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Benefit payments cap rollout begins in London | |
(about 1 hour later) | |
A government-imposed cap on many benefit payments nationwide is beginning in four London boroughs. | A government-imposed cap on many benefit payments nationwide is beginning in four London boroughs. |
Couples and lone parents in Haringey, Enfield, Croydon and Bromley will not receive more than £500 a week while a £350 limit applies to single people. | Couples and lone parents in Haringey, Enfield, Croydon and Bromley will not receive more than £500 a week while a £350 limit applies to single people. |
The cap is set to be imposed across England, Scotland and Wales between July and September. | The cap is set to be imposed across England, Scotland and Wales between July and September. |
Jobseeker's allowance, income support, child and housing benefit count towards it, but not disability benefits. | Jobseeker's allowance, income support, child and housing benefit count towards it, but not disability benefits. |
The move is part of efforts to cut spending; the amount is said to reflect the average working household income. | The move is part of efforts to cut spending; the amount is said to reflect the average working household income. |
The cap is not yet law in Northern Ireland. | The cap is not yet law in Northern Ireland. |
The Department for Work and Pensions has said about £90bn was paid out in benefit payments to people of working age and their families in 2009-10; it hopes the cap will save it about £110m a year. | The Department for Work and Pensions has said about £90bn was paid out in benefit payments to people of working age and their families in 2009-10; it hopes the cap will save it about £110m a year. |
'Strong incentive' | 'Strong incentive' |
Jobseeker's Allowance, Income support, child benefit and housing benefit are on a long list of payments which count towards the calculation of the cap, which will result in an average cut of £93 for the 40,000 London households initially affected. | Jobseeker's Allowance, Income support, child benefit and housing benefit are on a long list of payments which count towards the calculation of the cap, which will result in an average cut of £93 for the 40,000 London households initially affected. |
BBC News personal finance correspondent Simon Gompertz says people on disability benefits will be exempt from the cap. | BBC News personal finance correspondent Simon Gompertz says people on disability benefits will be exempt from the cap. |
As a way of encouraging people to seek work, ministers have decided that people with a job who receive Working Tax Credit will also not be affected, our correspondent added. | As a way of encouraging people to seek work, ministers have decided that people with a job who receive Working Tax Credit will also not be affected, our correspondent added. |
Ministers say that the threat of the introduction has already spurred 8,000 claimants who would have lost out to find jobs. | Ministers say that the threat of the introduction has already spurred 8,000 claimants who would have lost out to find jobs. |
The government has revealed it is to spend an extra £2m as part of the initial roll-out. | The government has revealed it is to spend an extra £2m as part of the initial roll-out. |
Speaking last week, Work and Pensions Secretary Iain Duncan Smith said: "The benefit cap sets a clear limit for how much support the welfare state will provide. | Speaking last week, Work and Pensions Secretary Iain Duncan Smith said: "The benefit cap sets a clear limit for how much support the welfare state will provide. |
"But it's also a strong incentive for people to move into work and even before the cap comes in we are seeing thousands of people seeking help and moving off benefits. | "But it's also a strong incentive for people to move into work and even before the cap comes in we are seeing thousands of people seeking help and moving off benefits. |
"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 working families are over'." | "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 working families are over'." |
Labour has argued that a better way to cut the benefits bill would be to offer guaranteed jobs to the long term unemployed. | Labour has argued that a better way to cut the benefits bill would be to offer guaranteed jobs to the long term unemployed. |