Household Benefit Cap

• In 2013, around 56,000

workless households

of working age will have

their benefits ‘capped’

• 15 benefits are affected

• £350pw for single people

• £500pw for all others

• No allowance is made

for family size, tenure

or regional variations

Benefit Cap Some protection for some claimants:

• Families receiving

Working Tax Credit

• War widows / widowers

• Households containing

someone receiving DLA,

PIP or AA, Industrial

Injuries Benefit or ESA

(with support)

• 9 months’ grace / DHPs

Application of the Benefit Cap

• The DWP will notify

local authorities of

the households that

need to be capped

and the size of Cap

• Local authorities will

apply the Cap to the

amount of Housing

Benefit payable

• The minimum weekly HB payment is 50p

Changing times

• On 19 Dec 2012, the

DWP unexpectedly

announced a delay in

the implementation of

the Benefit Cap

• It will now be ‘piloted’

in Bromley, Croydon,

Enfield and Haringey

from April 2013, and

rolled out nationally by

the end of Sept 2013

• Test all systems

and processes

• Build the capacity

to learn, and to

respond to issues

raised, to inform

national roll-out

• Targeted support (DWP / Jobcentre Plus)

Explanation

Mitigating options:

• Get a job

• Reduce non-rent

expenditure

• Apply for a DHP

• Move to cheaper

accommodation

that is within

their means

7

Benefit Cap

• Annual Benefit Cap

losses of £5.23m

• Haringey has been

allocated £1.015m

for the Benefit Cap (£546k in 2014/15?)

• The 2013/14 DHP

allocations have

not been changed

DHPs

What the 4 boroughs want

• A genuine pilot

• Must be no financial

disadvantage in

applying Cap first

• Accurate and timely

information sharing

• Fair assessment of

the ‘new burdens’

Rent that families can afford (if their only income is benefit income and they don’t use their personal allowance)

Couple + 2 children (son 12; daughter 11)

Private tenants in 3-bedroom home

£261.19

£238.81

Personal Allowance

Max Rent Allowance

Local Authority

and BRMA

Weekly

Rent

Monthly

Shortfall

BROMLEY

Outer SE London £235.85 None

Inner SE London £306.60 £ 293.76

CROYDON

Outer South London £259.43 £ 89.35

Inner SE London £306.60 £ 293.76

ENFIELD

Outer North London £306.60 £ 293.76

HARINGEY

Outer North London £306.60 £ 293.76

Inner North London £340.00 £ 438.49

Rent that families can afford (if their only income is benefit income and they don’t use their personal allowance

Couple + 3 children (sons 12 & 8; daughter 11)

Private tenants in 3-bedroom home

£326.81 £173.19

Personal Allowance

Max Rent Allowance

Local Authority

and BRMA

Weekly

Rent

Monthly

Shortfall

BROMLEY

Outer SE London £235.85 £ 271.53

Inner SE London £306.60 £ 578.11

CROYDON

Outer South London £259.43 £ 373.71

Inner SE London £306.60 £ 578.11

ENFIELD

Outer North London £306.60 £ 578.11

HARINGEY

Outer North London £306.60 £ 578.11

Inner North London £340.00 £ 722.84

Rent that families can afford (if their only income is benefit income and they don’t use their personal allowance

Couple + 4 children (sons 16 & 8; daughters 10 & 6)

Private tenants in 3-bedroom home

£392.43

£107.57

Personal Allowance

Max Rent Allowance

Local Authority

and BRMA

Weekly

Rent

Monthly

Shortfall

BROMLEY

Outer SE London £235.85 £ 555.88

Inner SE London £306.60 £ 862.46

CROYDON

Outer South London £259.43 £ 658.06

Inner SE London £306.60 £ 862.46

ENFIELD

Outer North London £306.60 £ 862.46

HARINGEY

Outer North London £306.60 £ 862.46

Inner North London £340.00 £1007.20

Potential monthly rent shortfalls Couple with 4 children living in private rented 3-bed home

Potential monthly rent shortfalls Couple with 5 children living in private rented 4-bed home

Potential monthly rent shortfalls Couple with 6 children living in private rented 4-bed home

16

Thank you for listening