Further changes to Government welfare plans

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money and calculatorThe Government's controversial plans to reform the welfare system have been tweaked once again by House of Lords peers.

Although peers decided to back down on certain parts of the Coalition's plans, they did call for restrictions on 'bedroom tax' proposals which will apply to council tenants with spare rooms.

The Government's plans for housing benefit cuts for tenants in under-occupied properties were defeated by the Lords.

However, no extra changes were made by members of the House to the Welfare Reform Bill.

Through the Bill, ministers intend to create a £26,000 annual benefit cap. They also hope to launch a simplified universal credit system in the UK.

Following the defeat of the bedroom tax plans, disabled people, war widows and foster carers will not be hit by the rules unless they fail to accept suitable alternative homes.

Lord Best, who backed the bedroom tax amendment, said families might resort to payday lenders in order to combat the changes.

And he added: "While older tenants may have put aside a bit, few will be able to cope when faced with a new tax of £728 every year on top of the rises in their heating bills and other costs."

Read this easy guide to benefits to learn more about the support which is currently available to families.