Benefit entitlement is not restricted to people who are unemployed or who are too sick to work. There are circumstances where people who are in employment can claim financial benefits.
The source of these benefits could be from the local authorities, Department of Works and Pensions or Revenue and Customs. The type and amount of benefit you could expect to receive would be based on personal circumstances. The information below is for individuals who work 16 hours or more a week.
Tax credits
Tax credits are payments from the government. If you’re responsible for at least one child or young person who normally lives with you, you may qualify for Child Tax Credit. If you work, but earn low wages, you may qualify for Working Tax Credit. Application packs are available by contacting the tax credit helpline; they will also assist you in completing the forms should you require any help. You should make a claim as soon as you think you may qualify. You could lose money by delaying your applications because tax credits can normally only be backdated up to three months from the date the Tax Credit Office get your claim form. If you live with someone as a couple you must make a joint tax credits claim.
Child tax credit
- Child Tax Credit is payable to families with a child under 16 years of age or under 19 years if still in full-time non-advanced education or registered with the careers service
- There are different levels of award depending on the age of your child or children
- The payment will normally be made to the main carer of the child and is either paid weekly or four weekly directly into a bank, building society or post office account.
- If your combined gross income is £50,000 or less you can qualify for the full award of Child Tax credit but where income exceeds this amount your award will be reduced progressively
Working tax credit
- May be payable if you are working at least 16 hours a week and responsible for a child under 16 years of age or under 19 years if still in full-time non-advanced education or registered with the careers service, or
- Working 30 hours a week and aged 25 years or over, or
- Working at least 16 hours a week and have a disability which may restrict your employment prospects, or
- Working 16 hours a week and you or your partner are aged over 50 years, and are returning to work after a period of time during which you have been claiming certain benefits paid to people who are unemployed
If you are in a couple Working Tax Credit is paid to whoever is working. If both members of a couple are earning from work, you can choose which one of you will receive the payments.
Where both of a couple are working 16 hours or more and are responsible for a child or children, there may be entitlement to a contribution to childcare costs. These would be paid to the main carer in the same way as Child Tax Credit.
Housing benefit
Housing Benefit is for people on a low income to help them pay their rent. You may be able to get Housing Benefit if you are on other benefits, work part-time or work full-time on a low income. You cannot get Housing Benefit to help with the costs of a mortgage or home loan. Housing Benefit is only payable to those responsible for paying the rent on their home, or living with a partner who is responsible for the rent. Only one member of a couple can claim and you must live in the accommodation for which you are claiming Housing Benefit. Applications must be made to the local authority responsible for administering housing benefit. Claims can only be back dated for 1 month.
You can also claim Personal Independence Payment (PIP) whilst working.
Personal Independence Payment (PIP) Overview
You may be able to get help with some of the extra costs caused by long term ill-health or disability. If you’re aged 16 to 64 you could get between £22 and £141.10 a week by claiming Personal Independence Payment (PIP).
The amount you get depends on how your condition affects you, not the condition itself. You’ll be assessed by a health professional to work out the level of help you can get. Your rate will be regularly reviewed to make sure you’re getting the right support.
It would be of use to check on the link below if applying for Universal Credit as there will now be a maximum amount of benefits, with a cap, dependant on your circumstances. This can be reviewed in the following link:
https://www.gov.uk/benefit-cap-calculator
Council tax
Council Tax Benefit is a benefit for people on a low income to help them pay council tax. It is paid by the local authority. If you are entitled to Council Tax Benefit, your council tax bill is reduced. Second Adult Rebate is a form of Council Tax Benefit that can be paid instead of the main type of Council Tax Benefit. You may be able to claim if you have to pay Council Tax and you live with someone else, other than your partner. The other person must be 18 or over, not paying rent, not responsible to pay Council Tax, and have income below a certain amount. The other person cannot be someone who is ‘disregarded’ when the local authority works out whether you can get a discount in the amount of Council Tax that you pay.
Disability living allowance
Disability Living Allowance (DLA) is a non-means tested benefit payable to people under 65 years of age who require additional care and/or have restricted mobility as a result of a disability that has continued for at least three months and is expected to continue for a further six months. DLA is assessed at different levels and so may be available if you are in work.
DLA is assessed on demonstrated need judged against key activities involved in taking care of oneself or in getting around unaided. You do not actually have to be receiving assistance with care or mobility to qualify.
Individuals who are diagnosed as being terminally ill can also claim this benefit. There is a fast track application process is in place for such cases. Application packs can be obtained by using the special benefit enquiry line.
Disablement benefit
Disablement benefit is for people who are disabled because of an accident at work, or who have certain diseases caused by their work. Only industrial diseases qualify, for example, diseases caused by chemicals you have worked with or hearing loss caused by your work. You can get a list of the diseases from your local benefits office. The amount of benefit paid depends on the age of the claimant and the extent of disability. It is not means tested but will be included as income when claiming other ‘means tested’ benefits such as Income Support. There are different claim forms for Disablement Benefit, depending on whether the disability was caused by an accident or whether you are claiming because you have a particular industrial disease. You should ask at the local benefit office for the right form.
Child Trust Fund
A Child Trust Fund is a savings and investment account. The Fund is designed to provide a sum of money to children born after 31st August 2002. The investment fund can be accessed by the child once they reach 18 years of age. There are no restrictions on the way in which the child spends the mature fund at age 18. Key features include:
- Low earning families claiming tax credits will be entitled to a further contribution once their tax credit is finalised for the relevant year
- HM Revenue and Customs will open the account on the child’s behalf within one year if this is not arranged by the parents/guardian of the child
- Additional contributions can be added subject to certain limits, but tax relief cannot be claimed by the contributor(s).
- A further contribution is planned by the Government for each eligible child when they reach 7 year of age, with an additional amount for low income families.
- Only one account per child can be opened,
- The account cannot normally be accessed for withdrawals until the age of 18 years, unless the child becomes terminally ill.
- Income or capital gains tax are not payable on the money in a Child Trust Fund account and benefits or tax credit claims will be unaffected
The above is not an exhaustive list of the benefits you may be able to claim, or the criteria needed in order for you to be eligible to claim these benefits. For further information you can click on the web sites provided below.
workplacewellbeing.com assumes no responsibility for the content of linked websites.
