What is the Benefits Cap?

The Coalition has introduced a benefits cap of £26,000. That is the same amount as the average working family earns, after tax.

Benefit_cap.jpgThe cap does not apply to disability benefit, so people who need to make adaptations to their homes, for example to accommodate a wheelchair, are still able to do so.

At the same time we have made work pay better by giving people a £700 income tax cut, allowing the low paid to keep more of their earnings. We are also withdrawing benefits more gradually, so that if people can get a job, they don’t suddenly get all their benefits withdrawn and end up worse off in work than on benefits

Liberal Democrats in Government made several improvements to the Tories’ original unfair plans for the cap. These changes include:

  • Ensuring that those affected by the cap will receive and have access to immediate support from Jobcentre Plus and the Work Programme.
  • A nine month grace period for those who have been in work for the previous 12 months.
  • Up to £80m in discretionary housing payments in 2013/14, and a further £50m in 2014/15.

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