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

Service Director - Finance

Isle of Wight Council
£95,212 to £102,389
We need a talented and experienced Service Director of Finance to join us and play a pivotal role Isle of Wight
Recuriter: Isle of Wight Council

Strategic Director of Finance and Deputy Chief Executive (Section 151)

Isle of Wight Council
£120,536 to £129,500
Strategic Director of Finance and Deputy Chief Executive (Section 151) Isle of Wight
Recuriter: Isle of Wight Council

Service Director - Education

Isle of Wight Council
£95,212 to £102,389
This is a great time to join our Children’s Services senior leadership team as a Service Director for Education where you’ll provide system leadership Isle of Wight
Recuriter: Isle of Wight Council

Class Teacher (Primary)

Durham County Council
£32,916- £51,048
Primary School Class Teacher M1-UPS3 (£32,916  - £52,149) Permanent, Full-time Contract to begin in September 2026.   The Governors of this happy and Durham
Recuriter: Durham County Council

SEND Inclusion Partner

Essex County Council
£44258.0000 - £52068.0000 per annum
SEND Inclusion PartnerPermanentPart Time, 22.2 hours per week£44,258 to £52,068 per annum FTE, £26,554.80 to £31,240.80 per annum (pro rata)Location
Recuriter: Essex County Council
Linkedin Banner