Universal Credit
Universal credit is a new single payment for people who are looking for work or on a low income. It will be launched in 2013 and will replace:
- Income-based jobseeker’s allowance.
- Income-related employment and support allowance.
- Income support.
- Child tax credits.
- Working tax credits
- Housing benefit.
Also, the following benefits are changing. Other benefits will continue.
- Disability living allowance will be replaced by personal independence payment from 2013.
- Council tax benefit will be abolished in April 2013 and replaced by a system of localised support.
- Pension credit will be amended from October 2014 to include help with eligible rent and dependent children.
- Social fund is also being reformed to introduce new local assistance.
Other benefits will continue.
Starting in April 2013, the DWP will introduce universal credit to claimants within certain areas of the North-West of England as a ‘pathfinder’ stage. Then new claimants will be able to make claims for universal credit from October 2013, while claims for existing benefits and credits will be gradually phased out. From April 2014, all new claims will be for universal credit.
Existing claimants will move onto universal credit in line with a phased approach that is expected to be completed by the end of 2017.
APRIL 2013
All weekly rates unless otherwise stated.
- (T) = taxable benefits
- (M) = means tested, ie the level of income/capital will determine benefits.
Common Rules - Capital Limits
Common Rules - Deductions
Extra Benefits for Dependants
Attendance Allowance
Bereavement Benefit
Carer's Allowance
Child Benefit/Guardian Allowance
Christmas Bonus
Disability Living Allowance/Personal Independence Payment
Employment and Support Allowance
Health Costs
Housing Benefit (M)
Incapacity Benefit
Income Support
Industrial Death Benefit
Industrial Injuries Disablement Pension
Jobseeker's Allowance
Maternity Allowance
Pension Credit (M)
Severe Disablement Allowance
State Pension
Statutory Pay
Statutory Sick Pay
War Pensions and Armed Forces Compensation
Widow's Benefits
Winter Fuel Payments
Working Tax Credit
For income support (IS), income based jobseeker’s allowance (JSA), income-related employment and support allowance (ESA), pension credit (PC), housing benefit (HB) and universal credit (UC) unless otherwise stated.
Capital rules
Upper limit: £16,000
Upper limit – PC and HB guarantee credit: no limit
Amount disregarded (all benefits except PC and HB for those above qualifying age for guarantee credit): £6,000
Amount disregarded (PC or HB claimant above qualifying age for guarantee credit): £10,000
Child disregard (not PC or ESA): £3,000
Amount disregarded (living in a care home): £10,000
Income from capital - tariff income
£1 for every complete £250 or part between amount of capital disregarded and capital upper limit.
Income from capital - tariff income (PC and HB)
Claimant or partner is over guarantee credit qualifying age: £1 for every complete £500 or part between amount of capital disregarded and capital upper limit.
For income support (IS), jobseeker’s allowance (JSA), employment and support allowance (ESA), pension credit (PC) and housing benefit (HB) unless otherwise stated.
Deductions for non-dependants
Gross income under £124.00 or not in remunerative work: £13.60
Gross income £124.00-£182.99, in remunerative work: £31.25
Gross income £183.00-£237.99, in remunerative work: £42.90
Gross income £238.00-£315.99, in remunerative work: £70.20
Gross income £316.00-£393.99, in remunerative work: £79.95
Gross income £394.00 or more and in remunerative work: £87.75
These payments are made in addition to the basic rates of NI and some non-contributory benefits.
Dependent children
With retirement pension, widowed mother’s allowance, widowed parent’s allowance, short-term incapacity benefit paid at the higher rate or if beneficiary over pension age, long-term incapacity benefit, carer’s allowance, severe disablement allowance, higher rate industrial death benefit or unemployability supplement, you may get: £11.35
Dependent adults
For a spouse or a person looking after children, you may get with:
State pension on your own NI contributions: £63.20
Long-term incapacity benefit/Unemployability supplement: £58.85
Carer’s allowance: £35.15
Severe disablement allowance: £35.35
Short-term incapacity benefit over state pension age: £56.65 (T)*
Short-term incapacity benefit and maternity allowance: £45.85 (T)
*Taxable for higher rate incapacity benefit only.
Higher rate: £79.15
Lower rate: £53.00
Bereavement payment (lump sum): £2,000.00
Widowed parent’s allowance: £108.30 (T)
Bereavement allowance (standard rate): £108.30 (T)
Bereavement allowance (age-related) (T)
| Age: | Amount: |
| 54 | £100.72 |
| 53 | £93.14 |
| 52 | £85.56 |
| 51 | £77.98 |
| 50 | £70.40 |
| 49 | £62.81 |
| 48 | £55.23 |
| 47 | £47.65 |
| 46 | £40.07 |
| 45 | £32.49 |
Carer’s allowance: £59.75 (T)
Child Benefit/Guardian Allowance
For eldest qualifying child (couple): £20.30
For each other child (couple/lone parent): £13.40
Guardian’s allowance: £15.90
Paid with some benefits, only one bonus for each person. The qualifying week begins on the first Monday in December.
One rate: £10.00
Disability Living Allowance/Personal Independence Payment
Care component
Higher rate: £79.15
Middle rate: £53.00
Lower rate: £21.00
Mobility component
Higher rate: £55.25
Lower rate: £21.00
Employment and Support Allowance
It is taxable only if contribution-based and not income-based.
Personal allowances
Single person aged 16-24: £56.80
Single person aged 25 or over: £71.70
Couple aged 18 or over (means tested only): £112.55
Components
Work-related activity: £28.45
Support: £34.80
Free prescriptions, dental treatment, sight tests and vouchers for glasses, wigs and fabric supports, and help with hospital travel costs - available free with disability living allowance, IS, income-based JSA or family credit.
Some other people can get them free or at a reduced cost. See leaflet HC11 Help with Health Costs available from post offices and Social Security offices.
The maximum housing benefit (HB) is based on the maximum rent for an individual’s eligibility, minus any non-dependant deductions that apply. The rates used to calculate HB payments are generally the same as the allowances and premiums that make up IS (see below). There are a few exceptions.
Personal allowances
Single people 16-24: £56.80
Single people 25 or over: £71.70
Lone parents under 18: £56.80
Lone parents 18 or over: £71.70
Premium
Family (lone parent rate): £22.20
Meals deductions
Three or more meals a day: £25.85 (adult), £13.10 (child under 16)
Less than three meals a day: £17.20 (adult), £8.65 (child under 16)
Breakfast only: £3.15 (adult), £3.15 (child under 16)
Service charges for fuel
Heating: £25.60
Hot water: £2.95
Lighting: £2.05
Cooking: £2.95
See Employment and Support Allowance for new claimants because of illness or disability under state pension age from 27 October 2008.
Long-term basic rate: £101.35 (T)
Increase for age - lower rate: £6.00 (T)
Increase for age - higher rate: £10.70 (T)
Short-term lower rate - under state pension age: £76.45
Short-term higher rate - under state pension age: £90.50 (T)
Short-term lower rate - over state pension age: £97.25
Short-term higher rate - over state pension age: £101.35 (T)
Income Support (taxable only if on strike) (M)
Personal allowances, premiums and payments to cover certain housing costs together make up the income support (IS) benefit payment. See Employment and Support Allowance for new claimants because of illness or disability under state pension age from 27 October 2008.
Personal allowances
Single people aged under 25: £56.80
Single people aged 25 or over: £71.70
Couple both aged 18 or over: £112.55
Couple where one or both partners are aged under 18, personal allowance depends on their circumstances.
Lone parents aged under 18: £56.80
Lone parents aged 18 or over: £71.70
Lone parents dependent children: £65.62
Premiums
Family/lone parent: £17.40
Disabled child: £57.89
Carer: £33.30
Pensioner couple: £109.50
Disability
Single: £31.00
Couple: £44.20
Severe disability - paid for each adult who qualifies: £59.50
Independent residential care homes and nursing homes
Maximum help with fees depends on type of care provided. Maximum amounts can be increased for care in Greater London.
Relevant sum for strikers: £39.00
Widow’s pension - higher rate: £110.15 (T)
Widow’s pension - lower rate: £33.05 (T)
Widower’s pension: £110.15 (T)
Industrial Injuries Disablement Pension
Disablement benefit
Aged 18 and over, disablement or under 18 with dependants
| 100% | £161.60 |
| 90% | £145.44 |
| 80% | £129.28 |
| 70% | £113.12 |
| 60% | £96.96 |
| 50% | £80.80 |
| 40% | £64.64 |
| 30% | £48.48 |
| 20% | £32.32 |
Maximum life gratuity (lump sum): £10,730.00
Unemployability supplement
Basic rate: £99.90
There are additions for early incapacity
Higher rate: £20.70
Middle rate: £13.30
Lower rate: £6.65
Reduced earnings allowance
Maximum rate: £64.64
Retirement allowance
Maximum rate: £16.16
Constant attendance allowance
Part-time rate: £32.35
Normal maximum rate: £64.70
Intermediate rate: £97.05
Exceptional rate: £129.40
Exceptionally severe disablement allowance
One rate: £64.70
Contribution-based JSA
Person aged under 25: £56.80 (T)
Person aged 25 or over: £71.70 (T)
Income-based JSA (M)
Personal allowances
Single people aged under 25: £56.80 (T)
Single people aged 25 or over: £71.70 (T)
Couple both under 18: £56.80 (T)
Couple both under 18, higher rate: £85.80 (T)
Couple, one under 18, one 18-24: £56.80 (T)
Couple, one under 18, one over 25: £71.70 (T)
Couple, both 18 or over: £112.55 (T)
Lone parents aged under 18: £56.80 (T)
Lone parents aged 18 or over: £71.70 (T)
Lone parents dependent children: £65.62 (T)
Premiums
Amounts are the same as for IS (see above) except
Pensioner single: £73.70 (T)
Prescribed sum for strikers: £39.00
Standard rate: £136.78
MA threshold: £30.00
Standard minimum guarantee
Single: £145.40
Couple: £222.05
Additional amount for severe disability
Single: £59.50
Couple (one qualifies): £59.50
Couple (both qualify): £119.00
Additional amount for carers: £33.30
Savings credit
Threshold - single: £115.30
Threshold - couple: £183.90
Maximum - single: £18.06
Maximum - couple: £22.89
Basic rate: £71.80
Age-related additions
Higher rate: £10.70
Middle rate: £6.00
Lower rate: £6.00
Basic pension
Based on your own or your late spouse’s NI contributions: £110.15 (T)
Based on your spouse’s contributions: £66.00 (T)
Non-contributory (based on residence)
Full rate: £66.00 (T)
Over 80 addition: £0.25 (T)
Additional pension
Based on your earnings since April 1978. Also known as the State Earnings Related Pension (SERPS).
Graduated retirement benefit
Based on your graduated NI contributions paid between April 1961 and April 1975. For every £7.50 (man) or £9 (woman) of graduated contributions paid, you get: 12.79p (T)
Deferral
Increase on deferral: 0.2% a week simple (ie 10.4% a year).
Lump sum alternative: only available if pension deferral lasts at least 12 months. Calculated as foregone payments accumulated at base rate +2%. Fully taxable at pensioner’s marginal rate (ie not added to income).
If your average gross earnings are £109 a week or over:
Adoption: £136.78 (T)
Maternity: £136.78 (T)
Paternity: £136.78 (T)
If your average gross earnings are £109 a week or over:
Standard rate: £86.70 (T)
War Pensions and Armed Forces Compensation
You can find information on the rates of all war pensions, allowances and supplements from the Service Personnel & Veterans Agency – www.veterans-uk.info.
Widowed mother’s allowance: £108.30 (T)
Widow’s pension (standard rate): £108.30 (T)
Age-related widow’s pension (T)
The rate depends on your age at the time of your husband’s death or when widowed mother’s allowance stops. If you were receiving age-related widow’s pension before 11 April 1988, refer to the ages in brackets.
| Age: | Amount: |
| 54 (49) | £100.72 |
| 53 (48) | £93.14 |
| 52 (47) | £85.56 |
| 51 (46) | £77.98 |
| 50 (45) | £70.40 |
| 49 (44) | £62.81 |
| 48 (43) | £55.23 |
| 47 (42) | £47.65 |
| 46 (41) | £40.07 |
| 45 (40) | £32.49 |
Born on or before 5 January 1951: £200.00
Born on or after 26 September 1931: £300.00
Working Tax Credit (rates per year) (M)
Basic element: £1,920
Additional couple’s and lone parent element: £1,970
30 hour element: £790
Disabled worker element: £2,855
Severe disability element: £1,220
Childcare element
Maximum eligible cost per week: £300
Maximum eligible cost for one child per week: £175
Percentage of eligible costs covered: 70%
Family element: £545
Child element: £2,720
Disabled child additional element: £3,015
Severely disabled child additional element: £1,220
Income thresholds and withdrawal rates
First income threshold: £6,420
First withdrawal rate: 41%
First threshold for those entitled to child tax credit only: £15,910
Income rise disregard: £5,000
Income fall disregard: £2,500
The Financial Conduct Authority (FCA) does not regulate tax advice, so it is outside the investment protection rules of the Financial Services and Markets Act and the Financial Services Compensation Scheme.
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