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

Enhanced Social Work Practitioner

Durham County Council
Grade 12 - £44,075 - £48,226 per annum. Pay award pending.
Do you believe every child deserves to grow up surrounded by love, family, and a sense of belonging?   Are you an experienced social worker ready to p Durham
Recuriter: Durham County Council

Principal Accountancy Assistant

Durham County Council
£38,220 to £41,771 p.a. (Grade 10) Pay award pending
We are currently recruiting for two Principal Accountancy Assistant positions, one of the posts is within the Financial Technical Accounting Team, sup Durham
Recuriter: Durham County Council

Lecturer in Health, Care and Education

Durham County Council
Grade 9, £35,412 - £39,152 pro rata per annum. Pay award pending.
We are looking for an enthusiastic and dedicated Lecturer with experience in Health & Social Care and Education who is passionate about helping adults Durham
Recuriter: Durham County Council

Care Support

Durham County Council
Grade 4 £25,583 - £26,824 pro rata pa. (Pay award pending).
We have an exciting opportunity to join our Pathways Service, which delivers high-quality day services for adults with complex needs, Monday to Friday Spennymoor
Recuriter: Durham County Council

School Driver

Durham County Council
£24,796 pro-rata
Fixed Term Contract until 31 August 2027 Part-time - 7.5 hours per week- 7.15am – 8.45am Monday to Friday. Term Time Only Required to start 1st Septem Durham
Recuriter: Durham County Council
Linkedin Banner