What are you entitled to? (Part 1)

16 May 2008

If you’re having problems managing your debts, you’d undoubtedly find it easier if you could increase your disposable income: raising your income, lowering your expenditure, or both.

Of course, wages aren’t the only form of income, but far too many people aren’t aware of what they’re entitled to. The government estimates that billions of pounds in benefits are going unclaimed across the UK.

Here are just some of the benefits available to UK citizens. Are you entitled to any?*

Working tax credit
You could be eligible for working tax credit if you:

1. are aged 25 or over
2. work over 30 hours a week, and
3. earn less than:
   • £11,700 if single
   • £16,300 with a partner

Child tax credit
You may be eligible for child tax credit if you are responsible for at least one child and your total household income is under £58,000.

Housing Benefit
Housing Benefit is there for people on a low income who need help paying all or some of their rent, whether they live in council property or hire from a private landlord. In most cases, you won’t be eligible if you:

1. have over £16,000 in savings
2. live in the home of a close relative
3. are a full-time student with no disabilities and no children, or
4. are an asylum seeker / sponsored to be in the UK.

Job Grant
You may be entitled to a tax-free Job Grant (a lump sum) when you start work and stop getting benefits (or if your benefit stops because your partner starts working at least 24 hours a week). The job must be at least 16 hours a week, and be expected to last at least 5 weeks. You must also have been getting one or more of the following for at least 26 weeks:

1. Incapacity Benefit
2. Income Support
3. Jobseeker’s Allowance
4. Severe Disablement Allowance
5. Jobcentre Plus/New Deal payments (where allowance is based on Jobseeker’s Allowance, Income Support, Incapacity Benefit or Severe Disablement Allowance)
6. Employment Zone payments (where allowance is based on Jobseeker’s Allowance)

Reduced Earnings Allowance
Reduced Earnings Allowance provides extra funds for people who are earning less because of a work-related accident or disease that happened before 1 October 1990.

* See the Money, tax and benefits pages on the Directgov website for more on benefits – including information on whether you’re eligible and how to claim.

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