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Social Security Benefits

Question for Department for Work and Pensions

UIN HL14823, tabled on 26 March 2019

To ask Her Majesty's Government what estimate they have made of the number of households subject to the benefit cap that have moved into work in comparison with the number of households that have moved into work that are not subject to that cap.

Answered on

2 April 2019

The Department published its evaluation of the original benefit cap levels “Benefit cap: Analysis of Outcomes of capped claimants” in December 2014. From the findings the Government estimated that capped households were 4.7 percentage points (41%) more likely to flow into work after a year compared to similar uncapped households.

Households working more than 16 hours a week and eligible for working tax credits or entitled to Universal Credit and earning at least £542 (£569 from April 2019) a month are exempt from the benefit cap.

Statistics published on 7 February 2019 show that in November 2018, out of a total of 196,840 capped Housing Benefit awards since May 2013, 55,360 were no longer capped because they had moved into work. In addition, out of a total of 19,660 Universal Credit awards capped since October 2016, 2,420 were no longer capped because they had earnings above the earnings threshold (currently £542). These figures will include some households that would have moved into work in the absence of the cap.