Autumn Statement 2016 – Welfare

November 29th, 2016

Universal credit

The taper rate that applies in universal credit will be reduced from 65% to 63% from April 2017. Universal credit operates a constant withdrawal rate on net earnings – the taper rate. Once claimants earn above the level of work allowances in universal credit, their income will be withdrawn at a rate of 63p for every extra £1 earned.

Support for refugees

Refugees and their families will be exempted from the Past Presence Test, as previously announced. This means that they will no longer have to be resident in the UK for two years before they can receive disability benefits.

Local housing allowance (LHA) rates in social housing

The cap on housing benefit and LHA rates in the social rented sector will now be implemented in April 2019.

Pay to stay

The government has decided not to implement pay to stay – as recently announced. Local authority tenants with taxable incomes over £31,000 (or £40,000 in London) would have been required to pay a market rent, or near market rent.