State Benefit Payments
State Benefit Payments
Maria Zealey (Benefits Expert) gives expert video advice on: Do I pay tax on my benefits?; Can I claim extra money to pay bills?; Do I have to look for work whilst claiming benefits? and more...
Do I pay tax on my benefits?
In terms of paying income tax, quite a few of the social security benefits are taxable. A few examples include a state retirement pension, carers allowance, the short term high rate and long term rates of incapacity benefits, and bereavement benefits. Those are all taxable. There are others in addition to this taxable income you may have. You will need to notify how much these revenues and customs are, that you're now also receiving are taxable benefit.
Can I claim extra money to pay bills?
If you're needing help to pay specific household bills, then council tax benefit is intended to help you with the costs of paying your council tax. The winter fuel payment is intended to help you with the higher fuel costs over the winter months, if you are of pension age. But apart from that, the benefits, such as income support, pension credit, are supposed to just help you to pay your general bills week in and week out. There are no specific benefits paid for specific costs.
Do I have to look for work whilst claiming benefits?
If you're currently not working, you only actually have to be actively seeking work in certain circumstances, in order to receive benefit. And that benefit is probably “job seekers allowance.” If you're in one of the groups who aren't required to sign on, then you won't have to actively seek and be available for work. And those are the “income support client” groups, who are carers, disabled people, lone parents or parents with child care responsibilities and some students. So seek advice.
Can I take out a loan whilst claiming benefits?
If you are a benefit claimant there is nothing to preclude you taking out a loan as such. Certainly whether you are a benefit claimant or not, you would look at the terms and conditions of any loan and you could seek sort of general consumer advise from a local citizen advise bureau. Within the social security system itself, there is a loan scheme through the social fund, which are budgeting loans and crisis loans. But again seek advise before you apply for either of those because it may well be you would be better off and entitled to claiming a grant instead.