Welfare Reform

In 2012 the welfare system underwent its biggest change in 60 years.

The new Welfare Reform Act introduced a wide range of reforms that make the benefits and tax credits systems fairer by:

• creating the right incentives to get more people into work by ensuring work always pays
• protecting the most vulnerable in our society
• delivering fairness to those claiming benefit and to the taxpayer
• simplifying the benefits system

Changes to the system:

Under Occupied Accommodation - affects tenants of Council houses and Housing Associations.
Council Tax Reduction - replaces Council Tax Benefit.
Scottish Welfare Fund - replaces the discretionary Social Fund provided by Job Centre plus.
Personal Independence Payment - replaces Disability Living Allowance for people aged 16 to 64.
Benefit Cap - a limit on the total amount of benefit that most people aged 16 to 64 can get.
Universal Credit - a new benefit that will replace 6 existing benefits, including Housing Benefit, with a monthly payment if you are out of work or on a low income. 
Effective from April 11 - affected tenants in the private rented sector
Effective from January 12 - affected single claimants aged under 35 years old in the private rented sector