5 Benefit cuts that might affect you

Last year, former Chancellor George Osborne announced a number of benefits cuts that will be introduced this year. Some might have forgotten, but it’s not a nightmare anymore as these cuts are being introduced this week. Yes, the first week in April 2017.

Benefits Cuts 2017 | Street UK Loans

We have collated a list of the benefits cuts that might affect you or your loved one. If none of these benefits relate to you, be sure to share it with a friend or family member.

1. Disability benefits cuts reduced

From the 3rd of April 2017, a new policy will be executed that sees the reduction of £29.05 per week to people who claim disability benefit Employment and Support Allowance (ESA), if they quality for  ‘work-related activity’ (WRAG). This means they will receive £73.10 per week, the same amount as jobseekers’ allowance. The government aims to cut about £350million a year by 2020 with this new change.

Who will be affected?

  • People who start claiming ESA WRAG from 3 April 2017.
  • People who stop claiming ESA for at least 12 weeks and then return to it.

2. Two Child Limit on Tax Credit

From the 6th of April 2017, Child Tax Credit will only be paid to the first two children in any eligible family. This credit is worth up to £2,780 per child per year. The government aims to cut about £1.2billion a year by 2020 with this new change.

Who will be affected?

  • The third (or more) child born after 6 April 2017
  • The family stops claiming Child Tax Credit for at least 6 months, and then returns

Who won’t be affected?

  • Children already alive, IF their parents keep claiming without a long break (above)
  • Children born through rape, but mum must prove it
  • Twins, triplets etc born to families who had one child
  • Children looked after by a ‘friend or family carer’
  • Children who have been adopted (except by step-parents)
  • Disabled children, who are counted separately

3. No Housing Benefits for Young Adults

From the 1st of April 2017 (this past weekend), jobseekers between the age of 18 to 21 will not be able to get housing benefits, which is usually paid directly to the landlord. The government aims to cut about £105million total by 2020 with this new change.

Who is affected?

Young adults who start claiming jobseekers allowance from 1 April 2017.

Who isn’t affected?

  • Current claimants
  • Young adults earning at least £89.60 a week or apprentices
  • Young adults who have their own children to care for
  • Young adults in temporary accommodation for the homeless
  • Young adults subject to / threatened with domestic violence
  • Orphans and care leavers
  • Young adults on some disability benefits (the ‘daily living’ part of PIP)
  • Young adults whose parents live abroad
  • Young adults where it’s ‘inappropriate’ to return to their parents’ home (but charities warn this will be hard to prove)

4. No more Family Element

From the 6th of April 2017, the Family Element, which is an extra payment in the Child Tax Credit will be stopped. This is worth £545 a year. The government aims to cut about £540million a year by 2020 with this new change.

Who will be affected?

Families who claim Child Tax Credits for children born after 6th April 2017.

5. New Benefits for Widowed 

From the 6th of April 2017, three different benefits will be replaced with one new Bereavement Support Payment. It’s worth £3,500, plus £350 a month for 18 months, for claimants with dependent children (£2,500 plus £100 a month for other claimants). The government aims to cut about £100million each year in the long term.

Who will be affected

  • People whose spouse/civil partner dies after 6 April 2017, but –
  • Surviving partner must be under the state pension age, AND
  • The deceased must have paid ‘sufficient’ National Insurance

Last but not the least, this April sees the start of the second year in which many state benefits will be frozen at their 2015-16 rates for four years. This includes JSA, ESA, child benefit and some housing benefit payments (working-age benefits).

Source: The Daily Mirror