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UK Government claims that the new benefits cap encourages job seekers

July 2013, 15
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The government of UK claims that more than 12,000 individuals have moved or joined in new jobs after knowing about the benefits cap. The cap being discussed is on the benefits that individuals aged 16 to 64 have been receiving from the government. This cap is being rolled out across Scotland, England and Wales. From now onwards, lone parents and couples cannot receive more than £500 a week and single individuals will receive only £350 as benefits. However, critics underline that the benefits cap will not be useful in tackling the several underlying problems.     

As per the claims of The Department of Work and Pensions (DWP), nearly 12,000 claimants received jobs in the previous year. The job centres, which were useful in finding the employment, have warned the individuals that their benefits will be capped if they do not have a valid employment. However, the benefit cap will not affect the people who are already working and have a valid employment.

The benefits that count towards the cap are child and job seeker’s allowance along with housing benefits. It has been estimated by the Department of Work and Pensions that more than 40.000 households will be affected through the benefits cap program. As per the Work and Pensions Secretary, the present levels of benefits are discouraging people from searching for work.

As per the National Housing Federation (NHF), the benefits cap does not work in the South-East and London, where the rents are known to be high. People affected by the cap will have their benefits of housing reduced. Hence, many families will be not able to pay high rents. It is estimated by the NHF that there will be more demand for affordable living in Grater London as nearly half of its population will be affected.

Benefits cap is going to be completely implemented by the end of September. After that period, the program is going to be part of the Universal Credit System. This law is being already implemented in four London boroughs Enfield, Haringey, Croydon and Bromley.

However, there is no cap on individuals who obtain Personal Independence Payment, Disability Living Allowance and other main benefits like war widow, industrial injuries benefit and widower’s pension. As per Mr Duncan, benefits cap ensures the faith of taxpayers in the government’s welfare system. The limits on the benefits help individuals in understanding the needs of securing a job.

Approximately over £95bn is being spent in the form of benefits to the families of working-age. Over the two years, the government hopes that around £300m can be saved.    

The local authorities in the four London boroughs expressed that they have been struggling to implement the measures prescribed in the benefits cap. One of the best alternatives for families is to relocate to the areas where the housing costs are less and affordable. It is like potentially requiring the families to move out of London which is termed to be difficult.

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