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Written Question
Social Security Benefits
Thursday 10th November 2016

Asked by: David Lammy (Labour - Tottenham)

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the potential effect of the extension of the benefit cap to £23,000 per year in London and £20,000 per year outside London on the number of (a) people and (b) children living in households in (i) relative poverty and (ii) absolute poverty.

Answered by Caroline Nokes

There is no current estimate available. Previous estimates used an out-of-date methodology and do not reflect the latest estimate of households affected by the lower cap.

We know that work is the best route out of poverty. 74% of poor children in workless families that moved into full employment exited poverty. We have made real progress - the number of children living in workless households is at a record low, down by more than 80,000 in the past year and well over half-a-million since 2010.

The existing benefit cap, at £26,000, has been shown to be successful with more households looking for, and finding work. The new, lower, tiered cap aims to build on this success by strengthening the work incentive for households.

Local authorities can make discretionary housing payments to help vulnerable people adjust to the changes.


Written Question
Discretionary Housing Payments
Thursday 10th November 2016

Asked by: David Lammy (Labour - Tottenham)

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what plans his Department has to increase funding to local authorities for discretionary housing payments to households affected by the extension of the benefit cap to £23,000 per year in London and £20,000 per year outside London.

Answered by Caroline Nokes

The estimated number of households affected by the new, lower benefit cap is published in the latest impact assessment: https://www.gov.uk/government/publications/welfare-reform-and-work-act-impact-assessment-for-the-benefit-cap. This includes a regional breakdown of the total numbers.

To take account of the welfare reform measures announced at Summer Budget and Autumn Statement 2015, we have committed £870 million in overall Discretionary Housing Payments over the next five years. As part of this, the £150 million allocated for Discretionary Housing Payments in 2016/17 rises to £185 million in 2017/18.


Written Question
Discretionary Housing Payments
Thursday 10th November 2016

Asked by: David Lammy (Labour - Tottenham)

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the potential effect of the extension of the benefit cap to £23,000 per year in London and £20,000 per year outside London on the number of households applying for discretionary housing payments.

Answered by Caroline Nokes

The estimated number of households affected by the new, lower benefit cap is published in the latest impact assessment: https://www.gov.uk/government/publications/welfare-reform-and-work-act-impact-assessment-for-the-benefit-cap. This includes a regional breakdown of the total numbers.

To take account of the welfare reform measures announced at Summer Budget and Autumn Statement 2015, we have committed £870 million in overall Discretionary Housing Payments over the next five years. As part of this, the £150 million allocated for Discretionary Housing Payments in 2016/17 rises to £185 million in 2017/18.


Written Question
Social Security Benefits
Thursday 10th November 2016

Asked by: David Lammy (Labour - Tottenham)

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the net annual savings to the Exchequer of the extension of the benefit cap to £23,000 per year in London and £20,000 per year outside London.

Answered by Caroline Nokes

Since the introduction of the benefit cap from April 2013 the annual reduction to Housing benefit due to the cap was £60 million in 2013/14, £80 million in 2014/15 and £65 million in 2015/16.

Notes:

  1. Estimates are rounded to the nearest £5 million per year
  2. Estimates are based on the monthly capped caseload and average amount capped available from Stat Xplore: https://stat-xplore.dwp.gov.uk/
  3. This estimate represents the savings from the reduction to Housing Benefit due to the benefit cap. It excludes any impacts and wider benefits of the behavioural changes in response to the cap such as moving into work and also excludes any DEL costs related to the introduction of the policy.

A detailed explanation of the estimated net annual savings to the Exchequer from the new, lower benefit cap of £23,000 per year in London and £20,000 per year outside London can be found in the latest Impact Assessment, published 25th August 2016:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/548741/welfare-reform-and-work-act-impact-assessment-for-the-benefit-cap.pdf


Written Question
Social Security Benefits
Thursday 10th November 2016

Asked by: David Lammy (Labour - Tottenham)

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the net annual savings to the Exchequer since the introduction of the benefit cap in 2013.

Answered by Caroline Nokes

Since the introduction of the benefit cap from April 2013 the annual reduction to Housing benefit due to the cap was £60 million in 2013/14, £80 million in 2014/15 and £65 million in 2015/16.

Notes:

  1. Estimates are rounded to the nearest £5 million per year
  2. Estimates are based on the monthly capped caseload and average amount capped available from Stat Xplore: https://stat-xplore.dwp.gov.uk/
  3. This estimate represents the savings from the reduction to Housing Benefit due to the benefit cap. It excludes any impacts and wider benefits of the behavioural changes in response to the cap such as moving into work and also excludes any DEL costs related to the introduction of the policy.

A detailed explanation of the estimated net annual savings to the Exchequer from the new, lower benefit cap of £23,000 per year in London and £20,000 per year outside London can be found in the latest Impact Assessment, published 25th August 2016:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/548741/welfare-reform-and-work-act-impact-assessment-for-the-benefit-cap.pdf


Written Question
Social Security Benefits
Thursday 10th November 2016

Asked by: David Lammy (Labour - Tottenham)

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the potential effect of the extension of the benefit cap to £23,000 per year in London and £20,000 per year outside London on the number of (a) people and (b) children who use food banks.

Answered by Caroline Nokes

These figures are not available, as the Government does not believe it is possible to keep a record of the potential number of people using food banks or other types of food aid, without placing unnecessary burdens on volunteers trying to help their communities. It is also widely acknowledged that the reasons people use food banks are complex and overlapping. It is misleading to link them to any one cause. For those who need extra support, Discretionary Housing Payments are available from Local Authorities, as well as budgeting support, hardship payments and additional employment support.


Written Question
Housing Benefit
Thursday 10th November 2016

Asked by: David Lammy (Labour - Tottenham)

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the number of households who will have a reduced entitlement to housing benefit in (a) Tottenham constituency, (b) the borough of Haringey, (c) London, and (d) the UK as a result of the extension of the benefit cap to £23,000 per year in London and £20,000 per year outside London.

Answered by Caroline Nokes

It is estimated that around 500 households in Tottenham constituency will be affected by the lower benefit cap in 2016/17. The information on the number of households affected by the lower benefit cap in London, the London Borough of Haringey and Great Britain is available in the latest impact assessment published 25th August 2016: https://www.gov.uk/government/publications/welfare-reform-and-work-act-impact-assessment-for-the-benefit-cap

The estimated number of children in households affected in Great Britain is available in the latest impact assessment above. It is estimated that around 1,200 children are in households affected by the lower cap in Tottenham constituency, 1,800 in the London Borough of Haringey and 41,200 in London.

Information regarding Northern Ireland is a matter for the Northern Ireland Office.

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. Estimates of households and children affected have been rounded to the nearest 100.
  3. The methodology used to estimate the households and children affected by the cap is consistent with that described in the latest impact assessment above.

Written Question
Social Security Benefits
Thursday 10th November 2016

Asked by: David Lammy (Labour - Tottenham)

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the number of (a) households and (b) children who will be affected by the extension of the benefit cap to £23,000 per year in London and £20,000 per year outside London in (i) Tottenham constituency, (ii) Borough of Haringey, (iii) London and (iv) the UK.

Answered by Caroline Nokes

It is estimated that around 500 households in Tottenham constituency will be affected by the lower benefit cap in 2016/17. The information on the number of households affected by the lower benefit cap in London, the London Borough of Haringey and Great Britain is available in the latest impact assessment published 25th August 2016: https://www.gov.uk/government/publications/welfare-reform-and-work-act-impact-assessment-for-the-benefit-cap

The estimated number of children in households affected in Great Britain is available in the latest impact assessment above. It is estimated that around 1,200 children are in households affected by the lower cap in Tottenham constituency, 1,800 in the London Borough of Haringey and 41,200 in London.

Information regarding Northern Ireland is a matter for the Northern Ireland Office.

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. Estimates of households and children affected have been rounded to the nearest 100.
  3. The methodology used to estimate the households and children affected by the cap is consistent with that described in the latest impact assessment above.

Written Question
Social Security Benefits
Thursday 10th November 2016

Asked by: David Lammy (Labour - Tottenham)

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the potential effect of the extension of the benefit cap to £23,000 per year in London and £20,000 per year outside London on the level of spending by local authorities on (a) emergency, (b) temporary and (c) bed and breakfast accommodation for people at risk of homelessness.

Answered by Caroline Nokes

The evaluation of the current benefit cap shows very little, if any, impact on homelessness as a direct result of the cap. The small numbers of capped households who had been evicted were noted by Local Authorities as having other reasons for rent arrears and also failing to engage with relevant services; they were considered intentionally homeless. To help ensure Local Authorities are able to protect the most vulnerable housing benefit claimants and to support households adjusting to reforms, the government will provide £870 million funding for the Discretionary Housing Payments scheme over the next 5 years. Housing Benefit paid for specified accommodation such as refuges is ignored when calculating whether or not the cap applies.


Written Question
Social Security Benefits
Thursday 10th November 2016

Asked by: David Lammy (Labour - Tottenham)

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the number of households living in emergency housing who will be affected by the extension of the benefit cap to £23,000 per year in London and £20,000 per year outside London.

Answered by Caroline Nokes

The evaluation of the current benefit cap shows very little, if any, impact on homelessness as a direct result of the cap. The small numbers of capped households who had been evicted were noted by Local Authorities as having other reasons for rent arrears and also failing to engage with relevant services; they were considered intentionally homeless. To help ensure Local Authorities are able to protect the most vulnerable housing benefit claimants and to support households adjusting to reforms, the government will provide £870 million funding for the Discretionary Housing Payments scheme over the next 5 years. Housing Benefit paid for specified accommodation such as refuges is ignored when calculating whether or not the cap applies.