Income Support Policy Guidelines
Version 2.0
March 2009
This document gives general information about Income Support. It should not be treated as a statement of the Law.
Where examples of benefit rates are given, these are calculated using the rates current on 1 February 2009.
- Introduction
- What is Income Support?
Income Support has replaced many of the existing benefits previously paid through States Departments and the Parish Welfare system. Income Support provides financial help to local residents in need, through a system that is accessible, fair and effective, using a single application process. The scheme provides support towards the costs of housing, living, medical needs and child care. It recognises the role of informal carers. The amount of benefit received depends on the household income and assets. The benefit is exempt from income tax.
Income Support is normally paid weekly. Special one off payments are also available to help with the cost of major items and in emergencies. The cost of the scheme is met by the Jersey taxpayer and local residents have a legal right to claim Income Support if they are eligible. Claims can be made directly at the Social Security Department but where necessary, home visits can be arranged for those unable to travel. All Parish Halls can provide information about Income Support.
- Development of Income Support policies
The idea of an Income Support system has been developed by Social Security, in partnership with others, since the late 1990s. Initial proposals were approved by the States in May 2000. Since then the Department has undertaken research and prepared for the introduction of an Income Support system. The Income Support Law was approved by the States in 2006.
- Income Support Law
The main Income Support Law sets out the principles of the scheme. Extra detail is included in Regulations and Orders.
The Regulations give details of the working and job seeking rules for Income Support and set out the various components and the rates. The Special Payments Regulations explain the one-off payments. The General Provisions Order sets out the details of the residence condition, details of how applications are made and decisions are taken, details of how income is calculated and how appeals are made. A separate Regulation sets out details of Cold Weather Payments.
The Minister also sets some policies through Ministerial Guidelines.
- Income Support information
This guideline gives a summary of all the main policies of Income Support.
Copies of this guideline and the main Law and the Regulations and Orders are available on the Social Security website. Printed copies of any of these documents are available on request from the Social Security Department .
Leaflets setting out useful information for Income Support claimants are also available.
- Pensions and other benefits
Other benefits are also available in Jersey as well as Income Support. It is possible to qualify for any of these benefits and Income Support at the same time depending on your circumstances. These benefits include
Old Age Pension | Maternity Benefits |
Survivor’s Benefits | Short-term Incapacity Allowance |
Invalid Care Allowance | Long-term Incapacity Allowance |
Invalidity Benefit | Incapacity Pension |
Disablement Benefit | Christmas Bonus |
Jersey Television Licence Scheme | Dental Benefits Scheme (for young people) |
65+ Health Scheme | University Grants (off Island) |
The Food Costs Bonus is available to some households that do not receive Income Support (or receive Income Support plus a transitional (protected) payment).
The benefits that have been replaced by Income Support include:
Adult Disablement Allowance (ADA) | Health Insurance Exception (HIE) |
Attendance Allowance (AA) | Home Study Grant |
Child Disablement Allowance (CDA) | Parish Welfare |
Childcare Allowance | Rent Abatement |
Educational Maintenance Allowance | Rent Rebate |
Disabled Transport Allowance (DTA) | School-Age Discount Scheme |
Family Allowance | Welfare Milk |
- What is an Income Support Unit ?
Income Support is designed to support people living together in family groups. Within families, it is expected that adults care for children and that partners support each other when necessary. People often live together in wider family groups and Income Support uses the concept of an Income Support Unit to identify family groups that are treated as a single unit for Income Support purposes.
Income Support is paid to Income Support Units. An Income Support Unit can be one person, a couple or a family living together at the same address. Couples can be married or unmarried - including same sex relationships. There can be more than one Income Support Unit living in the same property.
Example
Emma and Lee own a two bedroom flat. Emma’s mother, June, moves in with them because she is becoming frail. June’s only income is a small widow’s pension. June can apply for Income Support in her own right. The income and circumstances of Emma and Lee are not considered as part of her application.
Married and unmarried couples
To establish whether two people are a couple when they are not married, the Department uses existing Departmental guidelines and case Law established over many years. These set out a formal description of the tests that are applied to decide if two people are in “a marriage like relationship”.
Example
Adam and Ian have been living together for ten years. They are civil partners under UK law. Although the Civil Partnership Law does not apply to Jersey at the moment, Adam and Ian will be treated as a couple under the Income Support Law.
Occasionally, a married couple will separate but both will remain living in the same property (perhaps one upstairs and one downstairs). If they want to be treated as separate Income Support Units, they must have a signed separation agreement, witnessed by an Advocate, Solicitor or Notary Public.
Children
Children up to school leaving age are always included in the Income Support Unit of the adult caring for them. This is normally a parent or guardian but the adult could be another family member. Children who remain in full time education after 16 (school, college or university) are also included in the Income Support Unit of the adult responsible for them.
Children with disabilities – Many parents continue to care for children with disabilities when they are grown up. For IS purposes, a child over school leaving age with a disability or serious long term medical condition (i.e. entitled to a personal care component of level 2 or above) is treated as a separate Income Support Unit. The young adult is then assessed on his/her own income and assets, independent of the parents’ circumstances, even if the child remains in full time education.
Example
Trevor and Judy have a son, Matt. Matt is 18 years old and has Down’s syndrome. He attends Highlands College as a full-time student. Matt receives a personal-care component at level 2. Although he is a full-time student, he is treated as a separate Income Support Unit. Trevor acts as Matt’s agent to help him with his claim.
Parents living apart
For Income Support purposes, a child can only be a member of one Income Support Unit.
If parents have separated and the child lives with one parent most or all of the time, the child is part of the Income Support Unit of that parent.
If the child spends equal amounts of time with both parents, then the child is included in the Income Support Unit of the parent that would receive the most Income Support benefit.
Other family relationships
There are many cases when relatives living at the same address can make separate claims to Income Support and be in separate Income Support Units. Examples include:
1. an elderly relative living with a son/daughter and their family
2. an adult disabled child who continues to live at home with his/her parents
3. an adult child who is a jobseeker and continues to live at home with his/her parents
4. two elderly sisters/brothers sharing a house
Lodgers
Lodgers are treated as separate Income Support Units.
Sharing a property
Two people that share a house or flat are not necessarily in the same Income Support Unit. The test is whether they are a couple (whether they have a “marriage like relationship”). Paying their share of the rent or splitting some living expenses such as utility bills does not mean that two people form an Income Support Unit.
- Eligibility for Income Support
- Introduction
Income Support benefit is paid to Income Support Units that satisfy three separate tests. These are explained in detail in the following sections
1. Residence test
2. Work test
3. Income test
- Residence
The adult claiming Income Support on behalf of the Income Support Unit must have been “ordinarily resident” in Jersey for at least
1. five continuous years immediately before making the claim or
2. a consecutive period of ten years at any time in the past
Note: Only one adult in each Income Support Unit needs to satisfy the residence test
- “Ordinarily resident”
The term “ordinarily resident” is used in many laws (including the Income Support Law) but it does not have a single, legal definition. If there is any doubt that someone is “ordinarily resident” the Department’s officers refer to previous legal decisions to help them decide. To be “ordinarily resident” someone must have made a decision to stay permanently in Jersey and must have somewhere to live locally.
- Seasonal workers
Seasonal workers who come to Jersey each year to work in seasonal jobs (mainly farming and tourism) are not “ordinarily resident” because they return to their home country on a regular basis – they are in Jersey to undertake work for a limited time and they have not chosen to live here permanently.
- Overseas travel
On the other hand, someone who owns or rents a property in Jersey and decides to spend a few months travelling around the world, is still “ordinarily resident” in Jersey because they have somewhere to come back to and they have not settled in any other country. However, they need to be in Jersey to receive Income Support benefit.
- Returning to Jersey
Someone who has lived continuously in Jersey for between 5 and 10 years before moving away will need to be back in Jersey for the same length of time they were away (up to a maximum of 5 years) before they can make a claim for Income Support.
Example 1
Jack lives in Jersey for six years. He then spends two years in France. On his return to Jersey, he will need to be here for another two years before he can claim Income Support.
Example 2
Peggy lives in Jersey for six years. She then spends seven years in France. On her return to Jersey, she will need to be here for a further five years before she can claim Income Support.
- Time spent in prison
Time spent in prison (as part of a sentence) cannot be used as part of the 5 year qualification period. That period of time is ignored. Someone who has already been living in Jersey for 5 years or more immediately before they are sent to prison can apply for Income Support as soon as they are released.
Example 1
Jennifer has been in Jersey for 4 years when she is sent to prison for 2 years. After her release, she will need to be here for another 1 year before she can apply for Income Support.
Example 2
Brian has been in Jersey for 6 years when he is sent to prison for 2 years. After his release, he can apply for Income Support immediately.
Example 3
Alice has been in Jersey for 4 years 6 months when she is remanded in custody awaiting trial. She spends 6 months in prison before her trial. She is then found not guilty and released. As the time spent in prison was not part of a sentence, it will count towards her ordinary residence. After her release, she will have been in Jersey continuously for 5 years and can apply for Income Support immediately.
- Detached workers
A detached worker is someone who is employed by a company outside Jersey and is on secondment in Jersey. He or she continues to be paid in his/her home country, pays social security contributions in that country etc. This often applies to bank employees and has also been known in the construction industry. Time spent as a detached worker in Jersey cannot be used as part of the five-year qualification period for Income Support.
- Working
- Introduction
The Income Support scheme is a financial safety net for those in need, but it is designed to encourage people to become self sufficient as far as possible. The Income Support Law includes a requirement for adults to be in work, or actively seeking work, but there are many exceptions.
Depending on the state of the economy, there will be more or less jobs available at different times. The Income Support scheme does not impose any penalties on people who are unable to find work due to a recession, for example.
- Exemptions from full time work
The following people can claim Income Support whether or not they are working
1. anyone aged 65 or above
2. anyone looking after a child under the age of 5. (Only one adult in an Income Support Unit can be exempt from work on this basis)
Other people do not need to work full time, but may be expected to work part time hours depending on their individual situation
1. looking after a child aged five and over (Only one adult in an Income Support Unit can be exempt from full time work on this basis)
2. having a medical condition that limits your capacity to work
3. undertaking approved education or training
4. caring for someone with a serious medical condition
- Individuals in custody
Prisoners do not usually work full time (although some prisoners do have employment through day release schemes). The other members of the Income Support Unit can continue to claim Income Support as the work requirement is suspended for the person who is in custody.
- Looking after a child over five
A parent with a child at primary school is expected, as a minimum, to be making efforts towards re-entering the workplace. This could include getting their office skills up to date or undertaking a confidence building course. A parent of a child at secondary school is expected, as a minimum, to be available for at least part time work, taking into account the possible limitations imposed by school hours and school holidays.
This can be overridden by additional caring responsibilities – for example an elderly relative also living with the family or a child with a disability.
.
- Having a medical condition that limits a person’s capacity to work
The Income Support system includes a personal-care assessment for people with medical conditions. Anyone with an assessed score of 24 or above on the personal-care assessment is not required to be in work or seeking work to qualify for Income Support. If someone with an assessed score of 24 or above wishes to work the Department would encourage them to do so
Someone with a medical condition but with an assessed score of less than 24 on the personal care assessment may be able to work, depending on the nature of the medical condition and their job skills and experience. If there is a disagreement as to how many hours the person is capable of working, relevant experts are asked for advice. This can take the form of a case conference with the individual’s GP, social worker and an Occupational Health specialist, for example, to agree the number of hours of work that is reasonable and the support the person would need to help them to take up employment.
Example
Jim is an experienced office worker, aged 40. Following an accident he suffers from an upper limb injury resulting in a paralysed left arm. As a result of this injury, Jim has a level one personal care score of 21. Jim is right handed and would like to continue to work. With the help of an occupational therapist, Jim returns to work.
- Undertaking approved education or training
People over the age of 65 and those with the main care of a child under five do not need to work to qualify for Income Support. If someone in one of these categories chooses to attend a training or education course, they will not normally be able to claim any additional financial assistance, in particular, they will not be entitled to an IS childcare component.
Anyone aged under 19 who is studying full-time in the sixth form of a school in Jersey (including Highlands College) is undertaking approved education. Anyone aged under 25 who is studying a degree level course and is receiving financial assistance from Education, Sports and Culture with the cost of tuition fees, is also undertaking approved education.
Someone who is employed and who chooses to give up work to start a course will only be approved if there are very good reasons for the decision, such as a medical condition that is making it difficult for the individual to continue in the job. Anyone considering a full time course should always seek advice from Social Security before making any firm commitment.
Jobseekers are encouraged to undertake education and training courses but these must be agreed with Careers Jersey, to confirm that the course is suitable and that the jobseeker will improve their chances of obtaining employment by completing the chosen course.
Once someone has been approved on a course, their attendance record and performance on the course will be monitored. Anyone failing to attend regularly or not maintaining a reasonable standard of work will be treated as a job seeker.
- Caring for someone with a serious medical condition
Full-time, informal carers are not expected to undertake paid work as well. This includes periods when the cared for person is receiving respite care. For Income Support purposes, only one person can be recognised as the carer of someone needing care.
- Full time work
For Income Support purposes, full time work is defined as at least 35 hours a week. If someone works hours that vary from week to week, the hours are averaged out over a longer period.
Example
David works a shift pattern in which he works 50 hours one week and 20 hours the following week on a regular pattern. He is working 70 hours over two weeks and this would be accepted as 35 hours a week and full time work.
- Seasonal working
Many seasonal workers are not ordinarily resident in Jersey and will not qualify for Income Support. However, there are also local residents who work in seasonal industries such as agriculture and tourism. In these cases the working hours would be decided by looking at the contract of employment and with reference to the normal working practices within the industry. Working hours can only be averaged over periods of work – it is not possible to average out a period of long working hours with a subsequent period of no work at all.
Example
Mary works during the summer in a café in Jersey and does not work in the winter. Mary cannot claim that because she worked 70 hours a week all through the summer, she does not need to look for work in the winter.
- Term time working
One adult in each Income Support unit is regarded as having the main responsibility for the care of all the children in the Income Support Unit. Term-time only contracts, both in schools and in offices are often the most appropriate arrangement for such adults. In these cases, the working hours are averaged over the term time weeks. Anyone else only working during term times is treated as a jobseeker in school holidays as there is no reason for them not to work in the school holidays.
- Reasonable excuses for being absent from work
Someone who is normally working at least 35 hours a week may well have some weeks in which they work less than this or do not work at all. Anyone who is
1. on leave of absence from work or
2. taking part in a strike or involved in an employment dispute
is treated as working their normal hours for their normal pay. In most cases, workers are expected to obtain leave of absence from their employer (holidays, jury service, family emergency etc). In the event of a national emergency, full-time workers are still treated as working their normal hours (for Income Support purposes).
- Remunerative work
The Income Support Law requires people who are working (either part time or full time) to be in “remunerative work”. This is defined in the Regulations as being work paid at the rate of at least the hourly minimum wage. Under the Employment Law, employers must pay employees at least the minimum wage.
If someone is self-employed, the test for “remunerative work” is that their net profit is at least as much as the minimum wage rate (calculated at an hourly rate). Some small business owners will work many more than 35 hours a week. In this case, the test is that the net profit is at least the minimum wage calculated for a 35 hour week.
Example 1
Sid has a small business. He works 35 hours a week and has an average weekly net profit of £220. This is equivalent to £6.29 per hour and so he meets the test for “remunerative work” (measured against the minimum wage rate set in April 2008)
Example 2
Jolene also has a small business. She works 70 hours a week and has an average weekly net profit of £250.
This is equivalent to £3.57 per hour based on 70 hours a week. (below the minimum wage)
BUT, Using a 35 hour week, her profit is £7.14 per hour and so she also meets the test for “remunerative work” (measured against the minimum wage rate set in April 2008)
- Jobseekers
The receipt of Income Support is conditional upon those who are able to work to be either in work or seeking work for the number of hours a week that is appropriate for that person and their circumstances.
There is a considerable body of evidence proving that work is good for individual health and self-esteem. Encouraging independence through work is a central aim of Income Support. Most people regardless of their circumstances would rather work than not, but unfortunately circumstances may dictate that the work options available to them are limited. Those options may be further limited by the availability of suitable work opportunities.
Most jobseekers find work without needing help from the Department. But there are always some people who require help and/or support to undertake suitable job seeking activities and to find employment.
No-one genuinely seeking employment will be penalised in the Income Support scheme.
- The first step in assisting a jobseeker is to draw up a Jobseeker’s Agreement (JSA). The agreement sets out the type of work that the person is looking for, the hours that they can work and the actions that they will take to find work. This can include work-related training and limited periods of voluntary work to enable the jobseeker to gain work-related experience.
- The prime purpose of the JSA is to act as a check list for the jobseeker, summarising the discussions that the jobseeker has had with the Work Advisor. The Work Advisor will meet the jobseeker regularly to give further advice and assistance and to discuss the client’s progress and, wherever possible, improve their prospects of finding employment.
- Some jobseekers will fail to find work through no fault of their own and such jobseekers will face no sanctions. However, some jobseekers may fail to make progress with the suggested activities and not make any other attempts to find work.
- In this event the JSA becomes a formal record of the actions to be taken and the jobseeker and the Work Advisor both sign the JSA to record the responsibilities of both parties. The jobseeker is also given a formal written warning which explains that if these actions are not completed then the jobseeker’s status as “actively seeking work” will be at risk.
- If the jobseeker still continues to fail to meet the jobseeking requirements for a further four weeks, the jobseeker is interviewed and informed that they have failed the actively seeking work test and they have lost their eligibility to Income Support. At this stage, the jobseeker is once again advised to discuss the steps that need to be taken to re-qualify for Income Support.
If the jobseeker does lose their eligibility to Income Support, then either the jobseeker, or another adult in their Income Support Unit, can apply for a special payment to meet their basic needs (in particular rent and welfare of children).
- Suitable work
The Income Support Law defines the term “suitable work” as
“work that is appropriate to a person’s skills, qualifications and abilities…”
This means that when someone starts to look for a job, s/he can choose to look for “suitable work”. This would allow a trained carpenter to look for work as a carpenter, for example. The definition also includes a time limit so that, after someone has been out of work for some time, s/he should start to look for other jobs which do not make full use of his/her training or experience. For example, a carpenter may need to take work as a labourer, if s/he cannot find a job as a carpenter.
The length of time that an individual is allowed to restrict their jobseeking activities to “suitable work” ranges from 4 weeks up to 13 weeks depending on the type of employment that is being sought, the state of the labour market at the time and the time of year (seasonal work).
- Actively seeking work
The Income Support Law encourages people to work wherever possible. For people that are not working, but that are required to work according to the Income Support rules, the Law sets out three tests to show that he or she is actively seeking work. These tests only apply to the last four weeks – to allow someone that has previously failed to be actively seeking work, to show that they are now seriously looking for work.
- Taking reasonable steps to obtain work
The jobseeker and the Work Adviser will agree the reasonable steps that should be completed. These might include
1. Applying for jobs
2. Preparing a CV
3. Undertaking appropriate, work-related training
4. Attending an appointment with a Careers Advisor
5. Obtaining references from previous employers
6. Gaining work-related experience by undertaking appropriate voluntary work
- Not turning down any offer of suitable work (unless there is a good reason)
The jobseeker needs to tell the Department about anything which would prevent them from accepting an offer of suitable work at the beginning of the jobseeking process.
- Attending every interview with a Social Security officer (unless there is a good reason)
Someone who did not show up at an interview with a work adviser or manager needs to show “good cause” as to why he/she was unable to attend.
- Available for work
The jobseeker must be available to take up work as soon as is reasonable. It is recognised that there will be circumstances that restrict those seeking work from being available immediately, such as
1. Working out contractual or statutory notice on a part-time job in order to take up a full-time job
2. Making arrangements for childcare
- Income
- Introduction
The final test to qualify for an Income Support benefit is that the calculated income of the Income Support Unit is less than the total of the assessed financial needs of the Income Support Unit. This section explains how income is calculated.
The Income Support scheme uses a wide definition of “income” to include household income from all sources. The assessment then uses disregards and allowances to encourage self sufficiency, promote savings and provide incentives for work.
- Disregards for earned income
One of the aims of Income Support is to encourage people to be self sufficient. One way of doing this is to allow people to keep part of their earnings outside the Income Support calculation so that as their earned income increases, their total income increases. This is achieved using a number of “disregards”.
There are two disregards within Income Support for all earned income.
1. Social Security contributions are deducted from earnings
2 10% of the gross earned income from the household is also disregarded from the income calculation to provide an incentive to work
Example
Peter lives on his own and claims Income Support. He has a disability and is only able to work part-time. He earns £250 per week. The income used in the Income Support calculations will be
£250 - £15 (Social Security) - £25 (10% disregard) = £210.
- Disregard for lone parents
Additional disregards are available for lone parents in paid work, to encourage them to enter and remain in employment.
1. Up to £16.24 – all earnings are disregarded
2. £16.24 to £27.09 – 50% of earnings are disregarded
3. £27.09 to £48.79 – 25% of earnings are disregarded
4. Above £48.79 – the first £27.09 of earnings is disregarded until the 10% disregard provides a greater incentive (at £270.10 per week)
Example
Gillie earns £30 a week, helping at her son’s school two afternoons a week.
She does not work sufficient hours to pay social security contributions. For Income Support purposes her weekly wages are treated as follows
Wages | | Wages regarded |
£16.24 | completely disregarded | = £0 |
| | |
£10.85 | 50% disregarded | = £5.42 |
| | |
£ 2.91 | 25% disregarded | = £2.18 |
| | |
£30 | Total | = £7.60 |
A total of £7.60 is included in the income calculation for Gillie’s claim
For lone parents who earn more than £270.10 per week, the normal 10% disregard is applied to their earned income.
- Disregard for maintenance payments
If a parent is working and is paying maintenance payments for a child or previous partner, then the value of the maintenance payments, up to a maximum of the basic component for a child or adult, is allowed as a disregard.
- Calculation of earned income
If an adult is employed, the earned income used in the Income Support calculations is the average of the last five weekly pay packets or the last two monthly pay slips. If the employee receives a monthly bonus or some other regular extra payment, then the earned income is calculated as an average including this additional amount.
Earnings are included in the calculation of Income Support from the day on which they are due to be paid. A jobseeker moving into full time paid employment with a monthly salary will continue to receive Income Support until the end of the first month of employment when they receive their first wage payment.
Likewise, someone leaving a job will be expected to use their final wage packet to cover the next period of time. For example, someone who finishes a weekly paid job on 30 September will have their Income Support benefit adjusted from 7 October, as the last wage covers the period 30 September – 6 October.
In some situations a 28 day disregard is also applied to people moving into work. In all cases the job must be a permanent job (or a contract position that lasts at least 6 months)
The 28 day disregard is applied to :
- Starting a job with a new employer
- Receiving promotion to a new job with the current employer
- Moving from part-time to full-time work with the same employer (at least 10 additional hours per week)
Example
John is a jobseeker. He finds work with a local gardening firm. He is paid weekly and starts work on 1 May. He is employed on a permanent contract.
John gets his first pay packet on 5 May. He is entitled to a 28 day disregard so his income support benefit is not adjusted to take account of his wages until 2 June.
Peter is a jobseeker. He is taken on by the Post Office for just over 3 weeks to help with the Christmas post. He starts work on 1 December and is paid weekly.
Peter is not entitled to a disregard on his earnings. His income support claim is adjusted from 5 December when he is first paid.
He finishes his temporary contract on 24 December. As he is paid weekly, his IS claim is re-adjusted a week later on 31 December.
Earned income includes overtime payments, tips, bonuses, holiday pay and retainers. It also includes payments made by the employer to cover expenses that are not directly connected with the employment (e.g. Health insurance premiums) and vouchers such as luncheon vouchers or childcare vouchers. Expenses which are essential to the job (e.g. cost of uniform which must be worn) are not included.
If the employee receives goods or services as part of their employment (payment in kind) the value of the goods or services is included as earned income.
Nominal earnings
If someone is working but is being paid substantially below the “going rate” for the work that they do, they are assessed on the basis of a reasonable rate for the work that they are doing.
- Calculation of self-employed income
If an adult is self-employed, their income is likely to vary from week to week and the average income is normally calculated over a longer period of time. This can be up to 12 months. The business accounts for the previous year can be used to provide an estimate of the current year’s income.
Self-employed income is calculated on a cash flow basis, that is the difference between the gross receipts and the actual expenses paid for.
Payments and subsidies from start-up schemes, government subsidies and compensation are all included as income.
Business expenses can be deducted. If an expense is shared between business and personal use, for example, a van that is used for business during the week and for personal use at the weekends, then the amount of expense is divided so that only the business use counts as a legitimate expense. This applies to expenses such as telephones, vehicle expenses and energy costs.
Business expenses must be appropriate, necessary and not excessive in relation to the business itself. Acceptable business expenses include items such as
1. accountancy charges
2. legal charges
3. bank and interest charges
4. advertising costs
5. wages of employees
6. employers pension contributions
7. cost of goods sold
8. energy costs
9. communication costs
10. transport costs
11. rent, rates, water rates and building insurance premiums
12. cleaning
Other costs (that may be included in business accounts) are not accepted as expenses for Income Support purposes. These include
1. cost of new equipment
2. cost of depreciation
3. cost of expanding the business – buying extra equipment etc cannot be charged as an expense
4. losses from another business
5. business entertaining costs
6. personal expenditure
If a business is seasonal, with most of the income earned during one part of the year, but the individual is occupied throughout the year in maintaining the business, then the assessment will normally be based on the income of the business over 12 months.
If a business does not have a regular income – for example an electrician who takes on sub- contract work for a few weeks at a time – the assessment period is set to be long enough to cover periods of different levels of income. Income Support is not paid to a self-employed person who does not have any income during a short period of time, between contracts, if their income during periods of work is sufficient to cover for some periods of inactivity.
Someone who takes a voluntary decision to give up paid employment in order to become self-employed is assessed according to their previous income for the first three months of the business. A jobseeker who starts a new business, is allowed up to three months (depending on the type of business) to prove that the business can provide them with remunerative work.
After the first three months, during the first year of trading, the income of the business is calculated using interim figures.
- Other Income
Income from pensions and benefits
Social Security pensions and benefits from Jersey and other countries are included as income for the Income Support calculation. The Jersey benefits that are included are
Old Age Pension | Maternity Benefits |
Survivor’s Benefits | Short-term Incapacity Allowance |
Invalid care allowance | Long-term Incapacity Allowance |
Invalidity Benefit | Incapacity Pension |
Disablement Benefit | |
Maternity grants and Death grants are not counted as income.
Disregard for pensions
The first £32.06 of any weekly income from a pension or annuity is not included in the calculation of income for anyone aged 65 or above. For a pensioner couple this is increased to £52.01 if both pensioners receive pensions.
Example
Walter is 75 years old and lives on his own. He receives a full Jersey Social Security pension
Pension £172.83
Disregard -£ 32.06
Income used in calculation = £140.77
If a pensioner has earned income, then s/he is also allowed a 10% disregard on the earnings.
If someone below the age of 65 receives income from a pension, a disregard of 5% is allowed on this income.
Disregard for Long Term Incapacity Allowance and Invalidity Benefit
A 5% disregard is also allowed against income received from Long Term Incapacity Allowance and Invalidity Benefit.
Regular Income received from insurance policies
Regular income from an insurance policy is taken into account
Income from lodgers
If an Income Support Unit takes in one or more lodgers, who live in part of the dwelling occupied by the Income Support Unit, the income received from lodgers is counted as income for the Income Support Unit. Reasonable expenses can be deducted from the gross income received.
Family members sharing the same dwelling are not lodgers and any rent or board received from them is not included as income.
Honorary service and volunteers
People undertaking honorary service, with a parish or charity and other volunteers may receive payments from those organisations to cover their expenses. These payments are not included as income.
Other income not included in the income calculation
There are several other kinds of income that are not included in the Income Support calculation. These include
1. Any charitable or voluntary payment.
2. Payments received under 65+ Health Scheme, Christmas Bonus, 75+ Television Licence scheme
3. Fostering allowances
4. TWS income and incentive payments from Le Geyt
5. Earnings from children who are still at school (e.g. Saturday job)
6. Any income from assets such as savings, property or investments . The only time that income from assets is included is if the value of the capital asset is being disregarded itself.
Example
Peggy and Jack are pensioners. They have investments worth £30,000. They receive quarterly dividends on the shares and interest on their deposit account. Last year they received £1250 in total. This income is not included in the Income Support calculations. Instead, a deemed income based upon the value of their investments is included in the calculation of income.
Maintenance income
Income received as maintenance from a former partner is included as income. 10% of this maintenance income is disregarded in the Income Support calculation.
- Income that is not being claimed
If someone has the right to an income that s/he has not claimed, then this income is counted as income. This includes transferring an income to someone else, for example, assigning a pension to a relative.
- Reduction in income due to repayment of debt
If income from a benefit has been reduced to recoup an overpayment of another benefit due to the fault of the claimant or a restraint on wages has been ordered to recover a debt, the full amount of the benefit or wages will be included in the Income Support calculation.
- Capital Assets
- Introduction
Capital assets include money held in cash, bank and building society accounts, savings schemes, stocks and shares, property and items bought as investments.
It does not normally include the value of the dwelling that is occupied by the Income Support Unit.
It includes money that is owed to a member of the Income Support Unit and is due to be repaid. Money received from a redundancy payment or an ITIS refund is also treated as capital.
The value of the capital is calculated as the market value or surrender value less an allowance of 5% if there are costs associated with selling the asset.
- Deemed income from capital
If the Income Support Unit does have capital assets in excess of the disregards available, then a deemed income is calculated based on the excess amount. Given the same income, a household with capital assets has more financial stability than a similar household with no capital assets. So, capital needs to be taken into account when calculating a means tested benefit. “Deemed” income allows the benefit to be gradually withdrawn as the assets of the household increase. If a deemed income is calculated, any actual income from the asset is completely disregarded
For every £250 of excess capital, an income of £1 per week is included in the Income Support calculation.
- Capital disregards
Although a “deemed income” from capital is included in the calculation of Income Support, this is only calculated using the capital above a certain level. Any capital below this level is disregarded.
Depending on the type of Income Support Unit, a certain amount of savings and investments can be completely disregarded.
Income Support Unit | Single | couple |
All adults are aged under 65 | £ 7,911 | £13,113 |
At least one person aged 65 or over | £11,866 | £19,669 |
Any member of the I S unit is eligible for a personal-care element | £11,866 | £19,669 |
Example 1
John is a single pensioner. He has £10,000 in a savings account. This is below the limit for single pensioners and his savings (both income and capital) are completely disregarded in the Income Support calculations
Example 2
Peter and Jane are a pensioner couple. They have £20,000 in a savings account. The limit for pensioner couples is £19,669. A deemed income is calculated on the extra capital above the limit.
£20,000 - £19,669 = £331
At £1 per £250, this produces a deemed income of £1.32 per week.
The interest that they receive on their savings accounts is not included in the Income Support calculations.
The following assets are also disregarded
1. The value of the dwelling occupied by the IS unit – as long as the dwelling is an appropriate size for the Unit. If the dwelling is significantly larger than is needed, an allowance is made up to the average market value of a dwelling that would be appropriate to the size of the Unit.
2. Personal and household possessions (unless they were bought as investments)
3. The value of any motor vehicle up to £10,000
4. The value of any assets used to run a business by any member of the Income Support Unit
5. The capital value of any annuity, or any funds held under an occupational pension scheme or a personal pension scheme
6. The surrender value of a life insurance policy still in force
7. Any lump sum payment made in respect of compensation following a personal injury which is not placed in trust is disregarded for up to 12 months.
8. Money deposited with a landlord as a condition of living in a property
9. The value of a property which is acquired by a member of the Income Support Unit, which the Income Support Unit is going to occupy within the next three months
10. The capital received by the claimant from the sale of the dwelling occupied by the Income Support Unit– as long as the claimant is going to use the money to buy somewhere else to live. This disregard lasts up to 6 months, although it can be extended in exceptional circumstances
11. The value of an insurance payout or other compensation received following loss or damage to the claimant’s dwelling or household possessions – as long as the claimant is going to use the money to replace the items damaged or lost. This disregard lasts for up to six months but can be extended in exceptional circumstances
12. The value of any grant, loan or gift provided to repair or improve the claimant’s dwelling – as long as the money is provided for that purpose and the claimant is going to use the money to pay for the work. The disregard lasts for up to six months or longer if necessary to complete the work
Example 3
Dorothy is 70 years old. She owns a small house and has £15,000 in government bonds. She drives a small second-hand car. She has inherited some good quality jewellery from her mother, including a diamond necklace valued at £2,000.
Dorothy’s house, car and jewellery are all disregarded. She receives an allowance of £11,866 against her government bonds. This leaves £3,134 to be included in the Income Support calculation.
£3,134 produces a “deemed” income of £12.54 per week, which is added to her other income in the Income Support calculation.
- Appropriate size of dwelling
If an Income Support Unit owns the dwelling that it occupies, the value of the dwelling is disregarded if the dwelling is an appropriate size for the Income Support Unit. If the dwelling is larger than is needed, the value of the disregard will be limited to the average market value of a dwelling that is an appropriate size. This test is not applied if there are reasons why it would not be appropriate for the owner(s) of the dwelling to move. For example, the owner has high specific personal care needs and the property has been extensively adapted to cope with these needs or it would be very difficult for the owner to live somewhere else due to their specific care needs
- Saving for future care needs
If members of an Income Support Unit have assets that are being specifically kept in order to provide future care for a member of the Income Support Unit who has high personal care needs, then these assets are not included in the Income Support calculations. The assets must be held in a trust so that it is impossible for them to be used for any other purpose.
- Business assets
If a member of the Income Support Unit is self-employed and has business assets, the value of the business assets is not included as capital. If the self-employed person becomes ill and is unable to run the business, the assets of the business continue to be disregarded for up to for six months. If the person still cannot run the business after six months, then the assets will be counted as capital.
However, up to 6 months is also allowed for the assets to be sold if the individual decides to sell the business. Similarly, if the self-employed person stops running the business for another reason, a reasonable time is allowed for the assets to be sold.
- Reducing the value of capital in order to qualify for benefit
If someone gives away capital or buys exempt items to reduce the amount of capital they have, then the Income Support claim is based on the amount of capital that they had before they took steps to reduce their capital assets..
- Income Support components
- Introduction
The financial needs of the Income Support Unit are assessed by looking at a number of different aspects of day-to-day living. There are basic components which provide fixed amounts of money depending on the number of people in the Income Support Unit. There are also special components available depending on the Income Support Unit circumstances.
The structure of the Income Support Law means that the States can add or change components as the needs of Islanders change. At present, the following components are available.
Component | Note |
Basic | Fixed rates for adults, lone parents and children |
Household | Fixed rate available to tenants and owner occupiers |
Housing | Variable rate based on housing costs |
Impairment | Available for personal care, mobility and clinical costs – different levels depending on extent of impairment |
Childcare | Variable rates depending on age of child and number of hours childcare required |
Carer | Fixed rate available to informal carers |
For each Income Support Unit the values of all the relevant components are added up to give the maximum amount of benefit payable. The calculated income is then subtracted from the maximum amount to give the actual amount of benefit payable. If the calculated income is more than the maximum amount of benefit, no benefit is payable.
Example
Sarah and Andrew lived in a rented flat with their baby. They are entitled to components for
Two adults
One child
Household
Housing – rented two-bedroom flat.
The components add up to £430 (per week)
Their calculated income is £300 a week
They receive £430 - £300 Income Support benefit = £130 a week
- Basic components
For each adult and child in the Income Support Unit, a basic sum of money is allocated to daily living expenses. This covers costs such as food, clothing, toiletries, transport, doctor's fees etc.
A lone parent is allocated a higher amount, to take account of the fixed costs faced by a family when bringing up a child or children.
If the Income Support Unit rents or owns a property, it is also allocated a lump sum (household component) to cover general household expenses, which are less dependant on the number of people in the household.
The household component is not allocated to people living with relatives or living in a hostel (because they do not face the same costs as someone in their own accommodation).
Example
Mary is a lone parent with two children. She rents a house. Mary‘s Income Support calculations will include a household component. Her mother, Doris moves in with her. Doris is not a tenant and so her Income Support calculation will not include a household component.
Foster children
Foster parents receive financial support for their foster children through the Fostering Service which provides a range of allowances to cover all the financial needs of foster children. These allowances do not form part of the Income Support system and foster children are not included in the calculation of any of the components for an Income Support Unit. Foster parents do receive a housing component, based on the needs of the household including the foster child(ren).
Individuals in custody
People in custody are not entitled to Income Support. If a member of an Income Support Unit is in custody, then the basic component for that person is not included in the Income Support calculation for that week. Being in custody includes being on remand and being in youth detention as well as a sentence of imprisonment. Prisoners on daily work release are still in custody, because they return to prison every night. Prisoners released on licence or with an electronic tag are not in custody.
Individuals in hospital and others receiving board and lodging at public expense
During a stay in hospital, a patient’s board and lodging is provided free of charge by the Hospital authorities. The basic component for that person continues to be included in the Income Support calculations for the first four weeks that the person is in hospital. From the fifth week onwards, the basic component for that person is no longer available. This rule also applies to any other situation in which someone is provided with board and lodging at public expense, for example a pupil attending a “special school” (e.g. for children with visual impairments) in the UK.
Other absences from Jersey
The Income Support rules allow people to take short trips away from Jersey. Anyone in the Income Support Unit can be out the island for up to four weeks in any 12 months. (The 12 months is counted from the anniversary of the date on which the Income Support claim started). If an individual is away for more than four weeks the basic component for that person will not be available until they return to Jersey, but other components will continue to be paid.
If all the adult members of an Income Support Unit are out of the Island for more than two months then the Income Support claim falls away and they will need to make a fresh claim for Income Support when they return to the Island.
Other components
Over and above these basic costs, Income Support Units in different situations will have very different expenses to meet. The Income Support Scheme allows for this by providing a number of special components. Special components help the Income Support Unit with the cost of housing, medical needs, childcare and caring responsibilities.
- Housing component
Introduction
Two types of housing component are available. If an Income Support Unit is renting accommodation or living as a lodger, then the housing component is based on the rent payable for the accommodation.
The housing component only covers the cost of the accommodation and if a tenant or lodger is paying for service charges or board, these costs are not included in the calculation of the housing component (they are covered in the basic component).
If an Income Support Unit is occupying its own property, the housing component helps with the cost of expenses that are only payable by a property owner.
People in residential care and people who are living with friends or relatives do not receive a housing component.
Claimants under 25 years old
The main rule to be able to claim a housing component is that the claimant is aged at least 25 and is the tenant, licensee or owner of the property in which the Income Support Unit lives.
There are some exceptions to the age limit of 25:-
- a claimant who has responsibility for a child. This can be the parent of the child or someone else (example an elder brother or sister) that has the main responsibility for the child
- a young person that cannot be expected to return to their previous family home because
- They have been referred by Social Services as needing to live away from the family home (e.g. someone leaving care or at risk of abuse); or
- their parents (or the person that had previously looked after them) are unable to help them – for example: the young person is an orphan, their parents are in prison or occupying unsuitable accommodation; or
- the young person has been living independently for at least one year and had reasonable prospects of remaining independent – the reason for claiming Income Support is an unexpected change in circumstance (illness, unexpected redundancy etc)
The size of the property
The value of the housing component depends on the number of people in the Income Support Unit. One bedroom is allowed for an adult or an adult couple and up to one additional bedroom is allowed for each child, depending on the ages of the children. Any child aged 5 or above is allowed a separate bedroom. Below 5 years old, two children are expected to share a bedroom.
If there are medical reasons why an additional bedroom is required that is taken into account.
If the Income Support Unit includes a parent who has a child(ren) who normally lives in another household, and the parent is responsible for the child(ren) on a regular basis, one additional bedroom can be allocated to the Income Support Unit. A maximum of one extra bedroom is allocated, regardless of the number of children.
Sharing a property
If there is more than one Income Support Unit sharing the same property, then the housing component is calculated using all the people in the Income Support Units and it is paid to the tenant or owner of the property.
Example
Mary is a lone parent with a son aged 12 and a daughter aged 10. Her mother Doris is becoming frail and has moved in with Mary. Mary and her children are one Income Support Unit and Doris is a separate Income Support Unit. Mary will be allowed a housing component in respect of a four bedroomed house, three bedrooms for herself and her two children and an extra bedroom for Doris.
There will also be times when an Income Support Unit shares a property with other people who are not receiving Income Support. In this case the Income Support Unit will receive a housing component based on the number of people within the Income Support Unit.
Example
John rents a two bedroom flat which he shares with his son Peter. John is disabled and is receiving Income Support. Peter is in full-time employment. John’s Income Support claim will include a housing component for up to 50% of the rent of a two-bedroom flat. Peter will be expected to contribute his share of the rent to John to enable John to pay the rent for the two-bedroom flat. The amount that Peter pays John is not counted as part of John’s income for Income Support purposes.
Under occupying a property
Sometimes one or two people will remain in a large family property after children have grown up or partners have died. If those remaining in the property have lived in the property for a very long time or there are other reasons why it would be inappropriate to ask that person to move, the housing component can be set for the size of the large property, even though it is under- occupied.
For families in States rented accommodation, the parents will normally be moved into smaller accommodation as their children grow up and leave home. There is often a delay between the children leaving home and the parents moving to a smaller unit. The housing component for the larger unit is still paid while the parents are waiting for the transfer.
For families in private rented accommodation, a reasonable time of up to a maximum of 12 months is allowed following an adult child leaving the family home, or the break-up of the family unit, to enable the remaining family members to move to a smaller property, provided that the family is taking reasonable steps to find alternative accommodation.
Value of housing component
The Regulations list the maximum value of the housing component allocated to each size and type of property. This value acts as a cap on the amount of housing component that can be allocated to a particular Income Support Unit.
If the rent paid for the property is less than the maximum, the housing component is set at the actual rent.
If the rent is more than the maximum, then the maximum component will be allocated to that Income Support Unit.
Example 1
David lives alone in a one-bedroom flat. He pays £100 a week for the flat. The maximum component for a one-bedroom flat is £148.82. David is allocated a housing component of £100 a week.
Example 2
John and Mary are married and live in a two-bedroom flat. The rent is £170 per week. There are no medical or other reasons for separate bedrooms and therefore they are allocated a housing component for a one-bedroom flat of £148.82 per week.
Houses and flats
There are separate rates for different types of accommodation such as houses and flats. Income Support Units that live in flats are allocated rates appropriate to rentals for flats and Income Support Units that live in houses are allocated rates appropriate to rentals for houses.
Home owners
The rules described above for tenants apply to home owners as well. The rates for housing components for owner occupiers are much lower and are designed to help towards the cost of building insurance and foncier rates.
- Childcare component
Child day care covered by Income Support includes registered day carers, pre-school nurseries, after school clubs, holiday activity clubs and nannies. The care provider must be registered with the Education, Sport and Culture Department under the Day Care of Children (Jersey) Law 2002 or a nanny accredited by the Jersey Child Care Trust. It is available for children below the age of 12.
This section refers to a “parent” looking after a child, but the Income Support Law does not require the person looking after the child to be the child’s parent. For Income Support purposes only one adult in the Income Support Unit is recognised as having the main responsibility for the care of the child/ren.
A “parent” can qualify for a childcare component to cover childcare costs if s/he is at work, is unable to look after the child because of a medical condition or is a student.
Childcare costs are only met if there are no suitable alternatives for looking after the child, either for the whole period of childcare or for parts of it. If there are other adults in the household that could care for the child for part of the day, or collect them from school for example, this needs to be taken into account.
1. “parent” is working
A childcare component can be allocated to a “parent” who is employed and needs childcare to cover the time they are at work. Up to an extra hour a day can be allowed for travelling to and from the childcare provider to work, if necessary. The childcare can also cover a shift worker who needs to sleep during the day.
The net earnings of the “parent” must be greater than the cost of the total childcare for all the children in the Income Support Unit. Net earnings are calculated by taking the gross earnings and subtracting the deductions made under the Income Support calculations for the earned income.
2. “parent” has a medical condition
If the “parent” has an illness or disability that prevents them from undertaking usual child care duties, they can claim a childcare component. The number of hours which can be claimed depends on the level of medical impairment.
3. “parent” is a student
If a “parent” is training or studying then a childcare component is available to cover childcare costs while the “parent” is studying. The “parent” must be undertaking a course that has been approved. A "parent" looking after a child aged under five is not required to work in order to claim income support. If a "parent" in this situation chooses to study, the childcare component is not normally available.
Some childcare providers charge on the basis of complete sessions (normally full and half days). If it is difficult or impossible for the "parent" to find childcare that matches working hours, then the childcare component can be provided for full sessions, even if the working or studying hours of the “parent” do not match this exactly. However the rule regarding net earnings still applies.
The childcare component is set at three different levels depending on the age of the child
1. Children aged 0 - 2 years old
2. Children aged 3 - 4 years old
3. Children aged 5 - 11 years old
The total childcare component for the Income Support Unit is the actual average weekly cost of the day care provided to the child up to a maximum of the rate for the child multiplied by the average number of hours a week for which day care is needed.
Example
Ruth has two children Ben and Josh. Ruth works full-time and the children attend an after-school club five days a week. Ruth pays £87 a week for the club and the children are both there for 15 hours a week.
The component for over-5’s is £3.14 per hour.
The maximum childcare component for Ruth would be £3.14 x 15 x 2 equals £94.20 per week.
As Ruth pays less than this, she is entitled to a component of £87 per week
- Medical (impairment) components
Introduction
The Income Support system provides three different types of medical component to help people with illnesses and disabilities meet their additional costs.
These components are designed to help people who have a long-term condition. They are available to those with an illness or disability that is expected to last a total of at least six months (this can be before or after the claim is made). They are also available to people who are terminally ill.
Example 1
Rory is born with significant brain damage and is prone to regular fits. He sometimes needs to use an oxygen mask and he receives physiotherapy treatment. His parents look after him at home. They can claim an impairment component for Rory as soon as he is born as his condition will last for more than six months.
Example 2
Nigel is 26 and falls off his bicycle and breaks his leg. His leg is in plaster for eight weeks and he is signed off work for this period. Nigel does not qualify for an impairment component because his condition will not last more than six months.
There are three kinds of medical component - personal care, mobility and clinical cost. An individual can qualify for one or more of these components depending on their needs.
- Personal care
The personal care component is available for people who need some assistance with their own personal care. This includes activities such as housework, shopping, cooking, washing and dressing. There are three levels of personal care component. The individual (or someone acting on their behalf) completes a self reporting form setting out the details of their condition and how it affects their day-to-day life. These details are checked against a medical report from the individual's doctor and standard tables, to set the correct level. If the individual has an unusual or complicated condition, they may be asked to attend a medical assessment with a healthcare professional – this is normally a doctor, a nurse or an occupational therapist. A separate guide explains how to complete the self reporting form.
Examples
1. Personal-care level 1 - Someone with a sight impairment who is otherwise healthy
2. Personal-care level 2 - a child with a learning disability who requires input from speech therapy and physiotherapy to optimise their development and abilities
3. Personal-care level 3 – somebody with osteoarthritis in their lower body causing pain and restricted movement and requiring hip replacement
- Mobility
The mobility component is available for those who have an impairment which seriously affects their mobility. There is a higher rate paid to people who work to assist with additional costs incurred travelling to and from work. This rate is paid as long as the net earned income from the work exceeds the value of the higher rate.
The assessment is made using the self reporting form. Children under three years old do not receive the mobility component because all small children need help getting around.
- Clinical cost
The clinical cost component is designed to help people who need to visit their GP regularly because of a chronic or progressive condition. It is also available for individuals receiving palliative care.
The basic component for each member of the Income Support Unit includes the provision of up to four GP visits per year.
There are two levels of clinical cost element. The first level is designed to pay for an additional four GP visits in a year (a total of 8) and the second level will pay for eight extra visits (a total of 12).
Individuals who do not receive a medical component
The medical components are all designed to help people meet the extra costs of having a long-term illness or disability in Jersey. If these costs are being met in another way then the Income Support medical components are not available as well.
1. If an individual is in prison, their medical and care needs are met by the prison authorities and no components are available.
2. If someone is in hospital, their medical and care needs are being met by the hospital authorities – components are maintained for four weeks, after which time they stop.
3. If a child is attending a special school in the UK, they continue to receive personal care elements and mobility elements but they do not receive the clinical cost element because GP care is free in the UK.
4. If an individual is away from Jersey for another reason, components are maintained for four weeks, after which time they stop
Foster children do not receive medical components because the cost of their medical and care needs are met by the fostering service.
- Carer's component
The carer's component is available to help people who look after someone who is disabled or has a serious medical condition. Only one carer's component is allocated to a person, even if they care for two or more people.
This component is separate to the Invalid Care Allowance which is also available to some carers (the Invalid Care Allowance is outside the Income Support system). The carer’s component is available to carers of any age.
For a carer to qualify for the carers component
1. The carer must be the person who has the main responsibility for the cared for person and must be regularly involved in caring. The Income Support Law does not set a minimum number of hours that should be spent in caring duties but it is unlikely that anyone would be seen as having the main responsibility for a cared for person unless they were caring for the person on a daily basis.
2. When deciding if someone is the main carer, the Department considers the duties that the carer undertakes and the amount of time and type of duties that other people undertake in helping to care for the cared-for person.
3. The carer must not be claiming a personal-care component for themselves of level 3 .
4. The carer must not be being paid by someone else to provide the care
5. The cared for person must be ordinarily resident in Jersey – but the cared for person does not need to be a member of the same Income Support Unit as the carer. The cared for person does not need to be receiving Income Support at all.
6. The cared for person must satisfy the requirement to qualify for the third level of personal care component (although the cared for person does not need to be actually receiving the component).
If an Income Support Unit includes a young carer (someone aged under 16), the Department will refer the family situation to Social Services to ensure that both the carer and the cared for person are receiving appropriate support, before allocating a carer’s component.
The carer’s component remains available during short periods of respite care, both for regular planned respite and emergency respite.
An Income Support Unit is not entitled to a carer’s component for any period during which the carer is in prison, or in hospital for more than four weeks. The carer’s component is also not available if the carer is out of the island for more than four weeks, unless the carer is accompanying the cared for person while s/he is receiving medical treatment outside the island.
Similar tests apply if the cared for person is in prison – the carer’s component would stop immediately, or in hospital – the carer’s component would stop after four weeks.
- Special payments
- Introduction
As well as providing a weekly benefit, Income Support provides one-off payments in a variety of circumstances and to cope with emergencies. These are called “Special Payments”. A Special Payment can be used to pay for
1. a service (such as a dentist’s bill) or
2. an item (such as a replacement cooker)
The claimant must be in urgent need of the item or service requested, and claims can only be met if the claimant has no other way of meeting the cost of the item or service.
It is impossible to set down every possible situation in which a household may need financial assistance. The Income Support Law allows for discretionary payments in unusual situations, and in situations in which a household would not qualify for Income Support or a special payment.
- Who can apply for a special payment ?
A special payment is available to an adult who is:
1. a member of an Income Support Unit in receipt of Income Support or
2. a member of a household that is just outside the normal Income Support eligibility conditions
2.1. either the household satisfies the income condition and the work condition and there is an adult in the household that has been in Jersey for at least four and a half years or
2.2. the household satisfies the work condition and the residence condition but the income of the household is above the limit for Income Support by up to 10%.
- Reasonable means of meeting cost
A special payment is only made if the claimant has no other reasonable means of meeting the cost.
Income Support allows each Income Support Unit a capital limit below which savings do not affect the amount of Income Support benefit received. It is therefore expected that households firstly make use of these savings in order to pay for items which otherwise would be met through special payments.
However households are not expected to use up all of their savings before a special payment would be considered. Income Support Units are allowed to maintain a proportion of the capital limit applicable to the Unit (25%) but are expected to fund the item or service themselves if
1. their savings are above that amount and
2. the expense would not reduce the savings below this limit.
If the special payment is in respect of a large cost which would take the Income Support Unit below 25% of the capital limit, then the Income Support Unit is expected to contribute towards the cost.
Example 1
Peter and Dorothy are pensioners. They have £15,000 savings. This is below the limit for a pensioner couple and it does not affect the amount of Income Support benefit that they receive. Their fridge (which is 15 years old) breaks down and they apply for a special payment to replace it. This is refused because they have sufficient savings to meet the cost (approximately £200) themselves.
Example 2
Mary and Nigel are a young couple. They have £3,500 in a deposit account. This is below the limit for a couple and does not affect the amount of Income Support that they receive. Nigel has continuing problems with his teeth and is faced with a dental bill of £1000 for essential treatment. If he pays the bill himself he would only have £2,500 left in their deposit account.
Applying the 25% rule to be capital limit of £13,113 for a couple, they should not be expected to reduce their savings below £3,278.
In this case Nigel is asked to make a contribution of £222 to the dentist bill and a special payment of the balance of £778 is made.
- Special payment categories
The items that may be covered by a Special Payment are:
1. Essential furniture and household equipment
2. Rental deposit – but there must be a reason that the Income Support Unit needs to move
3. Removal expenses – but there must be a reason that the Income Support Unit needs to move
4. Expenses involved in taking up paid employment i.e. clothing, tools, etc.
5. Medical and similar expenses – mainly dental or optical
Special payments in these categories are only made if the claimant is in urgent need of the goods or services.
Example
Walter and Helen are pensioners. They have no savings. Their old gas cooker breaks down and cannot be repaired. They have recently repainted their living room and the new paint clashes with the carpet in that room. They apply for a special payment to cover the cost of a new cooker and a new carpet. The application for the cooker is agreed. The application for the carpet is not approved because the existing carpet is serviceable and in a reasonable condition.
Other items that may be covered by a special payment are:
1. The cost of work necessary to prevent a serious risk to health, safety or welfare
2. Funeral expenses for a member of the Income Support Unit – including repatriation of the body
3. Repatriation of the claimant or a member of the Income Support Unit from Jersey to another country
these items are not subject to a test of urgency.
- Essential furniture and household equipment
Essential furniture includes items such as
1. bed
2. chest of drawers
3. wardrobe
4. table
5. hard chairs
6. soft chairs/couch
the special payment may cover the cost of these items to be purchased second-hand.
1. mattress
2. carpet
the special payment will cover the cost of these items to be purchased new.
Essential equipment includes items such as:
1. cooker or microwave
2. fridge
3. heater
4. small television
5. vacuum cleaner (where necessary)
6. washing machine (where necessary)
the special payment covers the cost of new items.
The item is always delivered to the claimant’s address and the Department pays the supplier directly. Electrical goods that require installation must be installed by a qualified technician. Any reasonable delivery or installation costs are included in the special payment.
- Rental deposit and / or reasonable removal expenses
The claimant must have a valid reason for moving, such as
1. Break-up of long-term relationship
2. Change of family circumstances (e.g. birth of child, adult child leaving home, death of a family member),
3. Transfer by Housing Department
4. Previous accommodation acknowledged as unsuitable due to health or overcrowding issues
5. Previously homeless
6. Coming out of prison
To receive a payment, the applicant must inform the Department before making any commitment to the new property (sign lease, etc) and the new property must be an appropriate size for the Unit. Rental deposits are provided as loans and are recouped from future benefit payments.
- Work related expenses
Employees sometimes need to provide their own clothes or equipment when they get a new job. Special payments are available to cover items such as
1. Purchase of uniform or specialist clothing or boots when starting a new job
2. Purchase of tools required when starting a new job
The same rules apply as for other special payments – the applicant must have no other way of meeting this cost and must be in urgent need of the items. In particular, it must be clear that the employer would not normally be expected to provide these items for the employee.
Example 1
Fiona is offered a job as a chef. She is asked to provide her own set of knives. Although Fiona is an experienced chef, she does not have a set of professional knives as she has not worked for the last 10 years. It is standard practice for individual chefs to provide their own knives and a special payment is allowed.
Example 2
Caroline is offered a job as a filing clerk, for a local bank. Caroline already has office clothes (skirts and blouses) but she wants to buy a suit, to create a good impression. Her application is refused because her employer is not insisting that she wears a suit and she has other clothes which are perfectly acceptable.
- Medical services
Weekly Income Support payments (basic components and impairment components) cover most usual medical costs. There will also be times when people will have an urgent need for additional medical costs. This could be for
1. Additional GP visits
2. Dentistry
3. Chiropody
4. Optician’s Services
5. Medical products (e.g. dressings)
Other primary level medical services (e.g. physiotherapy) are provided free of charge by Health and Social Services. Requests for these medical services are only considered if the person provides evidence from their GP of the urgent need for the particular service and H&SS are unable to meet that need urgently.
If someone has an acute illness, s/he may need additional GP visits. These would be considered for a special payment.
Chiropody costs are only met if the individual has a chronic condition that has led to the need for special foot care and would not normally be expected to have access to one of the free chiropody clinics run by Health and Social Services (e.g. Diabetic service, day centres and Mental Health Services).
The cost of dental services is only met for essential work. Cosmetic dental work is not included.
People aged 65 or over are encouraged to use the Westfield 65 plus scheme for optical, dental and chiropody costs. If someone cannot afford the original bill, the Department can make the payment on their behalf (and reclaim the cost from Westfield).
- Health, safety and welfare
A special payment can be made to prevent a serious risk to the health, safety or welfare of the Income Support Unit. This includes ensuring that their property is in a condition that is fit to live in, i.e. that the property is wind and watertight and secure from intruders. In most situations these payments would only be made to owner occupiers as a tenant would not be expected to undertake such basic repairs.
The cost of community alarms can be met through special payments.
Payments may also be made in exceptional circumstances to meet the immediate short term needs of an Income Support Unit following an emergency or as a consequence of a disaster that means they cannot occupy their own home.
- Funerals
A special payment can be requested to assist with the cost of a funeral if a member of the Income Support Unit dies. Payments are also considered to meet the costs of a funeral for the parent, child, brother or sister of the claimant.
It is important the claimant contacts the Department before finalising arrangements with the funeral director. In normal circumstances a maximum amount of £1500 is available as a special payment towards a funeral.
The Social Security Department also provides a death grant (this is currently £691.32). A payment can also be made if it is necessary to move a body into or out of Jersey.
Note: The special payment is always paid directly to the funeral director.
- Failed job seekers
If after assistance and repeated warnings from the Department, a member of an Income Support Unit fails the requirements for actively seeking work over a 28 day period then the Income Support provided to the Unit may cease. In this situation the Income Support Unit can make a claim for special payments while the Income Support Unit is not eligible to claim Income Support. The amount that can be claimed in the first week is equal to the amount of Income Support that would normally be paid with a reduction amounting to 25% of the basic component payable in respect of the failed jobseeker. If the failed jobseeker is entitled to any medical components these are not reduced. No other components for the remainder of the Income Support Unit are reduced.
For every extra week that the person continues to fail the jobseeker requirements, the basic component is reduced by a further 25% until it is reduced to zero. If the failed jobseeker subsequently satisfies the requirements for actively seeking work then the basic component is maintained at the same level until the failed jobseeker has been actively seeking work for four consecutive weeks, at which point the Income Support Unit can apply for Income Support once more.
Example
Linda lives with her 17-year-old son, Alex. Alex is studying for A-levels at Hautlieu. Linda is a jobseeker. Following both verbal and written warnings over a period of 2 months, she has been informed that she no longer satisfies the requirements for actively seeking work and her basic component is reduced.
Her Income Support components were
£ 129.92 (Linda basic component) plus
£ 90.30 (Alex basic component) plus
£180.00 (rent housing component) plus
£ 46.20 (household component).
Linda has no income.
Total benefit £446.42
As a failed jobseeker, Linda can no longer receive Income Support. She can apply for a special payment in the sum of £413.94. Only her basic component has been reduced by 25%, i.e. £32.48
If she continues to fail to meet the requirements for a jobseeker the benefit will be progressively reduced down to a minimum value of £316.50
- GP costs – special circumstances
If a member of the Income Support Unit has a chronic or progressive medical condition but does not wish to reveal this to other members of the Unit, the individual can make their own application for help with GP fees. The amount of the special payment is set at the additional amount of Income Support that the Unit would have received, if the individual had made an application for the clinical cost element in the normal way.
- Discretionary payments
- Introduction
Discretionary payments can be made to anyone resident in Jersey. These discretionary powers are very carefully controlled by guidelines that the Minister lays down and they are only used in exceptional circumstances. This provides a way in which individuals in Jersey in genuinely difficult situations can seek financial help through the Income Support system
- Death of an adult - resulting in no remaining adult in the household satisfying the residency conditions
This discretionary payment can be made to a household whether or not they previously received Income Support.
If the remaining household
1. includes at least one child aged below 12 and
2. at least one adult in the household will qualify for Income Support on residency grounds within the next 12 months, (as at the date of death of the adult)
the household can apply for Discretionary Payments for the remainder of the 12 month period (until that adult satisfies the residency conditions for a claim to Income Support). The value of the discretionary payment is equal to the value of the IS entitlement of the remaining family unit, if they were entitled to IS.
If the remaining members of the household do not satisfy both the above conditions, but the household previously received Income Support, then the household can apply for Discretionary Payments for four weeks.
If the household previously received Income Support, then the components for the deceased adult are also payable for two weeks.
If another adult joins the Income Support Unit while Discretionary Payments are being made, the situation is reassessed.
Example
John is Jersey born and has lived in Jersey all his life. He meets Mary who came to Jersey on holiday and after six months they get married. They have a child. John is killed in a car crash – at that time Mary has been in Jersey for 4 ½ years and the child is three years old. Mary is able to apply for discretionary payments because she will qualify for Income Support in her own right in less than 12 months time.
- Separation or divorce - resulting in no remaining adult in the household satisfying the residency conditions
This discretionary payment can be made to a household whether or not they previously received Income Support.
This payment can be considered for a parent who was previously in a long term relationship and who, as a result of the break up of the family unit, is unable to support themselves and their child(ren)
If the remaining household
1. includes at least one child aged below 12 and
2. at least one adult in the household will qualify for Income Support on residency grounds within the next 6 months, (as at the date of the break down of the family unit)
the household can apply for discretionary payments for the remainder of that 6 month period until that adult satisfies the residency conditions for a claim to Income Support. The value of the discretionary payment is equal to the value of the IS entitlement of the remaining family unit, if they were entitled to IS.
If the remaining household does not satisfy both these conditions, then the household is not entitled to receive discretionary payments.
If another adult joins the Income Support Unit while Discretionary Payments are being made, the situation is reassessed.
Example
Fiona has been living in Jersey for seven years. She marries Peter who has been living in Jersey for two years. They do not have any children. After one year they split up. Peter cannot make a claim for discretionary payments because he has only been in Jersey for three years in total.
- Mortgage interest
Mortgage interest can be paid for a period of up to 4 months following an unexpected, significant and sudden drop in income. For example following the death of the main wage earner, a major accident or illness or unexpected redundancy where the redundancy payment has not been made or is delayed.
- Child with high personal care needs
A family with the care of a child with very high personal care needs (who would satisfy the conditions for receiving personal care level 3) can receive the current value of the personal care level 3 component if the family satisfies the work and residency criteria for income support but does not qualify for a benefit on income grounds.
- Interview costs
In exceptional circumstances, a Discretionary Payment can be used to cover a specific one-off cost incurred by a jobseeker in attending an interview.
- Driving licence Test costs
In exceptional circumstances, a Discretionary Payment can be used to cover a specific one-off cost incurred by someone who is required to retake their driving test, following an illness that has prevented them from driving.
- Making an Income Support claim
- Introduction
Income Support claims are usually made at the Social Security Department. If a claimant is housebound, an officer can visit them to collect the details for the claim.
The claimant is asked to provide some basic information which is used to check whether the claimant is likely to qualify for income support. If this initial assessment suggests that IS benefit may be payable, then the claimant is asked to complete an income support application form and return it to the Department with documents to confirm the household circumstances.
For example
Details | Type of proof required |
Identity | Birth certificate |
Address | Utility bill |
Childcare | Letter from nursery |
Rent | Rent book or statement |
Children | Birth certificate(s) |
Earnings, number of hours worked, | Wage slips |
Occupational pension | Statement |
Capital Assets | Bank statements, share certificates |
Apart from exceptional circumstances, payment of benefit will not start until all the necessary documents have been provided.
In straightforward cases, the claim will be processed and payments set up. In more complicated cases, the claimant may be asked to attend an interview with an Income Support adviser
If a member of the Income Support Unit has a medical condition, that person is sent a separate self reporting form. This often takes longer to process than the main claim but the component is backdated to the date of the application for the impairment component.
Example
David has lost his job and has no income. His left arm was injured in an accident several years ago and he now has little feeling in his arm or hand. He enquires about Income Support and has a short interview with an Income Support adviser on June 1. She gives him an application form and an impairment component self reporting form to complete
He returns both forms two days later with his rent book, bank statements and recent wage slips. The adviser checks David’s documents and confirms that everything is in order. David’s IS claim is set up to pay weekly from June 1 at the rate of £220 a week. This does not yet include an impairment component. David’s GP is asked to complete a medical report on David.
Dave is given an appointment with a work zone advisor for the following day to discuss his jobseeking activities.
A few days later, on June 10, the GP returns the medical report on David, confirming the information provided in David’s self reporting form. The Income Support adviser assesses David’s medical condition and he is awarded a level 1 personal care component. This component adds £21.77 a week to David’s Income Support benefit.
David’s next benefit payment is due on June 15 and he will receive
£220 (basic benefit) +
£ 21.77 (personal care level 1)
= £241.77 per week
From then on David will receive £241.77 a week.
On 15 June, David also receives an extra £43.54 (backdated impairment component for the first two weeks).
- Making a claim on behalf of someone else
If a claimant is unable to make a claim on their own behalf, someone can be appointed to act for them if they do not have a curator.
- Decisions on a claim
- Introduction
Decisions on claims are made by Income Support Determining Officers. These officers decide whether a claimant is entitled to Income Support in accordance with the rules laid down by the Income Support legislation and Departmental guidelines.
Once a claim for Income Support has been decided, every adult in the Income Support Unit is sent an award letter setting out the components the Income Support Unit qualifies for and the amount of benefit that will be paid.
The Income Support Law includes a clear procedure for challenging any decision made by a Determining Officer. The first step is to ask for the claim to be re-evaluated by a different officer. If an adult in the Income Support Unit is still dissatisfied after this internal review, s/he has the right to seek an independent appeal.
Medical appeals are made to a Medical Appeals Tribunal which is made up of a lawyer, a doctor and a lay person with experience in disability issues. All other appeals are made to the Social Security Tribunal which comprises a lawyer and lay members. A similar process applies to Special Payments.
There are some parts of Income Support that are the direct responsibility of the Social Security Minister. The Minister has the right to make Discretionary Payments which fall outside the main framework of Income Support. Because these decisions are discretionary, there is no formal appeal mechanism.
- Calculating the Income Support benefit
Two worked examples show how components are totalled, income calculated and the amount of benefit arrived at.
Example 1
Couple with 2 children
1 adult in full time work
1 adult at home with children
Children aged 6 and 2
Renting 3 bedroom house at £245.56 per week
Weekly gross earnings £400 ( £20,800 pa)
Step 1 – Calculate Components
Component | Details | Value (£) |
Basic - Person | 2 adults, 2 children | 302.40 |
Basic – Household | yes | 46.20 |
Housing | 3 Bed House - max rent | 245.56 |
Childcare | | |
Carer | | |
Personal Care | | |
Mobility | | |
Clinical Cost | | |
Total | | 594.16 |
Step 2 - Calculate Income
| Actual(£) | Deductions | Calculated Income (£) |
Earnings | 400 | 6% soc sec £24 10% deduction £40 | 336.00 |
Pensions / Benefits | | | |
Capital | | | |
Total | | | 336.00 |
Step 3 – Calculate benefit
Components | 594.16 |
Calculated Income | - 336.00 |
Income Support | = £ 258.16 per week |
Example 2
OAP couple
Rent 2 bed flat for £160 per week
1 has chronic heart disease, GP check ups every 2 months
Pension £300 per week (£15,600 pa)
Capital £20,000
Step 1 – Calculate components
Component | Details | Value (£) |
Basic - Person | 2 adults | 180.60 |
Basic – Household | yes | 46.20 |
Housing | Rent below max component rate for 2 Bed Flat (2 bedrooms allowed on health grounds) | 160.00 |
Childcare | | |
Carer | | |
Personal Care | Level 2 (one person) | 96.32 |
Mobility | | |
Clinical Cost | Level 1 (one person) | 2.73 |
Total | | 485.85 |
Step 2 – Calculate income
| Actual(£) | Deductions | Calculated Income (£) |
Earnings | | | |
Pensions / Benefits | 300 | Pension – deduct 52.01 | 247.99 |
Capital | 20,000 | OAP couple allowance - £19,669 = £331 excess |
1.32 |
Total | | | 249.31 |
Step 3 – Calculate Benefit
Components | 485.85 |
Calculated Income | - 249.31 |
Income Support | = £ 236.54 per week |
- Payment of Income Support benefit
- Introduction
Income Support is a weekly benefit paid in advance. Wherever possible, payments are made by direct transfer into a bank account (BACS). Most pensioner households receive payments four weekly in advance.
People who have difficulty in obtaining or maintaining a bank account can be paid with open cheques, which can be cashed at any post office. For individuals who find it very difficult to budget over a week, and in emergency situations, payments can also be made in cash from the Department. Parish halls can also provide cash payments, at the request of the claimant.
If a claimant has difficulty handling their own affairs they can appoint an agent to act on their behalf. Payments are then made to the agent.
- Direct payments
To help families manage their budgets, the Department provides options for various direct payments.
In certain situations, some or all of the Income Support benefit can be paid directly to a Household Medical Account, a childcare provider or landlord. The Department must take into account the interests of the Income Support Unit when deciding who should receive the benefit.
- Household Medical Account (HMA)
To help cope with the cost of GP visits , Household Medical Accounts (HMA) are available to some Income Support Units. Each week, a small proportion of their Income Support benefit is set aside in the HMA. The value of 4 visits per year is deducted on a weekly basis from the basic living component. For individuals receiving clinical cost components, the full value of that component is also included in the amount to be saved.
When a member of the Income Support Unit visits the doctor,
1. They may make a small cash payment.
2. The Department provides a medical benefit (£15 at present) towards the cost of the visit. This payment is made under the Health Insurance Law, which is not part of the Income Support system.
3. The remainder of the cost is deducted from the HMA.
The HMA allows the Income Support Unit to budget for GP visits steadily, throughout the year, regardless of when the visits actually take place. If the Income Support Unit does not have an HMA, the full costs of the GP visits must be paid by the person at the time of the visit.
The HMA account is designed to be able to go into debt from time to time. In normal circumstances, the account will build up again and return to credit. However in some situations, the Income Support claim needs to be adjusted or a special payment made.
In particular, an individual who has a short, but serious illness may need extra visits which are covered by special payments. Patients who are terminally ill at home are likely to need extra home visits. This cost is also met through special payments.
Sometimes, the patient’s medical condition is slowly deteriorating and they will be reassessed to check whether they now need a higher level of personal care, mobility or clinical cost element.
If the patient chooses to visit the GP more often than is necessary on clinical grounds, then the patient will be asked to save a higher amount to ensure that the cost of all visits is covered by the HMA.
- Childcare costs
If the Income Support Unit has an annual contract with a childcare provider, where the cost of childcare is spread over both term times and holiday periods, then the Department can make a direct payment to the childcare provider in respect of some or all of this cost. The Income Support Unit is responsible for the remainder of the cost.
- Housing costs
If the Income Support Unit is renting accommodation from the Housing Department, then their Income Support benefit can be used to make a regular, direct payment to the Housing Department in respect of some or all of the cost of the rent and service charges. The Income Support Unit is responsible for any remaining cost. Direct payments to other landlords (in particular housing trusts) are also available, depending on the circumstances of the Income Support Unit.
The Department can also make direct payments to other third parties if it is in the best interests of the Income Support Unit. This could be, for example, for someone with a history of poor money management.
- How often is an Income Support claim reviewed?
- Introduction
Income Support claims are reviewed at least once a year. Claims may be reviewed more frequently, depending on household type or following a change in family circumstance.
Example
Adam and Ian live together and claim Income Support. Their claim is reviewed in March each year. Adam reaches the age of 65 in September. He retires on his birthday and starts to receive a social security pension and an occupational pension. Their Income Support claim is reviewed in September as there has been a major change in the income of the Income Support Unit
Income Support Units with a stable income such as pensioners usually receive an annual review. Working age claimants and those with a less stable income or household situation can expect to receive reviews several times a year, depending on their individual circumstances.
There is no minimum period of review.
The claim review checks the individuals in the Income Support Unit, its expenses (housing and childcare) and the income and capital of the individuals making up the Income Support Unit. At the review, the claimant must produce evidence of current income and assets, rent paid and other expenses, such as childcare costs.
Medical reviews do not necessarily take place at the same time as the general claim review. Medical reviews are timed depending on the nature of the condition of the individual, and are not necessarily reviewed every year.
Example
Jimmy and Sheila are retired. Sheila has chronic arthritis and receives a personal care component. Her condition is unlikely to improve and her medical reviews are set at three-year intervals. The remainder of their Income Support claim is reviewed annually.
- Benefit increases
On 1st October each year, Jersey contributory benefits (old age pension, incapacity benefits, etc) are increased in line with the earnings index for that year. Income Support components are also reviewed on this date. The benefit payable to an Income Support Unit usually changes following these reviews and the claimant receives a letter setting out the new benefit amount.
- Changes in circumstances
The calculation of the Income Support benefit for a family depends on many different factors – the number of people in the household, where they are living, how much they earn and so on. If the household circumstances change, an adult within the Income Support Unit must inform the Department.
If a change is planned in advance (e.g. moving house), the Department can record the information before the change actually happens so that the benefit can be adjusted on the date of the change. If the change is unplanned and the Department is notified after the change, the benefit for the Income Support Unit will be adjusted at that time and the Income Support Unit will need to repay any overpayment of benefit.
It is an offence to withhold information that would lead to a change in the amount of Income Support payable.
Changes to the individuals included in the Income Support unit and change of address
Individuals leaving or joining a Unit (partner moving in, child leaving home, etc) need to be reported immediately. Someone joining a household may be included in the claim for the Income Support Unit or may be able to claim as a separate unit. Any change of address must also be reported immediately. This can affect the amount of the housing component and also ensures that the Department can keep in touch with the Income Support Unit.
Death of a member of the Income Support unit
Following the death of an adult, the surviving partner receives the component(s) for the deceased adult for a further two weeks. The capital limit for the survivor is kept at the higher (couple) rate for 12 months.
In the event of the death of a child, the parents receive the deceased child’s component(s) for a further four weeks. The housing component is reviewed at an appropriate time.
Changes within the Income Support unit
Other changes to the members of the Income Support Unit must be reported to the Department. These include
- any of the children leave school, leave home or go into care
- the child care provider changes
- anyone moves into or out of the home, including lodgers, subtenants
- anyone in the Income Support Unit becomes a student, goes on a training scheme, goes into hospital, nursing home, prison or youth custody
- anyone in the Income Support Unit starts work
- the rent changes
- the Income Support Unit moves to new accommodation
- anyone in the Income Support Unit is going to be away from home for more than 4 weeks
- there is a change in the medical condition and/or need for care of anyone in the Income Support Unit
- there is a change in the income of anyone in the Income Support Unit
- any changes to trust or maintenance payments received
- any changes to benefits & pensions received (excluding those paid by Social Security)
- anyone in the Income Support Unit receives an inheritance
- anyone in the Income Support Unit sells, purchases or inherits property in Jersey / worldwide
- the death of anyone in the Income Support Unit
Changes to the income of the Income Support unit
Planned or permanent changes in income (i.e. any change that will last for at least 3 months) must be reported to the Department immediately.. These include, but are not restricted to;
1. receiving a pension for the first time (unless it is a Social Security pension)
2. taking in a lodger
3. receiving maintenance payments
Changes in earned income
Many households experience small changes in earnings from week to week. Earned income is subject to review on a regular basis. Short term fluctuations in earnings of less than £40 per week between reviews are disregarded. However, claimants do need to advise the Department of changes between review dates .
More permanent changes in earnings totalling less than £40 per week are disregarded for 3 months, as long as the claimant informs the Department promptly of the change. In this case, the claim is reviewed at the end of 3 months, and the Income support benefit is adjusted at that point.
If the increase in earnings is more than £40 per week, the additional income is disregarded for 4 weeks if the worker has taken on a new permanent position or moved from part-time to full-time work on a permanent basis.
For someone in regular employment, the review period is a minimum of three months. The exact length of the review depends on the individual’s circumstances.
- Long Term Care Support
Financial assistance with the cost of long term care is also available. The rules for eligibility are slightly different from the main Income Support rules, to take into account the different household circumstances of an individual receiving long-term care.
- Income Support Unit
If the individual receiving care has a partner, then the couple is still treated as an Income Support Unit, although they may receive benefit payments separately.
- Eligibility
The tests for eligibility for assistance with long-term care fees are:
- The individual must satisfy the residence test for Income Support
- the individual must have been assessed as having care needs that cannot be met in the community.
- The individual must have been accepted by a local care home that can offer the appropriate level of care within the agreed fee.
- The capital of the individual and their partner must be less than the current capital limit
- The income of the individual and their partner must be less than the current cost of appropriate care fees, having taken into account the living costs of the partner who is not receiving care
The assessment of care needs is carried out by either a social worker or a health care professional from the Health and Social Services Department, who will record the relevant clinical assessments using an agreed Placement Tool. The Placement Tool is used to identify the level of care needed in a care home. If the assessment indicates that residential care is appropriate, then the individual is automatically exempt from the work test within Income Support.
The claimant must have a place agreed at a local care home that is registered under the Nursing and Residential Homes (Jersey) Law 1994 or is a home that is run by the Health and Social Services Department.
The capital assets of the claimant (and their partner, where applicable) must be below the current threshold for Income Support. This does not include the value of the claimant’s main residence. The capital assets thresholds are:
Income Support Unit | Threshold |
Single | £11,866 |
Couple | £19,669 |
If the claimant (and/or their partner, where applicable) owns or part owns the claimant’s main residence prior to moving into care, then any Income Support provided will be as a loan secured against the property rather than a grant.
The income of a single claimant must be less than the current cost of the appropriate care fee rate. In the case of a couple, the income of both will be taken into consideration and a reasonable allowance made for the living costs of the claimant’s partner, who is not receiving care. The value of the benefit depends of the level of income of the claimant and their partner.
- Fee levels and Benefit rates
Fee rates are supported up to the following maximum weekly rates
Type of Care | Weekly Rate |
Standard residential | £580.72 |
High dependency residential | £746.64 |
Nursing (Accommodation charge only) | £438.20 |
For claimants aged below 65, rates are negotiated on an individual basis.
In addition to the weekly fee rate a personal allowance of £30 per week is allowed to cover the cost of discretionary purchases (newspapers, hairdressing, social events, etc).
The benefit payable is calculated as
Residential care benefit = Weekly fee rate + personal allowance + (living allowance for partner) – weekly income.
Example:
Joyce is a widow. She has a total pension income of £200 per week and a savings account balance of £10,000. She has standard residential care needs and has been offered a place at a local care home at the standard rate of £580 .72p per week.
Joyce’s capital is below the limit and does not affect her benefit. Her weekly income of £200 will all be taken into account and her benefit will be
£580.72 + £30 - £200 = £410.72 per week.
Example:
Philip and Lorna are married. They live in a States flat. Philip has a pension income of £290 per week. They have savings of £15,000. Philip has had Alzheimer’s for several years and has been cared for by Lorna at home. Lorna is now too frail to look after Philip and he has moved into a residential home. His care costs £580.72 per week.
Their capital is below the limit and does not affect their benefit. The rent for their flat is £145 per week. Lorna receives personal care component level 1.
The household income is used to meet Lorna’s living costs, using the standard Income Support rules:
Adult £ 90.30
Household £ 46.20
Accomm £145.00
PC1 £ 21.77
Total £303.27
The income available is
Pension £290.00
Pension disregard £ 32.06
Net income £257.94
IS benefit payable
Components £303.27
Less income £257.94
Benefit - Lorna £ 45.33
As all of the household income has been allocated to cover Lorna’s living expenses, Philip will receive the full cost of his fees plus the personal allowance
Fees £580.72
Personal allow £ 30.00
Benefit- Philip £610.72
- Agents
The claimant can ask a relative or friend to act as an agent on their behalf, to deal with the administration of the application. In some cases, the Royal Court will appoint a Curator, if an individual lacks capacity to make their own decisions.
- Moving into Care
The decision to move into care is a major one, and most residents are initially accepted on a 4 week trial basis. During the trial period, assistance with rental costs for their home will continue to be made under the previous Income Support claim. Housing Department tenants should give notice to the Housing Department at the end of the third week, if they are going to take up a permanent residential care placement. The property must then be vacated during the fourth week. Individuals not previously receiving Income Support will also receive an allowance for their rental costs during this time, included in the calculation of their benefit.
- Owner Occupiers
A home owner can receive assistance with care fees, in the form of a loan secured against the value of their property. The Department will pay the residential care benefit and the total cost will be reclaimed from the value of the property, following the death of the claimant (and their partner).
Owners are encouraged to rent their property out to produce an income to offset part of the cost of the care fees and to reduce the amount of benefit to be repaid at a later date.
Where the claimant has the life enjoyment of a property, the capital value of the property is not included in the calculation but income equivalent to the fair rental income for the size of property is included in the income calculation when determining the benefit rate, unless the partner is still living in the property.
Income Support Policy Guidelines
V 2.0 Released March 2009
gov.je