Contributory benefits:
Bereavement Benefits
Employment and Support Allowance (contribution based)
Incapacity Benefit
Jobseeker’s Allowance - contribution based
Maternity Allowance
Retirement Pension
Non contributory benefits:
Attendance Allowance
Carers Allowance
Child Benefit
Disability Living Allowance
Employment and Support Allowance in youth and Incapacity Benefit in youth
Guardians Allowance
Industrial Injuries Benefit
Industrial Death Benefit
Severe Disablement Allowance
Statutory Adoption Pay
Statutory Maternity Pay
Statutory Paternity Pay
Statutory Sick Pay
War Pensions/Armed Forces Compensation Scheme
Each of these benefits has different rules. Once a person satisfies these rules they usually get the benefit regardless of any other income that they have. But there are exceptions and see overlapping benefits rules. For some, additional amounts may be claimed for dependants - although additions for children were replaced by Child Tax Credit for new claimaints from 7 April 2003. They 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
The main contributory benefits are:
Paid to some people whose spouse has died. Entitlement depends mainly on the national insurance contribution record of the late spouses or if s/he 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 to bereaved over 45 but under pensionable age who are not receiving Widowed Parents Allowance and it is within 52 weeks of spouse dying. It is taxable.
Bereavement Payment
A tax-free lump sum payment of £2,000. The bereaved must be under 60 when his/her spouse dies or if older, the spouse was not entitled to a Category A Retirement Pension when s/he 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)) replaces Incapacity Benefit for people who cannot work becuase 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.
The National Insurance contributions rules do not apply to 16 to 19 or 25 year olds under the ESA in youth rules.
More information about Employment and Support Allowance.
Paid to people who cannot work because of illness or disability. This has to be shown, in most cases, by completing a long form and satisfying the 'Personal Capability Assessment'. This is where the claimant has to score a certain amount of points for not being able to do certain physical and/or mental activities. Some people are exempt from this test. More on how incapacity is tested.
The National Insurance contributions rules do not apply to 16 to 19 or 25 year olds under the Incapacity Benefit in youth rules.
Incapacity Benefit is paid at one of three rates depending on how long a person has been unable to work: Short-term lower rate for the first 28 weeks, short-term higher rate from week 29 to week 52 and long-term rate after 52 weeks (or after 28 weeks if terminally ill or on Disability Living Allowing high care rate). It can be reduced by an occupational or private pension - unless for example, the claimant gets highest care rate of DLA. It is taxable after 28 weeks. Dependents additions may be claimed.
It cannot be paid at the same time as Statutory Sick Pay (SSP) but can be paid when SSP runs out or is not payable at all. Incapacity Benefit can be paid ontop of wages being paid when on the sick.
Normally it cannot be awarded if working but there are exemptions.
Changes: Incapacity Benefit will be replaced for new claims from 27 October 2007 by Employment and Support Allowance.
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 three different age-based rates. There are strict labour market conditions that must be satisfied. For example, having to be available for work. Earnings and occupational/personal pension are taken into account.
For unemployed pregnant women who have recently worked. It lasts for 26 weeks (or 39 weeks for those expecting a baby on or after 1 April 2007). It is paid at one of two rates depending on recent earnings. Dependants additions may be payable. It is non-taxable. See changes in 2007 Benefit Bulletin
Paid to those people over pensionable age, currently 60 years for women and 65 years for men. However a common pension age of 65 for both men and women has been introduced. This change will be phased in between 2010 and 2020. There are two main 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. A dependent addition may be payable.
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:
Paid to ill or disabled people who first claim aged 65 and over, who have care or supervision needs. There are two rates of payment depending on the level of care needed. It is non-taxable. Detailed guide to Attendance Allowance and Disability Living Allowance
Paid to people who first claim between 16 and 65 years old and 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. The carer must not be in full time education or earning above a certain amount. Dependents additions may be payable. It is taxable. Changes in 2002 and 2003.
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.
Paid to some ill or disabled people. It is made up of 2 components –
Care component
for people who need attention or supervision due to an illness or disability, and
Mobility component
for people who have problems walking or need supervision while walking.
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. It is non-taxable.
See our detailed guide to Disability Living Allowance and Attendance Allowance.
People who become incapable of work between the age of 16-19 (25 in some cases) do not have to satisfy any National Insurance contribution rules to get Incapacity Benefit or Employment and Support Allowance.
A tax free benefit paid to people looking after children who are effectively orphans or parents in prison. Administered by Revenue and Customs.
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.
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.
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.
Paid by employers to some employees during adoption leave. It is paid for a maximum of 26 weeks (or 39 weeks if the adoption is expected on or after 1 April 2007). It is taxable. For changes see Benefit Bulletins in 2003 and 2007
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 26 weeks (or 39 weeks for those expecting a baby on or from 1 April 2007) See changes in 2007 Benefit Bulletin
Paid by employers to some employees for parental leave following the birth/adoption of child. It is paid for a maximum of two weeks. It is taxable. For changes see Benefit Bulletins in 2003 and 2007
This benefit is for employed people who are sick for four or more days in a row. It is claimed from an employer and can be paid for a maximum of 28 weeks. A pers
on may be entitled to 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, Incapacity Benefit, or from 27 October 2008, Employment and Support Allowance, should be claimed. Incapacity Benefit or 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.
For people who are either injured or disabled whilst working or serving in the armed forces. It can also be paid to widows/widowers of those who have served/worked in the armed services. There are various tax-free allowances similar to Industrial Injuries Benefits. 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.
More details from th e Service Personnel and Veterans Agency website.
See also
Means tested benefits | other benefits | benefit administration | the rates | Introducti on to benefits
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