This piece first appeared in Saga Magazine in June 2001
The text here may not be identical to the published text

Claim Cash - It's Guaranteed


Many will qualify for extra money from the Government

Hundreds of Saga readers have written to me asking if they can claim the new minimum income guarantee of £92.15 a week for a single person and £140.55 for a couple. And in many cases the answer is almost certainly ‘yes’. Many more people will now be able to claim because the Government has relaxed two of the rules which stopped hundreds of thousands of older people from getting it before. There are two reasons why people could not claim in the past

· Their weekly income was higher than the guarantee

· Their savings were more than £3000

But from April 2001, the Government has relaxed both these rules.

· The amount of the guarantee is much higher – up to £18.60 a week more for some people

· The savings limit has been raised – you can now have £6000 without it affecting the amount you get. The limit used to be £3000. And you can get some help even if your savings are as high as £12,000 – the absolute limit used to be £8000.

So even if you have been refused income support or minimum income guarantee in the past, (the two names mean the same thing) it is still worth claiming again now. Up to 200,000 more people over 60 can now claim.

Claiming has never been easier. First, there is a MIG phone line 0800 028 1111 where you can give your details to an operator who will fill in the form for you and post it back for you to sign. The call is free. You will still have to send them details of your bank accounts and savings but it should be a relatively simple process. Second, the Government is introducing a new, simpler claim form for you to fill in yourself (see box). The new form will not actually be in use until the Autumn. So if you think you can claim you should not wait. Ring the MIG phone line and claim now.

If your income is less than £92.15 (single) or £140.55 (couple) AND your savings are less than £6000 then you can get extra money each week to make your income up to those amounts. If your savings are between £6000 and £12,000 you may still get help, but it will be reduced.

How much

Although some of the detailed rules are complicated, basically the minimum income guarantee is simple. If your income is less than £92.15 (single) or £140.55 (couple) AND your savings are less than £6000 then you can get extra money each week to make your income up to those amounts.

For example, Mr and Mrs K wrote to me from Stoke. Their weekly income is £119.29 state pension and £14.76 from Mr K’s works pension – total £134.05 a week. Their savings are a shade under £6000. In the past they would not have got help from the minimum income guarantee – but now they should get £6.50 a week to make their income up to £140.55.

If your savings are between £6000 and £12,000 you may still get help, but it will be reduced. The minimum income guarantee is reduced by £4 a week for every £1000 your savings exceed £6000. If your savings are above £12,000 then you will not get any help from the minimum income guarantee. The table shows how much the guarantee is worth each week at various levels of savings.

Mrs J from Essex has an income of £71 a week, well under the minimum income guarantee of £92.15. But her savings are £10,200. So she looks up those savings in the table and finds her guaranteed income is £75.15. So she should get nearly £4 a week minimum income guarantee to make her income up to that amount. Last year, with savings at that level, she would have got nothing.

Of course, there are complexities in all this. Some items of income are not counted at all. Any interest or growth in your savings does not count as part of your income. So when you work out your weekly income, you should IGNORE any income from your savings. And you can deduct certain amounts from other income.

· If you have earnings – deduct £5 a week for a single person or £10 between you for a couple.

· If you get a war pension – deduct £10 a week

· If you get invalid care allowance – deduct £24.40 a week

 

You can also deduct from your income

· An amount for your weekly mortgage interest – this is not your actual interest but should be pretty close to it

· Any ground rent or service charge you pay for your accommodation.

So people who have an income above the minimum income guarantee could still get help once they have taken off these amounts.

Health costs

If you get minimum income guarantee you can also get help with the costs of glasses and treatment from an NHS dentist. Remember that people over 60 do not have to pay prescription charges or for sight tests.

Funeral payments

If you get minimum income guarantee or help with your council tax or rent you should be able to get help with the cost of a funeral which is your responsibility to pay for. Normally that means you are the spouse or the closest relative of the deceased. The payment is £600 plus the cost of the burial or cremation.

Help with council tax

If you successfully claim minimum income guarantee your council tax will be reduced. If you live in a home which is banded A to E then you will get all your council tax paid. If your home is in the more expensive bands F, G or H then you will get the equivalent of Band E council tax paid but no more. You will have to pay the rest yourself. This rule only applies to people who have made new claims after April 1, 1998. If you do not know what band your home is in, look on your annual council tax bill.

Even if your income or savings are just too high to get minimum income guarantee, you may still get some help with your council tax. For example, if your council tax is average, £901 a year for a Band D home in England, then you can still get half of it paid if your income is £135 a week (single) or £183 (married). And you can still get £52 year off it if your income is as high as £173 a week (single) or £221 (married). If your council tax is higher than this average then you will be able to claim help on a higher income than these amounts.

If you are the only adult in your household you are entitled to a 25 per cent reduction in your council tax regardless of your income. You must apply to the council for it.

Help with rent

If you get minimum income guarantee your rent will also be reduced – usually it will all be paid. But if you live in a large or expensive property then you may only get a proportion of it paid.

Even if your income or savings are just too high to get minimum income guarantee, you may still get some help with your rent. The amount of rent varies widely throughout the country, but a typical figure might be £65 a week. At that level, you can get half your rent paid if you have a weekly income of £142 if you are single and £190 (couple). And you can still get something off your rent with a weekly income up to £191 (single) and £239 (couple). If your rent is higher than £65 a week, then you will get help even if your income is higher than these amounts.

Savings up to £6000 are ignored completely when help with council tax or rent are worked out. And you may get some help even if your savings are as high as £16,000.

You apply to the local council for help with council tax and rent. The forms they use can seem very daunting – though they may also be simplified in the next year or so.

TABLE

Minimum income guarantee

Savings1

per week

 

single

couple

nil

to

£6,000.00

£92.15

£140.55

£6,000.01

to

£6,250.00

£91.15

£139.55

£6,250.01

to

£6,500.00

£90.15

£138.55

£6,500.01

to

£6,750.00

£89.15

£137.55

£6,750.01

to

£7,000.00

£88.15

£136.55

£7,000.01

to

£7,250.00

£87.15

£135.55

£7,250.01

to

£7,500.00

£86.15

£134.55

£7,500.01

to

£7,750.00

£85.15

£133.55

£7,750.01

to

£8,000.00

£84.15

£132.55

£8,000.01

to

£8,250.00

£83.15

£131.55

£8,250.01

to

£8,500.00

£82.15

£130.55

£8,500.01

to

£8,750.00

£81.15

£129.55

£8,750.01

to

£9,000.00

£80.15

£128.55

£9,000.01

to

£9,250.00

£79.15

£127.55

£9,250.01

to

£9,500.00

£78.15

£126.55

£9,500.01

to

£9,750.00

£77.15

£125.55

£9,750.01

to

£10,000.00

£76.15

£124.55

£10,000.01

to

£10,250.00

£75.15

£123.55

£10,250.01

to

£10,500.00

£74.15

£122.55

£10,500.01

to

£10,750.00

£73.15

£121.55

£10,750.01

to

£11,000.00

£72.15

£120.55

£11,000.01

to

£11,250.00

£71.15

£119.55

£11,250.01

to

£11,500.00

£70.15

£118.55

£11,500.01

to

£11,750.00

£69.15

£117.55

£11,750.01

to

£12,000.00

£68.15

£116.55

£12,000.01

to

or more

nil

Nil

Note
1. Savings, or capital, means any money you have in cash or in a bank or building society account, shares, investments, national savings, or any other amount you can get your hands on at short notice.

More information

Department of Social Security

June 2001

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