UK Social Security System

UK has a comprehensive social security system designed to provide financial assistance and support to people in various situations. Some of the main social security benefits available include:

1. Universal Credit: A means-tested benefit that replaces six previous benefits, including Jobseeker’s Allowance, Income Support, Employment and Support Allowance, Housing Benefit, Child Tax Credit, and Working Tax Credit. It is designed to support people on a low income or out of work, and its amount varies depending on individual circumstances.
2. Jobseeker’s Allowance (JSA): A benefit for individuals actively seeking work and meeting certain eligibility criteria. There are two types of JSA: contribution-based JSA, which depends on the individual’s National Insurance contributions, and income-based JSA, which is means-tested.
3. Employment and Support Allowance (ESA): A benefit for people with limited capability to work due to illness or disability. There are two types: contributory ESA, which depends on National Insurance contributions, and income-related ESA, which is means-tested.
4. Personal Independence Payment (PIP): A benefit for people aged 16 to 64 with long-term health conditions or disabilities. PIP is designed to help with the extra costs of living with a disability or health condition and is not means-tested.
5. Attendance Allowance: A benefit for individuals aged 65 or over who need help with personal care due to physical or mental disabilities. It is not means-tested.
6. Carer’s Allowance: A benefit for people who care for someone with substantial care needs for at least 35 hours per week. The person being cared for must receive a qualifying disability benefit, and the carer must meet certain eligibility criteria.
7. Child Benefit: A benefit for parents or guardians responsible for children under 16 (or under 20 if they are in approved education or training). Child Benefit is not means-tested but may be subject to the High-Income Child Benefit Tax Charge if the claimant or their partner has a high income.
8. Maternity Allowance: A benefit for pregnant women or new mothers who do not qualify for Statutory Maternity Pay from their employer. Eligibility depends on factors such as employment history and earnings.
9. Bereavement Support Payment: A benefit for individuals who have lost their spouse or civil partner. Eligibility is based on the deceased person’s National Insurance contributions.
10. Housing Benefit: A means-tested benefit to help rent payments for low-income people. Universal Credit has replaced it but is still available for some people in specific situations.
11. Council Tax Reduction: A means-tested benefit to help with council tax payments for low-income people or receiving certain other benefits.
12. Pension Credit: A means-tested benefit for individuals who have reached State Pension age, which aims to provide a minimum guaranteed income. It has two components: Guarantee Credit, which tops up the weekly income, and Savings Credit, which gives extra money to those who have saved some money towards retirement.

This is a partial list; other benefits and schemes are available in the UK. Eligibility and payment amounts can depend on various factors, including individual circumstances, location, and changes in government policy. You can call us to discuss your personal circumstances with our specialist tax advisors.