Changes to Benefits and Tax 2016

With the start of the new financial year a number of changes have occurred to benefits and tax which you may receive

  • Working age benefits such as tax credits have been frozen for 4 years.
  • The benefit cap has been reduced to £20,000 for couples and claimants with children and £13,400 for single claimants without children.
  • New national living wage of £7.20 per hour for workers aged 25 and above.
  • Universal credit work allowances reduced to £2304.
  • The level of earnings at which a household’s universal credit award starts to be withdrawn  for every extra pound earned will be reduced from £6420 to £3850.
  • Requests for housing benefit back dates will be limited to four weeks for working age claimants.
  • Housing benefit temporary absence rule is reduced from 13 weeks to 1 month. This will affect anyone who receives housing benefit going away for an extended period.
  • Removal of pension credit assessed income period. This means if you receive pension credit you need to report any changes in your circumstances as they happen. Pensioners aged 75 or over are not affected.
  • Single tier state pension is being introduced for women born after 6 April 1953 and men born after 6 April 1951.
  • Personal tax allowances increase.
  • Court fees rise from £250 to £325 for possession cases. 

If you require further help and advice please contact us on 01923 209111.