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

Executive Director - Growth

Warrington Borough Council
£143,662 per annum
We are seeking an innovative and forward-thinking Executive Director of Growth to join us as Warrington Warrington, Cheshire
Recuriter: Warrington Borough Council

Executive Director - Transformation and Improvement

Warrington Borough Council
£143,662 per annum
Warrington Borough Council is currently delivering a significant programme of recovery and transformation Warrington, Cheshire
Recuriter: Warrington Borough Council

Registration Service Advisor

Essex County Council
Up to £25959.00 per annum
Registration Service AdvisorFixed Term, Full Time£25,959 Per AnnumLocation
Recuriter: Essex County Council

Part Time Pre-school / Nursery Assistant (term time only)

Essex County Council
Up to £25959.00 per annum + Pro Rata
Part Time Pre-school / Nursery Assistant (term time only)Permanent, Part Time£25,959 Per Annum, full time equivalentLocation
Recuriter: Essex County Council

Team Leader – Traffic Network Management

Hounslow London Borough Council
£52,194 – £57,402
We’d love you to join us at the London Borough of Hounslow! Hounslow (City/Town), London (Greater)
Recuriter: Hounslow London Borough Council
Linkedin Banner