Calculating your benefits

Home > Tax Articles > General > Calculating your benefits

The Department for Work & Pensions (DWP) have re-launched their online calculator which covers benefits to which an individual may be entitled, but many problems remain, as John Andrews of LITRG explains.

Introduction

The DWP have struggled for many years to devise a calculator which will show low-income people what they are entitled to receive from the State. In 2008 they launched the Benefits Adviser calculator on the Directgov website. It was not comprehensive and it was not particularly user-friendly.

Earlier this week the Department for Work & Pensions (DWP) re-launched their online calculator which attempts to cover some twenty-eight benefits to which an individual may be entitled under our complex benefits system.

The fact that the DWP then have to list a long list of exceptions that the calculator cannot cover perhaps says it all about the coherence of that system.

This week the Benefits Adviser has been re-launched and it attempts to show which of twenty-eight benefits and credits a citizen may qualify for. As you will see, if you try it, it needs stamina to complete.

At the end of a very long period of development it is disappointing that the DWP have to confess that:

Currently, the benefits adviser may not provide accurate estimates for customers and their partners entitled to:

Working Tax Credits
Pension Credits
Employment and Support Allowance

or have savings of over £6000.

As these are three of the most widespread and difficult benefits to understand, it does call into question the overall value of the calculator. The circumstances in which the calculator may not be accurate are listed, but in itself this undermines the confidence of the user.

We are also disappointed to see that claimants who are single, have no children and are disabled are also excluded from the calculator, along with a range of other groups such as students, non-UK nationals and those residing in care homes.

As a public body with a disability equality duty to remove barriers rather than erect them, it really is not good enough.

We would not dissuade people from using the calculator, but there are simpler, more complete alternatives that can be found, such as Entitled to.

Evidence

We think this example provides further evidence that people on low incomes need the government:

to simplify the benefits system; and until they do
to provide more face to face help for those who do not have access to the internet or who cannot use complex (and incomplete) calculators.

We also expect all government calculators to be comprehensive and accurate before they attempt to persuade us all that the internet is the way forward for doing business with them.

Comments

Only registered users can write comments!

Joomla components by Compojoom

< Prev		Next >

About The Author

The Low Incomes Tax Reform Group (LITRG) is an initiative of the Chartered Institute of Taxation to give a voice to those who cannot afford to pay for tax advice. LITRG comprises tax specialists from professional practice and the voluntary sector, from publishing and from HM Revenue & Customs, together with people from a welfare benefits and social policy background. Visit www.litrg.org.uk for further information.

Article Added Wednesday, 23 September 2009 | 2205 Hits

Your attention is drawn to the disclaimer on this site, which applies to the content in this section.

Tax Insider Lite

Each month our tax experts reveal FREE tax strategies to help minimise your taxes. Get Tax Insider Lite:

Tax Books

BOOK OF THE WEEK

Capital Allowances for Fixtures: The New Rules
A full technical analysis of the proposed new rules re capital allowances for fixtures, as announced in the HMRC consultation document issued on 31 May 2011. It is based on the draft legislation published in December 2011.

A full technical analysis of the proposed new rules re capital allowances for fixtures, as announced in the HMRC consultation document issued on 31 May 2011. It is based on the draft legislation published in December 2011.

BOOK OF THE MONTH

A-Z of Plant & Machinery
An analysis of more than 200 types of common expenditure, showing whether or not they qualify as plant or machinery. Each entry includes statutory and case law references, together with HMRC guidance and the authors? personal commentary.

An analysis of more than 200 types of common expenditure, showing whether or not they qualify as plant or machinery. Each entry includes statutory and case law references, together with HMRC guidance and the authors? personal commentary.

Corporation Tax Memo 2011-2012
The first edition of this brand new publication, published in November, includes comprehensive commentary on all relevant legislation, case law and HMRC practice, including the recent Corporation Tax Acts and Finance Act 2011.

The first edition of this brand new publication, published in November, includes comprehensive commentary on all relevant legislation, case law and HMRC practice, including the recent Corporation Tax Acts and Finance Act 2011.

Capital Gains Tax Roll-over, Hold-over and Deferral Reliefs 2011/12
A unique and user-friendly reference guide to all the capital gains tax reliefs that may apply on the sale of businesses, business assets, and for gifts, including entrepreneurs' relief.

A unique and user-friendly reference guide to all the capital gains tax reliefs that may apply on the sale of businesses, business assets, and for gifts, including entrepreneurs' relief.

Share Valuation Handbook
Share Valuation Handbook brings together the practical methods of share valuation, the statutory requirements for a fiscal valuation and the decisions of the courts in a single volume.

Share Valuation Handbook brings together the practical methods of share valuation, the statutory requirements for a fiscal valuation and the decisions of the courts in a single volume.

Home

Tax Forum

Information

Find a Professional

Resources

About

Introduction

Evidence

Tax Insider Lite

Tax Books

PROUDLY SUPPORTING