The Welfare Reform Act 2012 ushers in the greatest changes to welfare benefits in some sixty years. These changes will have far reaching impacts for benefit claimants, particularly for vulnerable people and the services which support them.
Homelessness could increase and more people may turn into the hands of loan sharks if welfare reforms go ahead, a housing organisation says.
The Universal Credit will replace most existing benefits and limits the total amount of benefit a person can claim. It will be paid to the claimant as a lump sum every month and the system will be “digital by default”. Meaning people with no knowledge of computers will be at a disadvantage.
The UK government’s Welfare Reform Act also introduces a so-called “bedroom tax” in the social rented sector. Tenants with spare bedrooms will see their housing benefit cut when the change is introduced next April.