Articles - Benefit Cap starts in London


 The benefit cap started today in four London boroughs – as the move to set a clear limit on benefits takes effect.

 Claimants in Haringey, Enfield, Croydon and Bromley will see their benefit claims limited to £500 a week – or £26,000 a year – for couples and those with children and at £350 a week for single people.

 The benefit cap will be implemented nationally from 15 July with all appropriate households capped by the end of September.

 Secretary for Work and Pensions Iain Duncan Smith said:

 "The benefit cap is a key part of our reforms to restore fairness to the welfare state.

 "It will provide clear incentives for people to get into employment and will give taxpayers the assurance that high claims out are no longer possible.

 "We have also ensured vulnerable people are protected with clear exceptions for people claiming disability benefits.

 "But we have a very clear message: we will provide support to those who need it, but the days of outrageous claims giving people incomes far above those of hard working families are over."

 The cap will apply to combined income from the main out-of-work benefits ¬jobseeker’s Allowance, Income Support, and Employment Support Allowance - and other benefits such as Housing Benefit, Child Benefit and Child Tax Credit and Carer’s Allowance.

 The benefit cap will not affect a household if a member is entitled to Working Tax Credit, increasing the incentive to find work.

 All households which include somebody who is receiving Disability Living Allowance will be exempt as will those who receive a War Widow’s or Widower's Pension.

 The benefit cap will not be applied for 39 weeks to those who have been continuously in work for the previous 12 months.

Back to Index


Similar News to this Story

How to unlock true value from workplace pensions
Workplace pensions are one of employers’ most powerful tools to support their people’s financial wellbeing, engagement and long-term retention. But
Engagement - the underused risk management tool
Defined contribution pension schemes are seen as low risk for employers, but if staff don’t understand and appreciate them, the risks can add up. With
Preparing for a Budget clampdown on pension salary sacrifice
Our experts crunch the numbers and assess what a UK Budget clampdown on pension salary sacrifice might mean for employers and employees. On 8 November

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.