The lowered overall household benefits cap was never
“designed as a cost-saving” measure, a DWP spokesperson has said. The
government has insisted that the total household benefit cap – which is reduced
from £26,000 to £20,000 (£23,000 in London) – was designed to get people back
into work and was not designed as a cost-saving measure. This is despite the
cap being included in a list of measures last year to enable former chancellor
George Osborne to achieve £12bn of welfare cuts. The DWP was responding to a
report by the Institute for Fiscal Studies (IFS) today that suggested any
cost-saving from the policy would be “trivial”. Read the IFS report on their
website.
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