Benefits cap to be axed
THE coalition government is set to scrap the planned £26,000 per family annual state welfare cap amid fears families in London could be forced out of the city.
The U-turn, which has been interpreted as a sop to the Liberal Democrats, was confirmed yesterday by Tory welfare reform minister Lord Freud. He told the BBC Politics Show the cap would only be waived under “exceptional circumstances” where the government suspects “something undesirable” is happening.
The families most likely to have been hit are those with five or more children living in the capital.
The proposed £26,000 cap, which had played well with the public, was proposed after it emerged that some 50,000 families receive higher benefits than the average household income. Households caring for a disabled person are already exempt from the cap.