Economy, The Benefit System, Welfare to Work

Household benefits cap defeated in the Lords

Household benefits cap defeated in the Lords

The Welfare Reform Bill has completed its Commons stages and is now in the penultimate stage in the House of Lords. Ministers have already said a defeat in the Lords will be overturned in the Commons, but it seems that the bill will be subject to a ping-pong effect until an agreement is reached.

Most recently, the government has been defeated in the Lords in a vote on its plans for a £26,000-a-year household benefit cap.

This was an amendment that child benefits should not be included in the cap, and this was backed by 252 to 237 peers.

The government argued that the benefit cap will save £290m next year, with 67,000 families losing on average £83 a week.

Benefit cap proposals:

  • From April 2013, the total amount of benefit that working-age people can receive will be capped so households on out-of-work benefits will not receive more than the average household weekly wage.
  • this applies to combined income from the main out-of-work benefits – Jobseeker’s Allowance, Income Support, and Employment Support Allowance – and other benefits such as Housing Benefit, Child Benefit and Child Tax Credit, Industrial Injuries Disablement Benefit
  • Exemptions for households in receipt of Working Tax Credit, Disability Living Allowance or its successor Personal Independence Payment, Constant Attendance Allowance and war widows and widowers.
  • Forecast to save £290m in 2013-14 and £330m in 2014-15.

Read more on the current progress of the Welfare Reform Bill in the House of Lords.

Amanda Frewin

Research & Project Support


1 Comment

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