Financial Impacts of Welfare Reform - Illustrative Working Age Case Studies

Footnotes

1. Source: Family Resources Survey

2. This first income threshold is £15,920 if not claiming WTC, and £6,420 for those claiming WTC in 2013/14. It should be noted that CTC only tapers after WTC has fully tapered away, so in practice the income levels at which CTC starts being removed are broadly similar.

3. £58,200 is the lowest possible point at which CTC is completely tapered away in 2010/11. As the family element tapers after the child element has been completely removed, families with large numbers of children may still be receiving child element at incomes over £50,000.

4. Source: Family Resources Survey

5. Source: DWP, https://www.gov.uk/government/publications/number-of-housing-benefit-claimants-and-average-weekly-spare-room-subsidy-amount-withdrawal

6. All rent charged for each property size in the area are recorded and listed in order of the amount charged. Prior to the reforms, the LHA rate was set at the level of the rent for that came halfway up the list. This is known as the 50^th percentile. Following the change the LHA rate is set at the level of rent charged for the property 30% up the list from the lowest rent, or the 30^th percentile. This will mean that only the lowest 30% of rents will be affordable on Housing Benefit alone.

7. Source: Family Resources Survey

8. Source: DWP, https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/286771/benefit-cap-january-2014.pdf

9. Set at £15,700. At this point WTC (if it had been received) would be fully tapered away. Source: Family Resources Survey

10. Source: Family Resources Survey

11. Source: Family Resources Survey

12. As set out in the Council Tax Reduction (Scotland) Regulations 2012 http://www.legislation.gov.uk/ssi/2012/303/contents/made

13. Source: Family Resources Survey

14. Source: Family Resources Survey