Benefit changes timetable

 

Index

You can read through this information sheet, or go directly to the sections you want to read by clicking on these links:

Benefit Changes 2013

• January 2013
• April 2013
• June 2013
• October 2013

Benefit Changes 2014

• March 2014
• April 2014
• October 2014

Benefit Changes 2015

Benefit Changes 2016

Benefit changes 2013

January 2013

Child Benefit

From 7 January 2013, a new income tax charge was introduced. It is payable if you have an individual income of over £50,000 and you or your partner get Child Benefit. 

The amount of the charge will depend on how much over £50,000 your income is.

• If your income is between £50,000 and £60,000, the charge applied to your income tax will be 1% of your Child Benefit for every £100 of income between £50,000 and £60,000. The income tax charge will never be more than the amount of Child Benefit you receive.
• If your income is over £60,000 the charge will be equal to the full amount of your Child Benefit so you are no better off for receiving the benefit.

The amount of Child Benefit you can claim and receive is not affected. It can still be paid to you or your partner even if one of you will then be liable for the income tax charge.

You can decide not to receive Child Benefit if you or your partner do not wish to pay the new charge. You will remain entitled to Child Benefit, even if you choose not to have it paid. This is in order to protect your entitlement to national insurance credits, which will count towards your State Retirement Pension entitlement. 

You can change your mind at any time, but the person who has an income above £50,000 will become liable for a charge when Child Benefit becomes payable again. 

This new charge will affect single income and two income families differently:

• If you are in a single income family where one person has earnings over £50,000 you will have to pay the new income tax charge if you get Child Benefit
• If you are in a couple where both of you earn up to £50,000 (potential joint income of £100,000) you will not be affected 

For more information, see the HM Revenue and Customs information on the Child Benefit income tax charge (link opens in a new window)

The Guardian has also published a useful guide to Child Benefit changes and what they mean (link opens in a new window).

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April 2013

Appeals process

The Department for Work and Pensions (DWP) is revising its appeals process for the benefits it administers. The aim is to make sure more appeals against DWP decisions are resolved without being referred to Her Majesty’s Courts and Tribunals Service (HMCTS).

The changes were introduced in April 2013 for Universal Credit and Personal Independence Payment cases and from October 2013 all other DWP administered benefits will use the new appeals process.

See October 2013 Appeals process changes for full details

Benefit cap

The Government has introduced a cap on the amount of benefits a working-age household can receive, capped at the level of the average earnings of a working family.

This is being trialled in four London boroughs - Bromley, Croydon, Enfield and Haringey - with national roll out over the summer of 2013.

See our Benefit Cap information sheet for further details

Benefits and tax credit rates

Most benefit rates will only be uprated by one per cent each April until 2015, as announced by George Osborne, the Chancellor, in his Autumn Statement 2012.

See the list of benefits rates for 2013-2014 published on the Parliament UK website (link opens in a new window PDF file size 92.43kb)

See Tax and tax credit rates/thresholds for 2013-2014 on the HM Revenue and Customs website (link opens in a new window PDF file size 100.73kb)

Council Tax Benefit

Council Tax Benefit has been replaced by localised Council Tax Support. Local authorities have set up new schemes to support people in their own areas within a 10% reduced budget. This only affects people of working-age who currently receive Council Tax Benefit.

Disability Living Allowance (DLA) and Personal Independence Payment

DLA has started to be replaced with a new benefit called Personal Independence Payment (PIP) for people aged 16-64.

This involves the introduction of ‘objective assessments’ to decide eligibility. The stated intention is to target support on those most in need through this new benefit. The government is hoping for a 20% reduction in expenditure by 2017 by bringing in this process.

The first stage of PIP started in April with people who live in the north-east and north-west of England who are claiming for the first time. This is the area covered by Bootle Disability Benefits Centre (link opens in a new window).

If you do not live in one of these areas you will still be able to claim DLA until June 2013.

See the Turn2us Personal Independence Payment (PIP) information sheet

Housing Benefit (HB)

Bedroom size criteria

• In England, Wales and Scotland size criteria will apply in the social rented sector (e.g. council and housing association properties) replicating the size criteria that applies to Housing Benefit claimants in the private rented sector under the Local Housing Allowance rules. This means that people living in houses larger than they need (under-occupiers) will have to move to somewhere smaller or make up the difference in rent because their Housing Benefit will be reduced. There will be:
  • A 14% cut in the eligible rent used to calculate your Housing Benefit if you under-occupy by one bedroom
  • A 25% cut in the eligible rent used to calculate your Housing Benefit if you under-occupy by two or more bedrooms
  See Turn2us Housing Benefit information sheet for more details. 
• In Northern Ireland, bedroom size criteria remains subject to approval by the Northern Ireland Assembly and the Northern Ireland Executive. Until then, current arrangements will remain in place. See NI Direct website for more information on potential changes to Housing Benefit from 2013

Local Housing Allowance rates

• LHA rates will be increased in line with the Consumer Price Index instead of the market rents in each area. The connection with actual rents will be lost.

Social Fund

• Crisis Loans when waiting for benefit claims to be processed will be replaced by Short Term Benefit Advances
• Budgeting Advances will be introduced for Universal Credit claimants
• Crisis Loans for other reasons and Community Care Grants are to be abolished. A budget will be passed to Local Authorities in England and the devolved governments in Northern Ireland, Scotland and Wales to set up their own local welfare provision schemes.

Tax Credits

Any rise in income of £5,000 or more during the award year will be taken into account when finalising your Tax Credit award. Previously only income rises of £10,000 or more were taken into account.

Universal Credit

The current complex system of working-age benefits and Tax Credits is to be replaced by a new benefit called Universal Credit. From April 2013, the Department for Work and Pensions, working with HM Revenue and Customs and selected local councils, will launch its Pathfinder project to introduce Universal Credit to claimants within certain areas of the North-West of England.

This “pathfinder” stage aims to ensure that Universal Credit is ready to go live across the rest of Great Britain later in 2013 and Northern Ireland in 2014.

See our Universal Credit information section

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June 2013

Personal Independence Payment

All new claimants aged 16-64 will have to claim  Personal Independence Payment (PIP) instead of Disability Living Allowance from the 10th June.

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October 2013

Appeals process changes

The Department for Work and Pensions (DWP) is revising its appeals process to make sure more appeals are resolved without being referred to Her Majesty’s Courts and Tribunals Service (HMCTS). The following changes will be introduced:

Mandatory reconsideration

If you receive a decision from DWP that you don't think is right, you will have to ask for a ‘mandatory reconsideration’ before being allowed to appeal. The aim is to resolve more disputes at an earlier stage and help ensure that people receive their correct entitlement earlier. If you want to appeal after the mandatory reconsideration you will need to send your appeal directly to HMCTS instead of DWP.

Time limits

The introduction of the changes is an opportunity to introduce time-limiting on appeals responses. DWP is currently in discussions with the Tribunal Procedure Committee as to what these limits
might be.

Universal Credit

The current complex system of working-age benefits and Tax Credits is to be replaced by a new benefit called Universal Credit. From October 2013 those making a new benefit claim for one of the six benefits affected will claim Universal Credit instead. In Northern Ireland this won't happen until April 2014.

See our the Turn2us Universal Credit information sheet

Personal Independence Payment

From October 2013 some people receiving DLA will have to claim PIP instead. This will apply to you if:

• your existing award of DLA expires: or
• you become 16 years old: or
• your care needs or mobility needs change and you apply for a reassessment of your DLA. 

See our Personal Independence Payment (PIP) information sheet

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Benefits changes 2014

March 2014

Incapacity benefits

The transfer of existing claimants on incapacity benefits (i.e. Incapacity Benefit, Severe Disablement Allowance and Income Support on disability grounds) to Employment and Support Allowance should be completed by the end of March 2014.

See the Turn2us Incapacity Benefit changes information sheet

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April 2014

Universal Credit

Universal Credit to be introduced in Northern Ireland.

The Northern Ireland Social Security Minister, Nelson McCausland, and the Minister for Welfare Reform, Lord Freud, have agreed changes about the way Universal Credit is paid in Northern Ireland to protect the most vulnerable and reflect Northern Ireland's unique circumstances.

The changes agreed are:

• Housing cost element of Universal Credit paid direct to landlords
• Payment of Universal Credit may be split between two people in the household
• Payment of Universal Credit may be payable twice each month.

See the Turn2us news item on Northern Ireland and Universal Credit (23 October 2012)  

See the Turn2us Universal Credit section

October 2014

Pension Credit, Housing Credit

Universal Credit is replacing Housing Benefit so if you are over Pension Credit age you will get help with your rent through a new element of Pension Credit called Housing Credit instead.

If you are currently claiming Housing Benefit and are over Pension Credit age you will be moved onto Pension Credit, including Housing Credit, between October 2014 and October 2017.

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Benefit changes 2015

Date to be confirmed

Independent Living Fund

The Independent Living Fund (ILF) - which provides money to help people with disabilities live an independent life in the community - is to close in 2015.

Funding will be incorporated into local social care arrangements - through local councils in England and the devolved governments in Scotland and Wales.

People who already have ILF care packages will have to transfer to new local arrangements.

See the Independent Living Fund website for more information

October 2015

Personal Independence Payment

Claimants aged 16-64 still receiving Disability Living Allowance (DLA) will start to be contacted to claim Personal Independence Payment instead.

See the Turn2us Personal Independence Payment (PIP) information sheet

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Benefit changes 2016

April 2016

State Pension Age

Proposed Change: Plans to bring women’s pension age in line with men’s will be sped up from April 2016 so that women’s pension age reaches 65 in November 2018.

Pension age for men and women will then increase to 66 from December 2018 to April 2020.

Update: The Pensions Bill has been amended after concerns that some women would have to wait for up to an extra two years to collect their pensions. The proposed rise in the state pension age to 66 by 2020 is to be delayed by six months, from April 2020 to October 2020 capping the increase at a maximum of 18 months.

See the Turn2us State Pension age changes information sheet.

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Benefit changes 2016

April 2017

Single Tier Pension

Legislation to bring about this change has not yet been introduced. The Government doesn't intend to bring this in until April 2017 at the earliest.

The single tier pension will be a flat rate without the additions and complexities of the current system, and without the right to inherit or get rights to a pension on the basis of your spouse or civil partner's contributions.

The rate will be more than the basic means-tested support currently available, the guarantee part of Pension Credit, which is £145.40 per week for a single pensioner and £222.05 for a couple.

To qualify for the full single tier pension you will need 35 qualifying years of National Insurance contributions (NICs) or credits. If you don't qualify for the full pension you can get a smaller amount based on how many qualifying years you have. However, you will need a minimum of between seven and ten years.

If you qualify for the single tier pension you will not be able to get the savings credit part of Pension Credit.

If you are already over State Pension age when this is introduced you will continue to receive your State Retirement Pension under the current system and can continue to get the savings credit part of Pension Credit if you are entitled to it.

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Last updated: 13 May 2013