Benefit check
A good starting point when investigating income maximisation is to check if a client is receiving all the benefits they are entitled to.
There are many ways to categorise benefits, which can make the system appear very complex.
Benefits fall into three main types.
•Earnings-replacement benefits – these benefits are based on national insurance contributions and are not means tested. If the client has worked or been self-employed in the past they may qualify for a contribution-based earning-replacement benefit. Examples of this type of benefit are contribution-based jobseeker’s allowance, contributory employment and support allowance and retirement pension.
•Benefits that depend on a personal circumstance – these types of benefits are paid because the client has specific needs or falls into a certain category, such as having a child or a disability. Examples of this type of benefit are adult disability payment and child benefit.
•Means-tested benefits or tax credits - these top up a client’s benefit and/or other income to a certain level, sometimes referred to as the ‘safety net’. Which means-tested benefits a client can claim depends on their circumstances. Examples include universal credit, pension credit, Scottish child payment and housing benefit.
An adviser should perform a benefit check to find out what benefits a client may be entitled to. An online benefits calculator can highlight which benefits a client will receive and how much. Alternatively, the client should be referred onto another service that can, such as welfare rights.