• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.

Benefit Changes Timetable 2016

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Benefit Changes Timetable 2016

    Benefit Changes Timetable 2016

    Please note that information about some of these changes may be limited at present and also subject to further change. Although some will happen quickly, others may be introduced gradually over several years.
    If you are worried about how you may be affected you should discuss this with a benefits adviser. You can use our Find an Adviser tool to find one in your area.

    2016

    During 2016

    Universal Credit (UC) - Roll out

    Current plans will see new claims to existing benefits being replaced by UC during 2016. This will mean that all new benefit claimants across the country will claimUniversal Credit instead of the benefits it replaces. Progress on these plans is still slow at present as not all areas are yet under the UC system.

    Roll-out to the full UC digital service will also gradually take place which will allow new claims from all claimant types. The government expect this process to be completed in mid June 2018.
    The Government currently believes that existing benefit claimants will be moved over to the full UC service from 2018 and the process will be completed by 2021.

    February 2016

    Tax Credits Digital Update Service

    HMRC have launched a new digital service for tax credits customers that allows them to check their next tax credits payment details online. The service can be accessed at www.gov.uk/managetaxcredits.
    HMRC will continue to update the service over the coming months to allow customers to report changes in their circumstances online instead of having to phone in. Future release date to be confirmed.
    April 2016 Changes

    State Pension Age

    Proposed Change: Plans to bring women’s pension age in line with men’s will be sped up from April 2016 so that women’s pension age reaches 65 in November 2018.
    Pension age for men and women will then increase to 66 from December 2018 to April 2020.
    Update: The Pensions Bill has been amended after concerns that some women would have to wait for up to an extra two years to collect their pensions. The proposed rise in the state pension age to 66 by 2020 is to be delayed by six months, from April 2020 to October 2020 capping the increase at a maximum of 18 months.
    The Government has also proposed raising the State Pension age from 66 to 67 gradually between 2026 and 2028.
    See the Turn2us State Pension age changes information.
    Single Tier Pension

    The Government is introducing a flat rate (single tier) State Pension for people who reach state pension age from 6 April 2016.
    The single tier pension will be a flat rate without the additions and complexities of the current system, and without the right to inherit or get rights to a pension on the basis of your spouse or civil partner's contributions.
    The rate will be £155.60 per week which is more than the basic means-tested support currently available (the guarantee part of Pension Credit) which is £151.20 per week for a single pensioner and £230.85 for a couple.
    To qualify for the full single tier pension you will need 35 qualifying years ofNational Insurance contributions (NICs) or credits. If you don't qualify for the full pension you can get a smaller amount based on how many qualifying years you have. However, you will need a minimum of between seven and ten years.
    If you qualify for the single tier pension you will not be able to get the savings credit part of Pension Credit.
    If you are already over State Pension age when this is introduced you will continue to receive your State Retirement Pension under the current system and can continue to get the savings credit part of Pension Credit if you are entitled to it.
    As part of a campaign to raise awareness of the single-tier state pension, the DWP says that a statement service will provide people with a personalised written estimate of what they can expect to receive under the new system based on their national insurance contributions and work history to date.
    The statement service will initially be available to the approximately 2.5m people who reach state pension age in the first five years of the new scheme (April 2016 and August 2021).
    For more information, see the Age UK information on What the new pension reforms mean for you
    Universal Credit - Childcare element

    An additional £200m of support will be provided within Universal Credit, which is equivalent to covering 85% of childcare costs for households qualifying for theUniversal Credit childcare element where the lone parent or both earners in a couple pay income tax.
    This is planned to be phased in from April 2016 as childcare support moves from tax credits into Universal Credit. Details will be set out in future spending reviews.
    Freeze on Working-age benefits

    From April 2016 government plan to introduce a four-year freeze to working age benefits whilst still protecting pensioners, and benefits related to the extra costs of disability. See Summer Budget 2015 page
    New National Living Wage

    From April 2016 New National Living Wage will be introduced- starting at £7.20 an hour for workers aged 25 and above. Rising to £9.00 an hour by 2020. See Summer Budget 2015 page
    Cut to in-work Tax Credits

    From April 2016, the income threshold limit - the level of earnings at which a household’s tax credits and Universal Credit award starts to be withdrawn for every extra pound earned will be reduced from £6,420 to £3,850. See Summer Budget 2015 page

    Tax credit taper – The rate at which a person’s or household’s tax credit award is reduced will be increased from 41% to 48% . See Summer Budget 2015 page
    Update - U-turn on cut to in-work Tax Credits:

    On 25th November 2015 the Chancellor in the combined Autumn Statement and Spending Review announced that the tax credit income threshold and taper rate changes described above would in fact not go ahead. The u-turn was in response to strong public opposition and a House of Lords vote in October 2015 suggesting that the tax credit changes should be delayed and transitional protection considered for those affected.
    From April 2016 the tax credit income threshold will remain at £6,420 and the taper rate will also remain at 41% of gross income.
    Universal Credit Work Allowances

    Universal Credit work allowances will be reduced to £4,764 for those without housing costs, £2,304 for those with housing costs, and removed altogether for non-disabled claimants without children. See Summer Budget 2015 page
    Reduction in Social Sector Rents

    The government will reduce rents paid by tenants in social housing in England by 1% a year for 4 years from 2016.
    Freeze to Local Housing Allowance

    There will be a four-year freeze to Local Housing Allowance rates for 4 years from 2016-17 to 2019-20.
    Removing Housing Benefit Family Premium

    Housing Benefit family premium will be withdrawn for new claims from April 2016.See Summer Budget 2015 page .
    Limiting backdating in Housing Benefit

    From April 2016, Housing Benefit claims will be backdated for a maximum of 4 weeks.
    Support for Mortgage Interest(SMI) Waiting Period Increased

    From 1 April 2016, the SMI waiting period will change from 13 weeks and will return to the pre-recession length of 39 weeks, but the capital limit will be maintained at the higher level of £200,000.
    Removal of Pension Credit Assessed Income Period

    From 6 April 2016 households on Pension Credit will now need to report all changes in their circumstances that will affect their benefit as they happen. Pensioners aged 75 and over who have an indefinite assessed income period in place will not be affected by the change unless the assessed income period would end under current rules. For more information see GOV.UK Pension Credit factsheet

    Autumn 2016


    Benefit Cap

    The government in the 2015 summer budget put forwarded proposed plans to reduce the Benefit Cap for families to £23,000 in London (£15,410 single claimants) and £20,000 elsewhere (£13,400 single claimants).
    To give households some time to prepare for the new cap it is now planned to come in from Autumn 2016 .

    https://www.turn2us.org.uk/Benefit-guides/Benefit-Changes/Benefit-Changes-Timetable-2016

    Entitledto another benefit calcultor http://www.entitledto.co.uk/
    Tags: None

  • #2
    Re: Benefit Changes Timetable 2016

    (Proposed) full list of benefit and pension rates 2016/17

    https://www.gov.uk/government/upload...16_to_2017.pdf

    Comment

    View our Terms and Conditions

    LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

    If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


    If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.
    Working...
    X