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134,000 households have benefits capped

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Statistics released by the Department for Work and Pension (DWP) show that between April 2013 and February 2017, 134,000 households had their benefits capped.

The Benefit Cap was brought in by the previous coalition government to limit the total amount of benefits that most people of working age can receive.

Since the lower cap was introduced in Autumn 2016, no household can receive more than £20,000 a year (£23,000 in London) in benefits and no single adult without any children can receive more than £13,400 (£15,410 in London) in benefits.

The following are examples of benefits which are affected by the cap:

  • Jobseeker’s Allowance
  • Income Support
  • Employment and Support Allowance (except when the Support Component is in payment)
  • Housing Benefit
  • Child Benefit
  • Child Tax Credit
  • Universal Credit (where applicable).

Comments from Turn2us Communications Manager

Una Farrell, Communications Manager at Turn2us said: “A recurring issue that the Benefit Cap is causing for those seeking our help is that it is leaves some with little or no money to pay housing costs.

“Sometimes, once all of the other elements have been added up, there is only a few pence for housing costs.”

Impact of the Benefit Cap

The latest Department for Work and Pensions (DWP) statistics also reveal that 50,000 households were capped between December 2016 and February 2017, a result of a lower cap having been introduced in November 2016.

The cap has had a varied impact throughout the UK; 49% of capped households are capped by £50 or less a week, 13% are capped by £100-150 a week, and 2% were capped by more than £200 a week.

Additionally, 23% of those affected by the cap live in London, 43% of households that were capped are in work, and 72% of households who are capped are single-parent families.

Other statistics revealed by the DWP include:

  • 16% of capped households were claiming Jobseeker’s Allowance
  • 52% of capped households were claiming Income Support
  • 15% of capped households were claiming Employment and Support Allowance (Assessment Stage and Work-Related Activity Group only)
  • 91% of capped households were claiming Child Tax Credits
  • 83% of capped households have between one and four children
  • 10% of capped households have 5 or more children.

Source:

DWP (4 May 2017) statistics): Number of Households Affected by Benefit Cap