Table two: A timeline of welfare reform Reforms Implementation date Client groups affected Child trust funds: abolished May 2010 Young people Mortgage interest support: paid at Bank of England interest rates October 2010 Education maintenance allowance: abolished (England) September 2011 WTC and CTC: childcare cost support reduction in support from 80 per cent to 70 per cent WTC and CTC: withdrawal (taper rate) increase WTC and CTC: disregard for in year increases reduced to 5,000 WTC and CTC: 2500 disregard for in year income falls income disregards reduction WTC and CTC: new claims and changes of circumstance backdated only three months CTC: family element withdrawn for families on more than 40K,000, with reductions to 10,000 in 2011 and 2012 in preparation Total cost to households Indicative loss per affected claimant 560m per year by 675 per family Homeowners 65m per year by 11.30 a week Young people: 16-19 year olds in 530m per year 27 a week education Working parents 405m per year by 780m per year by Working parents CTC: family element tapered immediately after child element Working parents 605m per year by 175 per year for the lowest income decile 150 for the 2 nd 700m per year by decile 360m per year by 200 for the 3 rd 20156/17 decile 145m per year by 200 for the 4 th 380m per year by decile
WTC: 30-hour element frozen full time 1.03b per year by 220 for the 5 th WTC: basic element frozen 2014-15 decile WTC: single parent and couple element frozen for one year Working parents 280m m per year by WTC: 50+ element abolished over 50 40m per year by WTC: minimum hours for couple rise from 16 to 24 Working couples 550m per year by CTC: baby element abolished New parents with children under two Sure Start maternity grant: restricted to first child only New parents Health in Pregnancy grant: abolished New parents 180m per year by 545 per year 75m per year by 500 per family 150m per year by 380 per family Income support: may stop if youngest child is over five January 2012 Non-working mothers: youngest child five-seven years old 350m per year by 0 (but extra conditionality)
for all new claimants. Existing claimants Housing benefit: LHA cap on the anniversary of their claim, with nine months of transitional protection Large families: in Housing benefit: removal of five bedroom rate private rental Housing benefit: removal of 15 excess benefits could claim if their rent was below LHA Housing benefit: LHA capped at 30th percentile rather than median Housing benefit: shared accommodation rate age increased from 25 to 35 Housing benefit: non-dependent deductions increase January 2012, and and 2013 again Young renters: 25-34 year olds Renters 270m per year by 185m per year by 12 a week 240m per year by 505m per year by 205m per year by 41 a week 214m per year by 13.70 a week Council tax benefit: non-dependent deductions increase Renters Localised Localised Sick or disabled 1.2b per year by Contribution-based ESA: time limited 52 a week former workers ESA in youth: abolished Young people: with disabilities 85m per year by 25 a week
Benefits indexed with CPI not RPI 10.6bn per year by (now uprated at 1%) Child benefit: rates frozen for three years Apr 2011 Parents 1.3b per year by 2.96 a week Child benefit: household with one income 60,000 and above are no longer eligible Child benefit: taper for households with an income over 50,000 Benefit cap: 500 a week for couple and lone parent households, 350 for single people January 2013 January 2013 Housing benefit: linking LHA increases to CPI 2013/14 Housing benefit: bedroom tax for under occupation of social housing Council tax support: council tax benefit abolished and replaced by localised schemes, with a 10 per cent cut From (phased roll out by local authority area) Parents: in households with one earner earning over 60K 2.5b per year by Parents: in households with one earner earning over 50K Large families, families in high rent areas Renters: social with spare rooms 1,300 per year (higher income earners only) 330m per year by 93 a week 670m per year by 6 a week 490m from 2013/14 14 a week 480m per year by 2.65 a week
Disability living allowance: replaced by personal independence payments for new claims June 2013-2016 People with disabilities 1.24b per year by 16.81 a week overall + 100m per year Universal credit: gradual introduction and transfer October 2013 2017 JSA/ESA/IS/WTC/CTC by 2013/14 claimants + 16 a week Uprating: means-tested benefits uprated by 1 per cent rather than CPI Child benefit: uprated by 1 per cent between 2013/14 and LHA: increased by 1 per cent between 2013/14 and Universal credit: increase earnings disregarded by 1 per cent rather than CPI for two years Parents 2.5b per year by 330m per year by 3 a week 260m per year by 1.2b per year by 3.20 a week