As the Welfare Reform Bill debate rages between the Houses of Parliament, the Department for Work and Pensions has published an Impact Assessment for the Household Benefit Cap. It states that almost 30,000 social tenants will have their household’s benefit payments capped.
The assessment contains new data compiled by the DWP that supersedes previous data based on surveys. It seeks to explain why the government is introducing the policy and assess how it will affect people and how much it is likely to cost.
It claims that the £500 per dwelling per week cap will affect 67,000 households – 44% of whom are in the social rented sector.
There are some ways to avoid the cap – households on working tax credits, disability living allowance and constant attendance allowance are
exempt.
The DWP reckon that “In reality, many households will react to these changes, and avoid being capped by either working enough hours to qualify for Working Tax Credit, renegotiating their rent in situ, or by finding alternative accommodation.”
The assessment estimates that policy will save £275m in its first year from the government’s £192bn spend on welfare
payments – a saving of 0.1%