The Department for Work and Pensions today confirmed the four London local authorities where the Benefit Cap roll out will start in April. It will be introduced in Bromley, Croydon, Enfield and Haringey and rolled out across the country throughout the summer.
The cap will be in place across the whole country by summer 2013.
The Benefit Cap will see the amount people can receive in benefits capped at the average earned income after tax and National Insurance for working households of £500 a week for couple and single parent households – the equivalent of £26,000 per year.
It will apply to the combined income from JSA, Income Support, Employment and Support Allowance, Child Benefit, Child Tax Credits and other benefits.
Certain households including those with someone in receipt of Disability Living Allowance or the Support Component of ESA and war widows and widowers will be exempt. To increase the incentive for people on out-of-work benefits to find work, households with a member who is entitled to Working Tax Credit will also be exempt from the benefit cap
The Department for Work and Pension’s has allocated £100 million in Discretionary Housing Payments to help support vulnerable people affected by this change.
For a useful guide to how the cap will work, see this factsheet from Disability Rights
Tags for Forum Posts: benefits cap
" . . . yet according to the Rowntree research no-one is claiming huge benefits at the other end."
Mr Hoyle, can you give a specific reference to this research, please. Plainly, this is an interesting piece of evidence, which I'd like to look up and read.
Many thanks, Liz. I promise to read the whole report through with care. However, we're a teensy bit busy over the next couple of days. So I'd still appreciate Will Hoyle's help in going to the sections/paragraphs where the Rowntree researchers show that "no one is claiming huge benefits at the other end".
I'd assumed that this cast doubt on the view that either landlords - or perhaps a significant number of claimants - were huge beneficiaries of the system. But I'd prefer to read the research rather than make guesses.
The timing of this announcement, Thursday afternoon leaving just over a working day before Xmas shows you how nasty this Government is.
The people affected by this are not just the jobless, but people on a variety of benefits including those on: Carers Allowance, Incapacity Benefit, Severe Disablement Allowance, Child Tax Credits, Widowed Parent Allowance and Maternity Allowance. Around 70% of people who claim Housing Benefit actually work
The jobs that we take for granted, the people cleaning our streets, looking after our children, serving us in coffee shops or driving around sick paitents to medical appointments do not pay well in comparison to the cost of living and in order for them to survive benefits/subsidies have been created.
A lot of people who currently claim benefits actually paid into the system through national insurance.
The cost of housing in Tottenham is one of the lowest in London, however a 3 bedroom property is still warranting about £20-£22k a year. The thought that people on Housing Benefits are getting a £26k cheque through the door is disingenious, £20-£22k of it is going direct to landlords often offering below standard properties for people to live in.
I find it incredious that any Tory can come on this site blaming a Labour run council for selling off social housing, the Right to Buy scheme caused the mass sell off of housing stock creating a mass market for the private sector to offer private rental as an alternative.
Why is the rents so high? Because it can be, this crazy RTB policy eliminated competition enabling private landlords to increase rents knowing that local authorities had very little choice but to use them in order to fulfil its statutory duty to house the vulnerable. Ironically the biggest benefit scroungers are the rich Landlords, who probably reside in a 5 bed semi somewhere in Essex paid for on the proceeds of housing benefit - our money.
Instead of the government realising its mistake with RTB, it has decided to increase the discount to those wishing to purchase from £16,000 to a staggering £75,000 off. Its mass marketing campaign a few months ago will see more homes leaving the council.
I find it sick that we are attacking these benefits, but ignore the billions that multinational companies dont pay in tax. That we can insult a widowed parent or a carer of a mentally ill child for having financial subsidies, but are silent when the likes of Richard Branson recieve millions in government subsidies to run a railway company, charging the highest fares in Europe yet still making enough to pay shareholders hundreds of millions of pounds in dividends - who is the scrounger now?
If the Tories are so concerned about not artificially engineering markets, do so as a blanket policy. Dont award rail contracts, sell those contracts as a going concern and re-coup the billions of pounds of public money spent to build the railway structure and stop subsidising rich millionaires with money that could go to the dsabled. Truth is Branson wouldnt buy it if he had to pay for it and actually generate real term growth. This stupid Thatcherite idea to privatise as a form of saving the public purse was a lie and it is time to renationalise it, and either reduce the fare not to form profit or invest the profits back into building infrastructure in this country and creating jobs, not building some shareholders wine cellar or feeding some off shore tax haven in Jersey.
Why do the Tories artificially engineer bus fares, we have an inflation rate - stick to it. I paid 80p to get on a Bus not in Mumbai, but Manchester, the fact its £2:35p in London and Boris is raising this in 2 weeks when many are finding it hard to financially survive is disgusting.
How any Tory can come on a forum, not even know the cost of rent on his own doorstep and claim they are in touch with reality is a joke! As for discussing Labours role in the economy.
This is nothing more than ideologically driven hatred of the working poor, a social cleansing of our community and only the seriously stupid would attack poor people in their own area, the Leader of this country must be laughing at you as he sips his wine in a kitchen he scrounged £680,000 of public money doing up!
Pleaseeee check yourself, pityful!
When Thatcher sold off council housing the long term fall out was very predictable; fragmenting and privitising the NHS will also have dire predictable consequences, and capping benefits will cause real hardship. These services and support systems were put in place because they were needed and they still are. Leaving it to market forces so that landlords or private health companies can suck out as much profit as they can has never worked and will never work. In the meantime ordinary people will suffer. As a start we need to bring in a fair rent policy.
This Maggie, is the main reason for high rental prices in the private sector amongst benefits claimants. If the demand was soaked up with enough LA owned social housing stock that didn't demand daft rental tariffs we wouldn't be in this situation. Thatcher was the catalyst but unfortunately Labour took the batten and did nothing to address this. If this is to be addressed in the next twenty years, whatever government, they need to build thousands of state owned houses and flats, so the priority is housing for the needy and not the back pocket of the landlord.
loool Little Willy, you are too predictable... start a debate and when you realise you dont have a clue what you are on about, out comes the "I am too busy to know anything, unlike you... blah blah blah!" lines
For someone so convinced he is non-political, but was/is the Treasurer for the Tottenham Tories is about as silly as giving the countries Chancellors job to a plonker with a History degree.... LOOOOOOOOOL, Oh hang on!
Have a nice New Years Billy.... & in 2013 try not to keep calling yourself ignorant, thats my job!
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