Benefits for people on a low income

If you or the person you care for is on a low income, there are a number of benefits which may be claimed. Please contact your local Social Work office if you would like more information. These benefits include:

Income Support (IS) and Income-based Jobseekers Allowance (IBJSA)
Child Tax Credit (CTC)
Working Tax Credit (WTC)
Council Tax Benefit (CTB)
Social Fund (SF)

Income Support (IS) and Income-based Jobseekers Allowance (IBJSA)

Income Support is a means-tested benefit payable to people who are on a low income, who are not in full-time work ('full-time work' is defined in the regulations as 16 hours or more a week), and who do not have more than £16,000 savings if below 60 years of age. IS is claimed from the local Social Security Office, Department of Work and Pensions (DWP) and can 'top up' other income that you may have such as Incapacity Benefit or Carer's Allowance.

IS and IBJSA are 'passport' benefits giving entitlement to maximum Housing Benefit, Council Tax Benefit, free prescriptions and dental treatment and other health benefits. You may be eligible for help from the Social Fund (see below), which can assist with the cost of certain expenses.

Child Tax Credit (CTC)

This is a means-tested payment for people who are responsible for children, whether they are in or out of work. Introduced from April 2003, it replaced the children's tax credit and the increases for children within Working Families and Disabled Person's Tax Credits (WFTC & DPTC). As from April 2004, it replaced the child allowances within IS and IBJSA as well as the child increases paid with non-means-tested benefits such as Incapacity Benefit for new claimants. Existing claimants who were already in receipt of support for children within their IS or IBJSA were moved onto CTC from October 2004. You can get CTC if you meet all the following requirements:

you must be at least 16 years old
you, or your partner, must be responsible for a child or young person who normally lives with you
you satisfy the residence and presence conditions
your income must be within a set limit, which varies according to your family circumstances.

Note: if you are claiming IS or IBJSA seek advice before claiming CTC.

Working Tax Credit (WTC)

Working Tax Credit is a means-tested payment for those in low-paid work. It replaced WFTC and DPTC and is in some ways more generous as it disregards certain incomes that were previously taken into account. Payments can be made to those in low-paid work for 30 hours a week, who are aged 25 years or more and who do not have dependent children. Some people who are aged 50 years and over may also be eligible. Payments can include childcare costs and elements that take into account disability within the family unit.

WTC can be paid in addition to CTC. Both Credits are tax-free and are administered by the Inland Revenue (IR). Claims for both can be made on the same form, TC600. This is available from your local Inland Revenue Office or electronically from the Inland Revenue website).

More information about Tax Credits is available in the following fact sheets:

Tax Credits and Child Care (pdf file, 205kb)
Students and Tax Credit (pdf file, 214kb).

Housing Benefit (HB)

This is a means-tested benefit for people with a low income, with not more than £16,000 savings, and who are responsible for paying rent on their home. The amount you receive may be reduced if you have non-dependants living with you e.g. a grown-up son or daughter, or an elderly relative. However, the amount will not be reduced for dependants if you or your partner get the care component of the Disability Living Allowance (any rate), Attendance Allowance or Constant Attendance Allowance; or if either of you are registered blind or ceased to be registered within the last 28 weeks.

Note: if you are entitled to Guarantee Pension Credit you will be passported to full HB regardless of how much capital or savings you have.

Council Tax Benefit (CTB)

This is a means-tested benefit for people on a low income, with not more than £16,000 savings, who are responsible for paying Council Tax. In addition, you may be eligible for certain discounts if you are in one of the following categories:

your house is adapted for a disabled person or has additional space which they require
you live alone
you live with people who are 'severely mentally impaired'
you are a student
you are on a low income
certain carers may also be eligible.

Certain discounts should be applied automatically by the Council, but if you think you may qualify and have not been granted a discount, seek advice. Note: if you are entitled to Guaranteed Pension Credit you will be passported to full full CTB regardless of how much capital or savings you have. Housing and Council Tax Benefit can be claimed from Scottish Borders Council.

Social Fund

This fund is administered by the Department of Work and Pensions Social Security Office. Grants are payable to assist with the cost of maternity and funeral expenses and cold weather payments to people who meet certain criteria. In addition discretionary Community Care Grants may be payable to help people who have been awarded Pension Credit, IS or IBJSA to return to the community from long-term care or to prevent them from having to be admitted into care. Discretionary Budgeting and Crisis Loans may be paid to assist with the cost of certain irregular needs such as essential furniture and so on. You must decide if you wish to apply for a Community Care Grant or a Budgeting Loan. It is advisable to apply for both. Seek advice if your application to the Social Fund is refused.