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.
