CII R05 State Benefits and Welfare — Questions and Answers
Question 1: Which of the following UK state benefits is designed to provide financial support to individuals who are unable to work due to illness or disability?
- Universal Credit only
- Employment and Support Allowance (ESA) (Correct answer)
- Child Benefit
- State Pension
Correct answer: Employment and Support Allowance (ESA)
Employment and Support Allowance (ESA) is the primary state benefit for individuals who are unable to work due to illness or disability. Claimants undergo a Work Capability Assessment to determine whether they are placed in the work-related activity group or the support group. New-style ESA is contributory based on National Insurance contributions.
Question 2: The Bereavement Support Payment replaced the previous Bereavement Allowance. What is a key feature of this benefit?
- It is payable for the lifetime of the surviving spouse
- It provides an initial lump sum followed by up to 18 monthly payments to the surviving spouse or civil partner (Correct answer)
- It is only available to those over state pension age
- It is means-tested based on the survivor's savings
Correct answer: It provides an initial lump sum followed by up to 18 monthly payments to the surviving spouse or civil partner
Bereavement Support Payment provides an initial lump sum payment followed by up to 18 monthly instalments. It is available to surviving spouses or civil partners under state pension age whose partner had paid sufficient National Insurance contributions. It is not means-tested and is paid regardless of the survivor's other income or savings.
Question 3: Under the UK welfare system, what is the purpose of the Work Capability Assessment (WCA)?
- To assess a claimant's suitability for voluntary work
- To determine whether a claimant has limited capability for work due to their health condition or disability (Correct answer)
- To calculate the claimant's entitlement to State Pension
- To assess whether the claimant can take early retirement
Correct answer: To determine whether a claimant has limited capability for work due to their health condition or disability
The Work Capability Assessment evaluates whether a claimant has limited capability for work and limited capability for work-related activity. It involves a questionnaire and potentially a face-to-face assessment. Based on the outcome, claimants are placed in either the work-related activity group (expected to prepare for work) or the support group (not expected to work).
Question 4: Personal Independence Payment (PIP) is intended to help with:
- Replacing lost income from employment
- The extra costs arising from a long-term health condition or disability, regardless of whether the claimant works (Correct answer)
- Mortgage interest payments during unemployment
- Council tax payments for disabled individuals
Correct answer: The extra costs arising from a long-term health condition or disability, regardless of whether the claimant works
PIP helps with the extra costs that arise from living with a long-term health condition or disability. It has two components: a daily living component and a mobility component, each payable at standard or enhanced rates. Crucially, PIP is not means-tested and is payable whether or not the claimant is in work.
Question 5: Statutory Sick Pay (SSP) is paid by the employer for a maximum of:
- 13 weeks
- 28 weeks (Correct answer)
- 52 weeks
- Indefinitely until the employee returns to work
Correct answer: 28 weeks
Statutory Sick Pay is paid by the employer for up to 28 weeks in any period of incapacity for work. The employee must earn at least the lower earnings limit for NI contributions and must be absent for at least 4 consecutive qualifying days (including 3 waiting days before SSP is payable). After 28 weeks, the employee may be eligible for ESA.
Question 6: The death grant payable from the state in the UK is:
- £5,000 paid to all bereaved families
- No longer available — there is no universal state death grant (Correct answer)
- £10,000 paid from the deceased's National Insurance record
- £2,500 paid to the deceased's employer
Correct answer: No longer available — there is no universal state death grant
The universal state death grant was abolished in 1987. There is no longer a general death grant payable by the state. Instead, those on low incomes may be eligible for a Funeral Expenses Payment (now part of the Social Fund / Bereavement Support Payment system), and surviving spouses may receive Bereavement Support Payment if eligibility criteria are met.
CII R05 State Benefits and Welfare
Which of the following UK state benefits is designed to provide financial support to individuals who are unable to work due to illness or disability?