The UK benefits system is about to undergo it’s most radical restructuring since the introduction of the welfare state after the Second World War and many families will be pushed further into poverty, a new report by the Resolution Foundation think tank reveals.
The biggest shakeup will be in Council Tax, a tax paid by households to local councils, which is not decided by income. Currently people on low paid jobs or the unemployed can apply for Council Tax Benefit (CTB), effectively exempting them from paying the tax.
All other means tested benefits will be streamlined into one national system, which will be called Universal Credit (UC), a move welcomed by the report’s authors.
CTB is a national scheme and provides assistance to nearly 6 million low income families in the UK; but as of the 1st April 2013 CTB will cease to exist.
Read More: UK’s poorest families face hundreds of percent tax rise — RT
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