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Welfare Reform Act 2012

Type of Bill:
Government Bill
Sponsors:
Iain Duncan Smith
Department for Work and Pensions
Lord Freud
Department for Work and Pensions

Progress of the Bill

Bill started in the House of Commons

  1. House of Commons
    1. 1st reading
    2. 2nd reading
    3. Committee stage
    4. Report stage
    5. 3rd reading
  2. House of Lords
    1. 1st reading
    2. 2nd reading
    3. Committee stage
    4. Report stage
    5. 3rd reading
  3. Consideration of Amendments
  4. Royal Assent

Last event

Act of Parliament

House Act Date
Commons Welfare Reform Act 2012 c.5 09.03.2012

Latest news on the Welfare Reform Act 2012

Following agreement by both Houses on the text of the Bill it received Royal Assent on 8 March. The Bill is now an Act of Parliament (law).

Summary of the Welfare Reform Act 2012

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’s proposals for reforming welfare to improve work incentives, simplify the benefits system and tackle administrative complexity.

Besides introducing Universal Credit and related measures, the Bill makes other significant changes to the benefits system.

Key areas

  • introduces Personal Independence Payments to replace the current Disability Living Allowance
  • restricts Housing Benefit entitlement for social housing tenants whose accommodation is larger than they need
  • up-rates Local Housing Allowance rates by the Consumer Price Index
  • amends the forthcoming statutory child maintenance scheme
  • limits the payment of contributory Employment and Support Allowance to a 12-month period
  • caps the total amount of benefit that can be claimed.

During the Committee Stage, the Government amended the Bill to provide for the establishment of a Social Mobility and Child Poverty Commission.

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