Laura Sharman 07 November 2016

Benefit cap expected to affect 88,000 households

Benefit cap expected to affect 88,000 households image

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.’

PWLB hike: A rise too far? image

PWLB hike: A rise too far?

What impact will the increase to the Public Works Loan Board rate have on councils’ housing and other capital schemes? Neil Merrick investigates.
SIGN UP
For your free daily news bulletin
Highways jobs

Head of HR/OD

Babergh & Mid Suffolk
£60,000 circa
The role will involve working closely with the Senior Leadership Team and Chief Executive to lead our People Strategy and... Ipswich, Suffolk
Recuriter: Babergh & Mid Suffolk

Youth and Community Based Commissioner - Mid Essex

Essex County Council
£18117 - £19106.0 per annum
Annual Salary JNC Scale Points 3-6 £18,117 - £19,106 (1-2 in training) We are currently seeking a Youth and Community Based Commissioner to support t England, Essex, Chelmsford
Recuriter: Essex County Council

Strategic Rent Accountant

Camden London Borough Council
£45,504 - £52,786
The successful candidate will be self-managing, troubleshoot to overcome obstacles and have proven experience of working effectively with a... Camden, London (Greater)
Recuriter: Camden London Borough Council

Principal Policy and Projects Officer

Camden London Borough Council
£45,504 - £52,786
Successful candidate will be an experienced strategic thinker with experience of delivering large-scale programmes and projects. Camden, London (Greater)
Recuriter: Camden London Borough Council

Mental Health Social Care Manager

Suffolk County Council
£47,167
You will play a key part in the Mental Health Service provision in Suffolk, supported by our Mental Health Strategy... Ipswich, Suffolk
Recuriter: Suffolk County Council

Local Government News

Latest issue - Local Goverrnemnt News

This issue of Local Government News explores how councils can tackle modern slavery and trafficking in their supply chains, finds out more about Cambridge's first cohousing scheme and the launch of a new project to build a shared service pattern library for local government.

This issue also contains a special focus on children's services and how councils are protecting children following local safeguarding children boards being abolished.

Register for your free magazine