Laura Sharman 07 November 2016

Benefit cap expected to affect 88,000 households

Local authorities are expected to play a key role in mitigating the impact on the new benefit cap, which comes into force from today.

The new cap will limit how much money a working age household can receive in benefits to £20,000 a year and £23,000 in London.

Although the last benefit cap in 2013 affected 20,000 households, research suggests this new cap will affect four times as many households with 88,000 seeing a reduction in benefits.

The Institute of Fiscal Studies said the cap will result in affected families seeing cash drops in benefit income between one housing benefit payment and the next.

It also said there was no evidence the majority of those affected would move into work, move house or claim disability benefit instead. It predicts that local authorities will end up relieving the strain on families through Discretionary Housing Payments (DHPs).

The briefing stated: ‘In 2015–16, £25m of DHPs were allocated specifically to help tenants affected by the benefit cap (offsetting almost 40% of the direct £65m saving from the cap). About 40% of those affected by the benefits cap so far have successfully applied for DHPs.

‘These DHPs look likely to play a key role in mitigating the impact of the cuts on some of the families affected - whilst rendering the net fiscal savings from the cap all the more trivial.’

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Housing Ombudsman

Housing Ombudsman Service
£130,095 per annum, negotiable based on experience.
The Housing Ombudsman Service allows colleagues to choose if they wish to work in the London office, from home or a hybrid of the two London (Greater)
Recuriter: Housing Ombudsman Service

Commercial Lawyer - Harlow District Council

Essex County Council
Up to £60.0000 per hour
Commercial Lawyer - Harlow District Council Location, HarlowFull time, Temporary 6 Months £46.78 PAYE / £60.00 UmbrellaClosing Date
Recuriter: Essex County Council

Principal Lawyer - Planning and Highways

Kirklees Metropolitan Council
£51,356 to £56,494 + £3000 Market Rate Supplement
Do you want to make a difference to local people? Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Team Manager - Children Looked After

London Borough of Richmond upon Thames and London Borough of Wandsworth
Up to £62,451 per annum
Team ManagerChildren Looked After S... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth
Linkedin Banner