Lawworks DLA London speaker : Ahmad Butt State benefits can be divided into two parts, means tested and non means tested, non means tested can be further divided into contribution based and non contributory benefits. We will look at a number of these benefits with the aim this afternoon of providing a framework on which to build. http://www.dwp.gov.uk/publications/dwp/20 07/childpoverty/childpoverty-summary.pdf Overview Means tested benefits Non means tested: contribution based and Non contributory
Glossary of terms Applicable amount Capital Income Notional income Notional capital Tariff income http://www.dwp.gov.uk/housingbenefit/manuals/h bgm/parts/ptbw_01c.asp#b_w1350a The Department for Work and Pensions (DWP) is responsible for administering most benefits. Benefits for working age claimants are dealt with by Jobcentre Plus offices. The state pension by the Pensions service. Disability benefits are dealt with by the disability and carers service. Benefits Enquiry Line (BEL) on 0800 88 22 00. http://www.dwp.gov.uk/ Tax credits and child benefit by HMRC Housing and council tax benefits by the relevant local authority http://www.dwp.gov.uk/advisers/repsguide.p df
information about the progress of the claim how benefit or payment has been calculated how a particular payment is made up rates of specific benefits in payment why a particular benefit, premium or allowance has been allowed or disallowed what factors have been taken into account in reaching a decision what future action is likely to be taken on the claim Income and capital taken into account. Income Support/Pension credit (if 60 +) JSA ( means tested) Housing benefit Tax Credits Council tax benefit etc http://www.dwp.gov.uk/advisers/cat1/allproducts.asp Income support is an income-related benefit to help people under 60 with basic living expenses. People may be able to claim income support if they have a low income and limited savings Income support can be paid in full or as a top up to other pensions and income.
Income support does not depend on national insurance contributions, but savings and income Savings over 16,000 - no income support. The amount of income support paid varies according to age, existing income and savings. If you receive income support you are likely to qualify for Housing benefit and/or Council tax benefit and NHS benefits. If you are a home owner you may receive help with mortgage interest payments, interest payments on loans for certain repairs and improvements, ground rent and some service charges. Some working age people who are not working or working less than an average of 16 hours a week may claim jobseeker s allowance instead of income support. Jobseeker s allowance is in two parts: Contribution based this is paid for 26 weeks to people having enough national insurance contributions Income based this is calculated in a similar way to income support.
The amount of benefit Step 1 Calculate your applicable amount. The applicable amount consists of: Personal allowances for you/your partner Premiums. Housing costs for mortgage payment and prescribed repairs and improvements. Step 2 Calculate your income. There are rules relating to all types of income and whether they are counted in full or in part. Capital under 6,000 does not affect income support. Capital between 6,000-16,000 does affect the benefit. There is a tariff income of 1 for every 250 above 6,000 taken into account. Step 3 Deduct income from applicable amount. A claimant will be entitled to income support if their applicable amount exceeds the income. Income Based Job Seekers Allowance The regulations regarding the means testing of this benefit are almost identical to those for income support. This includes the need to claim child tax credits for dependant children.
Housing benefit is a benefit to help pay for rent. It is assessed and paid for by local councils. The amount of benefit paid will normally depend on the person s income and savings and the rent being charged. You will not be eligible for housing benefit if you have savings over a set amount. If you live with a partner your income and savings will be considered jointly. Housing benefit can be claimed at the same time as income support, income based jobseeker s allowance or pension credit. Once the claim has been completed it should be sent to the local council. Who qualifies for housing benefit? Your income is low enough Your capital is less than 16,000. The habitual residence test has to be satisfied. Housing benefit is not paid to people subject to immigration control.
How housing benefit is calculated For people on income support, income based job seekers allowance or the guaranteed credit of pension credit there is an automatic passport to the maximum housing benefit payable although there could be a deduction if there are other people in the household who are not dependant. Step 1 Check that your capital is not too high. Step 2 Work out the rent (or local housing allowance if in private rented accommodation). Step 3 Work out your applicable amount. Step 4 Work out your income including tariff income. Step 5 Calculate housing benefit which is reduced by 65% of the income above the applicable amount. Council tax is levied by local authorities on residential properties in England and Wales in order to help meet the cost of local services. The amount of council tax payable on each dwelling depends on which of the eight charge bands it comes into.
One or more people can be legally responsible for paying the council tax for each dwelling. Where there is joint responsibility and one person fails or refuses to pay, the other will be liable for the whole amount. The maximum council tax benefit is based on the standard rate of council tax for each property. There are other factors which may affect how much council tax is paid on each property. Second adult rebate can reduce the liability for council tax where there are one or more "second adults" living in the property who are on a low income. There are discounts such as, people living on their own, carers and people with severe mental disablement. Pension credit Pension credit came in to force on the 6th October 2003 and replaces income support for those over the age of 60.
Child Tax Credit. This is an income based credit for low income and middle income families with dependent children Working Tax Credit. This is an income based credit for working adults. A claimant or their partner must fit into one of four categories: 1. Work 16 or more hours per week and have responsibility for a child. 2. Have a disability which leads to a disadvantage in getting a job. 3. Some people returning to work aged 50 or more. 4. Work 30 hours or more per week and be 25 or over. The amount of Working Tax Credit Working tax credit is made up of a combination of the following elements: Basic element ( 1,800 a year); Disability element ( 2,405 per year); Lone parent/couple element ( 1,770 per year); 30 hour element ( 735 per year); Severe disability element ( 1020 per year); 50 plus element ( 1,235 per year for 16-29 hours work); ( 1,840 per year for 30 or more hours work); Child care element (based on eligible child care costs)
Child element ( 2,085 per year). Disability element ( 2,540 per year). Severe disability element ( 1,020 per year). Family element ( 1,090 including the "baby element" per year; 545 if not) Maximum Child Tax Credit The maximum of child tax credit you can receive is calculated by adding together all the elements which apply. The child tax credit calculation. Child tax credit is calculated by comparing assessed income with the "income threshold figure". If income is less than the income threshold figure maximum child tax credit is paid. If income exceeds the income threshold figure maximum child tax credit is reduced by 37% of the excess. Disability living allowance Care component Mobility component Attendance Allowance care only. Incapacity benefit Contributions Non-contrib. IB (Y)
Attendance allowance and disability living allowance These benefits are focused on the practical effects of a disability. They not depend on national insurance contributions and are tax free. Payment is not affected by the person s savings, nor usually by their income A medical examination is not normally required They are paid at different rates, depending on the person s needs They can be claimed whether the person lives alone, with their family or with other people. The care needs are a legal concept. People whose care needs start after the age of 65, or who have not made a claim until then, can only claim attendance allowance. This is for help with personal care only. There is no mobility component.
Making a claim The claim forms for disability living allowance and attendance allowance are very detailed and lengthy. There are questions about activities that the person may find difficult or impossible to carry out and about their need for care or supervision. The disability living allowance care component and the attendance allowance can be claimed by people who need help with personal care or require supervision to avoid risk to themselves or others. Care needs might include help or prompting with activities such as washing, dressing, eating, going to the toilet, turning over or settling in bed, or taking medication. They may also include assistance with social and recreational activities. Supervision needs include any watching over that is necessary to avoid certain risks inside or outside the home.
To qualify for the top rates of attendance allowance or disability living allowance care component they need to show frequent help or prompting with personal care. They are likely to qualify for the lower rate of attendance allowance or middle rate of disability living allowance care component if they need frequent help with personal care or supervision either during the day or night. The disability living allowance mobility component can be claimed by people with walking difficulties that develop before their 65th birthday. They must claim before their 65th birthday but once awarded it can continue to be paid after the person is 65. It is paid at two rates.
They may qualify for the lower rate on the grounds that, though they are able to walk, they need supervision when out of doors because they are at risk, because they are likely to get lost, or because they need guidance in getting from one place to another. This benefit may be claimed if someone under state pension age is unable to work because of an illness or disability. It can be paid once statutory sick pay has ended or if the person is not entitled to statutory sick pay. They must have paid sufficient national insurance contributions. Incapacity benefit is paid at three different weekly rates, depending on how long the person has been claiming it. If you are entitled to the highest rate of the care component of the disability living allowance, you can receive long term incapacity benefit after 28 weeks.
You cannot usually claim incapacity benefit once you reach state pension age. For those who can t work, a decent society should be there to provide support. There is no question over that The Rt. Hon John Hutton MP Secretary of State for Work and Pensions Welfare to Work Convention 2007 Work focused interviews Pathways to work Welfare reform bill Employment and Support allowances http://www.dwp.gov.uk/welfarereform/freud _report.asp
See the examples at the end of the handout Incapacity Benefit Retirement Pension Bereavement benefits Contribution based JSA Disability benefits DLA and AA Carers Allowance Child benefit Guardians allowance Industrial Injuries Disablement Benefit Severe disablement allowance (now abolished).
Disablement Benefit If you become disabled as a result of an accident, you should claim Industrial Injuries Disablement Benefit as soon as possible. If you get Industrial Injuries Disablement Benefit at the 100% rate and need daily care and attention, you may get Constant Attendance Allowance. For more information, read the Attendance Allowance leaflet. You can get this at www.jobcentreplus.gov.uk or from your local Jobcentre Plus office. If you get one of the two higher rates of Constant Attendance Allowance and you need permanent, constant care and attention, you may also get Exceptionally Severe Disablement Allowance.
If you cannot do your usual job or work with similar pay because of an accident or disease caused by work, and you are suffering from an illness or disability (which began before 1 October 1990), you may be entitled to claim REA. If your Reduced Earnings Allowance is 2 or more a week when you reach state pension age and you are not in regular employment, it will be replaced by another benefit called Retirement Allowance. Questions? Income Support There are approximately 30 categories of claimants within the regulations. Sick and disabled people. People with childcare responsibilities and carers. Women within the maternity period.
Housing benefit is paid to people with a low income who pay rent. It is paid whether or not the claimant is in work or not. It can be paid in addition to other benefits or tax credits. It is paid by the local council! Council tax benefit is paid to people with a low income who pay council tax. It is paid whether or not the claimant is available for or in full time paid work and may be paid in addition to other benefits and tax credits. Guarantee credit. Savings credit. A person may be entitled to either or both of these elements. Pension credit is administered by the Pensions Service rather than the Job Centre Plus which administers income support and job seekers allowance. Guarantee credit This is made up of: Standard minimum guarantee Any additional amounts where applicable.
Standard minimum guarantee This ensures that all people over 60 will be paid pre set minimum amounts subject to tariff income. Most people receive the benefits they are entitled to without a problem. Write to the office that made the decision and ask them to revise it. If they do not alter their decision apply to an independent appeal tribunal. http://www.dwp.gov.uk/advisers/ http://www.rightsnet.org.uk/ http://www.welfarerights.net/ http://www.lasa.org.uk/ http://www.osscsc.gov.uk/