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Welfare Reform Act 2012

The Welfare Reform Bill has today received Royal Assent to become the Welfare Reform Act 2012.

The Act aims to simplify the benefits system in order to increase incentives to find work.  It allows for

  • a Universal Credit to replace the current system of multiple benefits and tax credits
  • Disability Living Allowance to be replaced by Personal Independence Payments, entitlement to which will be subject to a new assessment
  • the restriction of Housing Benefit entitlement for social housing tenants whose accommodation is larger than they need
  • the amendment of child maintenance
  • a cap on the total amount of benefit that can be claimed
  • the payment of contributory Employment and Support Allowance to be limited to a 12 month period

The promise from the Government is that: No longer will it be possible to be better off on benefits than in work.

Click here for the DWP press release.


8 March 2012

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