North East families could be caught short by benefit changes

Durham Citizens Advice Bureau are urging people in our region to make sure they're aware of what changes are coming.

Published 4th Apr 2016

People in the North East could see themselves fall into debt if they don't plan for the changes to benefits expected this month.

A number of changes are planned to come into force this month, meaning some North East families could be caught short if their payments decrease.

A four-year freeze to working-age benefits and tax credits begins in April, although this excludes pensioner and disability benefits.

There will also be changes to tax credits and Universal Credit.

There will be a reduction in the amount a claimant's income can increase before seeing a change to their benefits - from ÂŁ5,000 to ÂŁ2,500.

According to the Treasury, it's estimated that 800,000 people will lose up to ÂŁ300 a year.

The Universal Credit Work Allowance, which is the amount you earn without benefits being affected, is also due to be reduced.

Staff at Durham Citizens Advice Bureau say they frequently see people who've hit 'crisis point' financially, because they failed to anticipate what impact a benefit reduction would have.

Chief Executive Neil Bradbury said: "If people don't plan or appreciate that they're going to have reduce income, sometimes that means they get into debt very quickly.

"We want as many people as possible to try and plan ahead to minimise the chance of that happening.

"I would really urge anyone who's not been to see anyone about their benefits in recent times to get a little healthcheck.

One, to ensure they're getting what they're entitled to, and two, to make plans for any changes that are happening."