What is Welfare Reform?
Welfare Reform is the broad sweep of changes being made by the UK Government. The changes are intended to make the benefits system simpler, reduce dependency on benefits and make work pay.
Some changes are already in place and others will be made after the Welfare Reform Bill has been agreed.
The main changes are:
- a new ‘Universal Credit’ to bring together separate benefit payments, paid on a monthly basis
- a cap on the maximum benefit payable
- reforms to Disability Living Allowance through the introduction of a Personal Independence Payment
- a changed approach to Housing Benefit
- those receiving Incapacity Benefit and Employment Support Allowance to undertake a Work Capability Assessment
- lone parents will be assessed as available for work when your youngest child turns 5 rather than 7
- transactions will be ‘digital-by-default’
- new conditions and sanctions attached to benefit payments
- UK Work Programme providers will work directly with those on benefit and available for work