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Lord Freud: Benefit cap is helping people back into work

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Lord Freud: Benefit cap is helping people back into work

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Published by Jon Land for 24dash.com in Central Government and also in Bill Payments, Housing, Local Government

Lord Freud: Benefit cap is helping people back into work Lord Freud: Benefit cap is helping people back into work

More than 4,000 households subjected to the government's benefit cap have now found jobs, according to figures published today.

Statistics from the Department for Work and Pensions also show 3,340 households that had their benefits capped either reduced their housing benefit claim or stopped claiming it altogether, while 1,570 households reduced the amount they receive in other benefits.

The benefit cap limits the amount of benefits a household can receive to £500 a week for couples, with or without children, and lone parent households, and £350 a week for households of a single adult with no children.

In total, more than 38,600 households had their benefits capped by January 2014.

Minister for Welfare Reform, Lord Freud, said: "The benefit cap is rewarding families who want to work hard and get on, and already we are seeing thousands of people finding jobs and moving off benefits.

"By capping welfare, we are fixing the broken system which allowed tens of thousands of households to receive far more in benefits than the ordinary hardworking family earns.

"We are taking control of the benefits system as part of the government’s long-term economic plan and making work pay to secure a better future for Britain."

The DWP says the methodology used for the figures draws on working tax credits to determine the number of people who are no longer capped that have moved into work.

In January 2014, 27,700 households were still subject to benefit cap. In addition, 11, 950 households are no longer subject to the benefit cap and of these:

  • 36% had seen someone move into work
  • 41% had actively reduced their benefit claim to below the level of the cap
  • 6% become exempt due to a disability or sickness benefit entitlement
  • 2% had a change in recorded Local Authority
  • 1% had a change in original household structure
  • 14% became exempt for other reasons

The benefit cap applies to combined income from the main out-of-work benefits, Jobseeker’s Allowance, Income Support, Employment and Support Allowance, Universal Credit and other benefits such as Housing Benefit, Child Benefit and Child Tax Credit and Carer’s Allowance.

In recognition of their additional needs, some households are exempt from the cap, including households which include somebody who is receiving Disability Living Allowance or Personal Independence Payment.

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