Key Benefit Changes in 2013

This short briefing is for NHS Lothian employees. It provides details on the UK Governments planned changes to welfare benefits in 2013.  

Key benefit changes in 2013

January: Sliding cuts to child benefit if one parent earns £50,000 or more. Child benefit ends if one parent earns more than £60,000.

April: Council tax benefit replaced by new system involving 10% cut in funding to councils.  Scottish Government is shielding Scottish councils from this cut in 2013-14.

April: Housing benefit cut to reflect house size and ‘over-occupation’: 14% cut for a house with a spare bedroom, 25% cut for two or more extra bedrooms.  Around 80,000 people in Scotland expected to lose average of £12 a week; a significant proportion of those affected are people with disabilities and families with children.

April: Overall benefits cap of £500 per week for couples and £350 per week for single people introduced.

April: Social Fund replaced by Scottish Welfare Fund (SWF) to be administered by local councils.  Crisis loans to be replaced by grants. Expected that demands on SWF will exceed budget available

April: Rises in working age benefits to be limited to 1% a year affecting nearly a third of households in Scotland.

June: Phased replacement of Disability Living Allowance (DLA) with Personal Independent Payment (PIP), due to a cut in funding, around 35% of current claimants will lose out.

October: Phased introduction of Universal Credit, gradually replacing housing benefit, tax credits and out of work benefits.  Applications to be made on-line and paid directly to claimants each month.​​

Last Reviewed: 10/07/2013