Income Support; Financial
A person claiming Income Support can claim for themselves and a partner. They may not claim for dependent children or qualifying young persons. They may qualify for Child Tax Credit.
A person may claim for a partner if they are married, in a civil partnership, or living together as civil husband and wife or as if they were civil partners.
Income Support is calculated by subtracting assessed needs from assessed income, weekly. Needs are calculated by reference to personal allowance, premiums, and housing costs for owner-occupiers.
Personal allowances are fixed amounts to cover basic weekly living expenses and are £112.55 for a couple. Lower rates are paid if persons are under 18. In some cases, when they are 18 to 24, the rates for lone parents and single persons are £71.70, £56.80 under 25 years.
A person may be entitled to claim Child Benefit and Child Tax Credit for a child living with them. A child is anyone under 16 or over 16 and under 20 in education.
Premiums are paid in addition to personal allowances in recognition of additional expenses in caring responsibilities, age, and disability.
The carer’s premium is paid where the person claiming or partner is entitled to Carer’s Allowance. The amount is £33.30.
An enhanced disability premium is paid where a person or their partner is in receipt of the highest rate care component of DLA. There are different allowances; a single person £15.15.
A person who is a partner of qualifying age for Pension Credit up to 79 qualifies for a premium of £109.50. There is a higher pensioner premium [is £109.50]. There is a higher pensioner premium for persons over 80.
There is a family premium of £17.40 for a family with a child or qualifying young person. There is one regardless of the number of children or qualifying persons. The amount is £17.40. There is a disabled child premium of £57.89. The highest premium only is paid. However, carer’s premium can be paid with other premiums, as can severe disability payment.
Some housing costs are taken into account in assessing need, the weekly amount representing mortgage interest, interest on a loan for repairs and improvements, co-ownership payments, ground rent, and service charges; the level of support for mortgage interest, repairs and improvement loans are restricted to loans below £200,000 for most claimants.
Housing costs are only included where a person has been claiming Income Support for the period being a qualifying period. This is generally six months.
A person may get help for loans for repairs, improvements, to maintain the current home. Certain types of important work are covered, including the provision of basic sanitary facilities, damp-proof measures, ventilation, drainage measures, home insulation, and electric lighting.
The amount paid for housing cost is reduced when the person lives in more expensive accommodation. While on support, a person occupies accommodation that is too big for them or their family, the area of accommodation is more expensive than other areas where suitable accommodation is available, or the outgoings are higher than in other properties in the area suitable for the person’s need; the person has non-dependants living in the house.
A deduction is made for each non-dependant where they are over £400 per month; the deduction is £87.75. This tapers downwards to £13.60 at £126. The deductions are not made in respect of certain categories of persons, including full-time students, persons receiving an allowance for youth training, a person who is a close relative or co-owner or joint owner with the person who is the partner.
The standard interest rate used to calculate support for mortgage interest payment is equal to the Bank of England’s published monthly average mortgage rate.
Resources are a person’s income from all sources. This includes part-time earnings and most other benefits and maintenance payments. Attendance Allowance, Disability Living Allowance (DLA), Constant Attendance Allowance, Social Fund payments, Exceptionally Severe Disablement Allowance, Child Tax Credit, and Housing Benefit do not count as resources. Persons living as a couple have their income added together. Net earnings, being earnings after deductions of tax, National Insurance, and half of other contributions towards personal or occupational pensions, are taken into account.
There is an earnings disregard of the first £20, and certain persons, including lone parents; persons or partners qualifying for certain disability premiums; or where there is a member of a couple, £10 of total earnings.
Other income counted in full includes Bereavement Allowance, Contributions-based ESA; Incapacity Benefit, Industrial Injuries Benefit; Contribution-based JSA; Allowance; Net Statutory Adoption pay, Paternity Pay, Maternity Pay, Retirement Pension, Working Tax Credit.
If a person is not getting Child Tax Credit and was getting allowances for their children, Child Benefit is also taken into account. Otherwise, it is ignored.
The first £10 of certain war-related pensions is disregarded.
The following income is disregarded in full.
The following are disregarded: Housing Benefit; income in kind; Social Fund Payments, Child Benefits, if a person is receiving Child Tax Credit; Child Tax Credit; DLA, and others.
Most child maintenance is ignored completely. Other maintenance counts in full.
Income Support is not payable where capital exceeds £16,000.
Capital is deemed to generate income above £6,000. The first £6,000 is ignored, and an income of £1 per week is deemed to be received for every £250 in excess of that. A person is deemed to possess income which they deprive themselves of for the purpose of securing Income Support.
Direct income deductions from Income Support can be made to cover items, including arrears of rent, rates, electricity, water charges, recovery of overpayments, Social Fund loans, Child Support maintenance, integrated loans for refugees, and fines. Maximum deductions of £10.80 can be made to repay tax credit overpayments and self-assessment tax debts.
If there are mortgage arrears, no amount can be deducted for arrears where the lender is covered by the mortgage payments scheme. This applies to most lenders. For arrears of the housing costs, £3.70 weekly for each housing debt up to the maximum of £10.80 may be deducted towards arrears.
Where a person does not receive Child Tax Credit, deductions from Income Support for housing costs except mortgage interest payments and fuel arrears are subject to a total 25% of the person’s applicable amount (excluding help with housing costs) except where the person gives consent to a higher deduction.
Child Tax Credit is a means-tested benefit that assists with dependent children. It replaces most child elements and Income Support from 2004.