16,000 fewer to be hit by bedroom tax

The number of households expected to be hit by the new £500 a week benefits cap has fallen by a quarter, the Government said yesterday.

By The Newsroom

Published 13th Apr 2013, 01:01 BST

Initial estimates had suggested 56,000 would be affected by the controversial limit, losing an average of around £90 per week.

However, the forecast has now been cut to 40,000. Officials suggested 8,000 people have found jobs while others have moved to cheaper properties.

Work and Pensions Secretary Iain Duncan Smith said: “The Benefit Cap sets a clear limit for how much support the welfare state will provide – the average wage for working households.

“But it’s also a strong incentive for people to move into work and even before the cap comes in we are seeing thousands of people seeking help and moving off benefits.”

The benefit cap is due to be introduced in four London boroughs from April 15.

National implementation will begin in July, with the policy fully in force by the end of September.