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Benefit Cap Delay

The Department for Work and Pensions has confirmed that the Benefit Cap will be introduced in four London local authorities in April 2013 with the national Benefit Cap now due to cover the rest of the country by summer 2013. This signifies a delay in the national roll out which is rumoured to be as a result of concerns over computer software. 

Bromley, Croydon, Enfield and Haringey will be the first areas to "trial" the system which will see the amount of benefits people can receive capped at the average earned income after tax and National Insurance for working household. This equates to £500 a week for couple and single parent households – the equivalent of £26,000 per year.  Households where someone is 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.

21 December 2012

 

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