Other benefits

Benefits that are based on the condition of your health:

• Attendance Allowance



• Constant Attendance Allowance



• Incapacity Benefit (IB) - for those below retirement age



• Industrial Injuries Disablement Benefits



• War Disablement Pension



• War Pensioner's Mobility Supplement

Benefits affected by the level of your income or capital (means tested):
Affected by level of capital:

• Council Tax Benefit
• Housing Benefit

Affected by level of income:

• Income Support (under 60)


• Pension Credit (over 60)


• NHS Treatment

Other benefits

• Age Related Payments



• Carer's Allowance



• Social Fund



• Budgeting Loan



• Community Care Grants



• Crisis Loans



• Funeral Payments



• Christmas Bonus



• Guardian's Allowance



• Over 80s Pension



• War Widow's Pension



• Winter and Cold Weather Fuel payments & the Home Energy Efficiency Scheme

Attendance Allowance

• This allowance is not based on the amount of NIC you have paid. It is not related to your income nor is it means tested.
• The allowance is normally paid in full on top of other benefits.
• It is a tax-free benefit.
• To be entitled you must become disabled after the age of 65 or be disabled before that age but only claim after that date. You must have needed help with your personal care (e.g washing, dressing, getting in and out of bed, getting out of a chair, taking medication, supervision in case you fall) by day or night for at least the last 6 months. It does not matter if you actually get the help you need, as long as it is reasonably required. You may also be entitled if you use a kidney machine at home or in a self care unit 2 or more times a week.
• You may need a medical examination by a doctor or the DWP may take advice from doctors before accepting your claim.
• You can receive Attendance Allowance even if there is no one to look after you but the claim will be discontinued from the first payday after 28 days if you go into hospital, or into care. However if you are completely self-funding in a care home, you can generally continue to receive attendance allowance.
• There are special rules for claiming attendance allowance quickly if you have a terminal illness, and are not reasonably expected to live for more than another 6 months. Phone the Benefit Enquiry Line for more information.
• You can also claim Attendance Allowance online .
• If you receive attendance Allowance (normally at the higher rate) you may qualify for extra Pension Credit, Housing Benefit, Council Tax Benefit and Working Tax Credit.
• A confidential telephone service is available for people with disabilities and their carers. Ring the Benefit Enquiry Line (BEL) on 0800 88 22 00 or you can e mail them at BEL-customer-services@dwp.gsi.gov.uk
• People with speech or hearing problems using a textphone can dial 0800 24 33 55

Constant Attendance Allowance

• This allowance is not based on what NIC you have paid. It is not related to your income.



• It is a tax-free benefit.



• To be entitled you must be receiving a Disablement Pension paid at the 100% rate.



• The benefit would also apply where you received Industrial Injuries or War Pensions and your total disablement is now 100%.



• There are different rates of benefit depending on the level of help required.

Incapacity Benefit (IB) - for those below retirement age

This benefit depends on whether or not you have paid National Insurance contributions.

If you become entitled to Incapacity Benefit (IB) on or after 6 April 2001 and your claim does not link with a previous one, you must have paid NI contributions in one of the last 3 tax years.

Is IB taxable?

Depending on the type of IB you receive the payment could be either taxable or tax free:

• Tax free
  
  • The initial 28 week period of payment (short term lower rate), and
  • benefit paid continuously since before 12 April 1995 and for the same form of incapacity. (Before that date recipients would have been entitled to the former invalidity benefit).



• If you do not qualify for Incapacity Benefit because of your contribution record then you may be able to claim Income Support due to incapacity for work. You should contact your local Job Centre Plus for further information.



• Taxable All other IB payments

When will I be entitled to IB?

• IB is paid if Statutory Sick Pay (SSP) has ended or you cannot get SSP. It is not paid if you were over state pension age when you became sick.



• If you became sick before reaching state pension age, you may be able to get Incapacity Benefit after state pension age. It can be paid at the Retirement Pension rate for up to one year of sickness. You can find more information on this here.



• You need to have been incapable of work because of sickness or disability for at least 4 days in a row including weekends and public holidays.

What are the rates of benefit?

If you become entitled to IB on or after 6 April 2001 and your claim does not link with a previous one, the amount of IB you can get may be affected if you have a pension income.

Incapacity Benefit can be paid at three different rates:

• Short-term Incapacity Benefit at the lower rate
  Paid if you do not get Statutory Sick Pay (SSP) and you have been sick for at least four days in a row including weekends and public holidays.



• Short-term Incapacity Benefit at the higher rate
  Paid if you have been sick for more than 28 weeks and less than 52 weeks.



• Long-term Incapacity Benefit
  Paid if you have been sick for over 52 weeks.

2008/09 weekly rates

• Long-term Incapacity Benefit - £84.50 (spouse or adult dependant £50.55)



• Short-term Incapacity Benefit (spouse or adult dependant £39.40)
  (under state pension age)
  Lower rate - £63.75
  Higher rate - £75.40



• Short-term Incapacity Benefit (spouse or adult dependant £48.65)
  (over state pension age)
  Lower rate - £81.10
  Higher rate - £84.50



• Increase of Long-term IB for age
  Lower rate - £17.75
  Higher rate - £8.90



• Invalidity Allowance (Transitional)
  Lower rate - £5.70
  Middle rate - £11.40
  Higher rate - £17.75

Other important points

• Long term IB is only payable up to state retirement age when it ceases and you normally start to get state pension instead. Many pensioners receive an unpleasant surprise when they have been receiving long term tax-free IB (former invalidity benefit claimants) and they reach state pension age only to start receiving taxable State Pension. The serious downside of the change is that one is taxable but the other is not. This can obviously affect your cash flow substantially. You need to bear this in mind if these circumstances apply to you.




• In some very limited circumstances Short Term Incapacity benefit may be payable for up to 1 year after reaching state retirement age if:

  1. the claimant is not more than 5 years over pension age AND
  2. the period of incapacity for work began before the claimant reached state retirement age AND
  3. if entitlement had not been deferred, or a decision to cancel entitlement to State Retirement Pension had not been made, the claimant would be entitled to either a Category A retirement pension or a Category B pension (based on the contributions of their late spouse or civil partner).


• You should seek advice on whether you may be better off claiming your State Retirement Pension or claiming short term IB if this situation applies to you.



• If IB started on or after 6 April 2001 the amount of benefit received may be reduced if you receive certain pension payments (such as an occupational pension). If this is the case IB will be reduced by an amount equal to half the amount of the pension payment above £85. This does not apply if you are entitled to Disability Living Allowance (Higher Rate Care) only. If you receive any pension income you should seek advice on how this may affect your IB.




• Reduced Earnings Allowance

  • Reduced Earnings Allowance (REA) is payable if you had an accident or disease that started before 1 October 1990. However you can still claim now providing the accident or disease occurred before this date. Reduced Earnings Allowance is paid to compensate for loss of earnings. The amount paid will depend on individual circumstances.
  
  
  
  • A factsheet about REA is available on the Direct Gov website.


• If you get the highest rate care component of Disability Living Allowance or are terminally ill, you will get Incapacity Benefit paid at the long-term rate after you have been sick for 28 weeks.



• If you get the long-term rate of IB you may qualify for extra money depending on your age when you became sick.



• You may earn extra pension through State Second Pension for every complete tax year you get long-term Incapacity Benefit, depending on your NI record.

How to claim

• Contact your local Jobcentre Plus office or social security office for claim form SC1.



• You can phone the Benefit Enquiry Line (BEL) on: 0800 88 22 00. The BEL is intended to be a confidential telephone service available for people with disabilities, their representatives and their carers. People with speech or hearing problems using a textphone can dial: 0800 24 33 55.



• Alternatively you can download Incapacity Benefit claim forms in a pdf format from the DWP website - you can print the form off or fill it in on screen.



• For more detailed information you can download a leaflet - Incapacity Benefit from Jobcentre Plus. This covers Incapacity Benefit in quite a bit of detail.



• If you are thinking about trying to find any information on IB on the Revenue (HMRC) website - we would suggest you have a look at our article Do HMRC really care about the long-term sick? first as this sets out the problems with the current lack of available information.

Industrial Injuries Disablement Benefits
Includes:

• Industrial Death Benefit



• This is a taxable benefit payable to you if you are a widow whose husband died before 11 April 1988 as a result of an industrial accident or disease.



• An allowance can also be paid for your dependent children and there are 2 rates payable depending on your age at the date your husband died.



• Industrial Injuries Disablement Benefit



• This is a tax-free benefit payable where you have become disabled as a result of an accident at work or as a result of an industrial disease.



• The benefit is payable even if you return to work or continue with your job.



• The rate of payment depends on the level of your disability.



• Pneumoconiosis, Byssinosis and Miscellaneous Disease Benefits



• This is a tax-free benefit payable where you suffer from an industrial disease attributable to employment that ended before 5 July 1948.



• The rate of payment depends on the level of your disability.



• Reduced Earnings Allowance



• Retirement Allowance



• This is a tax-free benefit payable where you were disabled in an accident at work or you have an industrial disease, which occurred before 1 October 1990 and as a result you were unable to return to that job or work of the same standard.



• Retirement Allowance is also tax-free and is payable under the Industrial Injuries Scheme. It replaces Reduced Earnings Allowance for those who have reached pension age and have given up regular employment.



• Workmen's Compensation (Supplementation) Scheme



• This is a tax-free benefit payable for life where you suffer from an industrial disease or accident attributable to employment which ended before 5 July 1948. It is paid in addition to Workmen's Compensation.



• The rate of payment depends on the level of your disability and varies considerably.

War Disablement Pension

• This allowance is not based on the level of NIC you have paid. It is not related to your income nor is it means tested.



• The allowance is normally paid in full on top of certain other benefits.



• It is a tax-free benefit.



• You will be entitled if basically you have a disablement which is due to or has been made worse by service in HM Armed forces. It covers conflicts including the Second World War and potential claimants should contact the Veterans Agency. Their Freeline number is 0800 169 2277.



• The benefit may be affected by a claim to Industrial Injuries Disablement Benefit if awarded for the same disablement.



• The pension may be taken into account when assessing your income levels for certain other benefits.

War Pensioner's Mobility Supplement

• If you are a War Disablement Pensioner who is unable or virtually unable to walk due to a disablement assessed at 40% or more and for which you receive the basis War Disablement Pension you may qualify for the supplement in certain circumstances.

Council tax benefit

• Council tax benefit is paid to those people on a low income who qualify for help with their council tax bill.



• This benefit is not based on your NIC but is income & capital related. It is a tax free benefit.



• If you have more than £16,000 in savings you cannot claim council tax benefit even if your income is very low, unless you are in receipt of guarantee pension credit.



• Normally to claim, you must live permanently in the UK, pay council tax and have a low income.



• You can still claim even if you are not receiving any other benefits.



• Overall the award depends on the amount of money you have coming in, the amount of your savings, your personal circumstances (such as having children, being disabled or having someone else living in the household not dependent on you for financial support) and the amount of council tax you pay.



• The maximum entitlement is 100% of your council tax bill. Maximum benefit may be payable where you are receiving Guarantee Pension Credit.



• Even if you do not qualify for the main council tax benefit you may be able to get help if you have someone living with you (not a spouse or partner or lodger) who is on Income Support or Jobseeker's Allowance or has a low income but is not paying you rent. This is called a Second Adult Rebate.

Housing Benefit & Local Housing Allowance

Housing benefit is paid to people on a low income who qualify for help with their rent. From April 2008 those who rent from a private landlord will receive help with their rent through a new scheme called Local Housing Allowance, everyone else will remain on Housing Benefit.

Housing Benefit (HB)

• This benefit is not based on your NIC but is income related. It is a tax-free benefit.



• There are four main conditions for claiming:



• You must be constantly living in the house



• You must live in the house as your home



• You must be liable to pay rent on the house



• You must be either entitled to Income Support, Income-based Jobseeker's Allowance or Guarantee Pension Credit



• or have a low income.



• You cannot claim Housing Benefits if you have a lease on your home of over 21 years except those people in shared ownership schemes.



• The benefit is awarded for a maximum period of 60 weeks at a time or shorter periods in some cases depending on the amount of money coming in, the amount of your savings, your personal circumstances (having children, being disabled and who else lives in the household) and the eligible rent.



• Your maximum entitlement can be up to 100% of the eligible rent.



• The rules are complicated and you may find it useful to contact your Local Authority for some help or you can find more information here on the DirectGov website.

Local Housing Allowance (LHA)

• LHA was piloted during 2007 and 2008. It was rolled out nationally from 7 April 2008 and replaces Housing Benefit (HB) for those who rent from private landlords.



• Where as HB was based only on eligible rent and income, LHA is based on the area that you live, the number of people in the property and household size as well as your income.



• LHA is generally paid directly to you. If your rent is less than the LHA amount allowed, you will be allowed to keep up to ?15 per week of the difference. If your rent is higher than your LHA amount you will need to pay the difference.



• LHA is administered by your Local Authority, you should contact them to make a claim.



• You can see find out more information about LHA here. You can also see how much you may be eligible to claim from the Rent Service website. There are also links to DWP factsheets explaining LHA.

Income Support

• Income Support is a tax-free and income related benefit for those aged 60 or under, which is available to you if your income is below the minimum set by Parliament.

NHS Treatment

• Claimants are exempt from charges for prescriptions, dental treatment, sight tests, glasses, wigs and fabric supports, hospital travel costs in the following situations.

  1. If the claimant or their partner are receiving any of the following three benefits they will be exempt from charges:

     • Income Support
     • Income Based Job Seekers Allowance
     • Guarantee Pension Credit

     If this applies then they can use their benefit award letter as proof of this exemption.

  
  

  2. In addition if the employee or their partner are receiving:

     • Child Tax Credit; or
     • Child Tax Credit and Working Tax Credit; or
     • Working Tax Credit including a disability or severe disability

     and their gross annual income (the income which is used to calculate their tax credits award) does not exceed £15,050 then they will also receive exemption from charges.

  
  

  If this applies then HMRC will normally inform the Prescription Pricing Authority which should then send you an exemption card which is normally valid until the end of the tax year. In the alternative they can use their tax credit award letter as proof of entitlement.

  Members of the claimants' family for tax credit purposes are also exempt from charges.

  
  

  3. The Low Income Scheme

     • If you do not come under any of the exemptions above you may be able to get help with charges under the low income scheme.
     
     
     
     • To apply you must complete form HC 1 which is available from your local social security office. Some doctors, opticians and hospitals also stock the form. Alternatively you can contact the Health Literature Line on 0800 555 777.
     
     
     
     • If your income is low enough to qualify for free services you will be sent a HC2 Certificate. If you qualify only for partial remission of charges you will be sent a HC3 Certificate. These certificates normally last 6 months.
     
     
     

     • Use this link for basic guide about help with health costs.

     
     
     • A more detailed guide can be downloaded here.

Age Related Payments

Summary

• Age Related Payments are one off payments being paid by the Government. They are tax free, and will be paid in addition to any Winter Fuel Payment you may receive.



• The payments are not made every year and Government has yet to announce if it will be paying Age Related Payments (to help with Council Tax bills or additional living expenses) for the winter of 2008/09.



• Click the link for further information from the Pension Service on Age Related Payments

Carers Allowance (CA)

• Carer's Allowance (CA) (formerly called Invalid Care Allowance) is a taxable benefit for informal carers.



• If you claim CA, your other benefits may increase or decrease and certain benefits for the person you look after may sometimes reduce.



• You must spend at least 35 hours a week caring but this not need not be every day.



• The person you care for could be a relative, friend or neighbour.



• CA can be paid to more than one person in a household, such as a couple caring for each other.



• You can get the benefit if you are:
  • aged 16 or over
  
  
  
  • spending at least 35 hours a week looking after someone who is getting or waiting to hear about these benefits:
    • Attendance Allowance
    • Disability Living Allowance at the middle or highest rate for personal care
    • Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit, or basic (full day) rate with a War Disablement Pension


• You cannot get CA if you are in full-time education 21 hours or more a week of supervised study).



• You must not earn above £95 a week after tax or pension payments or some job related expenses) although there are some exceptions to this.



• CA is not affected by any savings you may have.



• However, you may be able to get extra money added to Carers Allowance Pension Credit, income-based Jobseeker's Allowance, and Council Tax Benefit. You may be able to get this if you claimed CA, but cannot get it because you already have another benefit paid at the same or a higher amount. Check with your social security office or Jobcentre Plus office or Pension Centre.



• If the person you are caring for gets Carers Allowance Pension Credit or income-based Jobseeker's Allowance, they may lose their severe disability premium. Check with the person whether they are getting either of these benefits.



• If you have a short break from looking after the person you care for, your CA may continue.



• From 6 April 2002, you may build up additional pension through State Second Pension for every complete tax year you are entitled to CA. State Second Pension can only be accrued up to State Pension age.



• If the disabled person dies, CA will continue for up to a further 8 weeks.



• Claim online or contact your local Benefits Agency, Jobcentre Plus or social security.



• If you are resident in Great Britain you can now report changes of circumstances that affect your Carer's Allowance online here.



• Some leaflets are available for download giving more information regarding help for carers. These are Carer's allowance and A guide for disabled people, those with health conditions, and carers - a basic guide to benefits you may be able to get if you are looking after someone who is ill or disabled.




• You can also contact the CA Unit on: 01253 856 123. People with speech or hearing problems should dial: 01772 899 489. Or write to them at:

  CA Unit
  Palatine House
  Lancaster Road
  Preston
  PR1 1NS

  Email: cau.Customer-Service@dwp.gsi.gov.uk

• A confidential telephone service is available for people with disabilities, their representatives and their carers. Ring the Benefit Enquiry Line (BEL) on: 0800 88 22 00. People with speech or hearing problems using a textphone can dial: 0800 24 33 55.

Social Fund

• The idea of the Social Fund is to help you with expenses you may find difficult to pay out of your normal income. The help can be in the form of grants, payments or interest free loans.



• You do not usually have to repay grants or payments.



• The Social Fund covers the following:



• Budgeting Loan - you need things for your home that you cannot pay for in one lump sum and you get Income Support, Income Based Job seekers Allowance or Pension Credit. Click the link for more information on Budgeting Loans.



• Community Care Grants - if you are leaving residential accommodation and you need help to stay in your own home or you are facing exceptional pressure. Click the link for more information on Community Care Grants.



• Crisis Loans - immediate help with day to day living costs or something else in an emergency. Click the link for more information on Crisis Loans.



• Funeral Payments - if you get low income benefits or tax credit and need help paying for a funeral.

Christmas Bonus

• This is available to you if you are in receipt of various benefits. The benefit is not taxable and does not require any NIC to have been paid.

Guardians Allowance

• This is available where someone is looking after a child as part of their family because both the child's parents are dead.



• It can also be paid if one of the parents is dead and the other is missing or in some cases where the parents never married or the marriage ended in divorce. It can also be paid if one parent is dead and the other is serving a prison sentence of over 5 years.



• You do not have to be the legal guardian but you must have been entitled to Child Benefit for the child.

Over 80s Pension

• This pension is taxable but it does not matter what your income is or whether you have paid sufficient NIC.



• You will be entitled if you are not already receiving a Retirement Pension or other Social Security benefit at or above the rate of the Retirement Pension for non NIC payers.



• To qualify you must live in the UK and have been in the UK for a continuous period of 10 years or more in any 20 years after your 60th birthday. It is payable for life.

War Widow's Pension

• This allowance is not based on what NIC you have paid. It is not related to your income nor is it means tested.



• It is a tax-free benefit.



• The benefit is available to you if you are the widow of a member of the armed forces whose death is due to or substantially hastened by service in HM Armed forces. It includes a widow whose husband was a War Pensioner receiving Constant Attendance Allowance (link to Constant Attendance Allowance) at the time of his death.



• If you are a widow of a War Pensioner you should contact the Veterans Agency. Their Freeline number is 0800 169 2277.



• If you are a widower or other dependant, you may also receive a pension under the War Pensions Scheme. War Widower's Pension could be payable to a man if he was dependent on his deceased wife and her death was due to service, he cannot support himself and he has not got enough money to live on.



• The pension is paid at different rates dependant on the age of the widow and whether she has dependant children and the rank of her deceased husband. Widows over 40 get a higher payment than those under 40.



• The pension may be taken into account when assessing your income levels for certain other benefits.

Winter Fuel Payment

• This is available to you if you are aged 60 and over and live normally in England or Wales unless you have been in hospital for over 52 weeks.



• The idea of the payment is to help toward the additional costs of keeping warm in winter.



• The DWP will make most payments automatically before Christmas each year but you may need to claim. You should read leaflet Winter Fuel Payment (WFP1) which you can also get from your local Social Security Office.



• You can call the Winter Fuel Payment Helpline on 0845 915 1515. A textphone service is available on 0845 601 5613. Calls are charged at local rates.

Cold Weather Payment

• This is different from the Winter Fuel payment although you can get both. You may be eligible to claim if you get Pension Credit (guarantee credit).



• You will receive the payment if you qualify when the average temperature is recorded to be or is forecast to be below zero for 7 days in a row in your local postcode area.



• The payment is made automatically.

Home Energy Efficiency Scheme

• If you are 60 or over and get a disability or income related benefit you may be able to get a Home Energy Efficiency Grant. You can find more information by using this link to look at the various grants schemes that may be available to you depending on where you live.