Bedroom Tax

WELFARE REFORM 2013 2017

Universal credit is new benefit that is being introduced in stages between 2013 -2017 across the UK.

UNIVERSAL CREDIT AS AN INTRODUCTION

It will eventually replace benefits including housing. It is a new single benefit that will replace working tax credit, child tax credit, housing benefits, income support, jobseeker allowance, employment and support allowance, child benefit and care allowance. It will apply to working-age households, whether or not you are in work, and will provide a basic allowance with extra money for people with children, disabilities, care responsibilities, and housing costs.

To encourage people into work, as earnings rise UC will be withdrawn more gradually than the current benefits it is replacing. UC will be introduced for new claimants from October 2013 and will be phased in for existing claimants up to October 2017.

Benefit cap

From April 2013 the overall amount of benefit that residents will be capped. The maximum amount of benefit residents will be able to receive will be £500 per week for single parent or couples with without children.  A single person with no children can receive a maximum £350 per week. This will not apply to people who receive pension credit or working tax credit or if a members of the household is claiming disability living allowance, attendance allowance or support of employment allowance. Benefits payment is currently paid every fortnightly or sometimes every  week. Under universal credit payment

Size Criteria

The number of bedrooms a household can receive housing benefit for will change from April 2013. Housing benefit payment will be reduced by 14% residents are considered to have one bedroom more than their household needs and 25 % if they will two bedrooms more.

Other changes

The Government is also making changes to the Disability Living Allowance, Council Tax Benefit and Child Benefit.

How will you be affected by these changes?

If you are under pension credit age and are in receipt of Housing Benefit, you will be transferred onto Universal Credit.