finance unit three- topic two

why is the UK's welfare system a financial safety net?
it's designed to help those who have unexpectedly lost their income, have a low income or can't earn income
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what are contributory benefits?
paid to eligible claimants providing they have paid the required number of NICs
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what are non-contributory benefits?
paid to eligible claimants who have either not paid enough NICs to claim contributory benefits or they need a "top up" because the contributory don't meet their income needs
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why are benefits paid at a flat rate?
helps keep the costs of the system in check and avoids the problems with means testing
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what is the purpose of JSA
to help people who aren't working full time but are able to work and actively looking for work
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who is entitled to claim contrinbutions based JSA?
people who are aged between 18 and retirement, aren't full time students, work less than 16 hrs per week, able and available for work and are able to attend JSA interview weekly
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what are the main differences between contributions and non-contributions JSA?
contributions JSA is paid for only 6 months whereas non-contributions has no time limit, to be eligible for non-cont JSA you and your partner must have less than £16000 in savings and your partner should be working less than 24 hour per week for non
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what is the main simularity between the two kinds of JSA?
both can only be claimed if the person works less than 16 hours per week and they must have less than £16,000 in savings
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what is the exception for full time students claiming JSA?
if they have children, they may be able to cliam JSA during the summer break
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after how many days are you entitled to statutory sick pay?
after 4 days
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what is statutory sick pay?
a benefit that provides an income, via the employer, when sickness or disbaility prevents an individual from working
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who isn't entitled to claim SSP?
people who aren't employed or self employed
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who is eligible to claim employment and support allowance (ESA)?
people who have been getting SSP for the maximum 28 week or if you're self employed and the illness prevents you from working
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what is the work related activity group?
it includes those whose illness or disability isn't considered too severe to prevent them returning to work. they have to attend regular meetings with advisors or their benefits can be temprorarily reduced
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what is the support group?
includes those hwose illness or disability seriously limits the work they can do. aren't required to attend interviews but can speak to an advisor if needed
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what do claimants have to do in order to be entitled to receive ESA?
it won't be paid at all if they or their partner has more than £16,000 in savings and they will have to compltee a Limited Capability for work questionnaire and are likely to have to attend work capability assessment
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what is PIP?
payable to those aged 16-64 who ahve a long term illness or disability that means they can't perform basic daily living activities
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what is attendance allowance?
payable to those aged 65+ who have an illness or disability that means they can't perform basic living activities
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what is carer's allowance?
paid to anyone over 16 who spends 35+ hours per week looking after someone with substantial care needs
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what are the problems with carer's allowance?
it is taxable and may affect other benefits
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what are the conditions for single people under the age of 35 to claim housing benefit?
they can only claim if they live in a "bedist" or a single room within a house or flat that they share with other people
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when will housing benefits not cover the full month's rent?
if the person's paying unreasonably high rent to a private landlord, if theyre in social housing and have more bedrooms than needed, if their household income is above a certain threshold or if they have savings of more than £6000
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what is support for mortgage interest?
a benefit that covers the interest due on the mortgage and not th capital repayment. it is subject to a time limit
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how is income support difefrent to JSA or ESA?
payment designed to provid a "safety net" for those not eligible for other unemployment and sickness allowances, to provide money for basic needs
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what is the new state pension scheme?
it requires people to have 10 qualifying years of NICs or credi to get any state pension and 35 qualifying years to get the full state pension
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what is the state pension age since 2018?
65
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what piece of legislation established an automatic link between pension age and average life expectancy?
pensions bill 2013-14
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what does an increase in life expectancy mean for anyone born after 1970?
they may have to wait until they're 70 to get their state pension
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what is child tax credit?
a benfit paid to people who are in low paid work to help with the costs of raising a child
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what is working tax credit
payment made to those in low paid work, but earn less than the minimum level considered to be enough to live on
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do couples make joint applications for workinga nd child tax credit?
yes
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does the partner who works the most hours each week normally receive the working tax credits?
yes
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is the child tax credit paid to the one who spends the most time caring for the child?
yes
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how many weeks will a woman receive statutory maternity pay from her employer?
up to 39 weeks
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how many weeks will a father receive statutory paternity pay
one or two weeks
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what are the features of child benefit?
flat rate benefit paid to all families or singla parents with dependent children, isn't means tested, additional tax charge for anyone earning over £50,000 a year and the amount is higher for the first child than any subsequent children
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what is a benefits cap?
a limit to the total amount in some benefits that working age people can get even if their entitlemement would otherwise be higher
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how much is the benefits cap?
two adults with two children, two adults or one adult with two children- max £384 and one adult- £257
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how much will the government save due to the benefits cap?
£110m
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how is PIP different from DLA?
fewer people eligible for PIP than DLA, the rate depends on how th condition affects peopel, not the condition itself
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what is universal credit?
a means tested benefit for people of working age that will replace 6 other beneits
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what benefits does UC replace?
income based JSA, income rated ESA, income support, housing beneit, child tax credit and working tax credit
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what is the maximum number of hours a claimant can work in order to receive UC?
none, but their benefit amount they receive will be reduced if they work more hours
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why might some claimants of UC find it hard to plan a budget due to the chnages associated with UC?
they are used to planning their budget for a week or two weeks which is different from UC which is paid monthly
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whta is the role of the money advice service?
they help people avoid getting into unmanageable debt, but for those who do, they fund the provision of free, high quality debt advice
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what is the role of citizens advice service?
they provide information, advice, calculators and other tools for dealing with benefits and help to those who have built up unsustainable debts
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how is citizen's advice funded?
funded by government departments, other financial service providers, five for the "Big Six" energy providers and many other charitable organisations
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what is the role of the money advice trust?
helps people across the UK tackle their debts and manage money with confidence
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how is stepchnange different from MAS, MAT or citizen's advice?
stepchange isn't funded by the government
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how is payplan different from stepchange?
payplan is funded by all the lenders for which it arranges debt management plans with, whereas stepchange is a charity which relies on contributions from banks and building societies
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Other cards in this set

Card 2

Front

what are contributory benefits?

Back

paid to eligible claimants providing they have paid the required number of NICs

Card 3

Front

what are non-contributory benefits?

Back

Preview of the front of card 3

Card 4

Front

why are benefits paid at a flat rate?

Back

Preview of the front of card 4

Card 5

Front

what is the purpose of JSA

Back

Preview of the front of card 5
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