Benefits Cap of £500

Osborne’s cap of welfare payments to affect 50,000 work less families.

Chancellor George Osborne has announced that there is a limit to be placed on the total amount of welfare benefit a family can receive.

This change will come about in 2013 when 50,000 unemployed families will have their benefits capped at an estimate of £500 a week. This means an out-of-work family will lose up to an average of £93 a week. The Tories claim that some families could lose up to £300 a week.

Local authorities will be set the task of assessing the total benefit income of those receiving benefits  and making the cap work Osborne announced to the Conservative Party conference in Birmingham today.

The cap will see and end to the universal entitlement to child benefit and will affect around 1.2 million households. A saving of approximately £1 billion a year is expected through this cut.

Chancellor George Osborne has said the cut which will apply to those on the 40% and 50%income tax rates from 2013 was “difficult but fair”. He claims that the cut “makes sense” because ” we are all in this together”.

He told Conservative delegates “we saw  over the past ten years that more money without reform was a recipe for failure. Less money without reform would be worse”. He claims the cut will “put this country’s finances on a sustainable path for years to come”.


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