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PARLIAMENTARY WRITTEN QUESTION
Social Security Benefits: Scotland (7 November 2016)

Question Asked

To ask the Secretary of State for Work and Pensions, how many Scottish households his Department has contacted on the reduction in the benefit cap; what the average change in income is to each Scottish household affected by the lower camp; and what the overall cumulative change is to household incomes in Scotland resulting from the lower cap.

Asked by:
Ian Murray (Labour)

Answer

Claimants in a household potentially affected by the cap were notified in advance and the estimated number of households affected by the lower cap in Scotland is available in the latest Impact Assessment published here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/548741/welfare-reform-and-work-act-impact-assessment-for-the-benefit-cap.pdf

It is estimated that the income of each Scottish household affected by the lower cap will be reduced by an average of £67 per week, and that the total reduction in the income of all Scottish households affected by the lower cap is estimated to be £350,000 per week.

Notes:

  1. Estimates assume no behavioural responses - any behavioural responses to the lower cap, such as claimants moving into employment, would cause the number of households affected to reduce.
  2. The total reduction has been rounded to the nearest £10,000 per week
  3. The methodology used to estimate the households affected by the cap and the average reduction is consistent with that described in the latest impact assessment published here: https://www.gov.uk/government/publications/welfare-reform-and-work-act-impact-assessment-for-the-benefit-cap

The benefit cap will be lowered from 7th November from £26,000 to £20,000, except in London where it will be lowered to £23,000 (a lower cap applies to single adult households). To help ensure Local Authorities are able to protect the most vulnerable Housing Benefit claimants and to support households adjusting to our welfare reforms, the Government will provide £870m funding for Discretionary Housing Payments over the next 5 years from 2016/17. Information about this and other measures to ease the transition for families affected by this policy change is included in the latest impact assessment at the link above.


Answered by:
Caroline Nokes (Conservative)
14 November 2016

Contains Parliamentary information licensed under the Open Parliament Licence v3.0.