Policy in Practice
Deven Ghelani The benefit cap: the policy
and practice
Thursday 26 November
www.policyinpractice.co.uk
A team of professionals with extensive knowledge of the welfare
system. We’re passionate about making social policy work
We help over 100 local authorities use their household level
data to identify vulnerable households, target support and track
their interventions
Our benefit calculator engages over 10,000 people each day.
We identify the steps people can take to increase their income,
lower their costs and build their financial resilience
Policy in Practice: What we do
www.policyinpractice.co.uk
Our first project was on the Benefit Cap
www.policyinpractice.co.uk
In 2013, councils were supported
through USDL finding and access to
JCP provision to support capped
households into work.
“I was struck by the level of need in
households we previously weren’t in
contact with at all”
Councils no longer have ready access
to information on who is capped, and
have fewer resources to support capped
residents.
www.policyinpractice.co.uk
Capped households April 2013 - May 2020
www.policyinpractice.co.uk
www.policyinpractice.co.uk
More households are hit by the Cap
www.policyinpractice.co.uk
A family with two children in London would be capped. This calculation uses my
own circumstances (two children, 2 and 5). If I were out work I would be capped.
Are capped households more likely to
enter work?
www.policyinpractice.co.uk
Our evidence to the Work and Pensions Committee (here) compared employment
outcomes for capped households against those who fell below the cap
There are some successes:
● Capped households are 21% more likely to enter work
However, we also found that:
● for every 1 child whose parents moved into work, 8 more were stuck on the
cap for six months or more, and living closer to destitution
On this evidence, the policy appears to be failing on its own terms.
www.policyinpractice.co.uk
● Work is no longer an option
for many
● Households whose support is
already limited by the cap see
no increase in support
● People who previously
worked for a year are
protected for nine months.
● Once this protection ends,
new households will become
subject to the benefit cap.
Benefit cap and COVID-19
www.policyinpractice.co.uk
Our analysis in May 2020 showed the benefit cap will limit the beneficial impact
of the government’s April 2020 COVID-19 increases in benefit support
Looking ahead
www.policyinpractice.co.uk
If the benefit cap is to stay in place, local
authorities should be enabled to do more
● Locally held administrative datasets can
identify capped households.
● Better information sharing, particularly on
capped UC households, can get support to
parents faster.
● Tools can engage and empower parents to
improve their financial situation.
● The benefits of employment needs to be
weighed against increased arrears, higher
temporary accommodation costs and
ultimately on children’s outcomes
Thank you
www.policyinpractice.co.uk
Deven Ghelani
Director and Founder of Policy in Practice
deven@policyinpractice.co.uk
@Deven_Ghelani
hello@policyinpractice.co.uk
www.policyinpractice.co.uk
@policy_practice
0330 088 9242

The benefit cap: the police and practice

  • 1.
    Policy in Practice DevenGhelani The benefit cap: the policy and practice Thursday 26 November
  • 2.
    www.policyinpractice.co.uk A team ofprofessionals with extensive knowledge of the welfare system. We’re passionate about making social policy work We help over 100 local authorities use their household level data to identify vulnerable households, target support and track their interventions Our benefit calculator engages over 10,000 people each day. We identify the steps people can take to increase their income, lower their costs and build their financial resilience Policy in Practice: What we do
  • 3.
    www.policyinpractice.co.uk Our first projectwas on the Benefit Cap www.policyinpractice.co.uk In 2013, councils were supported through USDL finding and access to JCP provision to support capped households into work. “I was struck by the level of need in households we previously weren’t in contact with at all” Councils no longer have ready access to information on who is capped, and have fewer resources to support capped residents.
  • 4.
    www.policyinpractice.co.uk Capped households April2013 - May 2020 www.policyinpractice.co.uk
  • 5.
    www.policyinpractice.co.uk More households arehit by the Cap www.policyinpractice.co.uk A family with two children in London would be capped. This calculation uses my own circumstances (two children, 2 and 5). If I were out work I would be capped.
  • 6.
    Are capped householdsmore likely to enter work? www.policyinpractice.co.uk Our evidence to the Work and Pensions Committee (here) compared employment outcomes for capped households against those who fell below the cap There are some successes: ● Capped households are 21% more likely to enter work However, we also found that: ● for every 1 child whose parents moved into work, 8 more were stuck on the cap for six months or more, and living closer to destitution On this evidence, the policy appears to be failing on its own terms.
  • 7.
    www.policyinpractice.co.uk ● Work isno longer an option for many ● Households whose support is already limited by the cap see no increase in support ● People who previously worked for a year are protected for nine months. ● Once this protection ends, new households will become subject to the benefit cap. Benefit cap and COVID-19 www.policyinpractice.co.uk Our analysis in May 2020 showed the benefit cap will limit the beneficial impact of the government’s April 2020 COVID-19 increases in benefit support
  • 8.
    Looking ahead www.policyinpractice.co.uk If thebenefit cap is to stay in place, local authorities should be enabled to do more ● Locally held administrative datasets can identify capped households. ● Better information sharing, particularly on capped UC households, can get support to parents faster. ● Tools can engage and empower parents to improve their financial situation. ● The benefits of employment needs to be weighed against increased arrears, higher temporary accommodation costs and ultimately on children’s outcomes
  • 9.
    Thank you www.policyinpractice.co.uk Deven Ghelani Directorand Founder of Policy in Practice [email protected] @Deven_Ghelani [email protected] www.policyinpractice.co.uk @policy_practice 0330 088 9242