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| The new reduced benefit cap: how it works and who it affects The new reduced benefit cap: how it works and who it affects | |
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| What is the benefit cap? | What is the benefit cap? |
| The benefit cap sets a limit on the total amount in benefits that most working-age people can claim. | The benefit cap sets a limit on the total amount in benefits that most working-age people can claim. |
| How much is the cap? | How much is the cap? |
| The benefit cap will be reduced from 7 November 2016. | The benefit cap will be reduced from 7 November 2016. |
| The total amount a couple or a single parent can receive in benefits will be: | The total amount a couple or a single parent can receive in benefits will be: |
| The total amount a single person who doesn’t have children, or doesn’t have children living with them can receive in benefits will be: | The total amount a single person who doesn’t have children, or doesn’t have children living with them can receive in benefits will be: |
| The current cap is: | The current cap is: |
| What effect will the cap have? | What effect will the cap have? |
| Before the reduction, households affected were predominantly clustered in London, due to higher housing costs: the move to a regional rate, as well as a reduction for all claimants who reach the cap means far more people will have their benefits cut. | Before the reduction, households affected were predominantly clustered in London, due to higher housing costs: the move to a regional rate, as well as a reduction for all claimants who reach the cap means far more people will have their benefits cut. |
| The Department for Work and Pensions states that between the introduction of the cap in April 2013 and May 2016, 76,200 households had their benefits capped. Most of these households were in London, and most capped households included children. | The Department for Work and Pensions states that between the introduction of the cap in April 2013 and May 2016, 76,200 households had their benefits capped. Most of these households were in London, and most capped households included children. |
| The cap applies to people who are not in work – households are exempted from the cap if either of the following apply: | The cap applies to people who are not in work – households are exempted from the cap if either of the following apply: |
| Who will be affected? | Who will be affected? |
| Analysis by the Chartered Institute of Housing (CIH) shows the households affected by the existing cap are those living in particularly high cost areas. Almost 9,000 of those affected live in London, with a further 2,000 living in the south-east. It has also had an impact on larger than average families, with the CIH estimating that 5,000 families with four children have been affected and nearly 7,000 with five or more children. | Analysis by the Chartered Institute of Housing (CIH) shows the households affected by the existing cap are those living in particularly high cost areas. Almost 9,000 of those affected live in London, with a further 2,000 living in the south-east. It has also had an impact on larger than average families, with the CIH estimating that 5,000 families with four children have been affected and nearly 7,000 with five or more children. |
| The reduced cap will have much wider effect, as the impact of the cap will no longer be limited to London. At present, 586 households in Wales are caped – from 7 November, 5,844 families will be capped: in the east Midlands, Scotland and the north-east, the number of families capped rises almost ten-fold. | The reduced cap will have much wider effect, as the impact of the cap will no longer be limited to London. At present, 586 households in Wales are caped – from 7 November, 5,844 families will be capped: in the east Midlands, Scotland and the north-east, the number of families capped rises almost ten-fold. |
| The larger the family, the bigger the proportionate impact. The household cap is not tapered by number of children in the family, so a family of five will be capped at the same rate as a single parent family, if their benefits and housing benefit reach the cap. | The larger the family, the bigger the proportionate impact. The household cap is not tapered by number of children in the family, so a family of five will be capped at the same rate as a single parent family, if their benefits and housing benefit reach the cap. |
| The CIH research estimates that 319,000 children live in houses that will be affected by the reduction in benefits. Even in the parts of the country where housing is cheapest, Wales and the north-east, there are over 12,000 one-to-four child families affected. | The CIH research estimates that 319,000 children live in houses that will be affected by the reduction in benefits. Even in the parts of the country where housing is cheapest, Wales and the north-east, there are over 12,000 one-to-four child families affected. |
| What is the likely effect? | What is the likely effect? |
| As the cap to benefits is usually applied through a reduction in housing benefit the CIH report says that: | As the cap to benefits is usually applied through a reduction in housing benefit the CIH report says that: |
| CIH’s chief executive, Terrie Alafat says the organisation’s research on the cap is extremely worrying. It shows that the reduction in total benefits is going to hit some of the most vulnerable families of all sizes across England, Scotland and Wales. “These families will lose out when the cap comes into effect from 7 November and in many cases will straight away face a substantial gap between their rent and the help they receive to pay for their housing.” | CIH’s chief executive, Terrie Alafat says the organisation’s research on the cap is extremely worrying. It shows that the reduction in total benefits is going to hit some of the most vulnerable families of all sizes across England, Scotland and Wales. “These families will lose out when the cap comes into effect from 7 November and in many cases will straight away face a substantial gap between their rent and the help they receive to pay for their housing.” |
| Sign up for your free Guardian Housing network newsletter with news and analysis sent direct to you on the last Friday of the month. Follow us: @GuardianHousing | Sign up for your free Guardian Housing network newsletter with news and analysis sent direct to you on the last Friday of the month. Follow us: @GuardianHousing |