Welfare and benefits

What is contributory benefits?

These are benefits that are paid on the basis of previous contributions.(eg state pension)

What is non-contributory benefits?

These are paid on the basis of need, and are not dependent on previous contributions.(eg. universal credit)

What is universal credit?

provides financial support for individuals based on their needs, combining multiple benefits into one payment to assist with living costs. The idea is that claimants are able to retain more of their benefit as they move into work, thereby removing the problem of high marginal tax rates.

What is the welfare state today?

• State pensions

• Working age benefits

• Disability and incapacity benefits

• Adult social care

• Children’s services 

• Child benefit and child tax credits

What is the benefits cap?

The idea is that people on benefits should not get more money than the average family in work introduced in the 2012 welfare reform act.

What is the two child rule and rape clause?

From April 2017 Child Tax Credit was limited to the first two children unless the child was born through non-consensual conception

What is the bedroom tax?

The idea is to free up larger properties for families on the waiting list. One spare bedroom: you lose 14% of housing benefit; two bedrooms; 25% of HB

What is a pension?

Pensions are a contributory benefit paid to people when they retire. As the population ages the cost of pensions will increase. The government has responded by raising the retirement age.