Benefits Quick Guide

Transcription

1 moneymatters Advice Service Benefits Quick Guide an easy reference to Benefit rates April 2016 Social Work Resources

2 Income Support (IS) and Income-based Jobseeker s Allowance (JSA) Income Support is a means tested benefit for people under pensionable age and on a low income working less than 16 hours per week who are not required to sign on for work. Income-based JSA is a means tested benefit which may be claimed by unemployed people under pensionable age on a low income. Single person: Under or over lone parent 18 or over lone parent under Couples: both under both under 18 with responsibility for a child one under 18, one 18 to one under 18, one 25 and over both 18 or over Dependent children: Under (.) (.) From April 2004 all additions for children are abolished and claims for Child Tax Credit should be made. Those receiving IS/IBJSA before 12/04/04 have the additions transitionally protected.

3 Premiums single couple Family Pensioner 82.50* Disability Severe disability - one partner qualifies both partners qualify Disabled child (per child) (.) Carers (per carer) Enhanced disability - single person couple child (.) * JSA only Capital limit The capital limit is 16,000 with a weekly tariff income of 1.00 for each 250 (or part 250) over 6,000 of the capital limit. Any amount paid for a child (except family premium) will not be paid where the child has capital over 3,000. People living in residential care have their benefit entitlement calculated in the same way as someone living in their own home. Housing costs (owner occupiers) IS or IBJSA can be paid to help with the cost of interest paid on a mortgage or home loan but there will be a delay of 39 weeks before any housing costs can be paid. Seek advice.

4 Earnings disregards 5 disregard if single. 10 disregard if a member of a couple. 20 if claimant/partner qualify for a disability premium or claimant is a lone parent or is earning and receives a carer premium. If a carer premium is awarded to both the claimant and their partner, 20 can be disregarded from the total amount of their combined earnings. Other income disregards Up to of permitted work earnings are disregarded. Certain benefits are disregarded completely (e.g. DLA/AA/PIP/CTC/Child Maintenance Payment/ Child Benefit). Kinship payments are completely disregarded. War Disablement Pensions disregard: - 100% for HB/CTRS - 10 for means tested benefits 10 of widowed mother/parents allowance, war widow s pension, Armed Forces Compensation Scheme payment.

5 Employment and Support Allowance (ESA) Personal allowances As for IS except: Single Any age (main phase) Couple Both under 18 (main phase) Both under 18 with child (main phase) One 18 or over, one under Claimant 25 and over, partner under Claimant (main phase), partner under Components Work related activity Support Premiums The Enhanced Disability, Severe Disability and Carers premiums can be paid with ESA and at the same rate as the Income Support Premiums. Pensioner Premiums single couple No component With WRAC With support component Earnings disregards Claimant/partner in certain work 20 disregarded (seek advice) Permitted work earnings (up to) disregarded.

6 Pension Credit A means tested credit for people of pensionable age and over on low incomes. Guarantee Credit Single Couple Severe disability (per qualifying person) Carers Savings credit threshold (over 65) Single Couple Maximum Savings credit award Single Couple Capital limit There is no capital limit. 1 for every 500 is assumed for each complete 500 (or part) in excess of 10,000. Housing costs Same as for Income Support except no waiting period applies. Earnings disregards 20 if claimant or their partner qualify for a carer premium or where claimant or their partner is registered blind or in receipt of a qualifying disability benefit or are a lone parent.

7 Child Tax Credit (CTC) A means tested tax credit for low income families with a dependent child/children. Family 545 Child (per child) 2780 Disability 3140 Severe disability 1275 Working Tax Credit (WTC) A means tested tax credit for full-time employees on low income. Rates per annum. Basic 1960 Couple/lone parent hours 810 Disability element 2970 Severe disability element 1275 Childcare costs (70% of) 1st child 2nd child Thresholds First income threshold (WTC and CTC) 6420 First income threshold 16,105 (entitled to CTC only) First and second taper 41% Income disregard (rise) 2500 Income disregard (fall) weekly 300 weekly

8 Housing Benefit Non dependant deductions Age 18+ in remunerative work, weekly gross income: - less than or more Age 18 and over not in remunerative work on main phase ESA (IR), aged 25 and over in receipt of IS/JSA (IB) No deduction applies if the non-dependant is: - normally resident elsewhere - receiving a training allowance in certain conditions - full time student during term time - under 18 years old - under 25 and receiving IS/JSA (Income-based)/ assessment phase ESA (IR) - in hospital for more than 52 weeks - in prison - on pension credit No non-dependant deduction applies if the claimant/ partner is registered blind or receives Attendance Allowance/DLA Care Component or PIP Daily Living Component.

9 Capital limit As for Income Support. There is no upper capital limit for claimant s in receipt of guarantee pension credit but a tariff income of 1 for every 500 above for those of pensionable age or over is applied including claimants in residential care. Any capital of a child or young person is ignored completely unless the claimant was receiving IS/IBJSA before 6 April 2004 (seek advice). Personal allowances As for Income Support except: Single Aged Qualifying pension credit age to Aged 65 or over Couple Qualifying pension credit age to One or both 65 or over Entitled to main phase ESA Single Couple ESA components Work related activity Support component Family premium no longer awarded for new claims/changes from 1 May 2016.

10 Earnings disregards As for Income Support except: 15 of Widowed Mothers/Parents Allowance for claimants eligible for Working Tax Credit and working 30 hours or more per week (except for lone parents who need only work 16 hours or more per week). * 20 for claimant/partner who qualifies for the severe disability premium or either of the WRA/support component 25 of earnings of lone parents not in receipt of IS/ JSA/IRESA/PC Childcare costs disregards Up to 175 of the cost of registered childcare for one child may be disregarded from earnings for certain working parents. If there is more than one child, the disregard is 300 maximum. * Other circumstances may also apply (seek advice)

11 Council Tax Reduction Scheme A means tested benefit for people on a low income who are responsible for paying Council Tax. Non dependant deductions Age 18+ in remunerative work, weekly gross income: - under or more Age 18 + not in remunerative work 3.90 Exceptions as for Housing Benefit In addition, no deduction applies if the non dependant: receives IS/JSA (Income-based) / ESA (IR) qualifies for a status discount (eg severely mentally impaired/under 20 and child benefit payable) full time student (including vacation period) Capital Limit Tariff Income: as for Income Support. Personal allowances As for Housing Benefit.

12 Council Tax Reduction Scheme cont d Disregards As for Housing Benefit. Childcare cost disregards As for Housing Benefit. Council Tax rates 2016/2017 Excluding water/sewerage charges and before any discounts applied. Max weekly Band CTRS A B C D E F G H

13 Non Means tested Benefit rates All non means tested benefit child additions were abolished and are now only available where they were claimed before 06/04/03. Benefit High Middle Low Attendance Allowance Disability Living Allowance (No new claims for working age claimants from June 2013) Care component: Mobility component: Personal Independence Payment (PIP) Enhanced Standard Daily living component: Mobility component: Retirement Pension (If reached state pension age on or before 06/04/16) Claimant Partner Child Standard Rate *11.35 New State Pension (If reached state pension age on or before 06/04/16) Maximum amount

14 Benefit Claimant Partner Child Child Benefit eldest qualifying rate each other child Guardian s Allowance Incapacity Benefit Long-term *11.35 Age addition: high rate low rate Industrial Disablement Benefit (100% rate) Carers Allowance *11.35 Jobseeker s Allowance (Contributory JSA) age under 25 age 25 and over Severe Disablement Allowance *11.35 (Abolished for new claimants from 06/04/01) Age additions: higher rate middle rate lower rate Statutory Sick Pay Rate Earnings threshold

15 Benefit Claimant Partner Child Statutory Maternity Pay/Statutory Paternity Pay/ Statutory Adoption Pay Rate (maximum) Earnings threshold Maternity Allowance Standard rate Threshold for variable rate Bereavement Benefits Widowed Mother s/ *11.35 Parents Allowance Widowed Pension/ Bereavement Allowance (maximum) Bereavement Payment 2000 *Dependant child s addition reduced by 3.65 if higher rate Child benefit is paid for that child. Admission to hospital If the claimant or a dependant are likely to be in hospital for more than 28 days, it is important that the Department for Work and Pensions and Benefits and Revenue are notified of a change of circumstances.

16 Universal Credit 2016/17 Standard allowance p mth Single (under 25) Single (25 and over) Couple (both under 25) Couple (one aged 25 or over) Carer element Child element First child Each other child Additional amount for disabled child Lower rate (Receives DLA or PIP any component rate) Higher rate (Receives high rate care DLA or reg blind or PIP enhanced rate daily living component) Capability for work elements Limited capability for work Limited capability for work related activity

17 Childcare costs element Max amount for 1 child Max amount for 2 or more children 1, Housing element UC covers costs for both renters and owner occupiers. Many of the existing HB and housing costs rules still apply. For owner occupiers there is a waiting period of 9 consecutive assessment periods (seek advice). Housing costs contribution A standard non-dependant deduction will apply of p mth for renters. No non-dependant deduction as per HB rules including claimant/partner in receipt of the daily living component of PIP. No non-dependent contribution will be made for the following non-dependants living with you: anyone under 21 lone parents with a child under 5 anyone getting State Pension Credit anyone getting Attendance Allowance, DLA middle or high rate care componenent or PIP daily living component anyone getting Carer s Allowance prisoners on temporary release anyone certified as blind or severely sight impaired

18 Earnings disregard Claimants are only allowed one earnings disregard (whichever is highest) Work Allowance: Lower With rental costs: Single and: Not responsible for a child p mth Responsible for 1 or more children Have LCW Nil Have partner and: Neither of you are responsible for a child Nil You are responsible for 1 or more child One or both of you have LCW

19 Work Allowance: Higher With no rental cost: Single and: Not responsible for a child p mth Responsible for 1 child or more Have LCW Nil Have partner and: Neither of you are responsible for a child Nil Responsible for 1 chid or more One or both have LCW

20 Benefit disregards DLA, AA and PIP. Tapers Once any disregards have been applied, as earnings rise Universal Credit will be withdrawn at 65% for each pound of net earnings. Benefits Cap (outside London) Total amount that can be paid, including UC, will be limited to: 1517 per month if single 2167 if a lone parent or part of a couple Capital Rules Capital limit is 16,000. If you have capital over 6,000 a tariff of 4.35 p mth will be applied for each 250 above this amount. Capital under 6,000 is disregarded.

21 Useful phone numbers Attendance Allowance (all enq) Bereavement Service (Bereavement Benefits and Funeral Payments) Carers Allowance Child Benefit Disability Living Allowance (DLA) If born on or before 08/04/ If born after 08/04/ ESA/IS/JSA New Claims Ongoing claims/enquiries Housing HB and CTRS Enquiries Payments Benefits are changing team (option 1) Refuse and street cleaning Maternity Allowance New claims Ongoing claims/enquiries Money Matters Advice Service Telephone advice line for pregnant women and young families

22 Useful phone numbers cont d Pension Credit New claims Ongoing enquiries Personal Independence Payment (PIP) New claims New claims (text phone) Ongoing claims/enquiries Ongoing claims/enquiries (text phone) Scottish Welfare Fund Social Fund Social Work (including emergency) State Retirement Pension New claims Ongoing claims (Motherwell) Tax Credits (Child and Working Tax Credit) Universal Credit Helpline/change of circumstances Textphone

23 South Lanarkshire Council s Money Matters Advice Service provides free, confidential information and advice on entitlement to benefits and help with debt counselling. Contact your local office Money Matters Advice Service Blantyre 45 John Street Phone: Cambuslang 27 Main Street Phone: East Kilbride Civic Centre Phone: Hamilton Brandon Gate, 1 Leechlee Road Phone: Lanark South Vennel Phone: Larkhall 30 Union Street Phone: Rutherglen 169 Main Street Phone: To make a claim for Housing Benefit or Council Tax Benefit, contact the Council s Benefit and Revenue control section on If you need this information in another language or format, please contact us to discuss how we can best meet your needs. Phone: equalities@southlanarkshire.gov.uk Produced for Social Work Resources by Communications and Strategy /Mar16