Analysis: Who will be hit if the benefit cap is lowered?

By: Jenny Pennington  Published: August 2015

The Welfare Reform and Work Bill contains a proposal to reduce the benefit cap. Under these proposals the cap will be lowered to just £20,000 for families outside of London and to £23,000 a year for families in London. We analysed the impact of these changes.


We looked at the impact of lowering the cap on families who are currently out of work and are renting a home from a private landlord in the cheapest part of the market. The analysis compares the different impacts of the two policies (current benefit cap and proposed benefit cap). In particular: would the change affect different sizes of families and would the change affect families in different areas.


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