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

Social Worker

Durham County Council
Grade 9 - £36,581 - £40,444 / Grade 11 - £42,123 - £46,579 pro rata pa.
1 x Temporary post (30 hpw) maternity cover for 12 months or return of the substantive post holder. Make a real difference at the point where people Durham
Recuriter: Durham County Council

KS3 PE/Humanities Teacher

Durham County Council
£32,916 - £45,352 pay award pending
Required for 1 year from taking up post. The Woodlands is seeking to recruit a qualified teacher to educate  permanently excluded pupils from mainstr Ferryhill
Recuriter: Durham County Council

Contracts Assistant

Durham County Council
Grade 5 £27,274 - £29,542
A vacancy has arisen within Business Services for a full-time Contracts Assistant. This is temporary for 18 months initially.   WHATS INVOLVED? Thi Durham
Recuriter: Durham County Council

Caretaker

Durham County Council
£25,614 - £26,016 pro rata
Required from 2 November, 25 hrs per week. Split shifts Monday to Friday (2.5hrs am & 2.5hrs pm) To carry out a full range of duties to provide for h Durham
Recuriter: Durham County Council

Lunchtime Supervisor

Durham County Council
£25,614 pro rata
Required
Recuriter: Durham County Council
Linkedin Banner