Benefits cap trial set to affect 40,000

The government’s nationwide cap on benefits payments began last week with a trial in the London Boroughs of Haringey, Enfield, Croydon and Bromley.

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The cap will affect 40,000 London households and will mean that households with single people will see a weekly benefits limit of £350, while this figure stands at £500 a week for couples and single parents.

The changes includes jobseeker’s allowance, income support, child and housing benefit, but exclude disability benefits, and is set to see the affected households in the capital have their benefits cut by an average of £93.

Speaking last week, work and pensions secretary Iain Duncan Smith said: “The benefit cap sets a clear limit for how much support the welfare state will provide – the average wage for working households.

“But it’s also a strong incentive for people to move into work and even before the cap comes in we are seeing thousands of people seeking help and moving off benefits.

“We have a very clear message: we will provide support to those who need it, but the days of outrageous claims giving people incomes far above those of working families are over.”

The cap will be rolled out in all other parts of England as well as Scotland and Wales between July and September.

The benefits trial comes in the wake of changes to the disability benefits system, which the chief executive of a leading disability charity argued could have a devastating impact on the lives of disabled people in the UK.

Disability Rights UK’s chief executive Liz Sayce has said that the replacement of Disability Living Allowance (DLA) with Personal Independence Payments (PIP) could “see thousands of disabled people become institutionalised in their own homes.”

She cited estimates from the Department for Work and Pensions which outline that 428,000 disabled people on the higher rate mobility component of the DLA could receive a lower amount or lose this altogether.

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Posted by: Nicola Severn Categories: Finance Tags: , 1 Comment

One Response to Benefits cap trial set to affect 40,000

  1. avatar joseph jones says:

    Excellent news about time , I have worked since I left school , I’ve done many min wage jobs before and have never ever claimed a penny from the state, people find it easy just to sign on and cherry pick jobs that they consider beneath them , I would do any work from cleaning toilets to stacking shelves as long as I’m working. The new pip should hopefully get rid of the people who have seen it as an easy option, I’m not talking about genuine cases as I myself have a serverly disabled son so I understand the need to ensure the pip is done correctly.