The general rules is that non means tested benefits are not affected by a person's capital or income. Here are the exceptions:
Page contents
Earnings rules
Other income rules
Reduction to child increase rules
Tax rules
See also
Non means tested benefit rates A-I
Non means tested benefit rates J-Z
Basic benefit rules
| | 2008/9 £ | 2009/10 £ |
|---|
| no increase paid if adult dependant earns or has pension above | 30.20 | 31.70 |
| Child Increase (partner's earnings) | | |
| With Incapacity Benefit, Severe Disablement, Carers Allowance | | |
| one child increase lost if partner earns or has pension above | 185.00 | 195.00 |
| further child increases lost for each additional child | 25.00 | 26.00 |
| Jobseekers Allowance - contribution based | 5.00 | 5.00 |
Carers Allowance Not payable if earnings above | 95.00 | 95.00 |
| Employment and Support Allowance and incapacity for work benefits permitted work | | |
| Earnings limit - higher | 92.00 | 93.00 |
| Earnings limit - lower | 20.00 | 20.00 |
| Councillor's allowance - earnings limit | 92.00 | 93.00 |
| Adult increase | | |
| with short term Incapacity Benefit | | |
| - under pension age: no increase paid if adult dependant earns or has pension above | 39.40 | 41.35 |
| - over pension age: no increase paid if adult dependant earns or has pension above | 48.65 | 51.10 |
| With long term Incapacity Benefit, Severe Disablement Allowance and Retirement Pension | | |
| no increase paid if adult dependant earns or has pension above (there are some exceptions) | 60.50 | 64.30 |
| With Maternity Allowance | | |
no increase paid if adult dependant earns or has pension above | 39.40 | 41.35 |
| With Carers Allowance | | |
| | 2008/9 | 2009/10 |
|---|
| For new claims from 6 April 2001 | | |
| Incapacity Benefit reduced where claimant has private/occupational pension over | 85.00 | 85.00 |
| Reduction is 50p for each £1 over £85.00 - unless on highest DLA care | | |
Jobseekers Allowance - contribution based reduced by occupational/private pension over | 50.00 | 50.00 |
| Employment and Support Allowance | | |
| reduced by occupational/private pension over | 85.00 | 85.00 |
| Incapacity Benefit | | |
** Child increase with the following benefits are reduced:
Carers Allowance, Incapacity Benefit, Retirement Pension, Severe Disablement Allowance, Widows' and Bereavement Benefits
Amount of reduction 2008/9: £2.60, 2009/10: -------
Note: child increases replaced by Child Tax Credit. Existing claims protected.
The following benefits are taxable (except child increases where paid):
Incapacity Benefit (after 28 weeks), Employment and Support Allowance (contribution based) (main phase), Carers Allowance, Jobseeker's Allowance- contribution based, Retirement Pension, Widows & Bereavement Allowances.
Note: Protected pre April 1995 Invalidity Benefit awards are not taxable.
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