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Major study to recommend further benefit cuts and child support cap

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Major study to recommend further benefit cuts and child support cap

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Published by Max Salsbury for 24dash.com in Central Government and also in Finance, Regulation

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A major study is due to recommend that the government slashes the benefit budget even further and caps child support at four children.

Set for publication in two weeks' time, think tank Policy Exchange believes a future government should apply another 10% reduction to the current benefit cap of £26,000.

By lowering the cap to £23,400, a future government would save an extra £100 million a year.

However, the think tank believes the 10% reduction should not be applied to London or the South East

Policy Exchange's forthcoming study examines how a future government could find further savings in the welfare budget.

The paper will also claim that child benefit should be capped at four children and payments progressively reduced after the first child.

This, the think tank says, would lead to savings of £1 billion by 2020.

Steve Hughes, deputy head of economics and social policy at Policy Exchange, said: “Income levels and housing costs vary widely across the UK. Policymakers have been looking for ways that this can be recognised within the welfare system.

"Setting one benefit cap for the high income regions of London and the South East, and one for the lower income areas elsewhere, is a solution that avoids multiple rates across the country.”

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