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Means Tested Benefits
Means tested benefits are not affected by National Insurance Contributions; they are affected by your capital and income.
List of Means Tested Benefits:
· Council Tax Benefit
· Education Benefits i.e. free school meals
· Employment and Support Allowance (ESA) (income based)
· Health Benefits
· Housing Benefit
· Income Support
· Jobseekers Allowance (JSA) (income based)
· Pension Credit
· Social Fund
· Tax Credits (Child Tax and Working Tax Credits)
How some Means Tested Benefits are calculated generally:
Step1: Qualifying conditions
Each benefit has its own eligibility criteria; see www.direct.gov.uk for benefit entitlement.
Step 2: Capital Rules
All are affected by any capital you have although the higher and lower limits vary depending upon which benefit you are claiming. But in all circumstances:
· If you have capital (including savings) above the higher limit then you are not entitled to the above benefits
· Capital below the lower limit is ignored
· Capital between the higher and lower limits produces “tariff income” and will be used as part of benefit entitlement calculation
Eg: If higher limit is £3,000 and lower limit is £1,500 this would then calculate as £6 income for benefit calculation; for each £250 between limits, £1 is added to your income.
Step 3: The calculation
For most benefits this involves comparing your income with the amount which the Department of Work and Pensions (DWP) sets as applicable amounts for you and your family’s benefit entitlement; see www.direct.gov.uk for further information.
If you are unemployed and are actively seeking work, Signing On is the process you have to go through to receive benefits.
You may be entitled to unemployment benefits (JSA, ESA etc) if you are:
· Unemployed or
· Working less than 16 hours per week and
· Aged under 65 years for a man
· Aged under 60 years if female
People who are aged 16 to 18 years of age do not usually qualify for unemployment benefits. Check with Jobcentre Plus for further information on working age benefits.
New claims are usually made over the telephone.
You usually attend your Jobcentre Plus office once every 2 weeks to actually sign on.
You sign a contract called a Job Seekers Agreement with Jobcentre Plus that states that you are unemployed and are available for and actively seeking work. It outlines any actions you agree to take to help you find work (training, job search activity, CV writing etc).
You have to attend appointments made for you at the Jobcentre Plus as there are sanctions that can be placed upon your entitlement for reasons of non-compliance.
Signing On
