Letters on benefits cap sent out

8 May 2012 Last updated at 18:38

Pound coinsThe cap will be introduced in April next year

The government has written to all households which may be affected by the forthcoming cap on benefit payments.

From April 2013 the total amount of out-of-work benefits available to working-age people will be capped at £500 a week, or £26,000 a year.

The letters notify claimants of exemptions to the cap and offer advice on returning to work.

Welfare Reform minister Lord Freud said the changes would restore “integrity and fairness” to the system.

The cap applies to the combined income from the main benefits received by the unemployed, including Jobseeker’s allowance, Income Support and Employment Support Allowance.

The restriction is designed to ensure these benefits to not add up to more than the average household weekly wage.

There are, however, exemptions such as Housing Benefit, Child Benefit and Child Tax Credit.

The cap will also not affect those households where one member qualifies for Working Tax Credit.

The change is forecast to save £290m in 2013-14 and £330m in 2014-15.

Paul Champion
Strategic Project Manager

Mobile: 07540 704920

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