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Benefit payments cap rollout begins in London | Benefit payments cap rollout begins in London |
(35 minutes 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. |
'Difficult choices' | 'Difficult choices' |
Employment minister Mark Hoban told BBC Radio 4's Today programme: "People want to see a benefits system that's fair, affordable and gets people into work. And we are seeing that." | Employment minister Mark Hoban told BBC Radio 4's Today programme: "People want to see a benefits system that's fair, affordable and gets people into work. And we are seeing that." |
He added: "This is about fairness. There are people in this country making difficult choices about where they live and who don't claim housing benefits." | He added: "This is about fairness. There are people in this country making difficult choices about where they live and who don't claim housing benefits." |
"If they want to escape the benefits cap, the best way to do it is to move into work," Mr Hoban said. | "If they want to escape the benefits cap, the best way to do it is to move into work," Mr Hoban said. |
The cap is not yet law in Northern Ireland. | The cap is not yet law in Northern Ireland. |
The Department for Work and Pensions says 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 about £110m a year. | The Department for Work and Pensions says 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 about £110m a year. |
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. |
People on disability benefits will be exempt from the cap. To encourage people to seek work, ministers have decided that people with a job who receive Working Tax Credit will also not be affected. | People on disability benefits will be exempt from the cap. To encourage people to seek work, ministers have decided that people with a job who receive Working Tax Credit will also not be affected. |
Ministers claim that the threat of the introduction of the cap has already spurred 8,000 claimants who would have lost out to find jobs. | Ministers claim that the threat of the introduction of the cap has already spurred 8,000 claimants who would have lost out to find jobs. |
Labour argues that a better way to cut the benefits bill would be to offer guaranteed jobs to the long-term unemployed. | Labour argues that a better way to cut the benefits bill would be to offer guaranteed jobs to the long-term unemployed. |
Shadow work and pensions minister Stephen Timms said: "For all the Tory rhetoric, the true picture of this government is one of economic failure. | |
"They are having to borrow £245bn more than they planned, not to pay for the investment needed to grow our economy, but to pay for more welfare spending caused by high unemployment." |