Reforms to the welfare system begin

Department for Work & Pensions press release on 28 March

April heralds a number of changes to the benefits system as part of the Government’s welfare reforms.

These changes will make work pay, improve support for disabled people, and help ensure the benefit system is financially sustainable in the future, whilst still supporting those who need it.

The changes are:

• April 1 – Removal of the Spare Room Subsidy: Working-age tenants in the social sector will receive Housing Benefit for the number of bedrooms their household needs, bringing the rules in line with the private sector. Housing Benefit will no longer pay for spare bedrooms.
• April 1 – Crisis loans and community grants replaced by local provision: The full funding for this will be given to local authorities or devolved governments, who are best placed to ensure this money goes to those who need it the most.
• April 8 – Personal Independence Payment introduced: New claims for PIP will start with the Bootle benefit centre. Bootle will handle the claims from areas including Merseyside, North West England, Cumbria, Cheshire and North-East England. PIP replaces Disability Living Allowance for working-age claimants.
• April 8 – Benefit Uprating: The State Pension will increase by 2.5% because of the triple lock. Working-age benefits and tax credits will be uprated by 1 per cent. Disability benefits will continue to be uprated in line with inflation.
• April 15 – Benefit cap: Households on out-of-work benefits will no longer receive more than the average weekly wage after tax and National Insurance. To begin with, this rolls out in four London boroughs, and then nationally in the summer. Those on Disability Living Allowance and Working Tax Credits will be exempted.
• End of April – Universal Credit rolls out in pathfinder areas: Some new claimants will receive Universal Credit, which is replacing the six main out-of-work benefits to simplify the benefits system and make work pay.

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