Osbourne's Controversial Benefits Cuts Kick In

Tuesday 04 April, 2017 Written by  Daily Mirror
Osbourne's Controversial Benefits Cuts Kick In

The Tax Credits two-child limit

Coming into force 6 April 2017 and aimed to save £1.2billion a year by 2020.

Number of people affected: 515,000 families by 2020

What is it? Child Tax Credit is worth up to £2,780 per child per year. However, it will only be paid for the first two children in any family.

Why the cut is controversial: It will deny huge sums of money to large families in the future. Also, women who have a third child through rape will have to prove their ordeal to get a special exception.

Who is affected? The following people will be affected by the changes:

Those who have a third (or later) child born after 6 April 2017

Those who stopped claiming Child Tax Credit for six months or more but then returned to claim the benefit

Who isn't affected? The following people will not be affected by the changes:

Those who have three or more children already alive and have claimed the benefit without a long break

Women who have had a third child born through rape – but the mum must prove their ordeal

Parents who have had twins, triplets etc born to families who had one child

People with disabled children, who are counted separately

The end of the 'family element'

When it's coming into force: 6 April 2017

How much is being cut: £540million a year by 2020

Number of people affected: 970,000 families by 2020

What is it? It is an extra payment in Child Tax Credit called the "family element" and it is worth £545 a year.

Why the cut is controversial: A million new claimants will be deprived the payment, however those who are already in the system will continue to be paid.

Who is affected? Families who claim Child Tax Credit entirely for children born after 6 April 2017.

Who isn't affected? Families who claim Child Tax Credit for any child born before 6 April 2017.

Disability benefit cuts of £30 a week

When it's coming into force: It's already in force. It started on 3 April 2017.

How much is being cut: £350million a year by 2020

Number of people affected: 500,000 in the long term

What is it? People who claim Employment and Support Allowance (ESA) will receive £29.05 less every week if they are dement fit for 'work-related activity'. They will get £73.10 – the same as jobseekers' allowance – instead of £102.15.

Why the cut is controversial: The benefit cut has been criticised by Labour, the House of Lords and several charities. Many have said that those who claim Employment and Support Allowance need more support than people on jobseekers. Charity Mind said the £1,500-a-year cut "will make their lives even more difficult and will do nothing to help them return to work".

Who is affected? People who started claiming ESA and are deemed fit for 'work-related activity' after 3 April 2017. Also, people who stopped claiming ESA for 12 weeks or more, then return to it.

Who isn't affected? Current claimants if they keep claiming without a long break and ESA claimants in the more serious 'support group'.

Young people blocked from housing benefit

When it's coming into force: It came into force on 1 April 2017.

How much is being cut: £105million total by 2020

Number of people affected: 11,000 in the long term

What is it? Young jobseekers aged between 18 and 21 will no longer be able to get Housing Benefit – which is always paid directly to the landlord.

Why the cut is controversial: Charity Centrepoint said the cut could "force thousands of young people onto the streets" and cost more than it saves.

Who is affected? People aged 18 to 21 on jobseekers' allowance who are eligible for Housing Benefit.

Who isn't affected?

Current claimants

Orphans and care leavers

Youngsters earning at least £89.60 a week

Youngsters in temporary accommodation for the homeless

Youngsters who have their own children to care for

Youngsters subject to or threatened with domestic violence

Youngsters on some disability benefits

Youngsters whose parents live abroad

Youngsters where it's 'inappropriate' to return to their parents' home

Changes for widows

When it's coming into force: 6 April 2017

How much is being cut: £100million a year in the long term

Number of people affected: Unknown but potentially in the tens of thousands

What is it? Three different benefits are being replaced with one new Bereavement Support Payment. The benefit is worth £3,500 plus £350 a month for 18 months for claimants with dependent children. It is worth £2,500 plus £100 a month for other claimants.

Why the cut is controversial: It is split on whether people will be better off - 48% will be worse off and 52% better off. Charities have warned that the payments period is too short and widowed people are often in need of cash for longer. The government believe the change is positive.

Who is affected? Anyone who can claim bereavement benefits.

Who isn't affected? People already receiving bereavement benefits or whose spouse/civil partner died before 6 April 2017.

The Benefits Freeze

When it's coming into force: Ongoing

How much is being cut: £3.5BILLION a year by 2020

Number of people affected: Millions

What is it? Nearly all working-age benefits are frozen at their 2015-16 rates for four years.

Why the cut is controversial: Benefit payments are being frozen but that means claimants will be worse off because of rising inflation and living costs. A government impact assessment, which was obtained by the Liberal Democrats, said the average claimant will be £6 a week worse off.

George Osboune

Image: Ex Chancellor George Osbourne

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

Join
FREE
Here

GET STARTED