Lawworks
DLA
London
speaker : Ahmad Butt
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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
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Glossary of terms
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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
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• information about the progress of the claim
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• how benefit or payment has been calculated
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• how a particular payment is made up
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• rates of specific benefits in payment
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• why a particular benefit, premium or allowance has been allowed or
disallowed
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• what factors have been taken into account in reaching a decision
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• what future action is likely to be taken on the claim
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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.
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Income support does not depend on national
insurance contributions, but savings and income
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Savings over £16,000 - no income support.
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The amount of income support paid varies
according to age, existing income and savings.
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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:
w 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.
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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.
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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.
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Housing benefit is a benefit to help pay for rent.
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It is assessed and paid for by local councils.
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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?
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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
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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.
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Step 1
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Step 2
◦ Check that your capital is not too high.
◦ Work out the rent (or local housing allowance if in private
rented accommodation).
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Step 3
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Step 4
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Step 5
◦ Work out your applicable amount.
◦ Work out your income including tariff income.
◦ Calculate housing benefit which is reduced by 65% of the
income above the applicable amount.
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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.
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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.
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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:
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2.
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Work 16 or more hours per week and have
responsibility for a child.
Have a disability which leads to a disadvantage in
getting a job.
Some people returning to work aged 50 or more.
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)
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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
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Attendance Allowance – care only.
Incapacity benefit
◦ Contributions
◦ Non-contrib. IB (Y)
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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
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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.
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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.
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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.
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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
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Work focused interviews
Pathways to work
Welfare reform bill
Employment and Support allowances
http://www.dwp.gov.uk/welfarereform/freud
_report.asp
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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
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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.
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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.
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Sick and disabled people.
People with childcare responsibilities and
carers.
Women within the maternity period.
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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.
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Guarantee credit
◦ This is made up of:
x Standard minimum guarantee
x Any additional amounts where applicable.
Standard minimum guarantee
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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/