TODAY's BUDGET CHANGES

chicken wrote: Please could you tell me if the savings limit has been changed from next April? I receive carers allowance and my husband receives esa sg,dla and smi.

People keep telling me the limit has dropped from 6000 to 3850. Is this correct? I thought this was only for tax credits but the more I read the budget notes, the more confused I am getting.

Hi c,

If you are speaking of the capital, assets and savings limit with regards to receipt of Income Related (IR) ESA : Asset rule for ESA(IR)

There were no changes announced in The Budget regarding the amount of capital, assets and savings that you can have.

i.e. The figures remain the same.

The above has no bearing on receipt of CA, DLA nor indeed PIP, and never has.

Changes to SMI from April 2018 were announced, as covered earlier in this topic.

bro58

Thank you bro

Dear B&W

'Would be grateful for answer:
In the Red Budget (summer) book: Page 103 headed Welfare Cap
there is a chart left hand side with a swathe of benefits: next to rt hand col other bend
and in the list left hand one just some are:
PIP
DLA
Wint Fuel Pay'ment
Pension Credit
Carer's Allowance and it goes on
Are these and all the other'benefits' in the left hand col also to be
frozen? Reduced? or whatever debasing Govt can think up for recipients?
Thank you it seems v confusing those guess that is the intention by Govt
G Wishes apples 6

Hi a6,

I have put your query into the correct topic.

No, you are getting confused !

The overall "Welfare Cap" is a cap on the amount that the Government can spend on "All" Welfare "benefits" !!!

"Welfare" expenditure also includes State Pension/Pension Credit, but they are "triple lock protected".

This is why things will inevitably get tougher for all other "benefits" in the future, as State Pension age benefits take up a fair chunk of the "Welfare" expenditure, I believe in excess of 60%.

Therefore, as people are living longer, and State Pension age "benefits" are triple lock protected, the State Pension expenditure will rise, therefore leaving less to spend on all other "benefits" if they wish to stay within the overall Government "Welfare Cap".

Hence, it also seems inevitable that there will be further increases to the State Pension Age in the future.

The Government are very cautious about making any adverse changes to State Pension age benefits, in case they lose "The Silver Vote" as they call it.

That's why they have "palmed off" the financing of the free TV License for over 75 year olds onto The BBC themselves.

I really feel for the working poor and the young of this country, they have taken the brunt of the cuts "this time" !!!!

Osborne has made assurances that the measures announced will result in the £12 Billion cut to benefits as "promised/threatened" prior to the General Election !!!

Part of the £12 Billion will come from future new ESA claimants who are placed in The WRAG (After April 2017) not receiving the extra WRA Component Addition.

Then the freeze to all other applicable benefits is in fact a "cut" as they will not keep up with inflation.

We also have the transfer of all existing DLA recipients to PIP,(who were not 65 or over on 08/04/13) which has started early in some Postcodes : From Today. (13/07/15)

PIP was designed with the express purpose of cutting at least 20% / 1/5 off the existing DLA expenditure, so that will be part of the cuts as well. They have made no secret of this intention.

PIP, DLA, ESA in The SG, etc will not be subject to the 4 years freeze, see : This Post earlier in the topic.

See also : Policy Paper-Summer Budget 2015.

House of Lords Select Committee on Delegated Powers and Regulatory Reform. WELFARE REFORM AND WORK BILL. Memorandum from the Department for Work and Pensions.

&

Welfare Reform and Work Bill (HC Bill 51)

The 3 links above do not alter the "Budget Changes" as clarified in : Post 2 of this topic , just more information and reiteration of them.

bro58

www.publications.parliament.uk/pa/bills/.../0051/en/16051en.pdf

"Clause 16: Loans for mortgage interest 143 The clause will enable the Secretary of State to replace existing provisions so that help in respect of mortgage payments is instead payable as loan which is secured by a charge against the claimant’s property. The Secretary of State will be able to specify conditions that will govern eligibility to receipt of a loan (including that a claimant must be entitled to receive jobseekers allowance, income support, employment and support allowance, state pension credit or universal credit); the method for calculating the amount of loan which can be made; and that the loan will be secured by a charge over land."

do you think that this definitely sets out that after April 2018 existing claimants will have this benefit changed from a benefit to a loan and not just for new claimants?

Clause 16: Loans for mortgage interest
143 The clause will enable the Secretary of State to replace existing provisions so that help in
respect of mortgage payments is instead payable as loan which is secured by a charge against
the claimant’s property. The Secretary of State will be able to specify conditions that will
govern eligibility to receipt of a loan (including that a claimant must be entitled to receive
jobseekers allowance, income support, employment and support allowance, state pension
credit or universal credit); the method for calculating the amount of loan which can be made;
and that the loan will be secured by a charge over land.
Clause 17: Section 16: Further provision
144 The clause provides the Secretary of State with regulation making powers to specify how an
individual can apply for a loan; the requirements which an individual must satisfy before a
loan can be made (such as receiving financial advice); what the terms of a loan should be;
when a loan should be repaid; what interest should be applied to that loan; what
administration charges a claimant should be required to pay; and what substituted security
should be taken in cases where a claimant moves to another property.   
145 The clause also provides regulation making provisions to require that loans are paid direct to
the claimant’s mortgage lender and sets out what constitutes a “qualifying lender” for these
purposes. This provision mirrors the existing legislative provisions in section 15A of the Social
Security Administration Act 1992 which require that payment is made direct to mortgage
lenders and what fee those lenders should pay in respect of those transactions, and will help
to ensure their continued forbearance.
146 It is the Department’s intention that the loans will be interest‐bearing and will incur an
administration fee, which can be provided for under clause 17. The outstanding loan plus
accrued interest and administration fees will be recovered from available equity in the
claimant’s property when it is sold.    If the outstanding debt exceeds the amount of equity in
the property, the balance will be written off. Alternatively, a claimant will be able to volunteer
repayments for example if they return to work.
147 The taking of a loan will be optional.    As noted above (and provided for in clause 17),
individuals wishing to apply for a loan will be required to receive industry standard advice
explaining the consequences of taking a loan before the loan can be made.    This advice will
be provided by a non‐governmental organisation which will also be responsible, on behalf of
the Secretary of State, for registering charges on claimants’ properties and for the recovery of
the debt.   
Clause 18: Consequential amendments
These Explanatory Notes relate to the Welfare Reform and Work Bill as introduced in the House of Commons
on 09 July 2015 (Bill 51)   
23
148 This clause provides for consequential amendments to the existing legislation which deals
with direct payments to lenders.