Opinion

All in all ... the 'benefits cap'

Dr Katherine Runswick-Cole looks at the likely impact of the benefits cap

Last month (on 15 April), the benefits cap came into force in four London boroughs (Croydon, Bromley, Haringey and Enfield) with a view to it being rolled out in England, Wales and Scotland from July, with Northern Ireland likely to follow suit.

What is the 'benefits cap'?

The cap is a limit on the amount of money families may receive in benefits from the state.

For couples and lone parents, the cap will be set at £500 per week, regardless of how many children they have, and for single people the cap is £350.

The benefit cap will save the Government money - about £110m in the first year - but the Government's policy is primarily motivated by the view that out-of-work families should not receive more money from benefits than families who work. The stated aim of the benefit cap is to motivate people to find work.

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