PART 4: STATUTORY PAYMENTS
WELFARE REFORM - THE FUTURE OF STATE BENEFITS The Welfare Reform Act 2012 received Royal Assent on 8th March 2012. It provides for the introduction of a new all-encompassing benefit called Universal Credit. Universal Credit (UC) start to be paid to new claimants in October 2013, with migration from the existing benefits system over the next four years. UC is a single household payment which merges Income Support, income-based Job Seeker’s Allowance, income-related Employment and Support Allowance, Housing Benefit, Child Tax Credit and Working Tax Credit into one payment, controlled by DWP. Personal Independence Payments (PIP) will also replace the current Disability Living Allowance (DLA). COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS The DWP will calculate a household’s entitlement to the UC by reference to personal and earnings information that is provided to them by HMRC through Real Time Information (RTI) - see PART 1 . N.B.: the section on statutory payments is not designed to be a comprehensive guide on the benefit system. Only key statutory payments are reproduced here. A full set of benefits can be found at: https://www.gov.uk/government/publications/benefit-and-pension-rates-2019- to-2020/proposed-benefit-and-pension-rates-2019-to-2020 .
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