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  • April 15th, 2013

Benefit Payments Cap Begin in London

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A cap on the amount of benefits people can receive is being introduced in the four London boroughs of Croydon, Bromley, Haringey and Enfield. The cap will see couples and single parents receive no more than £500 a week in benefits and the limit for single people is £350.

The latest move is part of the efforts to cut spending on welfare. Jobseeker’s allowance, income support, child and housing benefit count the limit and the amount is said to reflect the average working household income.

The cap will be introduced across the country from July 15th and will be “completely implemented” by September, according to the Department for Work and Pensions’ plans.

Vince Cable told BBC Radio that “These reforms are very controversial and some people are going to get hit unfortunately. Inevitably you will get hard cases. You have to create some support for the hard cases so we don’t have real difficulty”.

Labour have argued that a better way to cut the benefits bill would be to offer guaranteed jobs to the long-term unemployed.

Shadow work and pensions minister Stephen Timms said: “For all the Tory rhetoric, the true picture of this government is one of economic failure.

“They are having to borrow £245bn more than they planned, not to pay for the investment needed to grow our economy, but to pay for more welfare spending caused by high unemployment.”

The cap was originally expected to save £275 million a year from the welfare bill.

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