Duncan Lewis

Shepherds Bush Office

provide over 3000 matter starts in

Immigrating , Family and Housing

Government to send letters to all the benefit recipients to explain the benefit cap and the support of government in finding work

Date: (5 May 2012)    |    

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According to a figure disclosed by the Work and Pensions Secretary Iain Duncan Smith more than 11,000 households were raking in benefits that were equivalent of a higher rate taxpayer’s £47,000 salary.
The figures were revealed on the eve of letters being sent to households this week explaining about the new benefit cap which is pegged at the average annual working wage of £26,000.
The cap would be enforced from next April aimed at removing the disincentive to work that leaves many of the unemployed better off on benefits.
Blaming the Labour which he claimed let the benefits bill soar he said that it was absurd that the people were able to claim in benefits equivalent to what a higher rate taxpayer earns.
He added that welfare state should be working as a safety net and then support people to financial independence and that he was writing to benefit recipients that the government was going to stand by them in the coming year to give them the support to find work and become self sufficient.
Mr Smith said that the reforms would make it sure that work always pays more than a life on benefits and an example that the government was on the side of people who worked hard and wish for a better life.
The 11,000 households exposed by Mr Duncan Smith enjoy benefits of more than £34,000 a year, equating to a gross wage of £47,000. This was enough to put most employees into the higher rate 40p tax band.
This week the Government would write to 67,000 households that could be affected by having their benefits reduced to the £26,000 limit, spelling out the support available to find work.
According to official figures, at least 100 families on benefits are living in luxury homes, with many receiving housing handouts of about £5,000 per month – enough to fund a £1million mortgage.
Households exempt from the cap include those where there are people in work and claiming working tax credits, and families that are deemed to be very vulnerable – including war widows and those claiming disability living allowance.
People who have lost their job but were employed for 12 months or more prior to claiming benefits will have nine months’ grace before the cap applies.
Jonathan Isaby, of the TaxPayers’ Alliance, said: ‘Many taxpayers struggling to make ends meet will find it incredibly unfair that some people are drawing more in benefits than they’ve ever actually earned themselves.
They claim it will ensure that no one will be better off on benefits than in work, removing the so-called ‘cliff edge’ where those who take on part-time work end up worse off as benefits are removed.