Benefits and entitlements

Welcome. You’ve joined us today for a short recording that provides an introduction to benefits, a bit of an overview and thank you very much for coming along.

We recognise that carers of all ages and circumstances often find it really challenging to balance their finances, particularly with concerns about the future, and this can very quickly become very overwhelming.

So this recording is designed to give you a broad understanding of the benefits that you may be eligible for with the aim of improving your financial wellbeing.

Our mission is to assist you in maximising your income, in reducing the financial stress and strain that can come with caring.

So it’s important to remember that you’re not alone on this journey and we are here to provide support through these challenges and to make sure that you get the support that you need.

So let’s get started. So in this session we’ll be covering the following key topics.

• Who can get benefits?
• Who is responsible for administering benefits in Scotland?

We will have a look at the different types of benefits that are available and a deeper look at income related benefits.

We’ll spend quite a bit of time on that particular section, provide an overview of disability benefits and the support that is available with housing costs.

And we’ll also have a look at some of the systems that are in place for carers to help and support those that they care for with their own benefits. And we will have a look where you can get help with all of this stuff.

So who can get benefits?

A welfare system is a broad umbrella designed to provide financial support for those who need it most and there is a range of support available.

So who can get benefits? People on low incomes. This includes people who earn below a certain threshold.

Job seekers. There is support for people who are out of work in actively seeking employment.

People with disabilities or health conditions. This includes those who are unable to work due to physical or mental health conditions.

The system supports families, especially those with low incomes through a variety of ways and carers, most importantly today those who look after someone who was unable to care for themselves due to illness, disability or age.

The welfare systems provides a range of allowances and benefits to support their role in pensioners. The welfare system provides them with a regular income in the form of pension to help cover their costs of living.

So a variety of organisations are entrusted by the government to manage welfare benefits and they play a crucial role in ensuring the effect of distribution and administration of these benefits across the country.

In Scotland there are two main groups that work together to do this. One is the Department for Work and Pensions (the DWP) and the other is Social Security Scotland.

Social Security Scotland looks after the benefits that are specific to Scotland, whilst the DWP takes care of those benefits for the whole of the UK.

By working together, they make sure that the welfare benefits are given out fairly and properly to the people who need them most.

HM Revenue and Customs, HMRC, is an organisation in charge of managing tax credits, but it’s really important to notice that these are slowly changing and being replaced by something called Universal Credit, which you may be familiar with.

And also your council area, your local authority, plays a big role in managing benefits at local level and they help with things like housing costs and hardship and all of these groups work together to ensure that Scotland has a complete benefit system that works for its people.

There are different types of help available in what you can access depends on your personal situation. This could be things like how much money you make, whether you’re out of work or if you have a disability.

So there are income-related benefits and these are for people who have a low income or no income at all and they are designed to help make sure you have enough money to live on.

Means-tested benefits. These look at how much money you have coming in as well as your savings and property to decide if you qualify for help.

There’s contribution-based benefits and these are for people who have paid enough National Insurance contributions and the amount you get isn’t affected by your income or your savings.

Disability benefits, these are for people who have a disability or a health condition and they can help with the extra costs of having a disability and support with housing and council tax.

If you’re on a low income or out of work, you might be able to get help with your rent or your council tax.

And together these benefits are they support people in different situations and make sure that everybody gets the help that they need.

So in Scotland we have several income replacement benefits to support people in different circumstances and we’re going to have a look at each one in a little bit more detail and spend quite a bit of time going through this.

So firstly we’ve got Universal Credit – a financial support system designed to help those who are either out of work or earning a low income and it helps with the cost of living.

It’s usually paid the same day every month, but some people can receive the payment in two parts over the month in certain situations.

In this benefit, it’s quite unique because it’ll be received by people both in and out of work, and the amount of Universal Credit that you receive gradually decreases as your earnings increase.

It is however important to note that Universal Credit will be or has already replaced several other benefits and tax credits including Child Tax Credit, Housing Benefit, Income Support, income-based Job Seekers Allowance, income-related Employment and Support Allowance in work and Tax Credit and to qualify for Universal Credit you must meet the following criteria.

You must be out of work or have a low household income. You must be 18 or over. There are some exceptions. If you are 16 or 17, you or your partner  are under state pension age and you have less than 16,000 in savings, and that also includes your partner’s account too. And you must live in the UK.

The current standard allowance rate for Universal Credit for 2024. For a single person under 25, it’s 311.68 per month and for a single person aged 25 and over it’s 393.45 per month.

And keep in mind that these amounts may vary based on individual circumstances and in many, many factors.

As there are many other additional elements of Universal Credit that you may qualify for, it’s usually a really good idea to have a chat with the benefit advisor to make sure that you’re not missing out on anything that you’re entitled to.

So whether you’re out of work or on a low income, Universal Credit is there to support the provide the support that you need.

So now let’s look at new style Job Seekers Allowance. This one is a little bit more straightforward.

New style Job Seekers Allowance is designed to help cover your living expenses whilst you’re looking for work.

And it’s calculated based on your National Insurance contributions, usually from the last two or three years. And you can claim it independently or alongside Universal Credit.

Some people are still receiving the old style income-based Job Seekers Allowance and if you are, you can continue to do so. However, please note that this will eventually transfer over to Universal Credit in the near future and this is part of a key step in streamlining the benefit systems in Scotland.

So to qualify for new style Job Seekers Allowance, you must be unemployed or working fewer than 16 hours a week, be under state pension age, not be engaged in full-time education and not have a disability that prevents you from working.

You must be available for an actively seeking employment and you must be resident in the UK.

And the amount you receive varies with your age with as with most benefits you’ll notice as we go through the session today.

So for the year 2024, the maximum weekly rates are 71.70 if you are under 25 and 90.50 if you’re 25 or over.

OK, so now let’s have a look at new style Employment and Support Allowance, commonly referred to as ESA. So Employment and Support Allowance is a financial aid provided to people who have a disability or a health condition that impacts on their ability to work.

And it’s designed to offer financial support if you’re not able to work, but it also provides assistance to help you get back to work if you can.

So to qualify for this benefit, you must meet the following criteria. So you must be over 16 and under state pension age. You must also have a disability or a health condition that affects your ability to work and as this is a contribution-based benefit, you must have worked as an employee or been self-employed and paying enough National Insurance contributions, usually over the last 2 to 3 years.

And the amount you receive depends on various factors such as your age in the stage of your application. So for instance, when you first make a claim, if you’re under 25, you could receive up to 71.70 a week, and if you’re 25 or over, you could receive up to 90.50 per week.

And you normally get what’s called the assessment rate for 13 weeks while your claim is being assessed. And during this time you’ll be required to complete the health questionnaire. And likely following on from this, a work capability assessment.

Following on from this, you’ll be placed into one of two groups if you’re entitled to ESA. If you’re able to get back to work in the future, you’ll be put in what’s called the work-related activity group.

Otherwise you’ll be put in the support group. And if you’re placed in the work-related activity group, you’ll get up to 90.50 a week. And if you’re in the support group, you’ll get up to 138.20 a week.

Again, it’s quite a complex benefit to navigate and it’s useful to get support with any applications or reviews that you have.

Now let’s have a look at benefits for carers in Scotland.

Carer’s Allowance is transitioned to a new benefit called Carer Support Payment and this change is part of Scottish devolution. If you’re currently receiving Carer’s Allowance and live in Scotland, your benefit will automatically move to Carer Support Payment.

You don’t need to reapply for this benefit and the amount that you receive will remain the same as your current rate starting from the 4th of November 2024.

If you are considering applying for this benefit or benefits as a carer, please note that Carer’s Allowance is no longer an option and instead all new applications will be directed towards Carer Support Payment.

And to be eligible for either Carer’s Allowance or Carer Support Payment, you must meet the following key criteria. You must dedicate at least 35 hours a week to care and for somebody with a care or a support need, it doesn’t matter if you live with them or not.

In these 35 hours can include practical help, emotional support, or simply just being there to ensure their safety. The person that you care for must receive a qualifying benefit such as Tenants Allowance, Adult Disability Payment, Personal Independence Payment, Disability Living Allowance, Armed Forces Independence Payment, or Attendance Allowance.

Your earnings must not exceed 151 a week, but it is worth noting that this excludes private pensions.

Carers aged 16 or over can get carer support payment if they are studying part time. People aged 20 or over who are studying full time are also eligible. Carers aged 16 to 19 studying full time may be eligible and for the year of 2024 this benefit is paid at a rate of 81.90 a week.

There’s also something called a Carer Supplement and this is an additional payment for people who are already receiving Carer’s Allowance or Carer Support Payment and this additional payment is aimed at a system with the expenses associated with caring.

If you are receiving Carer Support Payment or Carer’s Allowance as of the 8th of April 2024, you will be eligible for this payment as well.

In this supplement, it’s given twice a year, usually around June and December, and you will be notified by letter. And the current 2024 rate for Carer Supplement is 288.60.

There’s no need to make a separate application for this. If you’re a resident of Scotland in already receiving Carers Allowance or Carer Support Payment you’ll automatically get this payment.

It’s that simple and straightforward, but the rules for carers allowance and carer support payment can be quite complicated and claiming can affect both your benefits and those of the person that you care for.

To understand how making a claim will impact your entitlement and the person you care for, please do seek special advice and I will share with you at the end of the presentation today where you can get this support.

So we’ve got a couple more income replacement benefits to look at and now we’re going to focus on pension benefits.

So first up, we’ve got new state pension and this is a regular payment from the government that you can claim when you reach state pension age.

This is applicable to men born on or after April 6th 1950, born in women born on or after April 6th 1953. And to be eligible, you need to have made sufficient National Insurance contributions for at least 10 years.

As of 2024, the weekly pension rate is 221.20. It’s important to mention this at this point and there’s a rule known as overlapping benefits and this means that you might qualify for two or more benefits but you can’t receive the full amount of both at the same time.

So for instance, if you are entitled to carer’s allowance and pension, for example, you would receive your pension in full but your carer’s allowance would be reduced accordingly.

These benefits are split into contributory and non-contributory categories and if you’re entitled to more than one benefit, the highest rate is paid and if two benefits are of the same amount, only one is paid.

It’s important to understand these rules to ensure that you’re receiving the benefits you’re entitled to in get support, if you are unsure about this.

Next we’ve got Pension Credit and this is a means-tested benefit that provides extra money in retirement to those who are eligible.

So if your weekly income falls below 218.15 as a single person or 332.95 as a couple, Pension Credit is probably going to be available to help support your income.

Each of these benefits that we’ve talked about so far play a crucial role in providing financial support to individuals in different situations and ensuring that they can, you know, you can maintain a standard of living.

So we’re now we’re going to have a look at disability benefits and we’ve got three to get through and first up is attendance allowance.

Attendance Allowance is a financial boost provided by the government to assist with care needs. If you are of state pension age, which is currently 66 for both genders and you must have a health condition or disability.

It’s important to note that this allowance is not available if you are already receiving benefits like Adult Disability Payment, Personal Independence Payment, Disability Living Allowance, Armed Forces Independence Payment or Constant Attendance Allowance.

Attendance Allowance comes in at 2 rates. There’s a lower rate of 72.65 a week for those who need care help or supervision during the day or night, and there is a higher rate of 108.55 a week for those who need this help during the day and night. In addition, there’s a 10 bonus in December.

Interestingly, you don’t need to be receiving help from a carer to qualify for this benefit in this allowance is based on the help that you need, not on the help that you’re currently getting.

And plus there’s no restriction on how you spend the money and you won’t be asked to provide any evidence of your expenditures. What’s more, attendance allowance is tax-free and it’s not means-tested, so your savings won’t affect your eligibility.

So if you’re receiving attendance allowance, it can also increase your entitlement to other benefits or give you an entitlement you didn’t have before. So it’s always a good idea to have a benefit check if you start receiving it.

So next up, we’ve got Adult Disability Payment. Adult Disability Payment is a benefit designed for individuals between the ages of 16 and state pension age, and it’s replaced the previous benefit known as personal independence payment.

And this benefit consists of two main components. We have the daily living component and this covers everyday activities such as preparing meals, eating, managing health conditions, personal hygiene, dressing, communication, social engagement and financial decision making.

And we also have the mobility component and this focuses on people’s ability to plan and follow a journey as well as the physical mobility.

And each of these components can be paid at either a standard or an enhanced rate. And as of 2024, the rates are as follows. So daily living component comes in in standard rate which is 72.65, while the enhanced rate is 108.55.

And for the mobility component, the standard rate is currently 28.70 and the enhanced rate is 75.75.

In essence, Adult Disability Payment is a financial support system that assesses and aids your independent living abilities. It’s here to help navigate life challenges more comfortably.

So lastly, we’ve got Child Disability Payment. In Child Disability Payment, there’s a benefit available for individuals from the age of three months up to 18 years.

And it’s designed to support those with a disability who require assistance with mobility or need supervision and attention. And this benefit comes in two components.

We’ve got the care component and this caters to the supervision or attention needs of the child. And then we’ve got the mobility component which is aimed at those who need help getting around independent on the specific needs of a child.

And all can be given for either one or both of these components. Importantly, the Child Disability Payment is not means-tested, which means that it’s not based on your income or your savings.

And as of 2024, the weekly rates for these components are as follows. So for the care component, the lowest rate is 28.70, the middle rate is 72.65 and the highest rate is 108.55.

For the mobility component, the lower rate is 28.70 and the higher rate is 75.75.

So in summary, Child Disability Payment is a financial support system designed to help young individuals with disabilities navigate their life challenges more comfortably, and it’s there to provide the necessary support to make life a little easier for those who need it.

OK, so now let’s talk about the various support that is available to help you with housing costs.

So firstly we have Housing Benefit and this is a great help to those who have to pay rent, you know, who are on a low income and claiming benefits and they’ve got savings below a certain level and that’s usually around 16,000.

The amount you receive will depend on where you live and your personal circumstances. And it’s worth noting now, that most housing costs are covered by through Universal Credit with some slight exceptions to pensioners in those who received the severe disability premium.

If you receive guaranteed Pension Credit, you are eligible for full Housing Benefit, and Housing Benefit can cover all or part of your rent depending on your income and circumstances.

We also have Council Tax discount and exemptions and these are available for a variety of situations including single occupancy, low-income households, disabled persons, care providers, individuals, individuals in hospital care homes or those who are severely mentally impaired.

And for those of you that receive Disability Live Allowance or Child Disability payment in September, there is Scottish Child Wind Heating Assistance and this provides a substantial chunk of money.

So it’s 251.50 to help keep your house warm during the winter months. Every little bit helps.

You know, when it comes to managing your housing costs, it’s also important to remember at this point that you know, we’ve covered a lot today, but there are many other forms of financial assistance available to you.

You know, this includes things like child payments, support with funeral costs, assistance when starting work, pregnancy support in best food grants.

And these benefits can make a significant difference in your life. So it’s always worthwhile, you know, consulting with a specialist to understand what you might be entitled to.

So we’re now going to have a look at helping with benefits. There’s a range of provisions available for managing the finances of those who care for and these are overseen by the Office of the Public Guardian in Scotland, with the exception of appointeeship which is managed by the Department of Work and Pensions or Social Security Scotland.

Appointeeship is relatively straightforward and it allows an individual to manage the welfare benefits of another person who lacks capacity to do so themselves.

And the appointee acts as the claimant, making claims, receiving payments and ensuring the funds are used in the best interests of the person they care for, and they’re also responsible for reporting any changes.

Please note that appointeeship only applies to welfare benefits administered by the DWP or Social Security Scotland and you will also need appointeeship with both organisations.

Next, we have power of attorney and there are two different types of power of attorney. There’s welfare, which only comes into effect when the person loses capacity, and financial. The grantor must have the capacity to manage their own affairs when granting Power of Attorney.

Next, we’ve got Guardianship, and this can only be awarded if the person doesn’t have the capacity to manage their own affairs and involves quite a lengthy process.

And lastly, we’ve got access to funds and intervention orders, although these are less commonly used.

Access to funds allows someone to access another person’s money, usually in a bank account, to set up direct debits or purchase specific items.

An intervention order allows for a one-off intervention for ongoing situations. Guardianship should be established.

So let’s have a look at getting help. At VOCAL, we’re here to provide a helping hand to carers with financial matters and our team is dedicated to a system with benefit checks and ensuring you’re not missing out on any entitlements.

If you have any questions about benefits, we’re here to provide clear, easy-to-understand answers to help increase your income, and we’re also ready to assist with filling in forms and liaising with benefit organisations.

Whether you’re in work or not, we can support you with financial calculations, giving you the necessary information to make informed decisions about your financial wellbeing.

Entitled To offer a fantastic free benefit calculator which is available online, and this tool allows you to get an estimate of the benefits you might be eligible for.

It’s definitely a resource worth checking out to see whether there is anything that you might be entitled to.

Citizens Advice provides variety of benefits support services that are readily accessible in your local community and they also feature an online money map tool.

This resource is designed to assist you in increasing your income, reducing your bills, in managing the cost of daily living more effectively.

VoiceAbility (Independent Advocacy) offers a free service to unpaid carers to apply for benefits with Social Security Scotland.

Thank you so much for your time today. If you have any additional questions or need further assistance, please don’t hesitate to contact us using the information provided on this slide or in the description.