Income Support (IS):

A ‘safety net’ benefit which either replaces or tops up income for people who do not have to be available for work to receive benefit. New claims from April 2004 claimed just for self and any partner. Dependent children will be covered by Child Tax Credit paid by the Inland Revenue. Current claimants of Income Support will continue to have amounts for children included in their claims until transfered. Other members of your household - adult children, older relatives etc. must negotiate the system in their own right.

Calculated using ‘Applicable Amount’ for individual or family, made up of ‘Personal Allowances’ and ‘Premiums’. Certain housing costs are also allowable - e.g. help with mortgage interest, some loans secured on home. Acts as a ‘passporting’ benefit for things like free school meals, prescriptions, dental treatment and access to the Social Fund.

Income Based Jobseekers Allowance (JSA):

Replaced Income Support for people signing on as unemployed. Those who meet certain contribution conditions can get non means-tested JSA for the first six months of unemployment. Income Based JSA is calculated just as Income Support, but claimants must be available for and actively seeking work to receive it. Dependant children covered by Child Tax Credit, or transfered during 2004/5.

Pension Credit (PC):

Two parts - Savings Guarantee - very similar to Income Support for pensioners, but more generous. People previously unable to benefit from Income Support / Minimum Income Guarantee for Pensioners may be able to get help under Pension Credit. Also separate ‘Savings Credit’ to ‘reward’ thrift/ prudence etc.

Child Tax Credit (CTC):

Brand new benefit from April 2003 which will, eventually cover ALL payments for children under the Social security system other than Child Benefit. It will eventually replace payments relating to children within  Income Support Jobseeker’s Allowance and also amounts within the now abolished Working Families’ Tax Credit and Disabled Person’s tax Credit . Also child dependant additions within non-means tested earnings replacement benefits have now disappeared for new claims. Basically then ANYONE with children - in work or not - MAY be able to get help under Child Tax Credit.  Administered by the Inland Revenue and paid to the main child-carer in the family.