Welfare Reform Act 2012

<p>The Bill provides for the introduction of a 'Universal Credit' to replace a range of existing means-tested benefits and tax credits for people of working age, starting from 2013. The Bill follows the November 2010 White Paper, 'Universal Credit: welfare that works', which set out the Coalition Government&rsquo;s proposals for reforming welfare to improve work incentives, simplify the benefits system and tackle administrative complexity.</p><p>Besides introducing Universal Credit and related measures, the Bill makes other significant changes to the benefits system. </p><p><strong>Key areas</strong></p><ul><li>introduces Personal Independence Payments to replace the current Disability Living Allowance</li><li>restricts Housing Benefit entitlement for social housing tenants whose accommodation is larger than they need</li><li>up-rates Local Housing Allowance rates by the Consumer Price Index</li><li>amends the forthcoming statutory child maintenance scheme</li><li>limits the payment of contributory Employment and Support Allowance to a 12-month period</li><li>caps the total amount of benefit that can be claimed.</li></ul><p>During the Committee Stage, the Government amended the Bill to provide for the establishment of a Social Mobility and Child Poverty Commission.</p>