A-Z of Benefits

Basic element - £1800
Couple/lone parent - £1770
30 hours element - £735
Disability element – £2405
Severe Dis. Element £1020
Child care costs – 80% of £175 (1 child) or £300 (2 or more children)

Who is it for?

• People aged 16 or over who are working 16 hours a  week or more  and who have dependent child(ren) or who have a disability or 
• People who are 25 or over and working 30 hours or more a week or 
• People aged 50 or over, working 16 or more hours a week who have started work within last 3 months and were previously on benefits

Who pays it?
It is calculated by HMRC Paid directly into bank accounts since November 2005. .

Which leaflet? And how is it claimed?
TC600 claim form and notes, obtained from any tax office or 0845 3003900 (0845 603 2000 in N.Ireland).

What are the age limits?
16 or over (25 or over if childless or not disabled ) No upper limit.

National Insurance based?
No.

Means tested?
Yes.

How long does it last?
Up to 52 weeks at a time, then renewable - paid up to end of current tax year.

What is effect on other benefits?
Counted as income when calculating means-tested benefits such as housing and council tax benefit.

Is it taxable?
No.

Increases for dependants?
Yes - if there is a second adult in the family. Certain child care costs (up to a maximum figure) also allowable.

Payable if in EU or other?
Yes - for periods of temporary absence.

Points to watch
Claims in 2008/9 are based on 2007/8 income (unless significantly different). Child support is ignored in full as income. Low take-up so far, so many low-paid workers may be missing out (especially those who are disabled or childless). Major problems with alleged overpayments – HMRC reluctant to accept liability even in cases of official error. Not the same as Return to Work Credit

The A-Z of Benefits 2008 was compiled by Gary Vaux and Community Care.