The government has announced in the Queens Speech that many working age benefits won't be increased for the next 2 years and the benefit cap will be reduced from 26,000 to 23,000 per year. The Full Employment and Welfare Benefits Bill states-
' Working-age benefit freeze
• The new legislation would freeze the main rates of the majority of working- age benefits, tax credits and Child Benefit for two years from 2016-17.
• Pensioners would be protected, as would benefits relating to the additional costs of disability.
• Statutory payments, such as Statutory Maternity, Paternity, and Adoption Pay would also be exempted.
Lowering the benefit cap
• The new legislation would lower the benefit cap so that the total amount of benefits a non-working family can receive in a year would be £23,000.
• A cap at £23,000 is equivalent to gross family earnings of up to £29,000.'
The Guardianhas reported that a leaked DWP memo suggests that the lowering of the benefit cap could put 40,000 more children into poverty.
Click herefor our updated Introduction to Welfare Benefits 2015 course.