Key benefit changes: 2011 and beyond

Man holding axe

From 2012

Tax Credits: These will stop once a claimant's income reaches £40,000.

Contribution-Based Employment and Support Allowance: Payouts will be limited to one year.

Jobseeker's Allowance: If jobseekers turn down a job offer for no good reason, fail to apply for a suitable post or refuse community work, they will lose benefits for three months. The second time, they'll lose benefits for six months, and the third time, for three years.

From 2013 

Benefits cap: The total a household can receive in benefits will be £500 a week for couples and lone parents, and around £350 for single people.

The Universal Credit system: This will bring together several benefits, including income support, housing benefit and tax credits. It will include a cap to average earnings.

Child benefit: This will be withdrawn from any household that includes a higher-rate taxpayer.

Council Tax Benefit: This will be run by local councils, which will have to implement 10% cuts.

Housing Benefit: This will only cover the size of property judged necessary for tenants in the social rented sector (such size restrictions already apply to private tenants).

Disability Living Allowance: A claimant will have to undergo an 'objective' medical assessment.

From 2015

Universal Pension: This will be a single flat-rate pension of £155 a week for all those who qualify. The government is currently consulting on the rate and qualifications.

Beyond...

Over the next two parliaments, the current system will be replaced with a 'universal credit', which integrates benefits and is designed to ensure that people will always be better off in work than on benefits.

Published: 11 August 2011
Last updated: 28 May 2017

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