Council Tax Benefit
Education benefits
Employment and Support Allowance (income related)
Health Benefits
Housing Benefit
Income Support
Jobseekers Allowance - income based
Pension Credit
Social Fund (grants, loans, cold weather payments, funeral costs, maternity grant…)
Tax Credits (Child Tax Credit and Working Tax Credit)
Means tested benefits are not affected by whether a person has paid National Insurance contributions. They are affected by the claimant's circumstances, capital and income and involve a calculation. How to calculate a means tested benefit
Each means tested benefit has its own qualifying rules. Many are claimed via the Jobcentre Plus with work focused interviews. Here is a very brief and general description of each benefit. Seek advice for more detail.
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.
Paid for some children at school by the local council's Education Department and includes:
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. ESA(IR) is not taxable.
More details about Employment and Support Allowance
Contact Employment and Support Allowance
These include free provision of, or help towards costs of: prescriptions, glasses, dental treatment, milk and vitamins, hospital fares. More health and welfare benefits details
Contact Health and Welfare Benefits
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 introduced a change to Housing Benefit for private tenants.
Discretionary payments can be made for people on Housing Benefit who are in financial hardship.
Contact Housing Benefit
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
This is the equivalent of Income Support for those people who have to sign on as available for and actively seeking work. The requirement to sign on applies to both in a couple - unless exempt. Can be paid as a ‘top up’ to Jobseekers Allowance - contribution based. 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.
Introduced on 7th October 2003, Pension Credit is administered by the Pension Service which is part of the DWP.
Pension Credit has two elements:
Is basically Income Support for people of pension age and over. Replaced 'Minimum Income Guarantee'.
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.
More information about Pension Credit.
Contact Pension Credit
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.
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 - I or Pension Credit (Guarantee Credit). Loans may be made for intermittent expenses, for example, clothes, cooker. More details about Budgeting Loans.
Community Care Grants
Non-repayable amounts to help those on Employment and Support Allowance (income related), Income Support, JSA - I or Pension Credit (Guarantee Credit). Payments can be made in the following situations:
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.
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.
More information on cold weather payments.
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. The amount only covers certain 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. Information on April 2011 changes.
Winter Fuel Payments
A single payment for those pension age and over in winter. More details on Winter Fuel Payments
In April 2003, Tax Credits replaced:
Tax Credits consists of two separate credits:
For people with children. Paid to the main carer. The Government say 8 out of 10 people are entitled.
For people working 16 or more hours a week and either
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.
More information about Tax Credits.
Contact Tax Credits
See also
Non means tested benefits | Other benefits | benefit administration | the benefit rates | Introduction to benefits | Benefit office contact details
Page last updated: 16 August, 2011
