Summary
The Welfare Reform Act 2012 introduced Universal Credit, replacing six means-tested benefits and tax credits with a single monthly payment. It also introduced Personal Independence Payment (PIP) to replace Disability Living Allowance, the benefit cap, and the under-occupancy charge ('bedroom tax').
Key Points
- Universal Credit replaces Income Support, JSA (income-based), ESA (income-related), Housing Benefit, Child Tax Credit, Working Tax Credit (Part 1)
- Claimant commitment: conditions for receiving UC (s.14)
- Sanctions for failure to meet work-related requirements (ss.26–29)
- Personal Independence Payment replaces DLA for working-age adults (Part 4)
- Benefit cap: limit on total benefits a household can receive (s.96)
Parts & Sections
Amendments History
2016 — Welfare Reform and Work Act 2016
Reduced the benefit cap, froze certain benefits for four years, and limited child element of UC to two children.