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| Iain Duncan Smith defends use of statistics over benefits cap | Iain Duncan Smith defends use of statistics over benefits cap |
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| The work and pensions secretary, Iain Duncan Smith, has insisted he was right to claim that benefit claimants subject to the new welfare cap are being forced into work, even though he has been criticised by the government statistics watchdog for making the assertion. | The work and pensions secretary, Iain Duncan Smith, has insisted he was right to claim that benefit claimants subject to the new welfare cap are being forced into work, even though he has been criticised by the government statistics watchdog for making the assertion. |
| He said: "I have a belief I am right," as he published polling showing how popular the measure was with the public. He also denied claims that families subject to a cap would be made homeless, arguing that "the homelessness figures have hardly moved at all". | He said: "I have a belief I am right," as he published polling showing how popular the measure was with the public. He also denied claims that families subject to a cap would be made homeless, arguing that "the homelessness figures have hardly moved at all". |
| Duncan Smith was speaking on BBC Radio 4's Today programme on the day a benefits cap already trialled in four London boroughs was spread across the country. The cap is set at just below £26,000 per household, around average earnings. Polling shows the move is the single most popular reform the government has made to the welfare system. | |
| But results of trials published by the Department for Work and Pensions have shown that 8,000 people have been affected in four London boroughs, with many large families losing more than £100 a week. Only those in work, widows, the disabled and the sick are exempt. | But results of trials published by the Department for Work and Pensions have shown that 8,000 people have been affected in four London boroughs, with many large families losing more than £100 a week. Only those in work, widows, the disabled and the sick are exempt. |
| Duncan Smith has already been criticised by the Office for National Statistics (ONS) for claiming that the cap has led to 8,000 people finding work. He was told by the ONS that it was not possible to find any causal link between the cap and those finding work. | Duncan Smith has already been criticised by the Office for National Statistics (ONS) for claiming that the cap has led to 8,000 people finding work. He was told by the ONS that it was not possible to find any causal link between the cap and those finding work. |
| An unrepentant Duncan Smith told the Today programme: "You cannot absolutely prove those two things are connected – you cannot disprove what I said. I believe this to be right. I believe we are already seeing people going back to work who were not going back to work until this group were capped." | An unrepentant Duncan Smith told the Today programme: "You cannot absolutely prove those two things are connected – you cannot disprove what I said. I believe this to be right. I believe we are already seeing people going back to work who were not going back to work until this group were capped." |
| Pressed on claims made by Haringey council that out of 740 families subject to the cap only 34 families had found work, he said the BBC could always find politically motivated people to make that kind of remark. He insisted: "We have not published evidence in this. I believe I am right" – pointing to evidence from jobcentres. | Pressed on claims made by Haringey council that out of 740 families subject to the cap only 34 families had found work, he said the BBC could always find politically motivated people to make that kind of remark. He insisted: "We have not published evidence in this. I believe I am right" – pointing to evidence from jobcentres. |
| Duncan Smith said the principle was simple: "You cannot go on earning more money out of work on benefits than those in work trying hard." | Duncan Smith said the principle was simple: "You cannot go on earning more money out of work on benefits than those in work trying hard." |
| On the effects of the benefits cap on those facing high housing costs, he added: "We believe that in London there is plenty of accommodation and the vast majority of accommodation is available – a third of all rental accommodation in the private sector is available for people on social rents. | On the effects of the benefits cap on those facing high housing costs, he added: "We believe that in London there is plenty of accommodation and the vast majority of accommodation is available – a third of all rental accommodation in the private sector is available for people on social rents. |
| "The great talk about thousands being made homeless has not come true. The homeless figures have hardly moved at all." | "The great talk about thousands being made homeless has not come true. The homeless figures have hardly moved at all." |
| He said it was wrong for welfare claimants to live in houses where the rent is £50,000 or £100,000 a year, saying other families lived out of central London and commuted to work. | He said it was wrong for welfare claimants to live in houses where the rent is £50,000 or £100,000 a year, saying other families lived out of central London and commuted to work. |
| The reforms are due to save £275m in 2013-14 and £275m in 2014-15 (in cash terms) or £270m in 2013-14 and £265m in 2014-15 (in 2012-13 prices). | The reforms are due to save £275m in 2013-14 and £275m in 2014-15 (in cash terms) or £270m in 2013-14 and £265m in 2014-15 (in 2012-13 prices). |
| Duncan Smith denied he was punishing people, saying: "There is no life to lead to accept the fact that you languish on benefits, trying to avoid ways of getting back to work. You put people into housing they cannot afford when they go back to work because the rules are you lose part of your housing benefit when your income goes up." | Duncan Smith denied he was punishing people, saying: "There is no life to lead to accept the fact that you languish on benefits, trying to avoid ways of getting back to work. You put people into housing they cannot afford when they go back to work because the rules are you lose part of your housing benefit when your income goes up." |
| The cap, which limits combined benefits, will be spread gradually across the next 12 weeks. | The cap, which limits combined benefits, will be spread gradually across the next 12 weeks. |
| Over the next six weeks it will be introduced across 335 local authority areas which have an estimated 275 or fewer households affected. From 12 August it will then be applied to a further 40 local authority areas which have an estimated 276 or more households to be capped. | Over the next six weeks it will be introduced across 335 local authority areas which have an estimated 275 or fewer households affected. From 12 August it will then be applied to a further 40 local authority areas which have an estimated 276 or more households to be capped. |
| The Department for Work and Pensions said the cap would be phased in gradually, with councils "sent low volumes for capping at the start of implementation to ensure DWP levels of expertise are achieved at the required accuracy levels". The DWP said that by the end of September, the cap would have been rolled out to all households. Most claims under universal credit will be capped from October. | The Department for Work and Pensions said the cap would be phased in gradually, with councils "sent low volumes for capping at the start of implementation to ensure DWP levels of expertise are achieved at the required accuracy levels". The DWP said that by the end of September, the cap would have been rolled out to all households. Most claims under universal credit will be capped from October. |
| The cap has already been trialled in four London boroughs since 15 April: Croydon, Bromley, Haringey and Enfield. | The cap has already been trialled in four London boroughs since 15 April: Croydon, Bromley, Haringey and Enfield. |
| According to the government's impact assessment, the benefits cap will affect 56,000 households. | According to the government's impact assessment, the benefits cap will affect 56,000 households. |
| National Housing Federation director Ruth Davison said: "In many parts of the country, families won't be able to pay high private rents because of the cap. There will be more demand for than ever for affordable housing, particularly in Greater London where nearly half (49%) of the people affected by the benefit cap live. | |
| "Families could face the stark choice of cutting back on essentials or having to move away long distances from their support networks to look for cheaper places to live. Until we see a long-term affordable house building programme that will drive down the price of rents for everybody, housing costs should be removed from the cap." | |
| Matthew Reed, chief executive of the Children's Society, accused the government of trying to use a "blunt instrument" to solve a complex problem. | |
| "The debate around this cap has focused solely on workless adults, but the reality is that children are seven times more likely than adults to lose out," he said. | |
| "140,000 children, compared to 60,000 adults, will pay the price as parents have less to spend on food, clothing and rent. | |
| "And almost half the adults affected will have children aged four or younger, and would find it extremely difficult to be in work, even if they could afford childcare which can cost as much as £100 per child per week. | |
| "We fully support efforts to make work pay. But it is not right to do this by putting more children on the breadline. Instead, the government should do more to help families by tackling the sky-high rents in some parts of the UK and making childcare affordable." |