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Benefit Changes from April 2016

Its coming up to April so thought I best recap some of the benefit changes that are due to take place from April 2016. Some may be subject to change or approval.

April 2016

  • Benefit and tax credit rates frozen for four years (does not apply to pensioner, carer and disability benefits)
  • Benefit cap lowered (postponed to Autumn 2016)
  • Tax Credits in year increase in income disregard cut from £5,000 to £2,500
  • Universal Credit Work Allowances removed for non-disabled claimants without children and reduced for claimants who have childcare responsibilities and/or a disability
  • Housing Benefit family premium abolished for new claims and new births from 1st May 2016
  • Housing Benefit backdating period reduced from six months to one month
  • Reducing length of time for claiming Housing Benefit during absence abroad
  • Mortgage Interest Help waiting period extended
  • New National Living Wage of £7.20 an hour for over 25 introduced
  • New State Pension introduced for people reaching pension age from 6 April. Entitlement to new pension will not allow claims for Savings Credit of Pension Credit.

Due to Come in 2017 …again could be changed but thought I would add to give some warning.

  • April 2017 Tax credits and Universal Credit will be limited to two children. Same changes made in Housing Benefit too.
  • Universal Credit will require parents, including lone parents to look for work once youngest child reaches the age of 3 if they want to claim Universal Credit.
  • Free childcare extended . Entitlement will be doubled from 15 hours to 30 hours  a week for working parents of 3 and 4 year olds from September 2017.