Benefits Cap – New Figures Revealed

The press over the weekend have revealed that more than a quarter of families set to be hit by the benefits cap have found jobs or reduced their claims.

It was estimated last year the £26,000 a-year limit would affect 56,000 families. But official statistics released on 12/04/13 show only 40,000 are likely to face the cuts – a fall of 16,000.
Of those who will avoid the cap, half have found jobs and the rest have moved into cheaper housing.

It also emerged 25,000 peo9ple set to be affected have accepted Jobcentre Plus help to find work.

Work and Pensions Secretary Iain Duncan Smith said it proved the benefit cap was already helping to change behaviour – even before it is introduced. The cap limits welfare payments to £500 a cweek for families and £350 for a single person.

Pilot schemes will be launched in four London boroughs – Croyden, Bromley, Haringey and Enfield – on Monday 15th April 2013 ahead of a national rollout from July. It comes after officials sent out warning letters to families likely to be affected.

Mr Smith said “The benefit cap sets a clear limit on how much support the welfare state will provide – the average wage for working households.

But it’s also a strong incentive for people to move into work and, even before the cap comes in, we are seeing thousands moving off benefits. The cap is expected to save £110million a year.

However, shadow work and pensions minister Stephen Timms said the Government was having to borrow £245billion more than planned to pay for extra welfare spending caused by high unemployment.

As intimated in the blog before regarding welfare reform, an attempt to radically reform it at some time was inevitable. The reforms will begin to kick in and so will all the detrimental ramifications and knock on effects affecting the less fortunate. There will still be millions unemployed and genuine disabled people stressed into an earlier grave while those whose pockets are nicely lined will still tick over very sweetly – as ever!!!..   
More information on the Benefit Cap

Enhanced by Zemanta

Leave a Reply