There are various types of tax credits and unemployment benefits available from the government however a lot of people who are entitled to them fail to make a claim. The basics of both categories are outlined below but for more detailed explanations and information about how to apply you should visit the relevant government website.

Tax Credits

There are two main types of tax credits available:

• Child tax credits
• Working tax credits

Child tax credits are designed to help families with at least one child to pay for child care and/or any other necessities that the children may have. The amount you’re entitled to depends on a number of factors including the number of children you have, your income if you’re working and if you have to pay for childcare. Any family with children can apply for child tax credits and in most cases the credits are granted, providing your total income is less than £58,000 per year. Generally speaking, the lower your income is the more tax credits you receive.

Working tax credit is a way of boosting your income if you have a low wage job. This type of credit can be worth £1665 per year and to some it is a necessary lifeline. Again the amount you receive depends on your income and to some extent your outgoings however the majority of people with incomes of less than £15,000 qualify for the credits.

Both of these types of tax credits have to be applied for – you won’t automatically receive them. You need to fill in a claim form that can be ordered from the Tax Credit Office and post it back with the required details. Your claim has to be updated every year however you are reminded of this by letter. For more information on tax credits visit http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCreditsandChildBenefit/TaxCredits/index.htm

Unemployment Benefits

There are a number of benefits that unemployed people can claim in order to help them live and find a new job. These include:

• Income support
• Jobseeker’s Allowance

Income support is for people who can’t work full time for some reason e.g. they are a single parent or a registered carer. The income support payment depends on the individual’s circumstances and there are a lot of criteria to meet before a claim is approved. In general you can work up to 16 hours per week and still be eligible for the benefit however it is mostly for those who are unemployed and finding it hard to live.

Jobseekers allowance is the main benefit for unemployed people. To qualify you must be out of work or working less than 16 hours per week, able to work, actively looking for work and below the state pension age. If you do qualify, the benefit can pay up to £64.30 per week however you do have to show on a regular basis that you are actively looking for a new job.

In addition to these two, there are various other benefits available if you’re temporarily out of work and the payments are aimed at helping to pay the bills, rent, mortgage and other necessary items.

All of the benefits mentioned can be applied for at your local Job Centre Plus and the staff there will help with the claims. For more information on unemployment benefits visit http://www.direct.gov.uk