS Paid if the claimant or his/her partner receives carer s allowance or is entitled to carers allowance but is paid another benefit instead. 5

6 PREMIUM S CARE COMPONENT MOBILITY COMPONENT HIGH MIDDLE LOW (No UK equivalent increase of 1.2% as above) PREMIUM S CARE COMPONENT MOBILITY COMPONENT HIGH MIDDLE LOW (No UK equivalent increase of 1.2% as above) CHILD BENEFIT RATES 15/16 First Child Additional Children /17 First Child Additional Children