Benefit cap – outcome of first phase

Almost 2,500 households had their housing benefit cut during the first six weeks of the new cap on overall benefit payments, according to results from the initial phase running in four London boroughs. Under the cap introduced by the coalition government, the total amount of benefit working-age households can receive is restricted to £26,000 a year. National roll-out of the cap (in England, Scotland and Wales) began on 15 July 2013.

Key results

  • 86 per cent of households capped had between one and four children.
  • 78 per cent consisted of a lone parent with child dependants.
  • 33 per cent were capped by more than £100 a week.

According to the last official impact assessment of the cap (released in April 2013) a total of 40,000 households nationally – equivalent to around 190,000 individuals – are expected have their benefits cut in 2013-14, by an average of around £93 a week. Nearly 20 per cent of those households losing benefit will suffer cuts of more than £150 a week.

Source
Benefit Cap: Number of Households Capped Across Phased Area Local Authorities – Data to May 2013, Department for Work and Pensions
LinksReport | DWP press release | Inside Housing report

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Publication date: 
Jul 3 2013