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.’

Councils vs network operators? image

Councils vs network operators?

The Electronic Communications Code reduces red tape, but in doing so it cuts the potential revenue property owners stand to make and risks pitting local authorities against operators. Zoe Wright reports.
Highways jobs

Air Quality Monitoring Project Manager

Birmingham City Council
£34,788 - £42,683
Seeking a skilled and dedicated individual with a background in environmental protection and air quality to... Birmingham, West Midlands
Recuriter: Birmingham City Council

Museums Duty Manager

Chelmsford City Council
Grade 5 - Starting at £22,494 per annum and rising to £24,789
Chelmsford Museum is seeking an enthusiastic Duty Manager to support the Assistant Museums Manager by providing duty management and key holder resp... Chelmsford, Essex
Recuriter: Chelmsford City Council

Group Manager – No Wrong Door

North Yorkshire County Council
£48,000 to £55,840 p.a.
We are looking for a Group Manager to join North Yorkshire County Council to play a key role in delivering our No Wrong Door Programme Various locations
Recuriter: North Yorkshire County Council

Head of Strategic Investment & Assets

Braintree District Council
Up to £85K
Are you ready to do things on a far bigger scale? Braintree, Essex
Recuriter: Braintree District Council

Director of Public Health

Calderdale Metropolitan Borough Council
£106,090
Are you a collaborative system leader able to deliver our vision and match our ambition? Calderdale, West Yorkshire
Recuriter: Calderdale Metropolitan Borough 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