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Benefit cap brings thousands back into work

The benefit cap policy, which was introduced in 2013, has given people a chance to turn their lives around and break free from welfare ‘dependency’, according to Secretary of State for Work and Pensions Iain Duncan Smith. Our feature writer Suzanne Danon looks at the figures.

This week Mr Duncan Smith revealed 55,300 households have had their benefits capped, and of these almost three in five households are no longer subject to the cap.

Research has highlighted that an average of 200 people every week are making the choice to move into work or stop claiming Housing Benefit. Figures also reveal thousands or people previously claiming benefits are taking advantage of almost 700,000 vacancies in the economy and ‘contributing to record levels of employment’.

Mr Duncan Smith said: “As well as restoring fairness to the system, and saving the taxpayer money, the benefit cap provides a clear incentive to people to get into work.

“Today’s figures show that the cap has led to hundreds of people breaking free from welfare dependency every week, and gaining the financial security and esteem which comes with a job and pay packet.”

He added: “That’s real people turning their lives and the prospects of their families around. It is a proud record of this government’s long-term economic plan – one that we are determined to see through.”

Recent estimates suggest the benefit cap policy will save almost £225m over two years.

What are your thoughts on the benefit cap policy? What else should be done to encourage people into work? Please let us know what you think below.

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I wonder how many of these people are presenting fake payslips for 16 hours work at minimum wage in order to make them eligible for full housing benefit, tax credits, childcare costs, etc AND avoid the "benefit cap"? My LA's Benefit Fraud Investigation team identified a massive rise in the number of HB claimants presenting payslips for 16hrs/minimum wage/paid in cash in support of Housing Benefit claims and, in the days when LA's were able to investigate HB fraud, in many cases the "employment" was found to be fake.