UK Benefits made simple.

By
Hayley Fuller
– March 1, 2011Posted in: Aged, Blind & Partially Sighted, Children & Youth, Community Care, Deaf, Disabled, Family Welfare, Health, Housing, Learning Disabilities, Mental Health, Social Welfare, Trades & Professions, Training & Employment

‘Beginners Guide to Benefits‘

Topics covered within ‘UK Benefits made simple’:

  • Understanding the Benefit System Further.
  • Benefit Breakdown.
  • Benefit Requirements.
  • Job Centre Plus.
  • How to Claim a Benefit.
  • How Benefits and Pensions and Paid.
  • What to do if a Benefit is overpaid?
  • Personal Changes that affect your Benefit.
  • Claiming Benefits in Europe.

 

Understand the Benefit System Further

The Benefit System provides financial and practical help if you are unemployed and looking for work. It also provides you with additional income when your earnings are low, if you are bringing up children, are retired, care for someone, are ill or have a disability.

The Department for Work and Pensions (DWP) manages most benefits through Jobcentre Plus offices. Benefits and entitlements for pensioners are dealt with through a network of pension centres which provide a face-to-face service for those who need additional help and support. You’ll also often deal with other agencies or government departments, such as your local council or HM Revenue & Customs (HMRC). See the DWP Customer Charter for further information on the standards customers can expect and what their responsibilities are in return. DWP Customer Charter

 

Benefit Breakdown

Benefits and support services for people of working age are available, for example: Jobseeker’s Allowance which is managed by Jobcentre Plus offices around the country. Support can range from finding work, starting your own business, managing on a low income or illness or accidents caused by work.

Financial support and Guidance

The Pension Service, which is part of the DWP, provides services to anyone planning for their retirement, people approaching retirement, people who’ve already retired, employers and pension’s providers and advisers. The Pension Service looks after benefits and entitlements such as the State Pension, Pension Credit and Winter Fuel Payments.

Jobcentre Plus also looks after benefits and services for families and children, including those who are bringing up children, including children with special needs, those managing on a low income which includes help with health costs. The Child Support Agency (CSA) is part of the DWP and is responsible for running the child support system. It assesses, collects and pays child maintenance. Finally HM Revenue & Customs also deals with Child Benefit, Guardian’s Allowance and tax credits.

The Disability and Carers Service, which is part of the DWP, are responsible for benefits and services for people who are sick or have a disability, for example, Disability Living Allowance and Attendance Allowance.

Your local Jobcentre Plus office is your first point of contact for finding out more about these benefits and services. For further information on Housing Benefit and Council Tax Benefit you should contact your local council.

Benefit Requirements

You could be entitled to receive benefits if you are on a low income or have certain costs to meet because of your personal situation, please see below to check whether the following benefit requirements apply to you:

  • Could you be entitled to UK benefits?You’re on a low income (employed or looking for work)
  • You have dependent children
  • You’re ill or disabled
  • You’re caring for someone
  • You’re aged 60 or over
  • You have been bereaved
  • You’re pregnant or have recently had a baby

To check whether you qualify to receive financial or other support by using the benefit adviser from Direct Gov here or reading ‘benefits and financial support information’ - This information will hopefully give you a clearer idea on who can and can’t claim specific benefits and other support, and the next steps onwards.

Job Centre Plus

Recent important changes have been made at Job Centre Plus to the day on which most people receive their working age benefits. N.B: Claims for Disability Living Allowance, Carer’s Allowance or Industrial Injuries Disablement Benefit Payments will not be affected. If you receive any of the benefits listed below you may be affected:

  • Bereavement Benefit and Widow’s Benefit
  • Incapacity Benefit
  • Income Support
  • Jobseeker’s Allowance
  • Maternity Allowance
  • Severe Disablement Allowance

These changes are being introduced because before 6 April 2009, different benefits were paid on different days and for different periods; making it difficult to understand payments especially when moving from one benefit to another or when receiving more than one benefit. By having the same pay week-ending day no matter which benefit you receive this process should hopefully streamline receiving payments without any queries. The changes being made mean that in the future you will be paid your benefits on a day which links to your unique National Insurance number at least every two weeks in arrears.

Payment in arrears: Meaning you will be paid for the days up to and including your payday or pay week-ending day. Anyone receiving Jobseeker’s Allowance, Incapacity Benefit, Severe Disablement Allowance and most receiving Income Support are already paid in arrears. Your ‘pay week-ending day’ is the day you are paid up to. Your ‘payday’ is the day you normally receive your payment. Please note, if you claim Jobseeker’s Allowance you normally get your payment three days after signing as unemployed, this will continue as normal.

National Insurance number: The number you receive when you first start work or claim a benefit. It is normally shown on the letters that Jobcentre Plus sends you. Job Centre Plus will use the last two numbers of your National Insurance number to work out your new pay week-ending day, as shown in the following table. For example: If your National Insurance number is QQ 12 34 56 A, your pay week-ending day will be Wednesday.

Last two numbers of National Insurance number Pay week-ending day
00 to 19 Monday
20 to 39 Tuesday
40 to 59 Wednesday
60 to 79 Thursday
80 to 99 Friday
  • Your National Insurance number is your own personal account number. It is unique to you and you keep the same one all your life. It makes sure that the National Insurance contributions and tax you pay are properly recorded against your name. It also acts as a reference number when communicating with the Department of Work and Pensions and HM Revenue & Customs (HMRC).
  • If you’re entitled to a National Insurance number but don’t have one, you can apply. You will need one in certain circumstances, such as claiming benefit, or applying for a job or student loan. If you live in the UK you will normally receive one automatically when you reach age 16. You can find out more about National Insurance numbers, including what they’re used for and why you need to keep yours safe, by following National Insurance – the basics
  • If you’re between 16 and 20 years old and haven’t received a National Insurance number contact the National Insurance Registrations Helpline on 0845 915 7006 for advice. Lines are open 8.30 am to 5.00 pm Monday to Friday. Or apply online for a National Insurance number here.

Please note – If Jobcentre Plus takes deductions from your benefit to pay bills, for example, gas and electricity, they will not take this deduction in the week they change the day you are paid. You do not need to do anything and Jobcentre Plus will tell your supplier. If a supplier asks you about a missed deduction, please telephone the Jobcentre Plus office that pays your benefit.

Find your local Job Centre Plus office here or for further information regarding how payment changes might affect your benefits please see the following links below:

 

How to Claim a Benefit

As you will have already read there is a range of government funded benefits available to provide opportunities and support where needed; each handled by various departments or agencies. If you are entitled to any of these benefits and wish to claim you will need to do so from the correct place. Find out how to claim the different types of benefit below.

Benefits are divided into four groups:

Call Jobcentre Plus for a new benefit claim on 0800 0 55 66 88 or Text phone: 0800 0 23 48 88 if you are deaf, hard of hearing, or have speech difficulties.

(Calls are free from a landline. Charges may apply when calling from a mobile phone, but Jobcentre Plus will arrange to call you back if you ask. Phone lines are open from 8.00 am to 6.00 pm, Monday to Friday Please ask permission from the bill payer before making any calls.)

Find out today about retirement benefitsThe call will take approximately 40 minutes. You should call from home, if possible; or from somewhere where you are comfortable and where other people cannot overhear your personal information.

You will speak to an operator who will guide you through making a new claim or renewing the details of a claim that has recently closed. Please make sure that you have the following information on hand when you call:

  • Your National Insurance number
  • Details of your rent or mortgage
  • Details of your past or present employment
  • Details of other income and savings

The operator will tell you what will happen next with your claim. For example, they may make you an appointment to see an adviser at your nearest Jobcentre Plus office to help with your search for work. They can also tell you who to contact if you have a question about your benefit. Jobcentre Plus can only accept calls from the person who is making the claim, unless you have made previous arrangements for someone to act on your behalf.

For the following benefits you don’t need to meet a personal adviser unless you want to or you are claiming other benefits through Jobcentre Plus:

How Benefits and Pensions are paid.

Direct Payment: into an account is the normal method of payment for benefits and pensions. It is a safe, convenient, and efficient method of payment. Direct Payment gives you flexibility to choose where and when to collect your money, and access a wide range of other financial services. You can choose to have your money paid into one of a variety of accounts. These can be a basic bank account, current account, or a building society or credit union account. Having an account gives you the flexibility to withdraw money from a variety of places when needed. This includes a wide range of banks, cash machines and the cash-back facilities offered by many high street retailers. Additionally, many high street bank accounts are accessible at the Post Office®. You can collect money from a Post Office branch using a current or basic bank account (if your bank has an arrangement with Post Office® Limited).

Post Office card account: Customers can also use a Post Office card account (POca). This is a simple account specifically designed for the payment of benefits and pensions from government departments. From 23rd March 2010, if you are a Post Office card account holder, you will be able to access your account via Post Office® branded cash machines. This is in addition to using the counter service.

Choosing the right Account: If you want to know more about choosing the right account to receive your benefit or pension, please contact the office dealing with your claim either Contact Jobcentre Plus here or Contact the Pensions Service (pensions and retirement planning section).

Someone collecting on your behalf: If you need help collecting your benefit or pension payment you can arrange for someone else to do it for you here.  Nominating a helper to collect benefits or a pension for you (pensions and retirement planning section)

Please note Direct Payment of benefits and pensions are different from ‘direct payments’ from your local council. If you wish to arrange your own care and services and qualify for help from social services following an assessment you can choose to receive payments from them (called ‘direct payments’) to buy the services you need to meet your needs. This is instead of receiving the services direct from your local council. Direct payments can be made to the following individuals:

 

What to do if your Benefit is overpaid?

Overpayments usually happen when your benefit hasn’t been adjusted to match your changed circumstances. If your circumstances have changed, you must tell the office that deals with your benefit straight away. It’s important to report any changes to the office that deals with your benefit as soon as possible and to answer any letters you get about overpayments promptly. For examples of what changes can affect your payments please see below our section ‘Personal Changes that affect your Benefit.’ Overpayments can also be caused by administrative errors.

In this instance you will receive a letter letting you know you’ve been overpaid. The letter will normally tell you the following:

  • How much you’ve been overpaid, why the overpayment happened
  • Whether you have to pay the money back
  • Whether you can appeal against the overpayment decision
  • What will happen next

If you think you’ve been overpaid but haven’t heard anything, don’t wait for your benefit office to contact you. Get in touch with them straight away to explain the situation. They’ll look into it and tell you if you’re getting the right amount of benefit. If you don’t declare an overpayment you could be suspected of committing benefit fraud. It’s the same if you deliberately fail to report a change in your personal circumstances. If you’re prosecuted for benefit fraud you could be fined or get a prison sentence, as well as having to repay the overpayment. See ‘What happens if you’re suspected of benefit fraud?’ for the rules about loss of benefit entitlement following a benefit fraud offence. What happens if you’re suspected of benefit fraud?

Do you have to pay the money back? If the overpayment was your fault – for example if you didn’t report a change in your circumstances or gave wrong personal information – you’ll have to pay it all back. If it was caused by administrative error you may be asked to pay it back, particularly if you could reasonably be expected to realise you were being overpaid.

Housing Benefit and Council Tax Benefit If there’s been an overpayment because of an administrative error, you may have to repay it if, at the time of the payments, you could reasonably have been expected to realise you were being overpaid.

Tax credits HM Revenue and Customs (HMRC) send you an award notice whenever your award changes. They ask you to make sure that the information about your personal circumstances shown on your award is correct and complete. If anything is wrong, missing or incomplete you need to contact HMRC. For more information about how HMRC deal with tax credits overpayments download the HMRC leaflet ’What happens if we have paid you too much tax credit?’ HMRC leaflet ‘What happens if we have paid you too much tax credit?’

Disability benefits If your condition has improved when your disability review takes place, you may no longer qualify for benefit. You won’t have to repay anything you’ve already received unless you could reasonably have been expected to realise that the improvement in your health would affect the amount of benefit you get.

How you pay back overpayments If you’re no longer in receipt of the benefit that was overpaid, you’ll usually receive a bill to cover the overpayments. Before you start making repayments, you’ll be given time to either appeal or agree a payment plan with the office that deals with your benefit. If Housing Benefit is usually paid directly to your landlord, he or she may be asked to repay the money depending on whether they caused or contributed to the overpayment. But if the overpayment was your fault, you may have to repay it. Your tax credits award is usually reduced until the money’s paid back. How much it’s reduced by depends on the type and amount of your award. If you no longer qualify for tax credits, you can repay the money as a lump sum or in instalments.

How to appeal You have the right to appeal against decisions made about your benefits – including most overpayments. You can also appeal against the way your case has been handled. How to appeal against a benefits decision

 

Personal Changes that affect your Benefit

If you get benefits and your circumstances change, tell your local benefits office as soon as possible. Reporting changes quickly, means you’ll get any increase or new benefit faster. For some changes your payments may be reduced. Changes you need to report include:

  • Keep the Job Centre updated!Getting married, entering into a civil partnership or moving in with a partner
  • Moving house
  • Getting a new job
  • Getting a pay rise
  • Inheriting or unexpectedly coming into money
  • Taking in a lodger
  • No longer being sick or ill
  • Travelling or moving abroad

Sometimes a change in your circumstances may mean that your benefit rate will change, or that you become entitled to an additional or a different benefit. For example, if you’re a lone parent getting Housing Benefit and you decide to look for work, you may be entitled to Jobseeker’s Allowance as well. Other changes in your circumstances, for example getting a pay rise, may mean you no longer qualify for a benefit or will get a reduced amount.

Sometimes your benefits may change even when your circumstances remain the same. For example, the government increases most benefit payments to make sure they keep in line with inflation each year. You’ll be told of any changes that affect the amount of money you get.

You can report a change in your circumstances or find out how your benefits might change, by contacting your local benefit office. Contact Jobcentre Plus

 

Claiming Benefits in Europe

Your rights to claim benefits, tax credits or other financial support are protected by social security arrangements between the UK and other countries in the European Economic Area (EEA). This means you may be able to get UK benefits while living abroad in certain countries.

Who can claim benefits in the EEA?
You may be able to get benefits and other financial support if any of the following apply:

  • You’ve lived, worked or studied (a recognised career qualification) in an EEA country
  • You’re a stateless person or refugee and you live in an EEA country
  • You’re a dependant or the widow or widower of anyone who was covered by the regulations (your nationality doesn’t matter)
  • You’re the widow, widower or child of someone who worked in an EEA country and was not an EEA national or a stateless person or refugee (but you must be a national of that country)
  • You’re not an EEA or Swiss national but legally resident in the UK
  • You’ve lived in the EEA country long enough to qualify

Let Job Centre help you across EurpoeWhat are EEA countries?
These are countries that have benefits arrangements or reciprocal agreements with the UK. (The UK is England, Scotland, Wales and Northern Ireland, but not the Channel Islands or the Isle of Man.)

This means you may be able to get benefits in the following countries:

Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden

Other countries that follow social security arrangements with the UK but have special conditions are Switzerland and Gibraltar.

You may be able to get benefits while living, working or studying a career qualification abroad. But it’s important you tell your benefits office if you plan to live permanently or temporarily in another country.

 

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