By James Simons-
Universal Credit claimants are to have their benefits capped in the new year, with those affected will be informed in the lead-up to Christmas.
The cap could leave thousands of struggling families and individuals worse off by thousands of pounds a year, and risks pushing some into destitution.
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Those who lost their jobs earlier this year and have been able to find work are to be informed next month by the Department for Work and Pensions that their payments will be cut unless they find employment.
The expected rise in benefit caps comes after a nine month “grace period” in which some claimants were protected from a cap at the start of the pandemic. Those who have been claiming since April, are expected to experience a further rise in benefits at the end of January, when their “grace period” ends.
Figures published last week showed that 170,000 British households had their benefits capped in April, with more than 40 per cent of these households including children under five.
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A separate research suggested that the financial shock of this cap increased the risks of poor mental health among claimants.
The study by the London School of Economics said: “[The cap] may actually push people further away from the labour market because it undermines their well being.”
Benefits caps – limiting the total amount of benefit people can receive – were first introduced in 2013 as an “incentive” for jobless people to find work.
Many working people in the Uk are in support of capping the benefits of the unemployed. Although there are many unemployed people genuinely searching for work, there are many more lazy people who rely totally on state benefits.
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