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Benefit cap struggling to meet its aims, CIH research shows

Categories: Articles:Social Justice | Published: 25/10/2013 | Views: 1578
The government’s benefit cap will struggle to deliver its objectives of saving taxpayers’ money and encouraging people into work, according to the first major study on the cap’s implementation. The conclusions follow research led by the Chartered Institute of Housing (CIH) into the initial impact of the cap in Haringey – one of four London boroughs chosen by the government to implement the cap early.

Just 10 per cent of households affected in Haringey were able to find work to avoid seeing their benefits cut.
In-depth interviews with a number of claimants affected and advisors involved in the cap’s implementation also show:
People who are already marginalised in society are disproportionately affected by the cap.
Wider welfare reforms, such as the introduction of the Council Tax Reduction Scheme, have hit at the same time as the cap and further reduced household incomes.
There is very little evidence of tenants being able to negotiate reduced rents with landlords as a result of the cap.  Three private landlords have already forced tenants out in response to the cap.
Discretionary Housing Payments have allowed many claimants to cover rent shortfalls and stay in their homes, but this will be unsustainable in the long term because the scale of the claims will exceed council budgets.
Many claimants need intensive and personalised support to help them respond to the cap and move into employment, so local authorities and other agencies will need to consider the resourcing of this.
Read the report here
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