The benefit cap

Contents

Terms of reference

Report overview

Who should be subject to the benefit cap?

Does the benefit cap encourage people to find work?

Is the benefit cap fair?

Impact on people who can’t escape the cap

Temporary accommodation

Universal Credit claimants

Universal Credit assessment periods

Discretionary Housing Payments as a safety net

Financial savings

Data sharing

Discretionary Housing Payments: funding for local authorities

1 Introduction

History of the cap

Original cap

Rationale

Who was affected?

Lower cap

Rationale

Who is affected?

Applying the cap

Housing Benefit vs UC

Exemptions

Grace period

Our inquiry

2 Does the benefit cap incentivise work?

Benefit cap as a work incentive

Disproportionate impact on certain groups

Conditionality: Benefit system vs benefit cap

Barriers to moving into work

Childcare

Poor health

Department’s rationale for capping households not subject to conditionality

Other ways to escape the cap

Moving house

Negotiating a cheaper rent

Taking in a lodger

Have capped claimants moved into work?

Do people move into work because of the cap?

The Department’s representation of the cap’s effectiveness

3 Is the benefit cap fair?

Fairness in the existing benefit system

Interaction with the two-child limit

Impact on claimants unable to escape the cap

Financial shortfalls

Impact

Impact on children

Monitoring the impact of the cap

Reassessing the cap limits

Temporary accommodation

Department’s rationale for capping households in temporary accommodation

UC claimants

Direct rent payments

UC assessment periods

Discretionary Housing Payments as a safety net

4 Financial savings

Expected savings

How much has it saved?

Full picture of savings

Additional costs to local authorities

Additional Resource

Temporary Accommodation

Wider costs

Discretionary Housing Payments: funding for local authorities

5 Conclusion

Conclusions and recommendations

Formal minutes

Witnesses

Published written evidence

List of Reports from the Committee during the current Parliament




Published: 12 March 2019