Legal News

New figures to August 2015 show that around 28,000 people who have had their benefits capped have moved into work, allowing the government to make savings on Housing Benefit.

The benefit cap limits the amount of benefits a household can receive to a maximum of £26,000 a year – the equivalent of an annual salary of £34,000.

Before the cap, there was no upper limit on benefit claims, with 300 of the highest claiming families receiving more than a total of £10 million in benefits annually.

However, households where someone is entitled to Working Tax Credit are exempt from the benefit cap – and all households where someone is in receipt of a disability-related benefit, including a child, are also exempt from the benefit cap.

Under new measures announced earlier this year, the benefit cap will be reduced further to £23,000 in Greater London and £20,000 elsewhere in the country.

The government has also provided Local Authorities with £500 million of funding to support people affected by the welfare reforms, with a further £80m to be provided over the course of this Parliament.

Since the cap was introduced in April 2013, around 67,000 households have had their benefits capped.

A total of 43,500 of those households are no longer subject to the cap, with 18,100 of them moving into work, the figures show – and a further 9,800 have reduced their Housing Benefit claim, or are no longer claiming Housing Benefit.

The government says research shows that, since the cap was introduced, claimants impacted by the cap are 41% more likely start working, compared with a similar group who fall just below the cap’s level.

After the figures were released on Saturday (07/11/15), Work and Pensions Secretary, Iain Duncan Smith, said:

“At their core, our welfare reforms have been about supporting people back to work – and restoring fairness to the benefits system.

“The benefit cap is a vital cornerstone because it ends the perverse trap that used to exist – where it was often more worthwhile to remain on benefits than go out to work.

“This single reform ensures that people are always better off in employment, and thereby acts as a powerful incentive to move into work.

“Today’s figures show its success, with significant numbers of people doing just that – taking advantage of the near record numbers of opportunities available in the UK economy.”

Duncan Lewis Housing Solicitors

Duncan Lewis housing solicitors can advise claimants on receipt of housing benefit on their rights – as well as advising on a wide range of housing matters, including private and public sector rented accommodation and Local Authority housing.

There are Duncan Lewis offices nationwide and Duncan Lewis is also able to advise on:

• Anti-social behaviour
• Council’s obligation to re-house
• Disrepair of rented property
• Housing fraud
• Landlord & Tenant disputes
• Notice to Quit
• Tenancy Agreements
• Unlawful eviction.

For expert legal advice on housing law, call Duncan Lewis housing solicitors on 0333 772 0409.