Benefits cap delivered in four London areas

The government has announced that the benefits cap has been successfully introduced in four London areas.

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Benefits claimants in Bromley, Croydon, Enfield and Haringey will see the total amount they can receive in benefits limited to £500 a week, with the move affecting just over 2,400 households.

The benefits cap rollout began and on April 15th this year and will continue to include all local councils in the UK between July 15th and September 30th.

The cap applies to benefits including Jobseeker’s Allowance, Housing Benefit, Income Support, Incapacity Benefit, but does not apply to households where someone is in receipt of Working Tax Credits or benefits including Disability Living Allowance.

The weekly cap for single adults without children, or who don’t have children living with them, is £350. A weekly benefits cap of £500 applies to couples (with or without children living with them) and single parents whose children live with them.

The Department for Work and Pensions (DwP) argued that the benefits cap was a ‘key step in the government’s efforts to create a fair welfare state that supports families who want to work hard and get on’.

Explaining further, Secretary of State for Work and Pensions Iain Duncan Smith said:

“The benefit cap returns fairness to the benefits systems. It ensures the taxpayer can have trust in the welfare system and it stops sky-high claims that make it impossible for people to move into work.

“The limit of £500 a week ensures no-one claims more in benefits that the average household and there is a clear reason for people to get a job – as those eligible for Working Tax Credit are exempt.”

The DwP also highlighted figures which showed that Jobcentre Plus has helped claimants potentially affected by the benefits cap, helping 12,400 move into work and 32,300 accept employment support since April 2012.

To get the best interest rates on your borrowing, you can compare personal loans with Propertywide.

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Posted by: Nicola Severn Categories: Finance Tags: , Comments Off on Benefits cap delivered in four London areas

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