Parent work conditionality
From April 2017 parents claiming universal credit, including
lone parents, will be expected to prepare for work when their
youngest child turns two, and to look for work when their
youngest child turns three.
Housing benefit entitlement for young people
Those out of work aged 18 to 21 making new claims to universal
credit will no longer be automatically entitled to the housing
element from April 2017.
The household benefit cap
The benefit cap, which puts a ceiling on the amount of benefits
out-of-work working-age families can receive, will be lowered to
£20,000, except in Greater London where the cap will be £23,000.
The current exemptions to the cap will continue to apply.
Support for mortgage interest (SMI)
From 1 April 2016, the SMI waiting period will be lengthened
to 39 weeks, but the capital limit will remain at £200,000. From
April 2018, new SMI payments will be made as a loan repayable
on sale of the property, or when the claimant returns to work.
Payments will accrue interest at a rate tied to the Office for
Budget Responsibility (OBR) forecast for gilts.
Benefits and tax credits uprating
Most working-age benefits, child tax credit and working tax
credit (excluding disability elements) will be frozen for four years
from April 2016.
National living wage
A new premium will be introduced for those aged 25 and over
starting at 50p an hour leading to a new national living wage of
£7.20 an hour in April 2016. The government’s ambition is for the
national living wage to increase to 60% of median earnings by
2020, by which time it is expected to reach over £9 an hour.
8 JULY 2015