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The scope of the welfare reform programme is broad, and a number of reforms will affect a variety of family types, and for many households, these effects will be cumulative.Table two provides an overview of the reforms since 2010 that may affect family finances1.Averages losses have been calculated by factoring average family size and average payment rates, leaving each family on average £675 worse off going forward compared to if the scheme continued.This is a sum total, and this money would not have been accessible until children turn 18.Child benefit was previously a universal payment made to primary carers to meet the costs of raising children.
This means that families whose circumstances change might miss out unless they report changes quickly.The average loss of £11.30 to claimants has been estimated by dividing Treasury’s expected £65m per annum saving across the number of households.Educational maintenance allowance was a means-tested financial payment made to 16–19 year olds in full time education or unpaid work-based learning to meet educational costs. Previously, students from households earning below £20,817 per annum were awarded £30 a week, students households earning between £20,818 and £25,521 were awarded £20 a week and students from households earning between £25,522 and £30,810 were awarded £10 a week.In England, there are 326 schemes each with their own criteria and entitlement.It has been suggested that some working age claimants who were previously exempt from paying council tax will now pay, on average, £138 per year10.
A wide range of reforms to LHA were introduced in the June 2010 Budget, including: The impact of each of these reforms comes from Impact Assessment Statements.