The benefits system is changing. This section gives you information about recent changes and changes that are coming soon, including:
You'll also find information about future changes to benefits, including:
- plans to replace many means-tested benefits with a Universal Credit
- plans to replace Disability Living Allowance with a Personal Independence Payment
See Changes planned for 2012, below, for more information.
Changes to the benefits system in 2011
Many benefits increase in amount each year to account for rises in living costs. The increase happens in early April because this is the start of the new financial year. In 2011, benefit rate increases took effect from the week beginning April 11. There were also changes to the rules of some benefits. The main changes are outlined below.
Disability Living Allowance
Disability Living Allowance (DLA) is a benefit to help people with the extra costs of disability or long-term illness. It has two parts: the care component, for people who need help with personal care or supervision, and the mobility component, for people who have difficulty getting around outdoors.
Since April 11 2011, some people with severe visual impairment are eligible for the higher rate of the mobility component of DLA. Find out how to claim DLA.
Getting the higher rate of DLA mobility component can mean that you’re eligible for other help, including the Blue Badge and Motability schemes.
Employment and Support Allowance
Until 2008, Incapacity Benefit and Income Support due to incapacity were the two main benefits for people whose ability to work was limited because of illness or disability. They have now been replaced by Employment and Support Allowance (ESA). People claiming Incapacity Benefit and Income Support due to incapacity are being reassessed to see if they qualify for ESA. If they’re not eligible for ESA, they’ll need to claim another benefit, such as Jobseeker’s Allowance, or challenge the decision.
People claiming Incapacity Benefit or Income Support due to incapacity who are due to reach state pension age before March 2014 won’t need to be reassessed. They’ll be able to continue claiming as long as they’re eligible.
Winter Fuel Payment
Winter Fuel Payment is an annual payment made to people who have reached the qualifying age. In 2008/09, Winter Fuel Payment amounts were increased, and they continued to be paid at the higher level until 2010/11. In 2011/12, the amounts will be reduced to the level at which they were paid before 2008/09.
Tax credits
Most people need to work at least 30 hours a week to be eligible for Working Tax Credit, but some groups of people can qualify if they work 16 hours a week or more. This includes people who are responsible for a child, and some disabled people. From April 2011, people aged 60 or over will only need to work 16 hours a week to qualify for working tax credit.
If you pay for childcare, Working Tax Credit can include an element to help with the cost of this. Previously, this element could cover up to 80% of your childcare costs. From April 2011, the maximum is 70%.
You’ll only get tax credits if your income is below a certain level. For more details, see How much tax credit?
If your income increases, this can affect your eligibility for tax credits. Previously, your tax credit award was not affected unless your income increased by £25,000 or more. Since m April 2011, any increase in your income of £10,000 or more will affect your claim.
The income threshold for Child Tax Credit was reduced from April 2011, so higher earners are now less likely to qualify.
Before April 2011, there was an extra amount of Child Tax Credit for people with a baby under the age of one. This extra amount will no longer be paid. However, the "child element", which is added for each child you’re responsible for, has been increased by £150 above the rate of inflation.
Housing Benefit
If you’re renting in the private sector and your tenancy started after April 7 2008, the maximum amount of Housing Benefit you can get is decided under a scheme called Local Housing Allowance (LHA). From April 2011, disabled people who need a carer to stay overnight may be able to claim for an extra bedroom for their carer to stay in. The carer must not normally live with them and the extra room must already be available in the claimant’s home for the carer to use. The maximum rate of LHA you can get is now for a four-bedroom property. There’s also a national cap on the maximum weekly amount of LHA that you can get for each property size.
Sure Start Maternity Grant
From April 11 2011, you can only get a Sure Start Maternity Grant for your first child. You also need to meet other criteria to qualify.
Income Support
Currently, lone parents can claim Income Support if they have a child under the age of seven. From October 2011, lone parents will only be able to claim Income Support if they have a child under the age of five, or if they qualify for another reason, for example because they’re a carer. For details, see About Income Support.
