DWP issues warnings to households in benefit cap hotspots

Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Finance, Local Government, Universal Credit

Nearly 89,000 households across Great Britain may be affected by next April’s household benefit cap, with 42% living in social housing, according to the Department for Work and Pensions (DWP).

It has issued updated data on the number of households that have received letters informing them they may be affected by the cap – which will prevent working-age families receiving above £500 a week in welfare payments. For single households of working age, the cap will be set at £350 a week.

The department has issued letters to 88,650 households (120,000 individuals) that it believes may be affected, 37,410 are social households while 45,070 are private renters. Just over 2,000 households living in temporary short-term accommodation have also been sent letters.

The department had previously estimated 56,000 households would be affected by the cap but said the new figures related to those who have seen a change in circumstances or who "may" be affected when the cap comes in but aren’t currently.

The cap will apply to the combined income from the main out-of-work benefits such as jobseekers’ allowance, plus housing benefit, child benefit and child tax credit. Initially those receiving benefits above the cap will have their housing benefit reduced by the local authority but from October it will be integrated into Universal Credit.

Alongside the data, the DWP has issued a breakdown of those affected by local authority area – with the bulk in London.

The local authorities with more than 1,000 households affected are: Barking and Dagenham, Barnet, Birmingham, Brent, Camden, Croydon, Ealing, Enfield, Hackney, Hammersmith and Fulham, Haringey, Islington, Kensington and Chelsea, Lambeth, Lewisham, Newham, Redbridge, Tower Hamlets, Waltham Forest, Wandsworth, the City of Westminster.

The local authority with the most affected households is the London borough of Brent – with 3,660 affected, followed by Westminster with 3,380 households affected.

According to the DWP, 59% of households that may be affected have between one and four children, 25% have five or more children and 15% have no children.

Around 46% of households contacted are estimated to lose up to £50 per week as a result of the benefit cap; with 18% set to lose over £150.

The data shows that just over 41,000 households affected are lone parents with nearly 35,000 couples with children.

Those in receipt of working tax credit, disability benefits or war widows and war widowers’ pension will be exempt from the cap.

Individuals who have been in employment in the previous 12 months will be given a grace period of nine months before the benefit cap applies.