Fewer households expected to suffer under new benefit cap

The benefit cap of £500/week is now expected to hit fewer homes than the government originally thought.The Department for Work and Pensions believed that 56,000 households would be £93/week worse off but figures now suggest that this has now fallen to 40,000 households. The DWP claims that this is a result of more people feeling incentivised by the changes to go and seek more work.The cap at £500/week was supposed to reflect the average income of households across the UK, meaning that those on benefits would not be able to receive more in benefits than the average working household.The new system will begin a trial next week in a number of London boroughs.The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors are a national full service law firm, with residential property solicitors in London and across the country.