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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/
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/
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