Welfare Reform overview: Introduction

The Government published the Welfare Reform Bill 2011 on 16th February 2011. This Bill covers the key long term reform proposals and received Royal Assent on 8th March 2012 and has now become the Welfare Reform Act.

For a timetable of the changes from October 2010 (last updated April 2012) please click here.

The changes outlined in these announcements represent the most radical change to the Welfare Benefit system in 60 years.These reforms, together with a couple started by the previous Government, will cut an estmated 21 Billion a year off the annual Benefits bill by 2015. It is estimated that the total cut in benefits as announced is split as shown below, (but the Government announced in their Budget in March 2012 that a further £10 billion will need to be saved by 2016 - we do not yet know how they intend to do this!):

5.8 Billion	Uprating at CPI rather than RPI
4.5 Billion	Tax Credits
2.4 Billion	Child Benefit
2 Billion	Housing Benefit
2 Billion	ESA
1.2 Billion	Disability Benefits including DLA
0.5 Billion	Council Tax Benefit
2.7 Billion	Other changes