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

Youth Support Worker - In Training

Essex County Council
Up to £25580.0000 per annum
Youth Support Worker - In TrainingPermanent, Full Time£25,580 per annum + £954 Fringe AllowanceLocation
Recuriter: Essex County Council

Assistant Chief Executive

Enfield London Borough Council
UP TO £190,000
We are seeking a strategic and forward-thinking leader who can bring together HR, Legal, Strategy, Digital and Communications Enfield (London Borough), London (Greater)
Recuriter: Enfield London Borough Council

Executive Director of Environment and Place

Enfield London Borough Council
UP TO £190,000
We are seeking a strategic and forward-thinking leader who can bring together HR, Legal, Strategy, Digital and Communications Enfield (London Borough), London (Greater)
Recuriter: Enfield London Borough Council

Impact Director – Sector Voice

Local Government Association
up to £139,000
You will lead multidisciplinary teams covering economic growth and place, local government finance, workforce, London (Greater)
Recuriter: Local Government Association

Impact Director – Sector Support

Local Government Association
up to £139,000
You will be visible with councils, elected members, chief executives, professional bodies, government departments and national partners London (Greater)
Recuriter: Local Government Association
Linkedin Banner