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| Benefits cap is getting more into work, research claims | Benefits cap is getting more into work, research claims |
| (about 3 hours later) | |
| The government's cap on benefits is providing an incentive for people to find work, new research has suggested. | The government's cap on benefits is providing an incentive for people to find work, new research has suggested. |
| Studies for the Department for Work and Pensions found those affected by the cap were 41% more likely to get a job than people who were unaffected. | Studies for the Department for Work and Pensions found those affected by the cap were 41% more likely to get a job than people who were unaffected. |
| Work and Pensions Secretary Iain Duncan Smith said the benefits cap was "changing attitudes and behaviour". | Work and Pensions Secretary Iain Duncan Smith said the benefits cap was "changing attitudes and behaviour". |
| But the Institute for Fiscal Studies said savings from the cap were "small". | But the Institute for Fiscal Studies said savings from the cap were "small". |
| It said the cap affected about 27,000 families in the UK - which represents less than 1% of working-age families who receive housing benefits - and saved around £100m a year. | It said the cap affected about 27,000 families in the UK - which represents less than 1% of working-age families who receive housing benefits - and saved around £100m a year. |
| Job applications | Job applications |
| The measure - which limits benefits that households can receive to £500 per week - was introduced by the government in the summer of 2013. | The measure - which limits benefits that households can receive to £500 per week - was introduced by the government in the summer of 2013. |
| Research from four studies from the Department for Work and Pension, found that 38% of those subjected to a cap said they were doing more to find work. | Research from four studies from the Department for Work and Pension, found that 38% of those subjected to a cap said they were doing more to find work. |
| A third were submitting more job applications and one in five went to more interviews, the research found. | A third were submitting more job applications and one in five went to more interviews, the research found. |
| Two in five households who said they had looked for work because of the cap in February this year had entered employment by August. | Two in five households who said they had looked for work because of the cap in February this year had entered employment by August. |
| Analysis | Analysis |
| By BBC head of statistics Anthony Reuben | By BBC head of statistics Anthony Reuben |
| To put this in context, the government is spending about £17bn a year on housing benefit and about £5bn a year on Jobseekers Allowance. | To put this in context, the government is spending about £17bn a year on housing benefit and about £5bn a year on Jobseekers Allowance. |
| The Institute for Fiscal Studies says the benefits cap affects 27,000 families - less than 1% of working-age families receiving housing benefit. | The Institute for Fiscal Studies says the benefits cap affects 27,000 families - less than 1% of working-age families receiving housing benefit. |
| The £100m saving is a shade over 0.5% of the total spending on housing benefit. | The £100m saving is a shade over 0.5% of the total spending on housing benefit. |
| Mr Duncan Smith said the evidence showed the government's welfare reforms were "encouraging people into work". | Mr Duncan Smith said the evidence showed the government's welfare reforms were "encouraging people into work". |
| "By putting an end to runaway benefit claims and introducing a system which guarantees you will always be better off in work, we are incentivising people to find employment. | "By putting an end to runaway benefit claims and introducing a system which guarantees you will always be better off in work, we are incentivising people to find employment. |
| "Every month hundreds of people who have been affected by the cap are making the positive move into work - gaining the financial security and esteem that comes with a job and a pay packet," he said. | "Every month hundreds of people who have been affected by the cap are making the positive move into work - gaining the financial security and esteem that comes with a job and a pay packet," he said. |
| IFS deputy director Carl Emmerson told BBC Radio 4's Today programme that the overall saving of £100m a year had to be put in the context of "about £100bn" spent on working-age benefits annually. | IFS deputy director Carl Emmerson told BBC Radio 4's Today programme that the overall saving of £100m a year had to be put in the context of "about £100bn" spent on working-age benefits annually. |
| "So the rationale for the policy can't really be about a significant contribution to, for example, deficit reduction," he added. | "So the rationale for the policy can't really be about a significant contribution to, for example, deficit reduction," he added. |
| The research comes after Prime Minister David Cameron said the Conservatives would cap benefits further to fund three million apprenticeships if the party wins next year's general election. | The research comes after Prime Minister David Cameron said the Conservatives would cap benefits further to fund three million apprenticeships if the party wins next year's general election. |
| A Conservative government would cut the maximum benefits a household could claim a year from £26,000 to £23,000, he said in September. | A Conservative government would cut the maximum benefits a household could claim a year from £26,000 to £23,000, he said in September. |
| Mr Emmerson said it could be concluded from the research that the plans would encourage "a few more people" in work" but probably not result in anyone moving house. | Mr Emmerson said it could be concluded from the research that the plans would encourage "a few more people" in work" but probably not result in anyone moving house. |
| The publications represent the first quantitative analysis of the impact of the new benefit cap. | The publications represent the first quantitative analysis of the impact of the new benefit cap. |
| Mark Harper, a Conservative minister in the Work and Pensions Department, said the "scare stories" about the benefits cap had proved wrong. | Mark Harper, a Conservative minister in the Work and Pensions Department, said the "scare stories" about the benefits cap had proved wrong. |
| Speaking to the BBC's Today, he said there was no evidence of a significant number of people having to use food banks, as a result of the loss in income. | Speaking to the BBC's Today, he said there was no evidence of a significant number of people having to use food banks, as a result of the loss in income. |
| The cap would save £140m in 2014-15, Mr Harper said, and end the "something for nothing culture" in the benefits system. | The cap would save £140m in 2014-15, Mr Harper said, and end the "something for nothing culture" in the benefits system. |
| Shadow work and pensions secretary Rachel Reeves said: "People should always be better off in work, which is why we are in favour of a benefit cap that is fair and effective. | |
| "But the government needs to do far more to get people off benefits and into work. Since 2010 there has been a huge increase in spending on Housing Benefit for people in work because of the government has failed to tackle low pay." |