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7/31/2019 120517 Job Centre Plus on Welfare Reform Benefit Cap
http://slidepdf.com/reader/full/120517-job-centre-plus-on-welfare-reform-benefit-cap 1/3
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
7/31/2019 120517 Job Centre Plus on Welfare Reform Benefit Cap
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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.
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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