The lower benefit cap has come into effect. The limit on total household benefits across the United Kingdom will be £20,000 per year (£23,000 in London).
The Department for Work and Pensions (DWP) argues lowering the cap will provide an incentive to work, but critics have said it will unfairly hit families. The CIH last have released analysis showing the cap will hit 116,000 families, affecting 319,000 children.
According to Inside Housing:
“DWP published examples of ways local authorities can help people hit by the cap, including conducting face-to-face meetings with claimants.
A DWP spokesperson said: “We are committed to helping people who are able to work into jobs and the benefit cap provides a clear incentive to move into employment for those who can. Anyone eligible for working tax credits, carers’ allowance, and most disability benefits are exempt from the cap.
“The benefit cap restores fairness to the system and the new limit will ensure the amount people on out-work-benefits can claim better reflects the circumstances of many working families in the country. Even with the new cap, households can still receive benefits up to the equivalent salary of £25,000, or £29,000 in London.” “