Update 25 November 2015

The Chancellor's combined Autumn Statement and Spending Review on 25 November brought forth the announcement that the proposed changes to tax credits, announced in July and due to take effect from April 2016, would be cancelled completely.

In October the House of Lords had voted for the tax credit changes to be delayed and transitional protection to be considered but the chancellor has decided to make a u-turn and cancel the changes rather than amend and delay. This means that the tax credit income thresholds and taper rate will remain the same - a reprieve for millions of low income working households who stood to lose on average a thousand pounds a year. 

July Budget 2015

The Chancellor's Statement on 8 July 2015 was the first majority Conservative government Budget in almost 19 years. With a pledge to cut £12 billion from the welfare bill, here we explain the benefit changes that were announced and who is affected by them.

These changes were/are to be introduced over the next few years and may be subject to change or approval.

From April 2016

• Benefit and tax credit rates frozen for four years
• Benefit cap reduced (postponed to Autumn 2016)
• Tax credits are withdrawn sooner and at a faster rate as income rises (now scrapped)
• In year increases in income of over £2500 taken into account for tax credits
• Housing Benefit family premium abolished (1 May 2016)
• Housing Benefit backdating reduced
• Universal Credit work allowances reduced
• Social housing rents to be reduced by 1% every year for four years
• National Minimum Wage increase
• Personal Tax Allowance increase

For more details about these changes and who will be affected see Benefit Changes April 2016

From April 2017

• Child Tax Credit limited to 2 children and family element abolished for new claims or new births
• Universal Credit limited to 2 children and 'first child premium' abolished for new claims or new births
• Housing Benefit not available for unemployed 18-21 year olds (exceptions apply)
• Parents claiming Universal Credit to look for work when youngest child turns 3
• Universal Credit youth obligation for 18-21 year olds
• Employment and Support Allowance Work Related Activity component abolished
• Universal Credit Limited Capability for Work component abolished
• Free childcare increased from 15 to 30 hours per week for 3 and 4 year olds
• Social tenants earning over £30,000 (£40,000 in London) to pay market rate rents 
• Free TV licence for over 75s to be funded by BBC

For more details about these changes and who is affected see Benefit Changes April 2017

From April 2018

• Support for mortgage interest to become a loan to be repaid when you return to work or sell property