Department for Work and Pensions
Thousands more households boost work hours and earnings
Latest statistics show 140,000 Housing Benefit households and 9,900 Universal Credit households are no longer subject to the benefit cap.
Welfare reform shows success with record employment and more than 55,000 households moving off the benefit cap and into work.
Families across the UK are experiencing the wider benefits of moving into and progressing in work.
New figures released yesterday (7 February 2019) by the Department for Work and Pensions show that thousands more benefits households are working more, boosting their earnings and are no longer subject to a benefit cap as a result. Other figures out this month show that UK employment is now at a record high.
According to yesterday’s statistics, more than 55,000 households have either moved off the cap from Housing Benefit or Universal Credit by being exempt due to starting a job or increasing their hours or earnings.
Introduced in 2013, the benefit cap incentivises work, including part-time opportunities, as anyone eligible who moves into work and earns over a certain amount becomes exempt from the cap.
The policy also aims to transform families’ futures by showcasing the wider benefits of employment to younger generations. Those with working parents are more likely to achieve higher levels of educational attainment and move into work in adulthood. The latest figures show that at least 190,000 more children are living in a household that moved into work and off the benefit cap.
And this follows separate figures last quarter which reported the number of children living in workless households had fallen by more than 30% since 2010.
Justin Tomlinson, Minister for Family Support, Housing and Child Maintenance yesterday said:
It’s really encouraging that the number of people moving off the cap and into work continues to increase in the UK. Our changes to the welfare system have been instrumental in encouraging people to move into employment and improve their lives, while providing the right support for those who need it.
We know that children in working families perform better at school and families moving off the benefit cap are not only reaping the rewards of progressing in work, but are inspiring the next generation to fulfil their potential.
Regionally, the South East has the highest percentage of households under Housing Benefit moving off the benefit cap and into employment (43%).
The new statistics follow the news that the UK employment rate has increased to a new record high of 75.8%, making a difference to homes across the country as wages grow at their fastest rate in almost a decade.
Under the benefit cap, anyone eligible who moves into work and then earns enough for Working Tax Credit (or the equivalent under Universal Credit) becomes exempt.
The estimate of the number of children in households that were capped but went into work is for households that had their Housing Benefit capped only. It is calculated by multiplying the number of children in these households by the number of households. Households with more than 5 children are grouped together, so for this calculation we have assumed that there are 6 children in these households.
There are 140,000 Housing Benefit households that are no longer subject to the benefit cap, with 55,000 of these becoming exempt from the cap due to starting work or increasing their hours.
9,900 Universal Credit households are no longer subject to the cap with more than 2,400 now exempt due to increased earnings through employment since October 2016 .
The percentage of households under Housing Benefit moving off the benefit cap and into employment is calculated by taking the number of households with an open Working Tax Credit claim as a percentage of the total off flows for each region. These figures are available in Table 4 of the published ODS tables.
Contact Press Office
Media enquiries for this press release – 020 3267 5144
London Press Office (national media and London area enquiries only – not questions about personal claims) 020 3267 5144
Out-of-hours (journalists only) 07623 928 975
England and Wales (local media enquiries) 029 20 586 then 097 or 098 or 099
Scotland (local media enquiries) 0131 310 1122
Follow DWP on:
Latest News from
Department for Work and Pensions
New pension scheme "could deliver improved returns for millions"18/03/2019 16:10:00
Amber Rudd backed plans for the first Collective Defined Contribution (CDC) scheme in the UK.
Amber Rudd: “Behind our supportive staff is a compassionate system”15/03/2019 16:20:00
After setting out a fresh approach to Universal Credit, Work and Pensions Secretary Amber Rudd will hear how the changes will help local people in Hastings.
Radical shake-up of advice to pension schemes will benefit savers and boost £1.6 trillion pension assets13/03/2019 12:10:00
A radical reshaping of financial advice services used by pension schemes for long-term investment strategies will benefit millions of savers and boost the nation’s £1.6 trillion retirement assets, under plans unveiled by the government yesterday (12 March).
Universal Credit pilot to launch in North Yorkshire12/03/2019 15:10:00
The Work and Pensions Secretary yesterday announced that benefit claimants in Harrogate will be the first to move from old style benefits to Universal Credit.
New champions to fight for rights of disabled consumers12/03/2019 12:28:00
Five new disability champions have been appointed by the government to ensure businesses are not forgetting about their disabled customers.
Alok Sharma: 'There is still an urgency for us to act' on women’s economic independence11/03/2019 12:10:00
There are more women in work than ever before and the gender pay gap is at a record low, but that there is more to do to tackle employment inequality.
You're hired!08/03/2019 17:08:00
Amber Rudd will host the first ever youth employment roadshow in Hastings to help young jobseekers into the world of work.
Workless households fall by over a million since 201007/03/2019 13:10:00
Employment Minister Alok Sharma welcomes the fall of over a million workless households since 2010.