On 16 February 2011 the Welfare Reform Bill was introduced to Parliament. The Bill legislates for the biggest change to the welfare system for over 60 years.
The main elements of the Bill are:
- The introduction of Universal Credit to provide a single benefit payment to replace most welfare benefits and tax credits. This payment will be made monthly in arrears and will also include Housing Benefit.
- Reforms to Disability Living Allowance, through the introduction of the Personal Independence Payment.
- Reduction in Housing Benefit for working-age tenants that are under-occupying their homes.
Full information on Welfare Reform can be found on the DWP Welfare Reform website here
Employment and Support Allowance
If you are currently in receipt of contribution based Employment and Support Allowance, you will shortly be receiving a letter from the JobCentre Plus advising you of possible changes taking place in March 2012 due to the welfare reform. Click here to view the letter.
The proposed changes will mean you can only claim contribution based ESA for 12 months. If you have been receiving ESA for 12 months or more when the change occurs,, you will no longer be eligible, and your benefit will stop.
If you receive this letter, and would like some advice or support in what the changes mean to you, please contact our Financial Inclusion Officer on 0191 385 1418 who will be more than happy to help.
Under-occupation
The Welfare Reform Bill enables the Secretary of State to introduce, via regulations, size criteria for working-age Housing Benefit claimants living in social housing - this will include Cestria tenants. From 2013 Housing Benefit will be reduced where you have more bedrooms in your home than the Government says you need.
The size of accommodation used to work out Housing Benefit will be based on a very strict bedroom standard, which may mean that Housing Benefit will not cover the cost of renting your home. You can check whether you might be affected by these changes by using our bedroom calculator at www.cestriabedcalc.entitledto.co.uk .
For advice and information about moving home and the incentives Cestria can offer for moving to smaller accommodation please contact us