Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the net annual savings to the Exchequer of the extension of the benefit cap to £23,000 per year in London and £20,000 per year outside London.

Since the introduction of the benefit cap from April 2013 the annual reduction to Housing benefit due to the cap was £60 million in 2013/14, £80 million in 2014/15 and £65 million in 2015/16.

Notes:

1. Estimates are rounded to the nearest £5 million per year
2. Estimates are based on the monthly capped caseload and average amount capped available from Stat Xplore: https://stat-xplore.dwp.gov.uk/
3. This estimate represents the savings from the reduction to Housing Benefit due to the benefit cap. It excludes any impacts and wider benefits of the behavioural changes in response to the cap such as moving into work and also excludes any DEL costs related to the introduction of the policy.

A detailed explanation of the estimated net annual savings to the Exchequer from the new, lower benefit cap of £23,000 per year in London and £20,000 per year outside London can be found in the latest Impact Assessment, published 25^th August 2016:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/548741/welfare-reform-and-work-act-impact-assessment-for-the-benefit-cap.pdf