After a trial run in the London boroughs of Haringey, Enfield, Croydon and Bromley since April of this year, the new benefit cap is now being rolled out across the rest of the UK.
Couples will now not receive more than £500 a week and single people can only receive up to £350. The benefit cap applies to people on jobseeker’s allowance, child benefit, child tax credits, housing benefits and other benefits.
“The benefit cap returns fairness to the benefits systems,” Mr Duncan Smith said. “It ensures the taxpayer can have trust in the welfare system and it stops sky-high claims that make it impossible for people to move into work.
“The limit of £500 a week ensures no-one claims more in benefits than the average household and there is a clear reason for people to get a job – as those eligible for Working Tax Credit are exempt.”
His department says about £90bn was paid out in benefit payments to people of working age and their families in 2009-10. It hopes the cap will save about £110m a year.
If you would like to check to see if the new benefit cap will affect you then you can check on the gov.uk website with their benefit cap calculator .