LIBF UNIT 3 TOPIC 2 - BENEFIT SYSTEM
QUIZ WITH VERIFIED ANSWERS [
GRADED A+]
National Insurance Contributions (NIC) - ✔️✔️Employers automatically
deduct NICs (and income tax) from employees' salaries, but self-
employed workers have to make arrangements to pay their own NICs.
Contributory Benefits - ✔️✔️Benefits paid to eligible claimants providing
they have paid the required number of National Insurance contributions
(NICs).
Non-contributory benefits - ✔️✔️Benefits paid to eligible claimants who
have either not paid enough NICs to claim contributory benefits or need a
©morren2025/2026.Year published 2026.
,'top-up' payment because the contributory benefits they receive do not
meet their income needs.
The principle behind contributory benefits - ✔️✔️is that the contributions
that each person
pays to give them the right to receive a set, flat-rate benefit when they need
it.
Means testing - ✔️✔️When benefits are income-related, claimants have to
undergo a 'means test' - ie a detailed examination
of their income - to which some people object, because they feel that it
pries into their private lives.
Jobseeker's Allowance (JSA) - ✔️✔️Benefit for those of working age who are
not working full-time, but who are able to work, available for work and
making every effort to find work.
©morren2025/2026.Year published 2026.
, Contributions-based JSA - ✔️✔️If you were employed (not self-employed) for
the two tax years (6 April - 5 April) before you claim and you paid NICs
throughout that period, you might be
entitled to claim this if you are out of work. You will get it, however, only if
you are:
◆ aged between 18 and retirement age;
◆ not a full-time student;
◆ work on average less than 16 hours a week;
◆ able to work and fully available for work;
◆ able to demonstrate that you are actively seeking work;
◆ willing and able to attend a JSA interview every two weeks (or when
asked) to show what you have been doing to find work.
Income-based JSA - ✔️✔️available to unemployed people who have not paid
the
required amount of NICs. The main differences between this and
contributions-
based JSA are that:
©morren2025/2026.Year published 2026.
QUIZ WITH VERIFIED ANSWERS [
GRADED A+]
National Insurance Contributions (NIC) - ✔️✔️Employers automatically
deduct NICs (and income tax) from employees' salaries, but self-
employed workers have to make arrangements to pay their own NICs.
Contributory Benefits - ✔️✔️Benefits paid to eligible claimants providing
they have paid the required number of National Insurance contributions
(NICs).
Non-contributory benefits - ✔️✔️Benefits paid to eligible claimants who
have either not paid enough NICs to claim contributory benefits or need a
©morren2025/2026.Year published 2026.
,'top-up' payment because the contributory benefits they receive do not
meet their income needs.
The principle behind contributory benefits - ✔️✔️is that the contributions
that each person
pays to give them the right to receive a set, flat-rate benefit when they need
it.
Means testing - ✔️✔️When benefits are income-related, claimants have to
undergo a 'means test' - ie a detailed examination
of their income - to which some people object, because they feel that it
pries into their private lives.
Jobseeker's Allowance (JSA) - ✔️✔️Benefit for those of working age who are
not working full-time, but who are able to work, available for work and
making every effort to find work.
©morren2025/2026.Year published 2026.
, Contributions-based JSA - ✔️✔️If you were employed (not self-employed) for
the two tax years (6 April - 5 April) before you claim and you paid NICs
throughout that period, you might be
entitled to claim this if you are out of work. You will get it, however, only if
you are:
◆ aged between 18 and retirement age;
◆ not a full-time student;
◆ work on average less than 16 hours a week;
◆ able to work and fully available for work;
◆ able to demonstrate that you are actively seeking work;
◆ willing and able to attend a JSA interview every two weeks (or when
asked) to show what you have been doing to find work.
Income-based JSA - ✔️✔️available to unemployed people who have not paid
the
required amount of NICs. The main differences between this and
contributions-
based JSA are that:
©morren2025/2026.Year published 2026.
