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Managing my money
Managing my money

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2.2.5 Benefits in transition

In 2018, therefore, the benefits system is in the throes of a major transition. The current system comprises the following benefits. Those in the process of being replaced by Universal Credit are marked by an asterisk.

Jobseeker’s Allowance (JSA) is paid to those available and actively looking for employment. It is split into contribution-based JSA and income-based JSA *.

Income Support * is a means-tested benefit paid to certain groups of people who do not have enough money to live on.

Employment and Support Allowance (ESA) is for people who cannot work because of illness or disability. It is split into contribution-based ESA and income-related ESA * which is a means-tested benefit.

Personal Independence Payment (PIP) is a benefit for people under 65 who have personal care needs or problems with mobility.

Carer’s Allowance is a benefit for people who are giving regular and substantial care to disabled people in their own homes.

Attendance Allowance is a benefit for people with care needs who are over 65.

Child Benefit is a tax-free benefit paid to people with children whose household income falls below a certain amount. (From January 2013, individuals paying a higher rate of tax were excluded from this benefit.)

Pension Credit is a means-tested benefit for people over the minimum state pension age.

Council Tax Reduction is a means-tested benefit provided by local authorities for people on low income to help them pay Council Tax. It has replaced Council Tax Benefit.

Housing Benefit * is a means-tested benefit for people on low income to help them pay their rent.

Prescriptions and dental treatment are either free or subsidised.

Benefits – a complex system
Figure 6 Benefits – a complex system