Welfare to Work

Benefit cap proposals and Labour’s position

Benefit cap proposals

  • Jobseeker’s Allowance,
  • Income Support,
  • Employment Support Allowance 
  •  Housing Benefit,
  • Child Benefit
  • Child Tax Credit,
  • Industrial Injuries Disablement Benefit.

There will be 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.

This is forecast to save:

  • £290m in 2013-14 and
  • £330m in 2014-15.

Labour however opposes the government’s plans for an overall cap on household benefits. Liam Byrne, shadow work and pensions secretary has said that Labour wants a cap set locally – instead of the government’s national limit of about £26,000-a-year.

However he is unable to say whether the new level should be above or or below the governments threshold.

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