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New Benefit Cap starts to impact

New Benefit Cap starts to impact

New Benefit Cap starts to impact

18 Nov 2016

The Government’s lowering of the Benefit Cap has started to impact in Camden. Nearly 180 households were affected by the reduction in the amount of benefits from 7 November with a further 500 expected to be impacted from week commencing 19 December.

The Government introduced a cap on the amount of benefits an out of work household can receive in 2013, setting the maximum at £26,000. This year the Government have reduced this threshold further to £23,000 in London and £20,000 for the rest of the country.

This means that families with children/couples can receive £442.31 a week whilst single claimants with no children living with them can receive £296.35 a week. The cap is applied through a reduction in housing benefit which in capped households will no longer cover the rent.

The main exemptions from the cap are employment and/or receiving a higher level of disability benefit.

Of the 179 households affected so far, 115 have children and most live in the private rented sector or council housing. 75% are either in receipt of Employment Support Allowance (work-related) or Income Support, suggesting there are barriers in moving into employment which is the main exemption from the cap.

Camden Council is committed to supporting households affected by the benefit cap and is contacting every household directly to offer assistance. Advisors will work with people to find solutions which may include finding cheaper accommodation, money management, benefits advice and employment, including addressing barriers such as childcare and skills.

To find out more, visit www.camden.gov.uk/benefits

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