Housing benefit cap ‘incentivises’ thousands into work

The housing benefit cap, introduced in April 2013, encouraged people in almost 20,000 households to move into work, according to new government figures.
Thu, 5 Feb 2015
The housing benefit cap, introduced in April 2013, encouraged people in almost 20,000 households to move into work, according to new government figures.

The figures show 55,300 households had their housing benefit capped since the cap’s introduction in April 2013.

Of them, 19,800 are no longer capped as people moved into work, either reducing their housing benefit claim or meaning they do not claim the benefit any longer.

Secretary of state for work and pensions Iain Duncan Smith this morning [5 February] said in a statement: “As well as restoring fairness to the system, and saving the taxpayer money, the benefit cap provides a clear incentive to people to get into work.”

The benefit cap was introduced in April 2013 to crackdown on the amount of housing benefits a household can claim, limiting them to up to £500 a week.

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