Welfare Rights Benefit Training 2012

Looking at the various benefits available D.L.A, E.S.A, J.S.A , Attendance Allowance, Carers Allowance, Working Tax Credit etc. How you qualify for them and the amounts involved. Mention the benefit cap due in next April. If you get time move on to a brief overview of how housing benefit is calculated.

The benefits system?

Benefits divide into 2 main groups: Non-means-tested benefits & Means-tested benefits There are other benefits that do not neatly fit into either group. For example 'back to work' benefits.

Benefits are administered by the Department for Work and Pension (DWP), HM Revenue and Customs or local authority.

The benefits Non means tested benefits Each of these benefits has different rules. Once a person satisfies these rules they usually get the benefit regardless of any other income / savings that they have. Additional amounts may be claimed for adult dependants before April 2010. Additions for children were replaced by Child Tax Credit for new claimaints from 7 April 2003.

These Non-means tested benefits are split into 2 main headings of ‘contributory’ and ‘non - contributory’.

Contributory benefits

In order to qualify a person must have paid enough ‘National Insurance contributions’ Which are usually deducted from a person’s wage. HM Revenue and Customs national contributions office keeps a record of all contributions paid.

Non contributory benefits

To get these benefits, a person does not have to have paid National Insurance contributions, they just have to satisfy the basic conditions. The benefits are also usually paid whatever other income / savings a person has.

Means tested benefits Means tested benefits are not affected by how much National Insurance contributions a person has paid. They are affected by the claimant's circumstances, capital and income and involve a calculation. Each means tested benefit has its own qualifying rules.

Amounts Each benefit has its own rate - which is fixed by Parliament. It can be one single amount or various elements (Premiums ect) which can be part of a calculation. Particularly with means tested benefits.

Most benefits are 'uprated' each April and at other times througout the year.

Income Support (IS) Can be claimed by people who do not have to be available for and actively seeking work. For example, carers or lone parents.

It can be paid as the sole form of income or as a ‘top up’ to other low income. It also includes limited help with mortgages and is non-taxable.

The elements for children in Income Support are being replaced by

Child Tax Credit.

Examples of people who can claim

Income Support

Incapable of work - under very limited circumstances Entitled to Statutory Sick Pay Registered blind (replaced by Employment and Support Allowance for most new claims from December 2009) The number of hours or wages capacity are reduced by 75% due to a disability (replaced by Employment and Support Allowance for most new claims from January 2010) Some people can still get Income Support on these grounds.

Lone parent - until youngest child reaches a certain age (5) On parental or paternity leave Pregnant and within 11 weeks of birth Fostering a child Certain carers Certain pupils or students or trainees Some refugees

Jobseekers Allowance - income based (JSA - IB) This is the equivalent of Income Support for those who sign on as available for and actively seeking work.

The requirement to sign on applies to both in a couple claim - unless exempt . Can be paid as a ‘top up’ to Jobseekers Allowance – contribution based (JSA – CB). Also includes limited help with mortgages. It is taxable. The elements for children in Jobseekers Allowance - income based are being replaced by Child Tax Credit .

Pension Credit Introduced on 7th October 2003, Pension Credit is administered by the Pension Service which is part of the DWP.

Pension Credit has two elements: The Guarantee Credit Is basically Income Support for people of pension age and over . The Savings Credit. The way this is claculated is different from other means tested benefits: People aged 65 and over, get 60p a week for every pound they have 'saved' for retirement above a certain level. This includes income from capital and private and occupational pensions. But it only goes up to certain limits and is reduced as these 'savings' get higher.

Pension Credit is not taxable.

Social Fund The Social Fund is a system of non-taxable grants and loans. For most of them, the claimant has to be on a particular benefit, for example, Income Support.

Capital over a certain amount may be taken into account unless the claim is for a Sure Start Maternity Grant, a Cold Weather Payment or a Winter Fuel Payment. The Social Fund can be divided into two parts - the discretionary Social Fund and non discretionary Social Fund .

Discretionary Social Fund Budget-limited and discretionary. Types of payment:-

Budgeting loans

Repayable, interest-free loans for those who are on Employment and Support Allowance (income related), Income Support, JSA - IB or Pension Credit (Guarantee Credit). Loans may be made for intermittent expenses, for example, clothes, cooker.

Community Care Grants

Non-repayable amounts to help those on Employment and Support Allowance (income related), Income Support, JSA - IB or Pension Credit (Guarantee Credit). Payments can be made in the following situations: When moving into the community from an institution To help remain in the community & avoid moving into an institution To help set up home in the community after an unsettled way of life To ease exceptional pressure on a family For certain travel expenses, for example, visiting someone who is ill

Crisis loans

Repayable, interest-free loans for those who have short term needs in a crisis. A claimant does not have to be in receipt of benefit to claim.

A cap of 3 crisis loans for general living expenses in a rolling 12 month period may apply.

Non discretionary Social Fund Regulated and not discretionary. Types of payment:-

Cold Weather Payments

Made automatically in periods (seven consecutive days) of exceptionally cold weather and you get a benefit like Pension Credit or Income Support (with a certain premium), or have a child under five, or on Child Tax Credit with a disability element.

Funeral Expenses Payments

Help with funeral costs for a 'close relative' of the deceased. You must be on a certain benefit, like Income Support or Housing Benefit.

Payment may be refused if, for example, there is another close relative not also getting a qualifying benefit. The amount paid only covers certain basic costs.

Sure Start Maternity Grants

Those on a benefit like Income Support or Child Tax Credit (at a certain rate) who have received health and welfare advice from a health professional will get £500 for having a baby. However, from April 2011, an award cannot be made where there is another child under 16 in the family at the date of claim. Exceptions to this rule apply.

Winter Fuel Payments

A single lump sum payment for those pension age and over in winter.

Tax Credits In April 2003, Tax Credits replaced: Working Families Tax Credit, Disabled Persons Tax Credit Childrens Tax Credit (the tax allowance which used to be Married Man's Tax Allowance) Child additions for some non means tested benefits (although they continue for existing claimants) Child elements in Income Support and Jobseekers Allowance income based. Existing claimants with child additions can choose to continue until they are transferred to Child Tax Credits.

Tax Credits consists of two separate credits:

Child Tax Credit

For people with children. Paid to the main carer.

Working Tax Credit

For people working 16 or more hours a week and either have children lone parents (24 hour for many couples now) are disabled, or are 25 and over and work 30 hours or more a week (relaxed to 16 hours a week for those 60 and over from april 2011).

Includes help with child care costs

Tax Credits awards are calculated annually and re assessed every April but can be changed in between. They are administered by HM Revenue and Customs.

Tax Credits are not taxable.

Council Tax Benefit

Paid to help people on a low income pay their Council Tax. Paid by the local authority. It is not taxable.

Discretionary payments can be made for people on Council Tax Benefit who are in financial hardship

Education Benefits

Paid for some children at school by the local council's Education Department and includes: Free school meals for children of families receiving Employment and Support Allowance (income related), Income Support, JSA - IB, Pension Credit Guarantee or Child Tax Credit (where income is below £15,860 or if the maximum Working Tax credit is paid in Scotland only) Education Maintenance Allowance for some young people staying on at school or college where household income is below £20,351 with one child or £22,403 if more than one child is in the household EMA is £30 weekly.

Employment and Support Allowance (income related) (ESA(IR)) replaced Income Support on grounds of incapacity or disability for new claims from 27 October 2008. It can be paid as the sole form of income or as a 'top up' to other income. There is also a contributory form of Employment and Support Allowance. ESA(IR) can be paid to 'top up' ESA (contribution based).

ESA(IR) can be claimed by people who have "limited capability for work". It is paid at a basic rate for the first 13 weeks. An additional component is paid from the 14th week (But only once the medical has been passed).

ESA(IR) is not taxable.

Housing Benefit (HB) Paid to tenants who are on a low income and pay rent. It is paid whether or not the claimant is working and can be paid with other social security benefits or by itself. Administered by the local authority and is non-taxable.

From April 2008 Local Housing Allowance to Housing Benefit for private tenants.

introduced a change Discretionary payments can be made for people on Housing Benefit who are in financial hardship .

Contributory benefits

In order to qualify a person must have paid enough National Insurance contributions The main contributory benefits are:

Bereavement Benefits

Paid to some people whose spouse has died. Entitlement depends mainly on the national insurance contribution record of the late spouses or if they died as a result of an industrial accident or disease and the claimant's age at death. There are three different bereavement benefits:

Bereavement Allowance

Paid for one year to bereaved if over 45 but under pensionable age who are not receiving Widowed Parents Allowance. It is taxable.

Bereavement Payment

A tax free lump sum payment of £2,000. The bereaved must be under pension age when their spouse dies or if older, the spouse was not entitled to a Category A Retirement Pension when they died.

Widows Benefits

- no new claims from 9.4.2001 however some women will continue to receive these benefits.

Widowed Parents Allowance

Paid to bereaved with children, or who are pregnant by late husband and under pension age when spouse died. It is taxable.

Employment and Support Allowance (contribution based)

(ESA(C)) replaced Incapacity related Benefits for people who cannot work because of illness or disability, for new claims from 27 Ocotber 2008. It can be topped up by Employment and Support Allowance (income related) ESA(C) can be claimed by people who have "limited capability for work". It is paid at a basic rate for the first 13 weeks. An additional component is paid from the 14th week once the medical has been passed.

Incapacity Benefit

Incapacity Benefit was replaced for new claims from 27 October 2008 by Employment and Support Allowance .

People already getting it on 27 October 2008 stay on in it until they stop being entitled or are gradually tested under the ESA test. This change over has started to happen from February 2011.

Incapacity Benefit is paid to people who cannot work because of illness or disability. This has to be shown, in most cases, by completing a long form (IB50) and satisfying the 'Personal Capability Assessment'. This is where the claimant has to score a certain amount of points (15) for not being able to do certain physical and mental activities.

Jobseekers Allowance - Contribution based

Paid to people who are unemployed or who are working less than 16 hours a week but only if they have paid enough National Insurance contributions at the right time. It is paid for 6 months and is taxable. There are strict labour market conditions that must be satisfied. For example, having to be available for work. Earnings and occupational and personal pensions over £50 weekly are taken into account.

Retirement Pension Paid to those people over pensionable age.

A common pension age of 65 for both men and women has been introduced. This change will be phased in for women born on or after 6 April 1950 between 2010 and 2020.

There are two categories of Retirement Pension: A or B. Category A pensions are payable on a person's own National Insurance contribution record throughout his/her working life. Both categories are taxable.

Non contributory benefits To get these, a person does not have to have paid National Insurance contributions, they just have to satisfy the basic conditions. The benefits are also usually paid whatever other income a person has. This means they share the general title of “non-means-tested benefits” with contributory benefits. The main non-contributory benefits are:

Attendance Allowance (AA)

Paid to ill or disabled people who first claim aged 65 and over, who have care / attention or supervision needs. There are two rates of payment depending on the level of care or supervision needed. Low rate £51.85 weekly High Rate £77.45 weekly It is non-taxable.

Carers Allowance

Paid to people who spend at least 35 hours a week caring for someone who gets either Attendance Allowance or Disability Living Allowance care component - higher or middle rate or Constant Attendance Allowance of £63.30 or over weekly. The carer must not be in full time education (Over 21 hours) or earning above a certain amount (£100) after allowable deductions. Dependents additions may be payable. It is taxable.

Child Benefit Paid for children under 16 years old. For those who stay on at school or take up unwaged training, it can be extended up to their 20th birthday. It is non-taxable. Administered by Revenue and Customs.

Disability Living Allowance Paid to some ill or disabled people who claimed before age 65. It is made up of 2 components -

Care component

- for people who need attention or supervision due to an illness or disability or are unable to prepare a main meal for one person, and

Mobility component

- for people who have problems walking or need supervision while walking.

This is the only benefit available to children

There are three rates of payment of the care component and two rates of the mobility component. The highest of each component can be paid at the same time or any other combination. It is non-taxable.

Request a date stamped DLA claim pack on 0800 88 22 00

Guardians Allowance A tax free benefit paid to people looking after children who are effectively orphans or parents in prison. Administered by Revenue and Customs.

Industrial Death Benefit Paid to the widow or widower and children of an employee who died

before 11 April 1988

due to an accident or disability caused by work.

Industrial Injuries Benefit For people who are disabled because of their employment. There are various tax-free allowances including Disablement Benefit where the amount of benefit paid depends on the percentage of disability. Reduced Earnings Allowance is also payable in certain circumstances.

Other schemes may apply. For example, possible lump sums for exposure to asbestosis causing mesothelioma.

Maternity Allowance For pregnant women who have recently worked or are unable to get Statutory Maternity Pay from their employer. Generally this means having been employed or self employed for at least 26 weeks in the 66 weeks immediately before the expected week of confinement and average earnings must have been at least £30 a week. It lasts for 39 weeks. It is paid at one of two rates depending on recent earnings from employment or self employment.

Dependants additions were abolished in April 2010. It is non-taxable.

Severe Disablement Allowance This non-taxable benefit was abolished in April 2001. People already on it before this date continue to receive it if still eligible. Paid to people who were incapable of work but had not paid sufficient National Insurance contributions to qualify for Incapacity Benefit. Additions were payable for a spouse and children.

Some people on SDA will eventually have to undergo the Employment and Support Allowance medical test.

Statutory Adoption Pay Paid by employers to some employees during adoption leave. It is paid for a maximum of 39 weeks. It is taxable.

Statutory Maternity Pay Paid by employers to some employees who are pregnant or who have recently given birth. They must remain in work until 11 weeks before the baby is due.

It can be taxable in certain situations. It is payable for 39 weeks.

Statutory Paternity Pay Paid by employers to some employees for parental leave following the birth or adoption of a child. It is paid for a maximum of two weeks. It is taxable. Additional Statutory Paternity Pay Mothers can give some of their maternity leave and pay to the father. This also applies to adoption pay and leave. If a birth is due or notification of an adoption match falls on or after 3 April 2011, a father, partner or carer can receive additional SPP of up to 26 weeks. It allows the parents to swap who is the main carer from 20 weeks after the child is born or adopted.

Statutory Sick Pay (SSP) This benefit is for employed people who are sick for four or more work days in a row. It is claimed from an employer and can be paid for a maximum of 28 weeks. A person may be entitled to company or contractual sick pay in addition to SSP. A person does not have to claim SSP. Their employer will arrange to pay the SSP usually when a person gives in medical certificates after more than seven days of sickness. If an employer cannot pay SSP or entitlement has been used up Employment and Support Allowance should be claimed. Remember Employment and Support Allowance can be paid even if wages are still being paid.

There are no additions for dependants. It can be taxable in certain situations.

War Pensions and Armed Forces Compensation Scheme For people who are either injured or disabled whilst working or serving in the armed forces. It can also be paid to widows and widowers of those who have served or worked in the armed services. There are various tax-free allowances similar to Industrial Injuries Benefits . It changed to Armed Forces Pension and Compensation Scheme in April 2005 with equal treatment for other ranks and unmarried partners. Can choose to stay on War Pension.

Back to work and training benefits

Extended payments of Housing and Council Tax Benefit Mortgage interest 'run-on' Job Grant Return to work credit In work credit Self employment credit Discretionary help from Jobcentre Adviser

Disability Living Allowance What is it?

A non-means tested non-taxable, Social Security Allowance paid to people who need supervision or help with their daily or nightly care needs or are unable to prepare a main meal for one or have mobility problems.

It is paid in two parts, the care component (Low £20.55, Middle £51.85, High £77.45) and mobility component (Low £20.55, High £54.05) you can have one on its own or both together.

You should have needed the help or had mobility problems normally for three months before you claim and they should be expected to last at least another six months. It can be claimed for the first time by anyone under 65, this includes children.

For people over 65 needing help for the first time the equivalent benefit is

Attendance Allowance

.

Any award of D.L.A increases the amount you or your family could receive in means tested benefits such as

Income Support

,

Jobseekers Allowance

,

Employment Support Allowance Income Related

,

Housing

Benefits. and

Council Tax Benefit

, and Health Certain levels also acts as a passport to, the disability element in

Working Tax Credits

,

Child Tax Credits

, Various Grants,

Carer Allowance

, Blue Badge, Car Tax Exemption, Driving Licence at age sixteen, etc, etc.

You should have a full benefit check done if you or any of your family are awarded any level of D.L.A or an increased rate 01387 266888.

Important note:

This benefit is paid for your care, supervision and mobility

needs

you can get the benefit even if you live alone with no help or supervision. As long as any help or supervision is reasonably required you should still qualify for D.L.A.

Attendance Allowance

Attendance Allowance is a tax free non-means tested Social Security allowance. Paid to people over 65 when first claimed, to help with the cost of their care or supervision needs, which should have existed for six months before claiming unless terminally ill. If your care or supervision needs start before age 65 the almost equivalent benefit is Disability Living Allowance If you are over 65 with daily or nightly care or supervision needs then you can claim Attendance Allowance.

It is paid at two levels: Low rate: £51.85 weekly or £207.40 four weekly High rate: £77.45 weekly or £309.80 four weekly Any level of Attendance Allowance can increase your entitlement to Pension Credit , Housing and Council Tax Benefits , and health benefits, etc.

Important note:

This benefit is paid for your care or supervision

needs

. You can get the benefit even if you live alone with no help. As long as any help or supervision is

reasonably required

you could still qualify for Attendance Allowance.

Carers Allowance What is it?

This is an allowance for people who spends at least 35 hours each week caring for a severely disabled person. Who has either Attendance Allowance Disablement Pension or the middle or high rate care component of Disability Living Allowance Attendance Allowance or Constant of £63.30 or over (Part of War or Industrial Injuries ).

You do not have to be related to this person, or living with them. You can get C.A if you have never worked. You can get C.A. If you also have Attendance Allowance or Disability Living Allowance yourself.

If you are paid C.A. or have claimed C.A. but are unable to be paid it due to having another benefit in your own right, you will have the carer premium (£32.60) included in your applicable amount for Employment Support Allowance (Income Related) , Income Support (I.S) , Income Based Jobseekers , Pension Credit , Housing and Council Tax Benefits.

If you are actually paid

ANY

Carers Allowance the person you care for will not receive the Severe Disability Premium (£58.20 wkly) in their Income Support (I.S) , Income Based Jobseekers (IBJSA) , Pension Credit, Housing and Council Tax benefits calculations. Because of this it is not always advantageous for you to claim C.A. Even if you are eligible. You and the person you care for should Seek Advice. before claiming.

C.A. is not means tested and does not depend on your previous years National Insurance Contributions, it is taxable. It also gives you the Carers Credit / National Insurance Credit and a second State Pension.

You cannot be paid C.A. if your earnings are over £100 weekly, after deducting Tax , National Insurance, half of any contribution you make towards an occupational or personal pension, and up to half your net earning if you pay someone other than a close relative to care for the disabled person or your child under sixteen.

If your partner earns over £34.40 weekly you will be unable to have an addition for them, no new additions allowed after April 2010, if your partner earns over £215 in any week you lose an addition for one child, and for each £28 over this amount you lose for another child. These child additions would only apply to existing claims with transitionally proteced child additions already included before April 2003 when Child Tax Credits were first introduced You cannot be paid C.A. If you already receive the same amount or more from any of the following benefits, Severe Disablement Allowance, Incapacity Benefit, Contributory Employment Support Allowance, Contribution Based Jobseekers , State Training Allowance, Unemployability Supplement, Retirement Pension, or Widows Benefits.

The C.A. Rules allow breaks in care of up to 12 weeks within any six month period without you losing payment of C.A. Up to 4 weeks can be for any temporary breaks in care, such as holidays or respite care, during this 4 week temporary break in care

you are

allowed to earn over the normal £100 weekly limit on earnings and

not lose

your C.A. The remaining 8 weeks allow for either the carer or the disabled person to undergo medical or other treatment as an in- patient in hospital. Note that if the disabled person is in hospital for over four weeks, or for children 12 weeks, they will lose their qualifying benefit for you to be able to claim C.A., so your C.A. could be stopped sooner than 12 weeks. If you go into hospital your C.A. will continue for 12 weeks as long as you have not already had time off during the last six months.

If you were entitled to C.A. before the date you claim and can show that you meet all the qualifying conditions then C.A. can be backdated for up to three months. If the person you care for has claimed or is trying to increase their existing Attendance Allowance (AA) or Disability Living Allowance (D.L.A) award but is still waiting for a decision you will have three months from the letter awarding the qualifying benefit or increase to claim Carers Allowance and it will still be fully backdated to the original date D.L.A

or A.A

was first award or increased even if this a lot more than three months ago.

Employment Support Allowance

Employment and Support Allowance (ESA) is a new benefit that has replaced Incapacity Benefit (IB) and Income Support (IS) paid on the grounds of ill-health or disability. Introduced from 27th October 2008.

What is Employment Support Allowance?

ESA will have a new structure that has both a contributory element and a means-tested element, very similar to Incapacity Benefit (IB) and Income Support (IS) paid previously or now for some with transitional protection.

The test of entitlement to the contributory element will be similar to that currently used for

Incapacity Benefit (IB)

, i.e. sufficient national insurance contributions paid in previous years.

The test of entitlement for the means-tested element will be similar to that currently used for

Income Support (IS)

now i.e. a means tested / income-based assessment.

ESA Rates There will be a 13-week assessment phase for all new ESA claimants. During this period, claimants aged over 25 years will be paid an 'assessment phase' rate of ESA, equivalent to the weekly rate of Jobseekers Allowance payable for people aged over 25 (Currently £71). For those under 25, a reduced weekly rate of ESA will be payable, again in line with Jobseekers Allowance rates (£56.25 for under 25 year old rate).

After the 13-week assessment phase, there will be an additional element payable on top of the basic rate of ESA. Claimants placed in the 'support group' will receive a slightly higher element than claimants in the 'work-related activity group'. The support component is worth £34.05 per week and the work-related activity component is worth £28.15 per week. There are no increases in these components for couples.

Claimants under 25 years that have completed the 13 week assessment phase will receive the full basic ESA rate rather than the reduced amounts payable in the assessment phase referred to above.

For claimants with partners? Additions are still available under the new means tested ESA system, as well as various premiums such as the Severe Disability Premium, Pensioner Premium, Carer Premium and Enhanced Disability Premium, currently payable with Income Support (IS) .

Housing costs (mortgage interest) will also be paid where appropriate in means tested ESA.

All new ESA claimants will have to serve the 13-week assessment phase, before moving onto the higher rates of ESA, regardless of their circumstances, except in cases where the claimant has a terminal illness who will go straight to the main phase rates.

ESA only increases after 13 weeks once the medical test has been passed, this could be a lot later than 13 weeks, the extra amount due will be backdated.

Contribution conditions for ESA (CB) The first contribution condition for Employment Support Allowance Contributory (ESA CB) is that you must have actually paid or treated as paid 26 weeks Class 1 or class 2 national insurance contributions on earnings at the lower earnings limit in one of the last three tax years before you claim. The second contribution condition is that you must either have paid or been credited with class 1 or class 2 contributions on earnings of 50 times the lower earnings limit in each of the last two tax years before you claim.

However, you may be able to satisfy this first contribution condition with contributions paid in any tax year, if you haven’t been able to pay contributions recently – For example, because you were getting Carer’s Allowance or Incapacity Benefit, or if you were getting Working Tax Credit with a disability element before you became incapable of work.

Lower earnings limits?

2009/10 contributions on earnings at £4,750 2010/11 contributions on earnings at £4,850

Jobseekers Allowance

The Jobseekers must either satisfy the Contribution-based conditions or the means tested Income-based conditions for the benefit to be payable.

Taxable: The Jobseeker's Allowance personal allowance is taxable, any amounts payable above the personal rate are not taxable, e.g. Premiums for children.

Jobseeker's Allowance is paid to unemployed people or people who work under 16 hours and their earnings are low.

An unemployed person will be entitled to a Jobseeker's Allowance if they: * Are available for employment; * Have entered into a Jobseeker's agreement; * Are actively seeking employment; * Satisfy the contribution-based conditions or the income based conditions; * Are not engaged in remunerative work; * Are capable of work; * Are not receiving relevant education; * Are under pension age.

Contribution-based Jobseeker's Allowance will be limited to six months.

Income-based Jobseeker's Allowance will be paid for as long as the person's income is less than the applicable amount and the conditions for benefit are met.

People who are working for, on average, 16 hours or more a week (24 hours or more in the case of partners in Jobseeker's Allowance (Income based)) are not normally eligible for Jobseeker's Allowance.

New claims after April 04 will need to claim additions for children via

Child Tax Credits

.

Housing costs (mortgage) will also be paid where appropriate, from January 2009 this help is limited to 2 years.

Recipients of Jobseeker's Allowance (Income based) will normally qualify for full-rate Housing Benefit without having to complete a separate means test.

Contribution conditions for JSA (CB) The first contribution condition for Jobseekers Allowance Contributory (JSA CB) is that you must have actually paid or treated as paid 26 weeks Class 1 national insurance contributions on earnings at the lower earnings limit in one of the last three tax years before you claim. The second contribution condition is that you must either have paid or been credited with class 1 contributions on earnings of 50 times the lower earnings limit in each of the last two tax years before you claim.

Lower earnings limits?

2009/10 contributions on earnings at £4,750 2010/11 contributions on earnings at £4,850 If you do not meet the contribution conditions for contributory JSA, you may still qualify for income-related JSA if your income and capital are low enough.

Working Tax Credits

You can apply for two tax credits, Child Tax Credit and Working Tax Credit.

The general rule is that to qualify for tax credits you must be aged 16 or over and usually live in the United Kingdom.

Couples must make a joint tax credits application. If you are part of a couple, you cannot decide to apply as a single person.

Working Tax Credit is for people who are employed or self employed (either on their own or in a partnership), who usually work 16 hours or more a week, and expect to work for at least 4 weeks and who are – A single parent aged 16 or over and responsible for at least one child Aged 16 or over and disabled Over 60 with no children Most couple with children now need 24 hours weekly.

Others usually need to work at least 30 hours a week.

Working Tax Credit is paid to the person who is working 16 hours or more a week. Couples, if both of you are working 16 hours or more a week, you must choose which one of you will receive it. You should not receive Working Tax Credit if you are NOT working 16 hours at the date of claim and should NOT keep it if you stop working less than 16 hours after being awarded it, although new rules from January 2008 allow it to be paid for four weeks after you stop working.

People on Statutory Sick Pay (SSP), Maternity Benefits and parental benefits can keep it while not working

Child Tax Credit is for people who are responsible for at least one child or qualifying young person. Child Tax Credit is paid if you work or not, and is paid direct to the person who is mainly responsible for caring for the child or children. If you are a lone parent you will receive the payment.

As part of Working Tax Credit you may qualify for help towards the costs of childcare. If you receive the childcare element of Working Tax Credit, this will always be paid direct to the person who is mainly responsible for caring for the child or children, alongside payments of Child Tax Credit.

The amount of tax credits you receive will depend on your annual income from the previous year April - April.

You are allowed to earn over this previous years income by £10,000 without this extra amount effecting the on-going award, as long as this previous years income was

NOT

an estimate given by you.

However anything extra over this £10,000 will reduce your entitlements for this year. It will be noticed when the Inland Revenue re-calculate your next award from next April, this could result in an overpayment.

Benefit cap

From April 2013 a cap will be introduced on the total amount of benefit that working age people can receive. This will mean that workless households should no longer receive more in benefits than the average earnings of working households. The cap will be administered jointly by DWP and local authorities through deductions from Housing Benefit payments. In the longer term it will form part of the new

Universal Credit

system.

What is the benefit cap?

The benefit cap will mean that working age people can't receive more than a set amount in benefits, even if they would otherwise be entitled. The cap will be set at the average net earned income of working households. This is estimated currently to be £350 per week for a single adult with no children and £500 per week for a couple or lone parent.

How will the cap be applied?

When the cap is brought in it will be applied via the Housing Benefit system, so will be administered by Local Authorities. This means the effect of applying the cap will depend entirely on a household's Housing Benefit entitlement.

A household receiving enough Housing Benefit to apply the cap in full:

If a household is £50 per week above the benefit cap level, after income from all appropriate benefits are added together, their Housing Benefit award will be reduced by £50 per week to bring them within the benefit cap.

A household not receiving enough Housing Benefit to apply the cap in full:

If a household is £50 per week above the benefit cap level, but receive less than £50 per week in Housing Benefit, their Housing Benefit award will be reduced so just 50p remains.

This means the household could still receive income from benefits which is higher than the benefit cap level.

A household receiving no Housing Benefit:

Some households may receive no Housing Benefit but still exceed the benefit cap level. These households will not have their benefit income reduced as the cap cannot be applied.

Once Universal Credit is brought in (October 2013 pilot starts) the benefit cap will be applied by restricting the Universal Credit payment. This will enable all households affected to be capped in full.

Broadly, the cap will affect large families with several children who are potentially in receipt of higher than average amounts of Child Tax Credit and are more likely to live in larger homes meaning more Housing Benefit.

It is estimated that 27% of households affected will have 5 or more children. 69% will have 3 or more children.

However, smaller households may still be affected if they live in high rent areas and are therefore receiving larger amounts in Housing Benefit.

• Which benefits are included in the cap?

To work out if you are within the benefit cap the Department for Work and Pensions (DWP) will add together your income from the following benefits: Bereavement Allowance , Carer's Allowance , Child Benefit , Child Tax Credit , Employment and Support Allowance (except when in the support group), Guardian's Allowance Housing Benefit (HB), Income Support , Industrial Injuries Disablement Benefit (except when getting Constant Attendance Allowance ), Jobseeker's Allowance , Maternity Allowance , Reduced Earnings Allowance , Severe Disablement Allowance, Universal Credit, Widowed Parent's Allowance

Households that aren't affected by the cap?

The cap won’t apply to households where a partner or any dependant child qualify for Working Tax Credit or receive any of the following: Disability Living Allowance Personal Independence Payment Attendance Allowance Constant Attendance Allowance Employment Support Allowance with support component Armed Forces Compensation Scheme payments War Pension Scheme payments (including War Widow’s/Widower’s Pension and War disablement Pension).

Or If you become unemployed after being employed for 12 months continuously prior to claiming benefits, and you lost your job through no fault of your own. In this case the household receives 9 months protection from cap. To date there is no current definition for what constitutes employment.