Will this week’s benefit cuts affect you?

Friday, April 7th, 2017 | Posted in Blog

Last year, former Chancellor George ID-10093951Osbourne put into motion a number of benefit cuts and freezes which have just come into effect this week. Starting today if you receive any of the below benefits, you could see less money in your pocket each month.

To help you understand the changes, here’s a list of the cuts, including information on who is likely to be affected.

All information has been sourced from this article>

Child Tax Credit

How is it changing? Child Tax Credit, worth up to £2,780 per child per year, will now only be paid for the first two children in any family.

Who’s affected: Families on Child Tax Credit with more than two children where:

  • The third (or later) child is born after 6 April 2017 , or
  • The family stops claiming Child Tax Credit for 6 months or more , then returns to it.

So if your third or later child is born before 6th April 2017, you will still receive tax credit. There are also some exceptions where third children born after 6th April 2017 can still receive CTC, read more here>

The ‘Family Element’

How is it changing?An extra payment in Child Tax Credit called the “family element”, worth £545 a year, is being shut down.

Who’s affected: Families who claim Child Tax Credit entirely for children born after 6 April 2017.

Who isn’t affected: Families who claim Child Tax Credit for any child born before 6 April 2017.

Employment Support Allowance (ESA)

How is it changing? Adults claiming disability benefit Employment and Support Allowance (ESA) will get £29.05 less every week if they’re deemed fit for ‘work-related activity’ (WRAG). They will get £73.10, the same as jobseekers’ allowance, instead of £102.15.

Who’s affected?

  • People who start claiming ESA WRAG after 3 April 2017
  • People who stop claiming ESA for 12 weeks or more, then return to it

Who isn’t affected:

  • Current claimants, IF they keep claiming without a long break (above)
  • ESA claimants in the more serious ‘support group’
  • People already on ESA who are moved from the ‘support’ group to the WRAG group

Housing Benefits for young adults

How is it changing? Jobseekers aged 18 to 21 will no longer be able to get Housing Benefit, worth varying amounts and always paid directly to the landlord.

Who’s affected: People aged 18 to 21 on jobseekers’ allowance who are eligible for Housing Benefit.

There are some exceptions, read more here>

Widowed Parent Allowance

How is it changing? Three different benefits are being replaced with one new Bereavement Support Payment. It’s worth £3,500, plus £350 a month for 18 months, for claimants with dependent children (£2,500 plus £100 a month for other claimants).

Who’s affected: Anyone who can claim bereavement benefits. This means:

  • People whose spouse/civil partner dies after 6 April 2017, but -
  • Surviving partner must be under the state pension age, AND
  • The deceased must have paid ‘sufficient’ National Insurance

The DWP says losers include parents who would have received Widowed Parent’s Allowance for longer, and older people who would have received Bereavement Allowance who still work.

Working Age Benefits

As we reported in this blog post, nearly all working-age benefits are frozen at their 2015-16 rates for four years. This means as prices rise, claimants will find they have less money in their pockets each week.

Who’s affected: Anyone aged 16 to 64 who is claiming pretty much any state benefit.

Need help with essential items for your family?

We are now accepting enquiries for grants to be paid after 1st July 2017. This means you could make an enquiry today to get financial support for items including school uniform for the September 2017 term, plus any other essential items your child needs for the year ahead, such as clothing, bedding or winter shoes.

Please note: To apply for an FTCT grant you or your partner must work or have recently worked (for at least one year) in the UK fashion and textile industry. Click here to find out more>   

Make an enquiry today

Fill in an online enquiry form detailing the items you would like support for, and we will consider your request.


All completed enquiry forms will be assessed in date order, and if successful, payments will be made after 1 July 2017.



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