Tuesday, 8 January 2013

Benefit cap hits single parents

Highlights of who's affected by the 1% limit on benefit and tax credit increases in 2014-15 and 2015-16, culled from the DWP impact assessment.

Worst hit in cash terms are single parents, who lose £5 a week, or 1% of net income.

Poorest families are hit hardest, the bottom tenth seeing an average £4 a week loss, or 2% of income. It's because they rely more on benefits.

Average loss for the 30% of households who are affected by the cap on increases is £3 a week, or 1% of income.

Just be clear, these households will still receive cash increases in benefit or tax credit income. But the increases will fail to keep pace with price rises, which are expected to be 2.6% and 2.2% in the two years in question.

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