Debt Help Guides Menu - Please Select... A Guide to UK Mortgage Types Administration Orders - What is an Administration Order? Are Bank Charges Lawful ? Attachment of Earning Orders Bailiffs: What they are entitled to do and Your rights Bankruptcy IVA Comparisons Charging Orders - What is a Charging Order? Credit Reports, Credit Files and Credit Blacklists. Credit Reports: Fixing Errors on your Credit Report Credit Reports: Reasons for a Poor Credit Score Debt Consolidation Debt Help - Budgeting Tips FAQ - Dealing with debt, ways to help debt problems Gambling & Debt: Are gambling debts enforceable? Harassment from Creditors and Debt Collectors How Can I Consolidate My Debt Without a Loan ? How can I get a CCJ removed? Insolvency Glossary of Terms - Jargon Buster Limitation Act 1980 and Unsecured Debts. Loans UK - Secured Loans FAQ Loans UK - Unsecured Loans FAQ Mortgage Arrears - Advice for those with Money Problems New UK Bankruptcy and Insolvency Laws OFT (Office of Fair Trading) Debt Management Guidelines Refused Credit ? Refused a Loan ? Repossession Advice Sequestration - Bankruptcy in Scotland SIVA - Simple IVAs Statutory Demands Tax and Debt: Magistrates’ Courts Proceedings Tax and Debt: What is Distraint ? The Right to Offset - Why you should avoid debts with your Bank. Time Orders - What is a Time Order? UK Insolvency Forms UK Bankruptcy Advice - Truths and Myths, FAQ UK Insolvency Advice - Business Bankruptcy UK Insolvency Advice - Liquidation UK State Benefits What Debt Help Options are available to me ? What is a PVA ? (Partnership Voluntary Arrangements) What is a CVA ? (Company Voluntary Arrangement) What is a Trust Deed ? Which types of debts are Dischargeable within Bankruptcy ? Your legal rights: Coping with many Debts Your legal rights: Council Tax Debt Your legal rights: Dealing with Bailiffs & Debt Collectors Your legal rights: Gas, Electric and Water Bill Debts Your legal rights: Hire Purchase (HP) Debt Problems Your legal rights: Legal Protection for UK Residents with Debts Your legal rights: Loan and Credit Card problems Your legal rights: Rent or Mortgage Payments Your legal rights: When you can be in Prison with Debt.

UK State Benefits

If you are in debt and a UK citizen, there may be benefits available to you that you are not aware of. In this article, we will review the most common forms of UK state benefits.

 

Income Support

 For individuals on a low income who are not available for work, income support is available. Depending on how much savings you have at your disposal and how much income you have coming in, this will affect whether or not you are able to get income support, as well as how much you are able to get.

In the event that your savings exceeds eight thousand pounds, then you will not be eligible for income support. If you are sixty or over and have twelve thousand pounds or more saved, then you are also not eligible for income support. If your savings exceeds three thousand pounds, this will significantly reduce the amount of income support you are eligible for.

In order to be eligible for income support, you must be over sixteen years old. You cannot work for more than sixteen hours per week. If you have a partner, he or she may not work for more than twenty four hours per week.

 

Working Families’ Tax Credit

 For those individuals who are in paid work, a form of tax credit is available. You must meet the following criteria: You must be in paid work for a certain number of hours and be a single person, a married couple living together, or a man and woman living together as though you were married.

The amount of money you will receive is contingent on your annual income. In order to apply for tax credit, you must be at least sixteen years old.
For more information, call the Tax Credit Help line on 0845 609 5000.

Jobseeker’s Allowance
If you are available for work and are actively seeking it, then you may be eligible for jobseeker’s allowance. If you are a man, you must be under the age of sixty five; for women, it is below the age of sixty. You have to be not working, or working less than sixteen hours per week. For more information on Jobseeker's Allowance, contact your Jobcentre or Social Security Office.

 

Child Benefits

 Those individuals who are raising children may be eligible for child benefits. It is paid for each child, and is contingent on your income and savings. You are eligible for this if your child is under the age of sixteen. If your child is under the age of nineteen and studying full time for up to A levels, NVQ level 3, or the equivalent, then you are also eligible for child benefits. If your child is under the age of eighteen and registered with the Careers Service of Connection Service for work or work based training, then you will similarly be eligible for child benefits. In order to claim child benefits, you need not be the parent’s child – you must only demonstrate your responsibility for the child. For more information on this benefit, call the Child Benefit Center on 08701 555 540.

 

Council Tax Benefit

 This benefit is paid by your local council in order to assist you with your council tax. IN order to get this, you do not have to be on any other benefits. It does not matter if you already receive a council tax discount or not. Even if you work full time, you may still be eligible for council tax benefits. If you are on low income and liable for council tax, then you are eligible for council tax benefit. If your savings exceeds sixteen thousand pounds, however, then it is not likely you will be eligible for this benefit. A savings that exceeds three thousand pounds will usually have an effect on how much benefit you are able to claim. A number of other factors will affect your eligibility for this benefit; for further information, contact your Local Council or Social Security Office.

 

Housing Benefits

 Your local council will pay you a housing benefit as a means of helping towards your rent, which you may pay to your local housing authority, landlord, or housing association. In order to make this claim, you do not have to be receiving any other benefits – but you should have a low income. In the event that you work full time, you may or may not be able to claim housing benefits. If your savings exceeds sixteen thousand pounds, then it is highly unusual that one would receive housing benefits. A savings that exceeds three thousand pounds may have a detrimental effect on how much housing benefit you can claim. For more information on this benefit, contact your Local Council or Social Security Office.

 

Disability Living Allowance

 This benefit can be claimed if you need assistance in looking after yourself. It does not affect either your Jobseeker’s Allowance or Income Support claims. Depending on the extent to which your disability effects you, different rates may apply. Your claim will not be affected in any way by savings or income. Disability Living Allowance can be claimed by anyone from the age of three with severe difficulty in walking, or anyone from the age of five who needs assistance getting around. Disability Living Allowance cannot be claimed by anyone over the age of sixty five. In order for your claim to be successful, you must have needed help for at least three months and be likely to need it for at least another six months. If you are in the hospital or in residential care, then you will likely not be eligible for this type of benefit. For more information on this benefit, contact your Local Council or Social Security Office.

 

Incapacity Benefit

Such benefits are relevant for those individuals unable to claim Statutory Sick Pay. You can claim this benefit if you were under the state pension age when you became sick. There are a number of different types of benefits. In order to claim the basic rate of incapacity benefit, you have to have paid National Insurance for the relevant qualifying period and have been incapable of working owing to disability or sickness for at least four days in a row (including bank holidays and weekends.) If you have been off work for twenty weeks and are under the age of twenty, then you can claim this benefit. You may also claim it if you are under the age of twenty five and have been in training or education. For more information on this benefit, contact your Local Council or Social Security Office.

 

Invalid Care Allowance

This benefit is paid to the person doing the care. If you spend thirty five hours a week or more caring for someone who has claims or is waiting to hear on a claim for one of the following, then you may be entitled to Invalid Care Allowance:

• Attendance Allowance
• Disability Living Allowance
• Industrial Injuries Disablement Benefit Constant Attendance Allowance
• War Pensions Constant Attendance Allowance

In order to apply for this benefit, you have to be over the age of sixteen and younger than sixty five.
If you earn over a certain amount of money, then you might not be eligible for this claim. If you are going to school full time, then you may not be eligible for this claim. Receiving this allowance may have an affect on other benefits you are allowed to receive. It may also have an impact on what benefits the person you are caring for is allowed to receive. You can download an allowance application form. For more information on this benefit, contact your Local Council or Social Security Office.

State Retirement Pension
This pension is available to women over the age of sixty and men over the age of sixty five. Currently, the single person’s allowance is £67.50 a week; the married couple's is £107.90 (although both partners may be entitled to a single person's pension).
In order to qualify for the state retirement pension, you must have paid enough National Insurance contributions throughout the course of your working life.

SERPS
Short for the “State Earnings Related Pension Scheme,” this is a top up to the basic state pension. It is only payable to former employees. SERPS replaces income earned between the basic state pension level and £500 per week. For more information, see www.thepensionservice.gov.uk.

Children’s Tax Credit

Families with at least one child may be able to apply for this credit. It consists of the following elements:

• A family element that is payable to any family responsible for a child. It is paid at a higher rate to families with at least one child under the age of one. This is known as the baby element.
• A child element for each child you are responsible for. This is paid at a higher rate if the child has a disability and at an enhanced rate for a child with a severe disability. This is known as the disabled child element.