What is changing with benefits?
Council Tax Benefit
From 31 March 2013, Council Tax Benefit is being abolished. From 1 April 2013, each local authority will have its own scheme, so how much you are entitled to will depend on which district you live in.
To find out more, contact your district council.
Housing Benefit for council tenants and Housing Association tenants
From 1 April 2013, Housing Benefit will be cut for working age people who live in council accommodation or housing association property if there is a spare bedroom in the property.
If you have one spare bedroom, your maximum Housing Benefit will be reduced by 14%.
If you have two or more spare bedrooms, your maximum Housing Benefit will be reduced by 25%.
You are entitled to one bedroom for each of the following:
- A couple
- An adult (over 16) who is not part of a couple
- Two children of the same sex both under 16
- Two children of either sex both under 10
- Any other child
For example, a couple with two children aged 5 and 7 are entitled to 2 bedrooms. If their rent is £100 per week and their property has 3 bedrooms, the maximum they could get in Housing Benefit will be £86 per week.
Benefit cap
At a date yet to be confirmed during 2013, there will be a cap introduced for working age people who receive more than these figures:
- £500 per week for couples and lone parents
- £350 per week for single adults
This will be calculated by adding up how much you receive from:
- Bereavement Allowance
- Carer’s Allowance
- Child Benefit
- Child Tax Credit
- Employment and Support Allowance
- Guardian’s Allowance
- Housing Benefit
- Incapacity Benefit
- Income Support
- Jobseeker’s Allowance
- Maternity Allowance Severe Disablement Allowance
- Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widow’s Pension)
If the total from these benefits comes to more than the figure above, your Housing Benefit will be reduced by the difference.
For example, if your total income is £390 per week and you are a single adult, your Housing Benefit will be reduced by £40 per week.
You will not be affected by this cap if you are entitled to:
- Working Tax Credit
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Industrial Injuries Benefits (or their equivalent as part of a war pension)
- Employment and Support Allowance – Support component
- War Widow’s or War Widower’s Pension
You may be able to get some additional help if you are affected by this cap. Contact your district council to find out more.
Universal Credit
From October 2013, a new benefit called Universal Credit will begin to be awarded. It will replace the following benefits:
- Jobseeker’s Allowance (income based)
- Employment and Support Allowance (income related)
- Income Support
- Child Tax Credit
- Working Tax Credit
- Housing Benefit
Eventually, people who receive these benefits will be transferred to Universal Credit. At the moment, the details are not finalised.
Disability Living Allowance abolished
From 2013, Disability Living Allowance will be abolished for working age people. It will be replaced by a new benefit called Personal Independence Payments.
The main conditions are the same, but most people will be subject to regular reviews.
DLA is not being changed for children.