ACCESS BENEFIT SUPPORT
Did you know that here are a total of 28 benefits that you may be entitled to if you are single, in a couple or a family household.
The introduction of Universal Credit aims to replace various existing benefits, including Jobseekers' Allowance (JSA) and Housing Benefits, to streamline the process.
The benefit system can be quite perplexing, however, it is important to note that benefits are not exclusively reserved for those who are unemployed.
Numerous families may be eligible for financial assistance from the Government, yet they may not be aware of their entitlement.
It is always advisable to verify what benefits you may be entitled to, and Your Advice Hub's expert team of advice and guidance advisors are here to provide assistance and support with exploring your benefit options.
To view all new proposed benefits and pension rates for 2024 to 2025 CLICK HERE
MEANS-TESTED BENEFITS
Benefits that are means-tested are granted according to your earnings and the amount of capital (savings and investments) you possess.
Means-tested benefits are available to individuals based on their income and capital when assessing eligibility. Means-tested benefits operate on the premise that you should rely on your own resources to meet your needs before seeking assistance from the government.
These benefits are designed to support individuals and families who meet the eligibility criteria and require financial support.
- Universal Credit
- Housing Benefit ( England, Scotland and Wales) or Housing Benefit (Northern Ireland)
- Council Tax Support
- Income-based Jobseeker's Allowance.
- Income-related Employment and Support Allowance.
- Tax Credits (Child Tax Credit and Working Tax Credit)
- Income Support
- Pension Credit
- Cold Weather Payment
- Cost of Living Payments
MEANS-TESTED BENEFITS CAPITAL ELIGIBILITY LIMITS
To qualify for means-tested benefits, it is important that both your income and capital fall below a specific threshold. This threshold represents an estimation of the amount required for you to sustain yourself and is determined by the government.
Each means-tested benefit has its own set of criteria that your income and capital must meet for you to be eligible to claim it. If your income and capital exceed this threshold, you may either be ineligible to claim the benefit or you may receive a reduced amount.
Let's take a look at some examples of capital limits and how they can impact your eligibility for benefits. The lower capital limit refers to the maximum amount of savings and investments you can have without affecting your benefits claim.
The benefits provided have a minimum capital threshold of £6,000 and a maximum capital threshold of £16,000.
If your capital is below £6,000, then you are eligible to receive the full benefit amount, while those with capital between £6,000 and £16,000 will receive a reduced benefit.
However, if you and your partner have reached the State Pension age, the minimum capital threshold increases to £10,000.
Individuals who possess a capital amount exceeding £16,000 may find themselves ineligible to receive means-tested benefits such as Housing Benefit or Council Tax support. It is important to note, however, that this particular regulation does not apply to those who are recipients of the Guarantee Credit component of Pension Credit.
Pension Credit does not have a maximum capital limit, meaning there is no upper threshold for the amount of capital you can have. However, it is important to note that if your capital exceeds £10,000, the amount of Pension Credit you receive may be reduced.
WHAT CAPITAL IS INCLUDED IN THE MEANS-TESTED TEST
Certain forms of income are carefully assessed when determining your eligibility for means-tested benefits, while others, like receiving Attendance Allowance, are not taken into account. Furthermore, the income and assets of your partner may be taken into consideration during the evaluation process.
Means-tested benefits, consider various forms of capital, such as savings and investments, to determine the financial resources individuals possess.
- Cash
- Stocks and shares
- A shares of any savings you own jointly with other people
- Property other than your main home
- Premium Bonds
- National Savings accounts and certificates (there are special rules for valuing these)
Lump sum payments received as a result of deferring your State Pension are not accounted for as capital.
NON-MEANS-TESTED BENEFITS
Non-means-tested benefits could potentially be available to you. These benefits are not contingent upon your income or capital. Provided below is a compilation of non-means-tested benefits that you may be eligible for.
- Personal Independence Payment (PIP)
- Attendance Allowance
- Disability Living Allowance (for children or for adults)
- Bereavement Support Payment
- Carer's Allowance
- New style Employment and Support Allowance
- State Pension
It should be noted that even if you are eligible for multiple benefits, you can only receive and claim one benefit at any given moment.
DO YOU KNOW WHAT BENEFITS YOU ARE ENTITLED TO? FOR ONLY £59, OUR ADVISORS CAN HELP YOU TODAY!
APPEALS AGAINST BENEFIT SANCTIONS
Benefit payments can be reduced or stopped through a benefit sanction if you fail to comply with specific rules or activities that were agreed upon when you started receiving your benefits. The types of benefits that can be affected by sanctions include Universal Credit, Jobseeker's Allowance, and Employment and Support Allowance.
Each of these benefits requires you to sign a 'claimant commitment' which outlines the activities you have committed to, such as attending meetings or actively searching for employment on a weekly basis. Failure to adhere to these commitments may result in benefit sanctions.
Upon receiving a benefit sanction, you will be notified through a letter from the benefits office responsible for your payments. This letter will explain the reasons for the sanction, the amount by which your benefits will be reduced, and the duration of the sanction. Additionally, the letter will provide information on how to appeal the decision if you disagree with it.
You have the option to challenge a decision regarding your eligibility for benefits, such as Personal Independence Payment (PIP), Employment and Support Allowance (ESA), and Universal Credit.
Our team of expert advisors at Your Advice Hub is here to assist you in appealing a benefit decision. To begin this process, you must first contact either the Department for Work and Pensions (DWP) or HM Revenue and Customs (HMRC) to request a review of their decision. This is known as a Mandatory Reconsideration.
Once you have submitted your request, the DWP will review their decision and provide you with a response called a 'Mandatory Reconsideration Notice'. It is important to carefully review this notice, as it will indicate whether you have the option to appeal to an independent tribunal and the deadline by which you must submit your appeal.
In the case of HMRC refusing to extend your deadline for challenging a tax credit decision, you will not require a Mandatory Reconsideration Notice.
It’s important to note that certain aspects are not subject to appeal, including,
- The specific timing and manner in which your benefits are paid to you
- The temporary suspension of your claim by the DWP or HMRC to verify your eligibility for benefits
If your benefits claim is sanctioned, the amount of money you receive may be reduced or stopped for a certain period. The duration and extent of the sanction depend on your benefit type, severity, age, and relationship status.
UNIVERSAL CREDIT (UC) SANCTIONS
Various factors contribute to receiving a sanction when claiming Universal Credit (UC), as each individual's circumstances are unique. However, failing to fulfil the responsibilities outlined in your claimant commitment can result in a sanction.
The severity of the sanction can lead to a reduction of up to 100% of the UC payment for a single claimant or up to 50% for each member of a couple. Therefore, if you are 25 years old or older, not meeting your UC obligations could have significant financial consequences where are:
- Single individuals have £11 deducted daily for their sanction
- Couples with one person sanctioned have £8.70 deducted daily
The length of the benefit sanction will depend on the severity of the imposed sanction. Only the Standard Allowance part of your UC payment will be decreased, while the additional components for housing or children will not be affected by the sanction.
HIGH-lEVEL UC SANCTIONS
If you fail to apply for a job, refuse a job offer, or quit your job without a valid reason, you may face severe penalties on your Universal Credit (UC). These penalties usually last for 91 days, but if you have already received a severe penalty in the past year, it may be extended to 182 days.
MEDIUM-lEVEL UC SANCTIONS
If you have yet to make sufficient efforts to seek employment or are not available for work, you may receive a moderate-level UC sanction. Typically, this sanction lasts for 28 days. However, if you have already received a moderate-level sanction within the past year, it may extend to 91 days.
LOW-lEVEL UC SANCTIONS
This level of UC sanction includes all other cases where you have not fulfilled your claimant commitment, including:
- It is important to attend job interviews to show dedication and enthusiasm, as not attending can negatively impact your chances of getting hired
- Make sure to arrive on time for work to project a professional image and prevent any disruptions to your work routine
- Submit any required documentation promptly to prevent any delays in processing your application or claim
- Give priority to attending recommended job preparation courses to improve your skills and increase your chances of finding employment
Usually, minor sanctions are enforced for a set period, often lasting for seven days plus the extra time needed to correct the mistake.
JOB SEEKER ALLOWANCE (JSA) SANCTIONS
The length of your Job Seekers Allowance (JSA) sanction will depend on the severity of the sanction you receive. Three levels of sanctions can be imposed. If your JSA payments are sanctioned, it will impact your entire personal allowance for the duration of the sanction. For example, if you are single, your JSA payment will be completely suspended.
Conversely, if you are in a couple and both claim JSA jointly, if one of you is sanctioned, half of the payment will be halted for the duration of the sanction.
HIGH-LEVEL JSA SANCTIONS
If you voluntarily resign from your job, are terminated due to misconduct, or neglect to accept a job offer or fulfil work responsibilities without a valid justification, you may face a more severe level of JSA sanction. This sanction will be imposed for a duration of 13 weeks for the initial offence and 26 weeks for a subsequent offence.
MODERATE-LEVEL JSA SANCTIONS
Once your JSA application has been rejected, you will usually face this level of penalty. Essentially, this means that when you previously tried to apply for JSA, the Department for Work and Pensions found that you were either not prepared for employment or not actively seeking work, leading to the denial of your claim.
Once your next claim is approved after the rejection, a moderate penalty will be applied to your next payment. This penalty will last for four weeks for the first failure and 13 weeks for any subsequent failures within 52 weeks from the last failure.
LOW-LEVEL JSA SANCTIONS
If you are asked to participate in activities such as training or interviews to improve your chances of finding employment while receiving JSA, not following through may lead to a decrease in your benefits through a lower-level JSA sanction.
The initial non-compliance sanction usually lasts for four weeks, and if you fail again within 52 weeks of the last failure, you will face a 13-week sanction.
EMPLOYMENT SUPPORT ALLOWANCE (ESA) SANCTIONS
If you do not finish the necessary work-related tasks while in the work-related activity group for your Employment and Support Allowance (ESA), your benefit may be subjected to an indefinite sanction. This sanction will persist until you address the problem that caused the sanction, such as attending an interview or training course.
Once the problem is resolved, a separate sanction of a fixed duration will be imposed. The length of this sanction will vary based on the number of failures within 52 weeks, with one week for the initial failure, two weeks for the second failure, and four weeks for any subsequent failures.
If you have been informed that your benefits will be subject to a sanction that you do not agree with, it is important to address your concerns through a process called 'Mandatory Reconsideration'.
Our team of expert advisors can assist you in contacting the benefits office responsible for issuing your benefit. This can be done through a letter, phone call, or by completing the 'If you disagree with a decision made by the Department of Work and Pensions' form and submitting it to them. It is crucial to gather any evidence that supports your argument and explains why you believe the sanction is incorrect. Our Advocacy and Form-filling service is here to help you throughout this process.
Should you decide to raise a mandatory reconsideration, several grounds may warrant such action:
- You completed the task the DWP said you didn't.
- You have a valid reason for not finishing, like illness, disability, or personal emergencies
The penalty is being imposed for a situation not mentioned in your claimant commitment, or you think it shouldn't have been included in the commitment in the first place.
After you have submitted your Mandatory Reconsideration, it will undergo processing and deliberation. Subsequently, you will receive a notification regarding the decision. If you are dissatisfied with the outcome, you will have the opportunity to appeal to a tribunal.
Our Advocacy and Form-filling service can assist you in this process by either utilising the government's online form or by printing and mailing the form. If you require any assistance with your appeal, we strongly encourage you to reach out to our advisor at Your Advice Hub.
They will provide guidance tailored to your specific situation and help you develop a plan that is most suitable for you and your circumstances.
GET YOUR BENEFIT SUPPORT TODAY!
Find out what financial help you qualify for with our Benefits Calculation and Form-filling service.
For only £59 per hour, our expert advisors will help you quickly and easily determine your eligible benefits and support you to complete the necessary forms.
Don't miss out on extra money – let us guide you through the process.
AVOID GETTING BENEFIT SANCTIONS
To avoid any potential penalties on your benefits, it is essential to follow every aspect of your claimant commitment, even if it may seem obvious. If you have any doubts or uncertainties about your commitment, do not hesitate to ask your work coach or Jobcentre advisor for clarification. Additionally, keeping a calendar to stay organised with your meetings, appointments, and interviews can be extremely helpful. This way, you can quickly inform and reschedule if you are unable to attend any of these engagements. Moreover, it is recommended to keep a record of all your efforts to meet the requirements for receiving benefits. This may involve keeping track of the time spent searching for employment, documenting job applications, and any other activities related to your job search.
Experiencing a decrease or halt in your benefits can have a significant impact on your financial situation. Nevertheless, there are potential steps you can take to lessen the effects and enhance your ability to manage your finances.
CREATE A REALISTIC
BUDGET PLAN
To begin, it is crucial to evaluate the extent of the income reduction caused by the sanction. Then, compile a comprehensive list of all your expenses to determine if you have sufficient funds to cover the essentials. If not, it is advisable to prioritise your spending and explore potential areas where you can decrease costs by doing a Debt Management Plan with Step Change.
Certain payments, such as food, energy, rent or mortgage, and council tax, are vital and should be given precedence. However, if you are concerned about keeping up with any payments, it is worth reaching out to your energy provider, landlord, or any other entity you owe money. Inform them of your situation and discuss alternative payment arrangements.
For more information on budgeting and strategies to reduce expenses, please contact our compassionate advisors who will be happy to help you.
HARDSHIP FUND AND HOW TO ACCESS PAYMENTS
Hardship payments are a reduced form of JSA, ESA, and UC that individuals can qualify for if they have faced sanctions. The amount one can receive varies depending on their specific needs and the benefit they originally received. Generally, if someone was receiving ESA and UC, they may be eligible for up to approximately 60% of their original payment. While individuals receiving ESA and JSA usually do not have to repay the hardship payment, they may be required to do so for UC.
To apply for a hardship payment, it is necessary to contact the benefits office responsible for providing your benefits. Additionally, you will need to explain the reasons for your need for the hardship payment. Supporting evidence must be provided to strengthen your application, such as demonstrating the steps you have taken to reduce non-essential expenses and outlining the living costs you are struggling to meet.
IS MY PERSONAL INFORMATION KEPT CONFIDENTIAL & SECURE?
We prioritise the safety of your information at Your Advice Hub. Our strict adherence to the General Data Protection Regulation (GDPR) ensures that any data you provide us is fully protected and secured. Feel confident knowing that your information is secure. For more details, please refer to our Privacy Policy.
Copyright © 2024 Your Advice Hub Ltd. All Rights Reserved | England Registered Office. 82A James Carter Road, Mildenhall, Suffolk, IP28 7DE | Company Limited by Guarantee. Registered Company No. 15520108.
We need your consent to load the translations
We use a third-party service to translate the website content that may collect data about your activity. Please review the details in the privacy policy and accept the service to view the translations.