1. The welfare revolution


After winning an outright majority in the May 2015 general election, the Conservatives have moved quickly to continue sweeping reform of the UK benefits system. In an effort to save up to £12 billion by 2020, chancellor George Osborne used his summer Budget in July 2015 to announce plans including further reducing the Benefit Cap, freezing benefit and tax credit rates for four years, making large cuts to tax credits and, before it is even fully rolled out, to Universal Credit (UC).


As a result of the huge shake-up of the benefits system, started by the coalition government through the Welfare Reform Act 2012, several state benefits are being phased out and replaced by a new benefits system. 


This Chapter provides some key facts about how claimants will be affected by UC and other recent changes, and the changes due to happen in 2016 and beyond.