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CLAIMING BENEFITS

What would you do if someone offered you free money? You'd take it, right? Well, there is government cash waiting to be claimed. FarmLife asks RABI about the benefits for which rural people may be eligible

You've got absolutely nothing to lose and everything to gain," is what the Royal Agricultural Benevolent Institution's Head of Welfare Trish Pickford always says to people who ask whether they should apply for state benefits.

"The money can make a huge amount of difference. We are talking thousands of pounds a year in many cases.

"Even if you think there is only a slight chance of being eligible, it is well worth trying. They can only say No, after all.

"People always think it will be bureaucratic, but things have changed in the past few years. Don't be nervous of applying or fearful of the paperwork. The system is a lot simpler than it used to be.

"Pride is sometimes an obstacle. Farmers may feel, for example, that claiming pension credits is a sign of failure, that they have worked hard all their life and haven't managed to save. But if you have always worked, that is all the more reason to claim it, because that is what you've been paying tax for!

"Once people get these benefits, they are absolutely delighted, and the money can make a real difference to their lives in these challenging times."

Introduced in 2003, this aims to "make work pay" by topping up the pay of low-paid workers.

It is available to anyone on a low income, subject to certain conditions, whether they are employed or self-employed.

Trish says people often assume they are not eligible when in fact they are. "You could, for example, be earning more than £15,000 and still qualify."

The basic element paid to everyone who is entitled is £1665 in the 2006/07 tax year with additional elements available.

For further information telephone the helpline 0845 300 3900.

Child Tax Credit is paid to families with kids regardless of whether the parents work. To qualify, you have to have at least one child under 16 (or under 19 and in full-time non-advanced education, eg "A" Level).

All families with children can claim Child Tax Credit if their income is no more than £58,000 a year (£66,000 if you have a child under one). The amount you get depends on various things, including your annual income.

The payment is made up of two main elements:

* A family element paid to any family with at least one child and worth up to £545 (2006/07 tax year). All families with incomes of less than £50,000 a year will get at least this (it is doubled in the year the child is born).

* A child element paid for each child in the family and worth up to £1765 (2006/07 tax year) per child. The "child element" is gradually withdrawn from families with higher incomes, but as the overall amount depends on the number of children, a family with four children could get some CTC, even with an annual income of £30,000-plus. Ring the helpline 0845 300 3900.

This is help towards your council tax, whether you rent, own your home or live rent-free. It is paid by local councils as a rebate on your bill. You could still qualify even if you already get a discount; for example if you live alone.

Eligibility depends on income and savings. It could be up to the full amount, although if you are working, will normally only be partially paid.

"If you are really struggling, you may be pleasantly surprised about this," says Trish. "It could be hundreds of pounds a year."

Contact your local council office.

You might be able to get this if you are renting a house whether you are working or not (it is sometimes called rent rebate or rent allowance). It works on a sliding scale according to income and savings, for some people, the entire rent is paid.

"When people come to us for help, this is one of the first things we will look at," says Trish. "It could make a huge difference."

Contact your local council office.

Anyone over 60 is potentially eligible for this, whether they are working or retired. It aims to top up people's income, ensuring everyone has at least £114.05 a week if you are single, or £174.05 a week if you have a partner (for 2006/07).

The government reckons up to a third of people who could be eligible are not taking advantage of this and, as a lot of farmers over the age of 60 are living on almost nothing, many could claim it, reckons Trish. "If you are finding it difficult to manage, you should certainly apply," she urges. "The system is a lot more generous than it used to be, so don't assume you won't get it."

Your income, savings and any private pensions will be taken into account, but business assets (eg, land) will not.

Similarly, certain allowances - and payments from family members -- are not factored into the calculations. "If you are living with your family, you may still qualify, as the government looks at your income not theirs."

Payments can be backdated, so you might end up getting a lump sum. It is also well worth applying, because even if only a small amount this may then mean you are entitled to other benefits such as Housing Benefit and Council Tax Benefit. Call 0800 991 234 for the Pension Credit Helpline.

Neither of these is means-tested, so millionaires could still be eligible.

AA is applicable if you are over 65 and need care or help (whether or not you are actually having it) because you are physically or mentally disabled. There are two rates, depending on the amount and type of care you need, with the higher rate £62 a week for 2006/07.

AA can be claimed if you live alone, or if a couple living together both qualify, they can both claim it.

If you are under 65 and have a physical or mental disability, you may be entitled to DLA. This is aimed at those who need help with personal care or have difficulty walking. It is split into a care and mobility component, but could be up to £105.70 a week for 2006/07.

Call 0800 882 200 or 0800 441 144 for AA or DLA inquiries, respectively. (0800 220 674 if in NI.)

RABI provides welfare advice, care and financial help to those in need in the agricultural community in England, Wales and Northern Ireland. In addition to staff at its Oxford headquarters, it has a country-wide network of 12 part-time Regional Welfare Officers. The charity provides emergency grants to people, but most of the £1.36m donated last year goes to long-term beneficiaries who are retired or disabled. RABI's confidential helpline number is 01865 727 888 (office hours and 24-hour answerphone).

A farmer's widow who only has a retirement pension and small share dividends applied for a pension credit and it was applied at £27.30 a week. This entitled her to full housing benefit to pay her rent and full Council Tax Benefit. The awards were backdated, so she also received a lump sum of £2700.

* These are a selection of quotes from people whom RABI helped claim the benefits outlined in this feature.

"All this will make a big difference to our lives. I would like to take this opportunity to say how courteous, kind and friendly every one of your staff has been. They have been unstinting with their advice and help, particularly in dealing with our applications for state benefits. The past few months have been long and difficult, and something given as generously and discreetly as this has done wonders for my spirit."

"My husband died six years ago and during that time I have found things very hard at times. The RABI came along and went through all my money problems. It was wonderful how they sorted me out, going through every detail, but always with discretion."

"We have been struggling to make ends meet on our farm for some time and my wife is severely disabled. We really needed help, but it was a long time before I plucked up the courage to ring the RABI helpline. The lady who came out to see us helped us apply for Council Tax Benefit and Working Tax Credit and we are now almost £100 better off each week, which has made a huge difference. We cannot thank you enough."

"I just had to write to you to express my gratitude and delight at being awarded Pension Credit and Council Tax Benefit, together with backdated lump sums of £700 and £2000, respectively. Thank you so much to RABI for helping me apply."

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Edited by Tim Relf, 020 8652 4928