New benefit plans outlined in Welfare Reform Bill

Summary

The ‘Welfare Reform Bill’ (HC Bill 154) calls on a number of proposals set out in preceding Parliamentary papers to improve the current welfare system.

The Bill extends on the ideas put forth in the consultation document '21st Century Welfare’ (Cm. 7913) and the proposals outlined in the White Paper 'Universal Credit: Welfare that Works’ (Cm. 7957).

The suggestions aim to improve work incentives, simplify the benefits system and make it less costly to control.

Mentioned prominently in the Bill, the major proposal is the introduction of a new benefit to be known as Universal Credit, which will replace existing in and out of work benefits.

To be awarded Universal Credit, a person must be:

at least 18 years old;
below the qualifying age of state pension credit;
located in Great Britain;
exempt from receiving education; and
in acceptance of a claimant commitment – a record of a claimant’s responsibilities in relation to an award.

The Bill also makes provision for another new benefit, Personal Independence Payment, which will replace the existing Disability Living Allowance.

The Bill consists of seven parts, and is laid out as follows:

Universal Credit;
Working-age benefits;
Other benefit changes;
Personal independence payment;
Social security: general;
Miscellaneous; and
Final - sets out the repeals to existing legislation; financial provision and territorial extent.

Found this story interesting?
Spread the news by clicking below to add it to your bookmarking service: