New benefit and tax credit rates for 2010/11 come into force in April 2010. You can use the date selector to choose which year you want us to calculate your entitlements for. To find out precisely when new rates come into force see date of rate changes.
If you select 2009/10 we will calculate your entitlements using the rules that came into force on 2nd November 2009. More information is available on benefit changes in November 2009.
As well as updating the calculator to take account of new benefit and tax credit rates relevant policy changes have also been included in the new version of the calculator.
Benefit rates
The main benefit and tax credit rate changes in April 2010 are:
- The basic state pension is rising by 2.5% . The value of the full basic pension for a single person is rising by £2.40 to £97.65 a week. The level of the Pension Credit guarantee for a single person is rising by £2.60 to £132.60.
- Benefits uprated by the 'ROSSI' index such as Jobseeker's Allowance, Income Support, Employment and Support Allowance and other incapacity benefits are rising by 1.8%.
- Other benefits and tax credits normally uprated by RPI (including Child Benefit and most disability benefits) are increasing by 1.5%.
Policy changes
The main policy changes in April 2010 are:
- Income from child maintenance payments will now be completely ignored (or ‘disregarded’) in Income Support, Jobseekers Allowance and income-related Employment and Support Allowance. This full disregard of income from child maintenance payments already applies in Housing Benefit and Council Tax Benefit but replaces the previous disregard of £20 a week in out-of-work benefits. Because of the new policy you do not need to include income from child maintenance payments anywhere in the calculator after this date.
- Female state pension age will start to gradually increase from 60 to 65. This affects when both men and women can claim Pension Credit and other means-tested benefits for pensioners. To take account of this change we have introduced a new state pension age calculator. For more information see changes in state pension age.
- If you claim Employment and Support Allowance or Incapacity Benefit you may have earnings under the permitted work rules. These rules already allow you to earn up to £93 a week without your Employment and Support Allowance being affected (these earnings are disregarded). However, from April 2010 Housing Benefit and Council Tax Benefit will also disregard earnings from permitted work. We have introduced a new tick box for permitted work so that people who qualify can indicate that their earnings qualify under permitted work rules. For more information see permitted work.
Other changes
A number of other policy changes come into force in April 2010 or later in the year. The main other changes are:
- Alongside the increase in female state pension age a number of other changes to state pensions are being made. These include a reduction in the number of years NI contributions required for full state pension to 30 years (from 44 years for men and 39 years for women) and a new Carer’s credit that includes people caring 20+ hours a week. For more information see Carer’s credit.
- A new energy rebate scheme will provide some pensioners with a one-off rebate on their electricity bill of £80. People aged 70 or over who qualify for the guarantee element of Pension Credit will qualify for rebate Energy companies will make the awards automatically in most cases by subtracting it from householder's bills. Rebates are expected to begin in May and June 2010.
- Free school meals will be extended to low income households receiving Working Tax Credit. This extended eligibility applies to primary school pupils in families with a household income below £16,190. In England the extension will be staged, with all eligible primary school pupils included from September 2011. For more information see free school meals.
For an update on other changes to the calculator see calculator functionality changes April 2010.
March 2010 Budget changes
A number of announcements were made in the March 2010 Budget that affect future benefits and tax credit entitlements. These include:
- Winter Fuel Payments in 2010-11 will continue at current rates (£250 a year if you and your partner are aged 60-79, rising to £400 a year if you or your partner are aged 80 or over)
- The temporary freeze in the Standard Interest Rate applied to the Support for Mortgage Interest scheme until December 2010
- From April 2011, people aged 60 or over who usually work 16 hours or more a week will be eligible for Working Tax Credit
- From April 2012, families earning less than £50,000 a year who have children under three years old will get an extra £200 a year in a new Toddler Tax Credit.