Means-tested Benefits

These benefits are designed to ensure that people's incomes (whether from non-means-tested benefits or otherwise) do not fall below certain minimum levels. The amount of benefit is determined by reference to these levels and to income and capital. They are not payable if the income and capital limits are exceeded.

The calculation of means-tested benefits is complicated and requires access to accurate information resources. Entitlement to certain non-means-tested benefits - for example, Attendance Allowance, Disability Living Allowance, Carer's Allowance, Employment and Support Allowance (contribution-based), Employment and Support Allowance (non-contributory) - can increase the amount of means-tested benefits.

For this reason, it is important to check your entitlement to non-means-tested benefits before you look at means-tested benefits.

Tax Credits

Tax Credits are also designed to ensure that people's incomes (whether from non-means-tested benefits or otherwise) do not fall below certain minimum levels.

Child Tax Credit is a cash payment paid to people who responsible for children. It is designed to replace elements for children previously included in Income Support and Jobseekers Allowance (income-based).

Working Tax Credit is paid to individuals or couples in low paid work of 16 hours, in some cases 30, hours or more per week.

Tax Credits are calculated by reference to set levels called maximum tax credits. Where the income exceeds these levels, maximum tax credits are reduced by a percentage of the excess. The family element of Child Tax Credit is not reduced in this way unless annual income exceeds £50,000. Therefore, all families with income below £50,000 are entitled to a minimum Child Tax Credit.

See the list of Means-tested Benefits and Tax Credits.

See Calculating Means-Tested Benefits and Tax Credits for more information on the means tests.