Money, Financial Support and Benefits
Child Trust Fund
The Child Trust Fund (CTF) is a savings and investment account for children. All children born on or after 1 September 2002 will receive a £250 voucher from the government to start their account. Children from the lowest income families will receive an additional payment. Parents and other people can make payments into the account, but cannot take money out. The CTF belongs to the child, although they are not entitled to access the fund until they turn 18.
Child Support
Under the Child Support Acts of 1991 and 1995 and the Child Support, Pensions and Social Security Act 2000 parents have a duty to support their children financially until they are 18. This obligation continues after separation or divorce and is unaffected by whether the parent has parental responsibility or not. Child Support is administered by the Child Support Agency, which is a branch of the Benefits Agency. The amount of maintenance payable is calculated according to a standard formula and although the welfare of the child can be taken into account in certain circumstances, the rules are complex and the outcome may not always appear to do so. Young people do not have a right to make their own applications for a maintenance assessment against their parents. However people over 18 may apply to a court for maintenance if they are at school, in full-time or part-time education or in higher education or training.
Benefits and Community Care Services
16 and 17 year olds are not entitled to social security benefits as of right. They are expected to access work based training thought the Careers Service for which they are paid a training allowance. However, 16 to 17 year olds may apply for benefits in certain limited circumstances. They are entitled to income support if they are unable to work as a result of ill health or disability or pregnancy or the care of dependants. They may also be eligible to income-based job seeker’s allowance (JSA) if they are available for work and training and also qualify for income support although in practice it may be difficult to satisfy the availability for work requirement. 16 and 17 year olds may be able to obtain JSA on a discretionary basis to avoid ‘severe hardship’. This payment is made for 16 weeks but may be renewed. The Benefits Agency should take into account the young person’s vulnerability to risk of any kind, including homelessness and whether there is anyone else to support them. Children under 18 may also be eligible for longer-term JSA hardship payments as they come within the definition of a vulnerable group. In these circumstances the Benefits Agency must look at whether there is a ‘substantial risk’ that the claimant will be without certain essential items such as food, clothes, heating and accommodation.
As a young person aged 16 or more, you can claim tax credits. Tax credits are means-tested and depend on your income. To get Working Tax Credit you must work 16 hours or more a week, be on a low income and either have a disability which puts you at a disadvantage in getting a job or be responsible for a child.
Young people aged 16-19 who stay on at school past compulsory school leaving age, or who enter into certain apprenticeship programmes may be entitled to Educational Maintenance Allowance (EMA). The maximum EMA is £30.00 a week, and is means-tested by reference to the young person’s household income. To receive EMA a young person must sign a contract with their learning provider confirming their commitment to coursework, attendance etc. Periodic ‘bonuses’ are paid if the agreed targets are met. Applications for EMA are made to the Learning and Skills Council.
In 2005 the Court of Appeal held that the denial of maternity benefits to an applicant with a residence order in favour of a child was a breach of Article 8 ECHR and Article 14 ECHR. An individual with an adoption order would have been entitled to the grant, and there was no justification for the discriminatory treatment. The purpose of the grant, which was to give children born into low income families a positive start, was relevant.
Children with disabilities may be entitled to services (such as aids and adaptations to their family home) under the Chronically Sick and Disabled Persons Act 1970. The local authority is entitled to have regard to a child’s parent’s financial resources in deciding whether it is necessary to meet the child’s need.
The Child Trust Fund (CTF) is a savings and investment account for children. All children born on or after 1 September 2002 will receive a £250 voucher from the government to start their account. Children from the lowest income families will receive an additional payment. Parents and other people can make payments into the account, but cannot take money out. The CTF belongs to the child, although they are not entitled to access the fund until they turn 18.
Child Support
Under the Child Support Acts of 1991 and 1995 and the Child Support, Pensions and Social Security Act 2000 parents have a duty to support their children financially until they are 18. This obligation continues after separation or divorce and is unaffected by whether the parent has parental responsibility or not. Child Support is administered by the Child Support Agency, which is a branch of the Benefits Agency. The amount of maintenance payable is calculated according to a standard formula and although the welfare of the child can be taken into account in certain circumstances, the rules are complex and the outcome may not always appear to do so. Young people do not have a right to make their own applications for a maintenance assessment against their parents. However people over 18 may apply to a court for maintenance if they are at school, in full-time or part-time education or in higher education or training.
Benefits and Community Care Services
16 and 17 year olds are not entitled to social security benefits as of right. They are expected to access work based training thought the Careers Service for which they are paid a training allowance. However, 16 to 17 year olds may apply for benefits in certain limited circumstances. They are entitled to income support if they are unable to work as a result of ill health or disability or pregnancy or the care of dependants. They may also be eligible to income-based job seeker’s allowance (JSA) if they are available for work and training and also qualify for income support although in practice it may be difficult to satisfy the availability for work requirement. 16 and 17 year olds may be able to obtain JSA on a discretionary basis to avoid ‘severe hardship’. This payment is made for 16 weeks but may be renewed. The Benefits Agency should take into account the young person’s vulnerability to risk of any kind, including homelessness and whether there is anyone else to support them. Children under 18 may also be eligible for longer-term JSA hardship payments as they come within the definition of a vulnerable group. In these circumstances the Benefits Agency must look at whether there is a ‘substantial risk’ that the claimant will be without certain essential items such as food, clothes, heating and accommodation.
As a young person aged 16 or more, you can claim tax credits. Tax credits are means-tested and depend on your income. To get Working Tax Credit you must work 16 hours or more a week, be on a low income and either have a disability which puts you at a disadvantage in getting a job or be responsible for a child.
Young people aged 16-19 who stay on at school past compulsory school leaving age, or who enter into certain apprenticeship programmes may be entitled to Educational Maintenance Allowance (EMA). The maximum EMA is £30.00 a week, and is means-tested by reference to the young person’s household income. To receive EMA a young person must sign a contract with their learning provider confirming their commitment to coursework, attendance etc. Periodic ‘bonuses’ are paid if the agreed targets are met. Applications for EMA are made to the Learning and Skills Council.
In 2005 the Court of Appeal held that the denial of maternity benefits to an applicant with a residence order in favour of a child was a breach of Article 8 ECHR and Article 14 ECHR. An individual with an adoption order would have been entitled to the grant, and there was no justification for the discriminatory treatment. The purpose of the grant, which was to give children born into low income families a positive start, was relevant.
Children with disabilities may be entitled to services (such as aids and adaptations to their family home) under the Chronically Sick and Disabled Persons Act 1970. The local authority is entitled to have regard to a child’s parent’s financial resources in deciding whether it is necessary to meet the child’s need.
