Housing Benefit and Council Tax Benefit Circular Department for Work and Pensions The Adelphi, 1-11 John Adam Street, London WC2N 6HT HB/CTB A16/2007 ADJUDICATION AND OPERATIONS CIRCULAR WHO SHOULD READ All Housing Benefit (HB) and Council Tax Benefit (CTB) staff ACTION For information SUBJECT Housing Benefit and Council Tax Benefit: 2008 Uprating Guidance Manual The information in this circular does affect the content of the HB/CTB Guidance Manual. Please annotate this circular number against paragraph A4 4.750, 4.910, A5 Annex A & Annex D, BW2 W2.550, BW3 Annex A and BP3 Annex A. HB/CTB Overpayments Guide paragraph 4.430 4.432. Queries If you want extra copies of this circular/copies of previous circulars, they can be found on the website at www.dwp.gov.uk/hbctb have any queries about the - technical content of this circular, contact John Kennett or Phillipa Fallowfield Email: John.Kennett@dwp.gsi.gov.uk Email: Phillipa.Fallowfield@dwp.gsi.gov.uk - distribution of this circular, contact Corporate Document Services Ltd Orderline Tel: 0113 399 4040 Fax: 0113 399 4205 Email: orderline@cds.co.uk Crown Copyright 2007 Recipients may freely reproduce this circular.
Contents Housing Benefit and Council Tax Benefit: 2008 Uprating para Background... 1 Queries... 3 2008 Uprating... 4 General... 4 New Rates... 13 Non-dependant deductions... 14 Family Premium, Children Allowances and Child Tax Credits... 17 Family Premium... 18 Family Premium (Lone Parent Rate)... 19 Additional Premium baby addition... 20 Child dependency increases... 21 Pensioner Premiums... 24 Pension Credit rates... 26 HB/CTB personal allowances for pensioners... 28 Pension Credit uprating and savings credit cases... 29 Second Adult Rebate and students... 31 Second Adult rebate on Pension Credit... 32 Pensioner claims: subtenants... 33 Working age claims: subtenants... 34 Fuel deductions deductions for ineligible fuel charges... 35 One room rate deduction... 36 Disregards in Housing Benefit & Council Tax Benefit... 37 Jobseeker s Allowance rates changes to rates for couples when one is aged 18 or over with responsibility for a child... 39 Income Support/Jobseeker s Allowance 16/17 Rates... 40 State Pension... 41 Bereavement Benefits... 42 Bereavement Premium... 43 Child Benefit and Guardians Allowance... 44 Working Tax Credit and Child Tax Credit rates for 2008/09... 45 War Pension Rates... 46
National Insurance Contribution rates for 2008/09... 47 Social Security benefit rates... 48 Recovery of Overpayments from ongoing HB... 49 Council Tax Benefit Rates for people under 60.. Appendix A: Annex 1 Housing Benefit Rates for people under 60... Appendix A: Annex 2 HB/CTB rates for people aged 60 and over... Appendix B Income Support rates... Appendix C: Annex 1 Main income-based Jobseeker s Allowance rates... Appendix C: Annex 2 Contributory and non-contributory social security benefits... Appendix D: Annex 1 Bereavement Benefits... Appendix D: Annex 2 Main National Insurance Contribution rates... Appendix E
Housing Benefit and Council Tax Benefit: 2008 Uprating Background 1 In his statement on 5, the Minister of State announced his proposals to uprate social security benefits, including Housing Benefit (HB) and Council Tax Benefit (CTB) from April 2008. 2 This circular advises you of the changes so you can prepare for the uprating. Note: At the time of writing the Order bringing the changes into effect is still subject to the appropriate Parliamentary process. Queries 3 Any queries about the information contained in the circular should be emailed to John Kennett or Phillipa Fallowfield, see the front page of the circular. 2008 Uprating General 4 In line with previous practice, the HB and CTB uprating will be introduced in advance of the main social security benefits uprating. To coincide with the new Council Tax year and the week in which many rents change the uprating will take effect on Tuesday 1 April 2008 for CTB and for cases to which Housing Benefit Regulation 79(3)(a) for working age claimants and Housing Benefit Regulation 59(3)(a) for people over pension age applies when rent is paid monthly or at any interval which is not a week or multiples of a week Monday 7 April 2008 for cases to which Housing Benefit Regulation 79(3)(a) for working age claimants and Housing Benefit Regulation 59(3)(a) for people over pension age applies, eg when rent is paid on a weekly basis 5 The 2008 uprating date for the other income related benefits, ie income-based Jobseeker s Allowance (JSA (IB)), Income Support (IS) and Pension Credit and the uprating date for other social security benefits is 7 April 2008. This is the first Monday in the fiscal year, ie the Monday on or after 6 April. 6 You should also be aware of Regulations which allow you to take account of these uprated figures earlier in April. Regulations CTB 2006 Reg 32(8); 67(4); HB 2006 Reg 79(3) and 42(8) refer. (CTB (SCP) Regs 31(9) & (10) and 50(4) and HB (SPC) Reg 41(9) & (10) and 59(3)). (HB/CTB GM BW2 W2.790; BP2 P2.790).
7 The Working Tax Credit (WTC) and Child Tax Credit (CTC) will increase from 6 April 2008 in line with the new tax year. However, the uprating of tax credits by Her Majesty s Revenue and Customs (HMRC) should not affect the assessment of tax credits as income in HB/CTB. Action award notices as normal using the April instalment rates, shown on the current award notices, as appropriate. 8 Pension Credit should be uprated in line with the procedures given later in the circular. See Pension Credit rates for further details. 9 Remember there is no provision in the regulations to uprate a claimant s social security benefit other than by using the correct amount. Most claimants will know their new rates of benefit well before 1 April. As there is no tolerance rule in HB/CTB, the benefit paid should reflect the claimant s income to the penny, subject to the minimum payment ruling in HB and rounding. 10 However we are aware that many Local Authorities (LAs) use percentages to uprate other social security benefits. As this method should, in most cases, produce accurate results, providing the LA has satisfied itself as to the accuracy of its method, it should be able to meet its duty to make proper determinations. However, this is not possible with Pension Credit (savings credit only) cases. 11 Non-income related social security benefits, such as the State Pension (SP) and Incapacity Benefit (IB) are generally uprated in line with the movement in the Retail Price Index (RPI) to September, whereas the income-related benefits such as HB and CTB are uprated by the ROSSI index. 12 For the year to September 2007 the percentages are New rates RPI 3.9% ROSSI index 2.3% Average Earnings 3.5% 13 The following appendices set out the new rates of benefits Appendix A sets out the new rates for HB and CTB for the under 60 s Appendix B sets out the new rates for HB and CTB for those 60 and over Appendix C sets out the new rates for IS/JSA (IB) Appendix D sets out the new rates for other contributory and non-contributory social security benefits and War Pension Rates. Although War Pensions are not social security benefits they are uprated as part of the general uprating. War Pensions will be uprated on 7 April 2008 in line with RPI. As these are not social security benefits HB Reg 42(8) for working age and HB (SPC) Reg 41(9) for those 60 and over and CTB Reg 32(8) for working age and CTB (SPC) Reg 31(9) for those 60 and over do not apply. Appendix E sets out the 2008/09 main National Insurance Contribution rates
Non-dependant deductions 14 The non-dependant deductions (NDDs) for HB/CTB and IS/JSA(IB) and Pension Credit will remain the same but the income bands have increased in line with the average increase in earnings, ie 3.5 %. 15 The table below gives information about pensioners who are non-dependants in Pension Credit. When a non-dependant in receipt of Pension Credit, regardless of whether it is a guarantee credit only or savings credit, lives with a HB/CTB claimant no deduction will be taken. These provisions have been in force since 4 April 2005. 16 The table includes other claimants of pension age. Non Pension Credit pensioner (not in remunerative work) Housing Benefit NDD 7.40 Council Tax Benefit NDD 2.30 Non Pension Credit pensioner (in remunerative work) Both HB/CTB based on weekly gross income Savings Credit only pensioner (in or not in remunerative work) Housing Benefit NDD nil Council Tax Benefit NDD nil Guarantee credit pensioner (in or not in remunerative work) with or without a savings credit Housing Benefit NDD nil Council Tax Benefit NDD nil Note: These scenarios do not reflect any of the other provisions when an NDD does not apply, eg householder in receipt of Attendance Allowance. Family Premiums, Child Allowances and Child Tax Credits 17 Child related allowances in IS/JSA and HB/CTB will be increased in line with Child Tax Credit (CTC) rates. This means that families in receipt of these benefits gain from the full value of any increases in CTC. Family Premium 18 This year the Family Premium in HB/CTB has increased from 16.43 to 16.75. Family Premium (lone parent rate) 19 This remains fixed at 22.20. It is only applicable to certain lone parents before a particular date.
Additional premium baby addition 20 The additional amount for a child under one remains at 10.50. Child Dependency increases 21 Child dependency increase remains at 11.35. 22 The eldest child rate has been reduced from 9.00 to 8.75. 23 Regulations provide for the rate of child dependency increase to be adjusted when the increase is payable for the eldest eligible child for whom Child Benefit is also payable. The weekly rate of the increase is reduced by the differential (less 3.65 from April 2004), between the rate of Child Benefit payable for the oldest eligible child and that payable for a subsequent child. Pensioner Premiums 24 There is only one rate of premium for single pensioners and one rate for couples. This is in line with previous years. Premiums in the income-related benefits have been increased by the rate of the Pension Credit standard minimum guarantee, less the rate of the personal allowance in the income-related benefits. 25 Pensioner premiums are retained in the regulations. They are required because the qualifying conditions are used for certain additions and disregards, for example child care charges. These are linked to the qualifying conditions for Higher Pensioner Premium (HPP). Pension Credit rates 26 The Pension Credit Guarantee has been uprated in line with earnings since its introduction in 2003. From April 2008, the Pensions Act 2007 requires that the standard minimum guarantee in Pension Credit is reviewed and increased at least in line with earnings. 27 This year, as agreed in the Pre-Budget Report, the standard minimum guarantee rate is increased by AEI 4.2% as agreed in the Pre Budget Report. The standard minimum guarantee will be increased by 5.00 from 119.05 to 124.05 for a single person and by 7.65 from 181.70 to 189.35 for a couple. Any additional amounts are being increased by RPI, ie 3.9%. The amount of the maximum savings credit is also being increased from 19.05 to 19.71 for a single person and from 25.26 to 26.13 for a couple.
HB/CTB personal allowances for pensioners 28 There are two sets of personal allowances for pensioners, if claimant and/or partner if they have one are aged 60 or over, but both under 65 is aged 65 and over See Appendix B for full details. Pension Credit uprating and savings credit case 29 From April 2008 the maximum savings credit will be uprated by 3.5%. The rate for a single person will be 19.71 and for a couple 26.13. However, these figures cannot be used to calculate a likely savings credit entitlement from April 2008. Savings credit is calculated on an individual basis, using the income and capital of that person. This means the amount could range from an additional 1p to 19.71/ 26.13, depending on the type of the claimant s income. In addition HB (SPC) Reg 27/ CTB (SPC) Reg 17 state that the Pension Service calculation of income, capital and savings credit must be used. You cannot calculate the figure yourself. 30 S.I.2004/290 made provisions for the date on which Pension Credit cases should be uprated, and the associated guidance, to apply each year to the annual uprating exercise. (See HB/CTB Guidance Manual Uprated changes in social security benefits para BP2 P2.790.) CTB (SPC) Regs 31(10); HB (SPC) Regs 41(10). Second Adult Rebate and students 31 When a dwelling is occupied by a student or students and one or more people in receipt of IS, Pension Credit or JSA (IB), the alternative maximum CTB (AMCTB) will be 100%. (S.I.2006/588 refers). Second Adult Rebate on Pension Credit 32 When a non-dependant is in receipt of Pension Credit, regardless of whether it is guarantee credit (with or without a savings credit) or savings credit only, the reduction for Second Adult Rebate will be 25%. Pensioner claims: subtenants 33 If a pensioner s HB/CTB claim has a subtenant the deduction from the weekly income is a fixed rate and remains at 20.00 for each subtenant. Working age claims: subtenants 34 If a working age HB/CTB claim has a subtenant the deduction from the weekly income is a fixed rate of 20.00 for each subtenant from April 2008.
Fuel deductions deductions for ineligible fuel charges 35 This year the RPI for fuel and light is minus 1%. The rates for statutory fuel deductions remain the same as last year as the legislation does not allow a lower figure to be used. Service charges for fuel 2007/08 2008/09 Heating 15.45 15.45 Hot water 1.80 1.80 Lighting 1.25 1.25 Cooking 1.80 1.80 Total all fuel 20.30 20.30 One room rate deduction 36 The formula for the one room rate deduction is stated in Housing Benefit Regulations S.I.2006/213 & S.I.2006/214, Schedule 1, part 2 paragraph 6(2) (a) to (d) and (3). Sub-paragraph (3) states the ineligible amount for service charges when the accommodation consists of only one room shall be one half of the aggregate of the amounts specified in sub-paragraph (2) (a), (b) and (c). 2007/08 2008/09 One room rate, subparagraph (3)-heating and any hot water and/or lighting cooking One room rate calculation Sub-paragraph (2)(a),(b),(c) (2)(a) heating (other than hot water) (2)(b) hot water (2)(c) lighting 9.25 1.80 15.45 1.80 1.25 9.25 1.80 15.45 1.80 1.25 Total 18.50 divide by 2 = 9.25 18.50 divide by 2 = 9.25
Disregards in Housing Benefit and Council Tax Benefit 37 The child care disregards in HB/CTB remain at the same level as last year. 175.00 for one child, and 300.00 for two or more children 38 The additional earnings disregard in HB/CTB that can be applied to those entitled to WTC is increasing from 15.45 to 16.05. (See HB/CTB Guidance Manual BW2 W2 2.132 2.179). Jobseeker s Allowance Rates - changes to rates for couples when one is aged 18 or over with responsibility for a child 39 JSA Regulations will be amended for couples where one member is over 18 and the other is under 18 and they have responsibility for a child. From April 2008 these couples will receive the higher couple rate of JSA. Income Support/Jobseeker s Allowance 16/17 Rates 40 Following the Pre-Budget Report, the rates for single16/17 year olds in IS and JSA will be abolished from April 2008. The weekly benefit will increase from 35.65 to 47.95. State Pension 41 A guarantee was made in November 2001 that future increases to State Pension would be increased by either 2.5% or RPI, whichever is greater. This year s Category A and Category B State Pension will increase by RPI 3.9% Increments for a particular component of State Pension would increase in line with the same percentage increase that applies to that component. Bereavement Benefits 42 These are linked to State Pension and are increasing by RPI 3.9%. Bereavement Premium 43 As the premium is no longer payable after 9 April 2006 it has now been removed from the Uprating Order and this year s circular.
Child Benefit and Guardian s Allowance 44 HMRC is responsible for announcing the increase in these rates and the relevant legislation Special Allowance was abolished from 2003 Guardians Allowance is increasing from 12.95 to 13.45 Lone parent rate was abolished in 2007 Child Benefit for an eldest/only child increases from 18.10 to 18.80 Other children rate increases from 12.10 to 12.55 See HMRC website for further information www.hmrc.gov.uk Working Tax Credit and Child Tax Credit rates for 2008/09 45 The Chancellor announced in his Pre-Budget Statement on 18 October 2007 that the rates of WTC and CTC will increase in line with inflation. All the current WTC and CTC rates can be found on the HMRC website www.hmrc.gov.uk War Pension Rates 46 These are the responsibility of the Veteran s Agency, which is part of the Ministry of Defence. Details of the rates for 2008/09 can be found at Appendix D. Any additional information should be obtained from the Veteran s Agency direct. See website http://www.veterans-uk.info National Insurance Contribution rates for 2008/09 47 For the National Insurance Contribution rates for 2008/09 see Appendix E of this circular HMRC website www.hmrc.gov.uk DWP website/ Media Centre - Press release for October 2007 dated 18/10/07 State Pension; Pension Credit and other rates 2008/09 http://www.dwp.gov.uk/mediacentre/pressreleases/2007/oct/drc043-181007.asp
Social Security benefit rates 48 Details of all the social security benefit rates can be found on the DWP website following the Statement on 5 by the Minister of State. Go to the DWP website: Media Centre Press Releases for 2007; December http://www.dwp.gov.uk/mediacentre/pressreleases/2007/dec/ben001-051207.asp Year Date Title 2007 18/10/07 State Pension; Pension Credit and other rates 2008/08 2007 05/12/07 Simple benefit claims for older people. Recovery of overpayments from ongoing HB 49 The standard maximum rate of recovery from continuing benefit is increasing from 9.00 to 9.15 from 1 April 2008. Similarly, the maximum rate of recovery from continuing benefit, when the overpayment has arisen as a result of fraud as defined in Reg 102(3) of HB Regulations 2006 and Reg 83(3) of HB (SPC) Regulations 2006, remains at 12.00. 50 As well as the above rates of recovery, an LA can increase deductions by half (50%) of certain disregards, if applicable, for Earnings regular charitable income or voluntary payments War Disablement Pension or War Widows Pension 51 LAs must not recover more than these prescribed amounts from ongoing HB. LAs should have regard to any special health or financial circumstances of the claimant before deciding the level of deduction, or when to commence the deductions, to avoid causing undue hardship to the claimant or their dependants. See HB/CTB Overpayments Guide, Recovery of Overpayments, paras 4.430 4.432.
Appendix A: Annex 1 April 2007 April 2008 Council Tax Benefit Rates Personal Allowances Single claimant under 18-24 46.85 47.95 25 or over 59.15 60.50 Lone parent 59.15 60.50 Couple 92.80 94.95 Dependent children Child from birth to September following 16 th birthday 47.45 52.59 Young person from September following 16 th birthday to day before 20 h birthday 47.45 52.59 Polygamous partner (CTB Reg 13) 33.65 34.45 Premiums Family premium 16.43 16.75 Family premium plus rate for one or more children aged under 1 year 26.93 27.25 Lone parent rate 22.20 22.20 Family Premium plus (lone parent rate) for one or more children aged under 1 year 32.70 32.70 Pensioner Premium Single 59.90 63.55 Couple 88.90 94.40 Pensioner Premium (Enhanced) Single 59.90 63.55
Appendix A: Annex 1 Couple 88.90 94.40 Pensioner Premium (Higher) couple 88.90 94.40 Disability Premium Single 25.25 25.85 Couple 36.00 36.85 Enhanced Disability Premium Single 12.30 12.60 Disabled child rate 18.76 19.60 Couple 17.75 18.15 Severe Disability Premium Single 48.45 50.35 Couple (lower rate) 48.45 50.35 Couple (higher rate) 96.90 100.70 Disabled child premium 46.69 48.72 Carer premium 27.15 27.75 Non-dependant deductions (Thresholds from April 2008) Aged 18 or over and in remunerative work -gross income greater than 369 6.95 6.95 -gross income 296-368.99 5.80 5.80 -gross income 172-295.99 4.60 4.60 -gross income less than 172.00 2.30 2.30 Others aged 18 or over 2.30 2.30 In receipt of Pension Credit and in remunerative work Nil Nil In receipt of Pension Credit and not in remunerative work, or in receipt of IS/JSA(IB) Nil Nil
Appendix A: Annex 1 Alternative maximum Council Tax Benefit Rebate Second adult on IS or JSA(IB), Pension Credit (% of Council Tax) 25% 25% Students 100% 100% Second adult gross income (% of Council Tax) - under 169 15% 15% 169 to 219.99 7.5% 7.5% Subtenants disregard No heating (no change) 4.00 20.00 Where heating provided, additional 15.45 - Earnings disregards Child care charges 175.00 175.00 Child care charges (2 or more children) 300.00 300.00 Additional earnings disregard 15.45 16.05 Capital Limit Upper Capital Limit 16,000.00 16,000.00 Lower Capital Limit 6,000.00 6,000.00
Appendix A: Annex 2 Housing Benefit rates 2007 2008 Personal allowances Single 16-24 46.85 47.95 25 or over 59.15 60.50 Lone parent Under 18 46.85 47.95 18 or over 59.15 60.50 Couple Both under 18 70.70 72.35 One or both over 18 92.80 94.95 Polygamous Marriages (HB Reg 23) 33.65 34.45 Dependent children From birth to September following 16 th birthday 47.45 52.59 From September following 16 th birthday to day before 20 th birthday 47.45 52.59 Premiums Family premiums 16.43 16.75 Family premium plus premium for one or more children aged under 1 year 26.93 27.25 Family (lone parent rate) 22.20 22.20 Family premium (lone parent rate) plus premium for one or more children aged under 1 year 32.70 32.70 Pensioner premium Single 59.90 63.55 Couple 88.90 94.40 Pensioner premium (enhanced) Single 59.90 63.55 Couple 88.90 94.40
Appendix A: Annex 2 Pensioner premium (higher) Single 59.90 63.55 Couple 88.90 94.40 Disability Premium Single 25.25 25.85 Couple 36.00 36.85 Enhanced disability premium Single rate 12.30 12.60 Disabled child rate 18.76 19.60 Couple rate 17.75 18.15 Severe Disability Premium Single 48.45 50.35 Couple one qualifies 48.45 50.35 Couple - both qualify 96.90 100.70 Disabled child premium 46.69 48.72 Carer premium 27.15 27.75 Non-Dependent Deductions (Thresholds April 2008) Aged 25 or over and on IS/JSA(IB), or aged 18 or over and not in remunerative work 7.40 7.40 In receipt of Pension Credit Nil Nil Aged 18 or over and in remunerative work -gross income less than 116 7.40 7.40 -gross income 116 to 171.99 17.00 17.00 -gross income 172.00 to 222.99 23.35 23.35 -gross income 223.00 to 295.99 38.20 38.20 -gross income 296.00 to 368.99 43.50 43.50 -gross income 369 and above 47.75 47.75
Appendix A: Annex 2 Subtenants disregard (working age) No heating provided 4.00 20.00 Where heating provided, additional 15.45 - Service charges for fuel Heating 15.45 15.45 Hot water 1.80 1.80 Lighting 1.25 1.25 Cooking 1.80 1.80 All fuel 20.30 20.30 Fuel charge deductions for one room Heating and hot water and/or lighting 9.25 9.25 Cooking 1.80 1.80 (HB Sched 1, para 6(2) refers) Three or more meals a day Single claimant 21.10 21.60 Each person in family aged 16 or over 21.10 21.60 Each child under 16 10.65 10.90 Less than 3 meals a day Single claimant 14.05 14.35 Each person in family aged 16 or over 14.05 14.35 Each child under 16 7.05 7.20 Breakfast only claimant and each member of family 2.60 2.65 Earnings disregards Child care charges 175.00 175.00 Child care charges (2 or more children) 300.00 300.00 Additional earnings disregard 15.45 16.05 Capital Limit Upper Capital Limit 16,000.00 16,000.00 Lower Capital Limit 6,000.00 6,000.00
Appendix B HB/CTB rates for people aged 60 and over 2007 2008 Personal allowances Single claimant -Aged 60-64 119.05 124.05 -Lone parent aged 60-64 119.05 124.05 -Aged 65 or over 138.10 143.80 -Lone parent aged 65 or over 138.10 143.80 One or both aged 60 or over, but both under 65 181.70 189.35 -one member or both members aged 65 or over 207.00 215.50 Polygamous marriages (HB spc Regs Schedule 3 para 1(4)/ CTB spc Regs Schedule 1 para 1(4) If the claimant is a member of a polygamous marriage and none of the members of the marriage have attained the age of 65 For the claimant and the other party to the marriage 181.70 189.35 For each additional spouse who is a member of the same household as the claimant 62.65 65.30 If the claimant is a member of a polygamous marriage and one or more members of the marriage are aged 65 or over For the claimant and the other party to the marriage 207.00 215.50 For each additional spouse who is a member of the same household as the claimant 68.90 71.70 Child or young person 47.45 52.59 Premiums Severe Disability Premium -Single 48.45 50.35 -couple one qualifies 48.45 50.35 -couple both qualify 96.90 100.70 Enhanced Disability Premiums Single rate
Appendix B Child rate 18.76 19.60 Disabled child premium 46.69 48.72 Carer premium 27.15 27.75 Non-dependant deductions HB (Thresholds April 2008) -in receipt of Pension Credit Nil Nil -aged 25 or over and on IS or JSA(IB), or aged 18 or over and not in remunerative work 7.40 7.40 -aged 18 or over and in remunerative work -gross income less than 116 7.40 7.40 -gross income 116.00 to 171.99 17.00 17.00 -gross income 172.00-222.99 23.35 23.35 -gross income 223.00-295.99 38.20 38.20 -gross income 296.00-368.99 43.50 43.50 -gross income 369 and above 47.75 47.75 Non-dependant deductions CTB (Thresholds April 2008) -aged 18 or over and in remunerative work -gross income greater than 369 6.95 6.95 -gross income 296.00-368.99 5.80 5.80 -gross income 172.00-295.99 4.60 4.60 -gross income less than 172 2.30 2.30 -others aged 18 or over 2.30 2.30 -in receipt of IS/JSA(IB), Pension Credit Nil Nil
Appendix C: Annex 1 2007 2008 Income Support rates Personal allowances Single Under 18 usual rate 35.65 47.95 Under 18 higher rate paid in specific circumstances 46.85 47.95 18-24 46.85 47.95 25 or over 59.15 60.50 Lone parent Under 18 usual rate 35.65 47.95 Under 18 higher rate paid in specific circumstances 46.85 47.95 18 or over 59.15 60.50 Couple Both under 18 35.65 47.95 Both under 18, one disabled 46.85 47.95 Both under 18, with responsibility for a child 70.70 72.35 One under 18, one aged 18-24 46.85 47.95 One under 18, one aged 25+ 59.15 60.50 Both 18 or over 92.80 94.95 Dependent children Birth to September following 16 th birthday 47.45 52.59 From September following 16 th birthday to day before 20 th birthday 47.45 52.59 Premiums Family premium 16.43 16.75 Family (lone parent rate) 16.43 16.75 Pensioner premium couple 88.90 94.40 Pensioner (Enhanced) Premium couple 88.90 94.40 Pensioner (Higher) Premium couple 88.90 94.40
Appendix C: Annex 1 Disability Premium Single 25.25 25.85 Couple 36.00 36.85 Enhanced Disability Premium single rate 12.30 12.60 Disabled child rate 18.76 19.60 Couple 17.75 18.15 Severe disability premium Single 48.45 50.35 Couple (one qualifies) 48.45 50.35 Couple both qualify 96.90 100.70 Disabled Child Premium 46.69 48.72 Carer Premium 27.15 27.75 Capital Limit Upper Capital Limit 16,000.00 16,000.00 Lower Capital limit 6,000.00 6,000.00 Care Home Limit 10,000.00 10,000.00
Appendix C: Annex 2 Main income-based Jobseeker s Allowance rates 2007 2008 Personal allowances Under 18 35.65 47.95 16-24 46.85 47.95 25 or over 59.15 60.50 Lone parent Under 18 usual rate 35.65 47.95 Under 18 higher rate payable in specific circumstances 46.85 47.95 18 or over 59.15 60.50 Couple Both under 18 35.65 47.95 Both under 18, one disabled 46.85 47.95 Both under 18 with responsibility for a child 70.70 72.35 One under 18, one 18-24 46.85 47.95 One under 18, one 25+ 59.15 60.50 Both 18 or over 92.80 94.95 Dependent children From birth to September following 16 th birthday 47.45 52.59 From September following 16 th birthday to day before 20 th birthday 47.45 52.59 Family Premium 16.43 16.75 Family (lone parent) rate 16.43 16.75 Capital Limit Upper Capital Limit 16,000.00 16,000.00 Lower Capital Limit 6,000.00 6,000.00
Appendix C: Annex 2 Premiums Pensioner Premium Single 59.90 63.55 Couple 88.90 94.40 Pensioner (enhanced) Premium couple 88.90 94.40 Pensioner (higher) Premium Single 59.90 63.55 Couple 88.90 94.40 Disability Premium Single 25.25 25.85 Couple 36.00 36.85 Enhanced Disability Premium single rate 12.30 12.60 Disabled child rate 18.76 19.60 Couple 17.75 18.15 Severe Disability Premium Single 48.45 50.35 Couple one qualifies 48.45 50.35 Couple both qualify 96.90 100.70 Disabled Child Premium 46.69 48.72 Carer Premium 27.15 27.75
Appendix D: Annex 1 Contributory and non-contributory social security rates 2007 2008 Attendance Allowance Higher rate 64.50 67.00 Lower rate 43.15 44.85 Carer s Allowance Carer s Allowance 48.65 50.55 Carer s Allowance: adult dependant 29.05 30.20 Child Benefit -only, elder or eldest for whom child benefit is payable (couple) 18.10 18.80 - each subsequent child 12.10 12.55 Disability Living Allowance Care component Highest 64.50 67.00 Middle 43.15 44.85 Lowest 17.10 17.75 Mobility component higher 45.00 46.75 Mobility component lower 17.10 17.75 Incapacity Benefit Long term Incapacity Benefit single person 81.35 84.50 Spouse or adult dependant (when appropriate) 48.65 50.55 Short term Incapacity Benefit (under pension age) Lower rate 61.35 63.75 Higher rate 72.55 75.40 Spouse or other adult dependant (where appropriate) 37.90 39.40 Short term Incapacity Benefit (over pension age) Lower rate 78.05 81.10 Higher rate 81.35 84.50
Appendix D: Annex 1 Spouse or other adult dependant (where appropriate) 46.80 48.65 Increase of long-term Incapacity Benefit for age Higher rate 17.10 17.75 Lower rate 8.55 8.90 Invalidity Allowance (Transitional) Higher rate 17.10 17.75 Middle rate 11.00 11.40 Lower rate 5.50 5.70 Permitted earnings limit (former therapeutic earnings limit) 86.00 88.50 Child Dependency Increases Rate of child addition to Retirement Pension, Widow Benefit; Long Term Incapacity Benefit (higher rates); Carer s Allowance and Severe Disability Allowance; also Short Term Incapacity Benefit (lower rate) if claimant is over pension age Only, elder or eldest child for Child Benefit purposes couple* 9.00 8.75 Other children 11.35 11.35 * In certain circumstances, a child dependency addition may not be payable in respect of this child. Guardians Allowance 12.95 13.45 Industrial Injuries Benefit Disablement benefit (100% assessment) 131.70 136.80 Unemployability supplement 81.35 84.50 Reduced Earnings allowance (maximum) 52.68 54.72 Industrial Death Benefit Widows Pension Higher rate 87.30 90.70 Lower rate 26.19 27.21 Widower s Pension 87.30 90.70
Appendix D: Annex 1 Jobseeker s Allowance Contribution-based JSA personal rates Under 18 35.65 47.95 18-24 46.85 47.95 25 or over 59.15 60.50 Maternity Allowance Standard rates 112.75 117.18 Threshold 30.00 30.00 State Pension Single person 87.30 90.70 Spouse or adult dependant 52.30 54.35 Over 80s pension (non contributory based on residence) 52.30 54.35 Severe Disablement Allowance Basic rate 49.15 51.05 Spouse or other adult dependant (where appropriate) 29.25 30.40 Age addition Higher rate 17.10 17.75 Middle rate 11.00 11.40 Lower rate 5.50 5.70 State Pension Credit Guarantee credit rates Single 119.05 124.05 Couple 181.70 189.35 Premiums Disability Single 48.45 50.35 Couple (1 qualifies) 48.45 50.35 Couple (both qualify) 96.90 100.70
Appendix D: Annex 1 Carers 27.15 27.75 Savings credit Threshold - single 87.30 91.20 Threshold - couple 139.60 145.80 Maximum single 19.05 19.71 Maximum couple 25.26 26.13 Statutory Adoption Pay Earnings threshold 87.00 90.00 Standard Rate 112.75 117.18 Statutory Maternity Pay Earnings threshold 87.00 90.00 Standard rate 112.75 117.18 Statutory Paternity Pay Earnings threshold 87.00 90.00 Standard rate 112.75 117.18 Statutory Sick Pay Earnings threshold 87.00 90.00 Standard rate 72.55 75.40
Appendix D: Annex 1 Main increased War Pension rates 2007 2008 Disablement Pension (100% rates) Officer ( per annum) 7,290.00 7,571.00 Other ranks 139.70 145.10 Age allowances 40% - 50% 9.40 9.75 Over 50% but not over 70% 14.35 14.90 Over 70% but not over 90% 20.45 21.25 Over 90% 28.70 29.80 Unemployability allowances Personal 86.35 89.70 Adult dependency increase 48.65 50.55 Increase for first child 11.30 11.75 Increase for subsequent children 13.30 13.80 Constant Attendance Allowance Exceptional rate 105.40 109.60 Intermediate rate 79.05 82.20 Full day rate 52.70 54.80 Part-day rate 26.35 27.40 Comforts Allowance Higher rate 22.60 23.50 Lower rate 11.30 11.75 Mobility Supplement 50.30 52.25 Allowance for lowered standard of occupation (maximum) 52.68 54.72 Exceptionally severe disablement allowance 52.70 54.80 Severe disablement occupational allowance 26.35 27.40
Appendix D: Annex 1 Clothing allowance ( per annum) 180.00 187.00 War Widow(er)s Pension Widow(er)s - private 105.90 110.05 Childless widow(er) under 40s (other ranks) 25.37 26.36 Rent Allowance (maximum) 39.95 41.05 Age Allowance for elderly widows (a) age 65-69 12.10 12.55 (b) age 70-79 23.20 24.10 (c) age 80 and over 34.40 35.75 Supplementary 1973 war Widows/Widowers Pension 70.88 73.64
Appendix D: Annex 2 Bereavement benefits 2007 2008 Bereavement payment (lump) sum 2,000.00 2,000.00 Widowed parents allowance 87.30 90.70 Bereavement Allowance Standard rate 87.30 90.70 Age related Age 54 81.19 84.35 Age 53 75.08 78.00 Age 52 68.97 71.65 Age 51 62.86 65.30 Age 50 56.75 58.96 Age 49 50.63 52.61 Age 48 44.52 46.26 Age 47 38.41 39.91 Age 46 32.30 33.56 Age 45 26.19 27.21
Appendix E Main National Insurance Contribution rates 2008/09 April 2008 Class 1 employees not contracted out Earnings 0 to 105 per week Nil 105.01 to 770 per week 11% Over 770 per week 1% The lower earnings limit is 90. Contributions will be deemed to have been made though not actually paid, up to 105. For benefit purposes. Class 2 self employed Below small earnings exceptions ( 4,825.00 per year) Nil Weekly rate above small earnings exceptions 2.30 Special class 2 weekly rates for share fishermen 2.95 Class 4 self employed Profits or gains Lower limit 5,435.00 per year Upper limit 40,040.00 per year Rate (between lower and upper limit) 8% Rate (above upper limit) 1%