120517 Job Centre Plus on Welfare Reform Benefit Cap

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Jobcentre Plus

Jim McGonigle

District Manager

East & South East Scotland

Lyndean House, 199 Commercial Street, Edinburgh, EH6 6QP

Telephone 0131 5558070 Fax 0131 5558005

Textphone 0845 601 6045

www.direct.gov.uk

Kezia Dugdale MSP

The Scottish Parliament

Holyrood

Edinburgh

EH991SP

11 May 2012

Dear Ms Dugdale

Welfare Reform Act 2012: benefit cap

I am writing to provide you with information about the introduction of the

benefit cap and to advise you of the steps DWP is taking to support claimants

affected.

Background

On 8 March 2012, the Welfare Reform Bill received Royal Assent in both

Houses of Parliament. The reforms within this Bill will bring about the most

fundamental changes to the social security system for over 60 years. The

benefit cap is one of the measures included in the Welfare Reform Act 2012.

What is it?

From April 2013, the Government will introduce a cap on the total amount of

benefits trat working-age people can receive, so that households on out-of-

worK benefits should no longer receive more in welfare payments than the

average weekly wage for working households.

Based on current forecasts on wage levels in 2013, the cap will be set at

around £500 per week for a couple and single parent households, equivalent

to a £35,000 gross salary for someone in work and at around £350 per week

for single adult households without children.

In the short-term, the cap will be administered jointly by Department for Work

and Pensions (DWP) and Local Authorities (LAs) and will be deducted from

Housing Benefit payments. In the long-term it will form part of the new

Universal Credit system.

Part of the Department for Work and Pensions INVESTOR IN PEOPLE

http://www.direct.gov.uk/

http://www.direct.gov.uk/



Why is a cap being introduced?

The Government believes that there should be a limit on the overall level of

benefit it is appropriate for the state to provide to those who are not working.

They want to restore fairness to the claimant through making work pay and

provide fairness to the taxpayer by ensuring money is not wasted on trapping

people on benefits.

Households entitled to Working Tax Credit will be exempt from the cap to help

ensure that someone in work will be better off than if they were on benefits.

How will the benefit cap be implemented?

The benefit cap will take effect from April 2013. From May 2012, DWP will

identify and make contact with claimants potentially affected through the issue

of a direct mail letter. This will give claimants almost 12 months notice of the

changes; providing them with a Helpline telephone number and the offer of an

appointment to talk through with a DWP adviser the help and support

available to them.

The support on offer to claimants affected.

This is a significant change and DWP is working closely with LAs to ensure a

smooth transition. We will know who the people are who are likely to be

affected by the cap and we have advisers who will inform them of the existing

support and provision available through DWP - the Work Programme and

Work Choice, to help them find work.

On receipt of system generated reports, DWP Districts will be contacting

claimants to ensure they have received the notification and to offer support.

Where appropriate, claimants will be encouraged to participate in employment

support to help them find work. For those claimants whose immediate concern

relates to housing and accommodation, they will be sign-posted to the LAs for

advice.

Our Employer and Partnership Managers will continue to inform stakeholders

and support the changes through the Customer Representative Groups and

Employability Forums that operate across the District.

What should claimants do?

If you are approached by your constituents on this matter you can make them

aware that there will be no change to their benefits until April 2013 and inform

them of the support available via the Helpline available from 9 May 2012

Helpline Number: 08456057064 (text phone 08456088551)

Welsh Language line: 0845 6057066.



More information

You can find out more information about the Welfare Reform Act 2012 via the

DWP website here

http://www.dwp.gov.uk/policy/disability/welfare%2Dreform%2Dbill%2D2011 %

2 Dand%2 Ddisabled/

I hope that this information is helpful to you. If you require any further

information please do not hesitate to contact me. If you should receive any

questions from your constituents, a Question and Answer brief is included at

the end of the letter

Yours sincerely

J McGonigle

District Manager

Documents

120517 Job Centre Plus on Welfare Reform Benefit Cap