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Benefits cap of £500 a week rolls out across Britain | Benefits cap of £500 a week rolls out across Britain |
(about 9 hours later) | |
A cap on the total amount of benefits that people aged 16 to 64 can receive has begun rolling out across England, Scotland and Wales. | A cap on the total amount of benefits that people aged 16 to 64 can receive has begun rolling out across England, Scotland and Wales. |
Couples and lone parents will now not receive more than £500 a week, while a £350 limit applies to single people. | Couples and lone parents will now not receive more than £500 a week, while a £350 limit applies to single people. |
The cap is part of the government's overhaul of the benefits system, the biggest since the 1940s. | The cap is part of the government's overhaul of the benefits system, the biggest since the 1940s. |
Key payments including jobseeker's allowance and child and housing benefit count towards the cap. | Key payments including jobseeker's allowance and child and housing benefit count towards the cap. |
Changes to the benefit system have been spearheaded by Work and Pensions Secretary Iain Duncan Smith, who argues that too many people are trapped on benefits. | Changes to the benefit system have been spearheaded by Work and Pensions Secretary Iain Duncan Smith, who argues that too many people are trapped on benefits. |
Critics say the cap fails to tackle underlying issues, such as the cost of housing and regional differences. | |
The benefits cap will be completely implemented by 30 September. | The benefits cap will be completely implemented by 30 September. |
Once a month | Once a month |
The cap, not yet law in Northern Ireland, is said to reflect the average working household income. | The cap, not yet law in Northern Ireland, is said to reflect the average working household income. |
It has already been implemented in four London boroughs - Haringey, Enfield, Croydon and Bromley - since April. | It has already been implemented in four London boroughs - Haringey, Enfield, Croydon and Bromley - since April. |
The benefits cap applies to people receiving jobseeker's allowance, child benefit, child tax credits, housing benefits and other key support from the government. | |
There is no cap on people who receive Disability Living Allowance or its successor, the Personal Independence Payment, as well some other benefits, such as industrial injuries benefit or a war widow or widower's pension. | There is no cap on people who receive Disability Living Allowance or its successor, the Personal Independence Payment, as well some other benefits, such as industrial injuries benefit or a war widow or widower's pension. |
"The benefit cap returns fairness to the benefits systems," Mr Duncan Smith said. "It ensures the taxpayer can have trust in the welfare system and it stops sky-high claims that make it impossible for people to move into work. | "The benefit cap returns fairness to the benefits systems," Mr Duncan Smith said. "It ensures the taxpayer can have trust in the welfare system and it stops sky-high claims that make it impossible for people to move into work. |
"The limit of £500 a week ensures no-one claims more in benefits than the average household and there is a clear reason for people to get a job - as those eligible for Working Tax Credit are exempt." | "The limit of £500 a week ensures no-one claims more in benefits than the average household and there is a clear reason for people to get a job - as those eligible for Working Tax Credit are exempt." |
His department 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. |