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Benefit changes: the facts

Wednesday, April 17, 2013

64% of all families in Britain receive some kind of benefit and for 30% of these families; benefits make up half of their income.

Who is being affected by the changes?

Between 1 2 million fewer families will now receive these benefits. A number of working families who previously received a small amount to support their income will now get nothing. Here are just some of the groups affected by this year’s changes:

 April 2013

Child benefit: Households on over 50,000 lose up to 1,055 for 1st child and 697 for each subsequent child.

Bedroom Tax: 540,000 households with one spare bedroom will lose 624 and 12,000 households with two spare bedrooms will lose 1,144.

Council Tax benefit: Almost 700,000 recipients in employment will lose up to 600.

Disability Living Allowance: changed to Personal Independent Payments meaning 500,000 will cease to qualify for support.

October 2013

Universal Credit: marginal deduction rate rises to 76% meaning 3.1m people will gain on average 168 per month while 2.8m people will lose on average 137 per month.

April 2014

Working Tax Credit: increases capped at 1% (after freeze) meaning people working under 30 hours per week will lose 295 and people working over 30 hours per week will lose 415.

Union of Shop, Distributive and Allied Workers (USDAW), 2013

Benefits and unemployment

In 2012, 18% of working-age households were unemployed and 2% of these had never worked. This figure has increased recently however in households where no one has ever worked, over 50% of the adults living there were aged 25 and under reflecting a rise in youth unemployment.

17% of unemployed households have one generation of occupants who have never worked while 1% of households have 2 workless generations. 

A Joseph Rowntree Foundation study using mainly research from the US has found that benefits sanctions are successful in getting people off benefits but do not necessarily lead to them finding decent work. They may drop off the system altogether.

Of the 2.8 million workless households in the UK 2.5 million will have their entitlements reduced by an average of about 215 a year in 2015 16.

Out of 14.1 million working-age households with someone in work 7 million will have their entitlement reduced by an average of 165 a year.

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