Council Tax Benefit
Education benefits
Employment and Support Allowance (income related)
Health Benefits
Housing Benefit
Income Support
Jobseeker's 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.
More details about 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
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 brings in a change to Housing Benefit for private tenants.
Discretionary payments can be made for people on Housing Benefit who are in financial hardship.
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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 Minimum Income Guarantee - which was effectively Income Support for those 60 and over - was replaced in October 2003 by Pension Credit. Sometimes the term 'disability income guarantee' is used for Income Support for disabled people on Disability Living Allowance (DLA).
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:
The Guarantee Credit
Is basically Income Support for people aged 60 and over. Replaced 'Minimum Income Guarantee'.
The Savings Credit
A completely new concept in 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.
More information about 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:
- 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.
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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. The amount only covers certain costs.
Sure Start Maternity Grants
£500 per baby for those on a benefit like Income Support or Child Tax Credit (at a certain rate) and have received health and welfare advice from a health professional.
Winter Fuel Payments
A single payment for those 60 and over in winter. More details on Winter Fuel Payments
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 can choose to continue until they are transferred to the new Tax Credits.
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.
Working Tax Credit
For people working 16 or more hours a week and either
- have children
- are disabled, or
- are '50 plus' or
- are 25 and over and work 30 hours or more a week.
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.
More information about Tax Credits.
See also
Non means tested benefits | Other benefits | benefit administration | the benefit rates | Introduction to benefits
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