Benefits Changes

Benefits changes Timetable

The coalition Government intends to make many changes to the tax and benefits system over the coming years, this page will keep you updated on the timetable for changes.

October 2010
Incapacity benefit. A pilot trial is taking place in the North of England (and Scotland) to transfer all people from incapacity benefit to Employment Support Allowance (ESA).

The full programme of transfering everyone accross the country will begin March 2011 and end March 2014. Some people will not be transferred to ESA because they will not pass the work capability assessment so they will not get a work/incapacity related benefit.

Mortgage interest payments. Also from October the Government is reducing the mortgage interest support to the Bank of England average (much lower)

January 2011
VAT goes up to 20%

March 2011

Transfer to Employment and Support Allowance (see above).

April 2011
Higher rate mobility component of DLA will be payable to people with a severe visual impairment.

Weeekly Rent Allowance for people on benefit will be capped:

£250 for a 1 bed property
£290 for a 2 bed property
£340 for a 3 bed property
£400 for a 4 bed property

Yearly Uprating of State Retirement Pension —	Uprated by a “triple guarantee” of earnings, prices or 2.5 per cent, whichever is highest, from April 2011.
Yearly Uprating of most benefits —	Rises by consumer price index instead of retail price index from April 2011.
National insurance contribution conditions for JSA(C) and ESA(C)—	A change in the first contribution so that the claimant needs to have actually paid, or being treated as having paid, at least 26 weeks of Class 1 contributions on relevant earnings at the year’s lower earnings limit in one of the two tax years prior to the claim(£97 2010/ 2011).
Permitted Work Higher Limit/ Supported Permitted Work increase—	Earnings increase from £93 to £95 from 1/10/10. Also applies to DLA board members and councillors.
Work Choice starts—	Replaces Workstep, Work Preparation and the Job Introduction Scheme from 25/10/2010.
Lone Parents and Income Support—	The youngest child must be aged under 7 for new lone parent claims for income support from 7/10/2010.
Housing Costs Interest Rate Large Reduction—	Instead of 6.08%, Bank of England Average rate used to set housing costs interest rate. 3.63% from 1/10/2010.
Sick Notes—	Sick notes replaced by fit for work notes from 6/4/2010.
Retirement Age for Men and Women—	Phased increase in retirement age for men and women from age 65 to age 66 during the period November 2018 – 6/4/2020.
Retirement Age for Women—	Phased increase in retirement age for women from age 60 to age 63 during the period 6/4/2010 – 6/4/2016. Then a phased increase from age 63 to age 65 during the period 6/4/2016 – November 2018. Affects those born after born after 6/4/50.