To ask His Majesty's Government, whether they intend to abolish the benefit cap following their research which found that only five per cent of affected households moved into work as a result of it.
Answered on
16 June 2023
The benefit cap continues to provide a work incentive and fairness for hard-working taxpaying households, whilst providing a reasonable safety net of support for the most vulnerable. The Government firmly believes that where possible it is in the best interests of children to be in working households and the benefit cap provides a clear incentive to move into work.
The lower benefit cap had a positive impact with an additional 5.1% of households moving into employment as a result of it. An additional 2.6% of households left the cap as a result of their benefit entitlements being updated to include an exempting benefit and an additional 1.8% of households left the cap by moving property, at Census Output Area (COA) level, to reduce their rental costs.