Social Security Benefits: Greater London

(asked on 2nd November 2016) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, how many households in (a) East Ham constituency and (b) the London Borough of Newham will be affected by the extension of the benefit cap to £23,000; and in each such case what the average reduction in benefits will be.


Answered by
Caroline Nokes Portrait
Caroline Nokes
This question was answered on 7th November 2016

It is estimated that around 400 households in East Ham constituency and 800 households in the London Borough of Newham will be affected by the lower benefit cap in 2016/17.

It is estimated that the average reduction to benefits for capped households will be £76 per week in East Ham constituency and £74 per week in the London Borough of Newham in 2016/17. This is the overall average reduction from the benefit cap including the impact of both the existing higher benefit cap and the new lower benefit cap.

Notes:

  1. Estimates assume no behavioural responses - any behavioural responses to the lower cap, such as claimants moving into employment, would cause the number of households affected to reduce.
  2. The number of capped households has been rounded to the nearest 100 households
  3. Average amounts have been rounded to the nearest £1 per week.
  4. The methodology used to estimate the households affected by the cap is consistent with that described in the latest impact assessment published here: https://www.gov.uk/government/publications/welfare-reform-and-work-act-impact-assessment-for-the-benefit-cap
  5. The benefit cap will be lowered from 7th November from £26,000 to £20,000, except in London where it will be lowered to £23,000 (the benefit cap for single adult households is lower). To help ensure Local Authorities are able to protect the most vulnerable Housing Benefit claimants and to support households adjusting to our welfare reforms, the Government will provide £870m funding for Discretionary Housing Payments over the next 5 years from 2016/17. Information about this and other measures to ease the transition for families affected by this policy change is included in the latest impact assessment at the link above.
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