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State benefits
   Last updated: 06.06.06
Benefits for people who are too ill to work
This section was written in early 2006. Rules regarding state benefits are continually changing. If you have any questions about state benefits you would be well advised to seek specialist advice.THT Direct is the signposting and telephone advice section of Terrence Higgins Trust. They can be contacted on 0845 1221200. If you have a benefit or debt problem, they can give you advice, and if necessary details of agencies in your area who are able to assist with your problem. They can also refer to THT’s Specialist Advice Centre if appropriate

If you are unfit to work, your doctor will give you a medical certificate, to enable you to claim benefits.

If you are employed, you may be entitled to Statutory Sick Pay. You must normally earn at least £82 per week (£84 from April 2006). A certificate is not necessary for the first week, but is necessary thereafter.

If you do not have a job, or have not been able to work for more than six months due to ill health, you should claim Incapacity Benefit. As well as being unfit to work you have to have paid national insurance contributions in order to get incapacity benefit. A medical certificate is necessary, unless you have received a letter from the DWP stating that there is no need for you to send in further certificates.

The test for incapacity benefit is the Personal Capability Assessment, usually payment is made for the first six months of the claim, and then a form called an IB50 is sent to you, asking you to assess whether you can do a series of tests. Often this form is followed up by a request for you to see a Department of Work and Pensions (DWP) doctor, to see if s/he agrees with your self assessment. This often leads to withdrawal of benefit.

However, some groups of people are exempt from this test. Amongst people with HIV there are two main groups who are exempt, the first, which affects all claimants, is people who get the highest rate of care component of Disability Living Allowance (DLA).

There is also an exempt group specific to people with HIV. This is where there are tumours or opportunistic infections as a result of your HIV diagnosis. If this is the case for you, it is worth asking your doctor to state that you have the tumour/opportunistic infection on your medical certificate, which is likely to lead to exemption from the test, and may stop loss of benefits.

If you are under 20, it is possible to claim incapacity benefit without fulfilling the national insurance contributions, this is known as Non Contributory Incapacity Benefit. If you are a student, it may be possible to claim up to the age of 25.

When you claim incapacity benefit, you should also make a claim for Income Support. Some people will not be entitled to incapacity benefit because they have not paid enough contributions, however, it is necessary to claim incapacity benefit as well as income support, so that the DWP will note that you are unfit to work, and will pay income support to you whilst you are sick, if you fulfil all the other relevant criteria.

Income Support is a means tested benefit, which means that the DWP will ask if you have any money coming in, and if it is over the amount which is allowed each week (known as the applicable amount), you will not get income support. It is common for people to get a reduced amount of income support, particularly if they are getting other benefits, such as child benefit or incapacity benefit. They will also ask whether you have any capital, if you up to £3000, it will be ignored, if you have between £3000 and £8000, income support will be paid at a reduced rate, if you have over £8,000, you have more than the ‘capital limit’ and income support will not be paid. (If this is the case, don’t forget to reapply if your capital falls below the capital limit, however the DWP may still refuse benefit if they decide that you have deprived yourself of capital in order to obtain benefits). The figures above are the same for a couple as for a single person.

When you claim income support, the claim pack will also include claims for Housing Benefit and Council Tax Benefit. Housing benefit is payable if you rent your property and your income is low. If you own your property you should ask for Housing Costs, which will not be paid at first, but if you are long term sick, you may get some help with your mortgage interest payments.

If you are not claiming Housing and/or Council Tax Benefits at the same time as income support, you can get claim packs from your local authority, which will have a department dedicated to these benefits.

These benefits are also means tested, the rules are much the same as for income support, but the capital limit for Housing and Council Tax benefit is £16,000, so it is possible to be refused income support because your savings are too high, but still get housing and council tax benefit.

Some people get a benefit called Severe Disablement Allowance, it is no longer possible to put in a fresh claim for this, but it is paid to people who have not paid national insurance contributions, and have been sick for some time. Usually this applies to people who have never worked due to disability. Non-contributory incapacity benefit (above) is the newer equivalent.

If you have been sick for over a year, and getting one of the sickness related benefits above, your income support will increase, as you will be awarded a disability premium. This will not happen if you have been getting DLA, as the premium will apply from the date DLA is awarded, if you have a claim for income support.


Disability Living Allowance (DLA)
Disability Living Allowance (DLA) is payable when there are care or mobility needs. The form for this is long, and the questions can be difficult to answer. Wherever possible get an advisor to help with completion of the form, as many appeals arise simply because there is not enough information in the form.

If you do have to fill in the form yourself, just remember to address any difficulties you have with walking or looking after yourself. (For example, many people with HIV have night sweats. They wake up wet and uncomfortable. If it is difficult for you to change the bed, perhaps because of fatigue, dizziness, peripheral neuropathy or whatever give details. If you don’t change a wet bed because you feel too unwell, tell them. Say what makes it difficult, and what help you need. If you live alone and just have to get on with things, give details of the help you would need if there was a carer there to look after you).

The care component is paid at three rates:

Highest – for people who need attention and/or supervision both day and night
Middle – for people who need attention and/or supervision during the day or the night
Lower – for people who need attention for a significant portion of the day (classed as an hour or more, but not for most of the day), or who cannot cook a meal for one person if they had the ingredients and facilities.

A grant of the highest rate of care component of DLA entitles you to the Enhanced Disability Premium on your income support. It also means that you are exempt from the Personal Capability Assessment – the test for incapacity benefit.

A grant of the middle or highest rate of care component gives rise to Severe Disability Premium on your income support, if you do not have any adults living in your home who are not financially dependent on you (and part of your benefit claim) and if nobody is claiming carers allowance for you.

A grant of any rate of care or mobility component of DLA gives rise to the Disability premium on income support.

The mobility component of DLA is paid at two rates:

Higher rate – for people who either cannot walk at all, or cannot walk without severe discomfort – usually the benchmark is around 50 yards, and severe discomfort can be pain, breathlessness, fatigue, anything which makes it difficult for you to walk.

If you get the higher rate of mobility component, you may be able to get a motability car – leased car from a company which takes the mobility component of DLA as payment for the lease of the vehicle. The telephone number for Motability is 0845 456 4566.

Also, if you get higher rate of mobility component, you or your carer can be exempt from paying car tax on a car used just by you or for you. You can get an exemption form, and/or claim pack for DLA by phoning the Disability Benefits Centre on 08457 123456.

You can also contact your local authority for details of disabled parking and travel permits for the disabled.

Lower rate - for people who need supervision when they go to unfamiliar places. Most commonly this is for people who experience panic attacks when they have to go somewhere new.

If your doctor believes that it is not unexpected that you will die within the next six months, you can make a claim under the Special Rules. Your doctor will have to complete a form called a DS1500, giving reasons for his opinion. Special rules cases are fast tracked, and you should have a decision within a couple of weeks. During this time, the evidence of your doctor will be examined by a DWP doctor. If the DWP doctor agrees with your doctor’s assessment you will automatically be awarded the highest rate of care component. If you have mobility problems, you will have to complete the part of the claim pack that deals with mobility.

If you are over 65, you should claim Attendance Allowance, rather than DLA. Attendance Allowance is only paid at two rates, lower, which is the equivalent of middle rate of care component of DLA, with the same criteria, and higher, which is the equivalent of the highest rate of DLA care component. There is no mobility component of attendance allowance, however if you have an award of mobility component of DLA when you reach your 65th birthday, payment will continue until the award runs out, or until the DWP look again at your award.

Neither DLA nor Attendance Allowance is taxable.


Benefits for carers
If you care for a person who gets DLA at the middle or higher rate of care component for 35 hours a week or more, then you may be eligible for Carer's Allowance. It is best to take advice before applying for carers allowance, particularly if the person you are caring for is your partner, when you may actually lose money by making the application if you are in receipt of income support as a couple.

However, if you live alone, and apply for Carer’s Allowance, it can be topped up with Income Support.


Benefits for people who are unemployed
Contribution Based Job Seeker's Allowance is payable for six months, assuming you meet the contribution conditions. It does not matter how much savings you have and how much other money is coming into the home.

Income Based Job Seeker's Allowance is payable either when insufficient national insurance contributions have been paid, or at the end of the six month period. It has the same income and capital restrictions as income support. It also passports to Housing and Council Tax Benefits in the same way. As with Income Support, you can claim for an adult dependent, but if you are responsible for children, you should claim Child Tax Credit.

In order to get Job Seeker's Allowance it is necessary to sign on as available for work, and to be actively seeking employment.


Benefits for people in work
It is possible to get DLA whilst working, most commonly people will get the middle rate of care component for night time care needs, and sometimes mobility component too.

If you are working less than 16 hours a week you may be entitled to Income Support. However, if your partner is working this is unlikely, as the income of both of you will be taken into consideration too.

Working Tax Credit: Is a top up benefit, administered by the Inland Revenue. You need to work full time – defined as over 16 hours a week (or in the case of a couple, one of you needs to be in full time employment).

Extra payments can be made if you have a physical or mental disability which puts you at a disadvantage when seeking work.

If you have childcare costs associated with your work, you may be entitled to the childcare element of Working Tax Credit.

Housing and Council Tax Benefit may also be payable if your income is low.


Benefits if you are pregnant
Statutory Maternity Pay is payable if you are employed. It is payable for a total of 26 weeks, and cannot start before the 11th week before the date your baby is due, although you can defer it to start later.

You will receive 90% of your average weekly earnings for the first six weeks. For the remaining 20 weeks you will receive 90% of your average weekly earnings, or £106 per week, whichever is less. It is important to write to your local Revenue National Insurance Contributions Office to claim national insurance credits whilst you are off of work. Your employer should have the address.

Statutory Maternity Allowance is payable if you have worked but are no longer working. You need to have worked for at least 26 weeks in the 66 weeks before your baby is due, and to have earned at least £30 a week during that period. As with SMP, you cannot claim before the 11th week before the baby is due, and it is paid at £106 per week.


Benefits if you are looking after children
Child Benefit – until the child is 16, or if s/he remains in full time non-advanced (not degree level) education, until s/he is 19.

Child Tax Credit – payable to people responsible for a child. It is possible to get child tax credit even if you are part of a couple where both work, as long as your joint annual income is below £50,000.

If you are working and on a low income, child tax credit may be available.

If you are a single parent, who is not working, you can claim Income Support for yourself and Child Tax Credit for your children.

If you are on income based job seekers allowance, and have children, then you can claim child tax credit for them.

Income Support some people are still getting income support for their children. Their numbers are diminishing, as the aim of the government is to take away the income support payment for children, and replace it with child tax credits.

Housing and Council Tax Benefits may be available.

You may be entitled to free school dinners for your children. Also free prescriptions, eye tests and dentistry are available.


Benefits if you are retired
Pension Credit is essentially income support for the retired, and carries the same passports to Housing and Council Tax Benefits.

State Retirement Pension Extra pension is available to those who have paid national insurance contributions and their widows.


Benefits for students
Generally speaking, students cannot get means tested benefits, however if you are in receipt of Incapacity Benefit, Income Support as sick, Severe Disablement Allowance, or DLA you will be deemed to be a disabled student, and as such may have an entitlement to benefit.

Please be aware that your student grants and loans will affect the amount you get, and if possible seek benefit advice before making the decision to study.


Civil partnerships and benefits
Since the Civil Partnership Bill came into effect on 5th December 2005, same sex couples are treated in the same way as heterosexual couples for benefits purposes. Registered civil partners are treated in the same way as married couples, and unregistered civil partners are treated as co-habitees. The main difference between the treatment of married/registered and unmarried/unregistered couples for benefits purposes is that married/registered couples can access death benefits and pensions in respect of their partners. However, as with all benefits, the rules are complex, and if in doubt, seek advice.

Benefits for asylum seekers and those with no leave to enter/remain in the UK
Generally speaking, this group has no right to benefits. Although there may be some exceptions. Asylum seekers who applied before 1996 and still have not had a decision on their immigration application, and those who applied before 2000 and have not had a decision should seek advice.

Also, the restriction is on ‘public funds’ which are defined by legislation. The rule of thumb is that benefits which rely on contributions, such as incapacity benefit, contribution based job seekers allowance and statutory maternity pay are not public funds, and therefore if you have worked you may be able to claim these if you have paid enough national insurance contributions. Seek advice before claiming.

Public Fund restriction: You may have leave to enter/remain in the UK subject to a restriction which says that you have no recourse to public funds. Do not claim benefits without taking advice on whether the relevant benefit is a public fund. If you make a claim for a benefit which is a public fund, it is a criminal offence. In reality, what happens is that they do not press charges, but when you apply for your leave to be extended, it is refused.

'Mixed' couples: Sometimes one member of a couple has an entitlement to benefit, but their spouse/partner does not. Generally speaking, the partner with recourse to public funds can claim benefit, but it will not include an amount for their partner.

However, in a couple where there is a child who does not have leave to remain, and a parent who does, the parent can claim child benefit and child tax credit in respect of that child.

Once you receive leave to remain without restrictions you are entitled to benefits in the same way as everyone else. If you have been given refugee status (granted asylum) it is currently possible to claim income support back to the date when you first claimed asylum. However this is due to change at some stage – the date has yet to be announced, and a loan offered to refugees, subject to their ability to repay. It is vital that you make the application for backdated income support within 28 days of the date of the letter from the Home Office confirming your refugee status; otherwise you will lose the backdated money.

Unfortunately, it is a common experience for people who have just been granted leave to have a difficult time when they first go to claim benefits, delays in issuing national insurance numbers, and because of that delays in payment of benefits, are commonplace. If you have this experience, please seek advice.

If your application for benefits is turned down always seek advice. Most decisions are open to appeal, and it is wise to seek professional advice on whether you have any grounds for appeal.

Be aware of the deadlines, most benefits give one month from the date of decision, but Housing and Council Tax Benefit give only 28 days. Both of these periods can be extended by two weeks by asking for written reasons for the decision, always do this if you cannot get an appointment with an adviser within the deadlines.

If you do successfully appeal a benefit decision, then benefit is paid back to the date of claim.


Debt management
Organisations which provide benefits advice and information are often able to help you to work out how to manage any debts which you may have.

An advisor will look at your financial commitments and income with you. They’ll prioritise your financial commitments and debts, giving the highest priority to your rent or mortgage, utility bills, council tax, and any fines which you may have. If you have any money left over, then a repayment scheme for credit cards, loans and other debts can be worked out. If you are very badly in debt, they will be able to advice you on bankruptcy or administration.

Even if you feel able to manage your own financial affairs, don’t ignore letters from banks or credit card companies. Debts won’t go away unless you do something about them, and will become more of a headache the longer you leave them.


The Social Fund
Covers a whole series of benefits, which are briefly described below.

Community Care Grants: Designed to keep or establish people in the community, particularly applicable if you have just come out of prison, hospital or temporary accommodation. Also applies to help alleviate exceptional pressures on a family, and to meet travel costs within the UK to visit someone who is ill, attend a relative’s funeral, ease domestic crisis, visit child pending residence hearing, or move to suitable accommodation.

It is necessary to be in receipt of income support, income based Job Seeker's Allowance or Pension Credit when you make the application. As a grant, it is not repayable.

Budgeting Loans: Aimed to help with the major expenses which everyone has periodically, such as replacing household items. It is a better alternative than credit, as there is no interest, however the amount you can get will depend on the amount the DWP deems you can repay.

As with the Community Care Grant, it is necessary to be in receipt of income support, income based Job Seeker's Allowance or Pension Credit when you make your application. As a loan, it will be recovered directly from your means tested benefit.

If you are not sure whether a grant or a loan is applicable, always apply for a grant, the decision maker will consider a loan if the grant cannot be paid.

Crisis Loans: For immediate, short term crisis. Not necessary to be in receipt of benefits, but it is necessary to be able to show that you can repay the loan. It can never be over £1,000.

THE REGULATED SOCIAL FUND

Sure Start Maternity Grants: £500 for each child or expected child. You or your partner need to be getting Income Support, income based job seekers allowance, child tax credit at a rate that exceeds the family element or working tax credit with disability or severe disability element.

The form SF100 is available from job centre plus or DWP website. As with other maternity based benefits, you can claim from eleven weeks before the baby is due, but unlike other benefits, the initial claim can be up to three months from the date of confinement.

Funeral payments: You need to be in receipt of a means tested benefit – includes housing and council tax benefit to apply. You need to be responsible for the cost of the funeral and either partner, parent, offspring or close friend or relative of the person who has died.

This does not cover the whole cost of the funeral, please ensure that you seek advice before committing yourself to paying for an expensive funeral which you may not be able to afford.

Winter fuel payments: if you are over 60, and are getting means tested benefits. The amount you get depends upon your age, £200 if aged 60-69, £250 if aged 70-79 and £300 if 80 plus. Not everyone needs to claim, seek advice if you are in these age groups.

Cold weather payments: Paid only where the weather is below freezing for a whole week. You need to be in receipt of pension credit, or income support/income based Job Seeker's Allowance which includes a disability or pensioner premium, or be responsible for a child under five.