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Oldham residents affected by benefits cap is 700

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Oldham Council has warned that as many as 700 local residents could be hit financially by the Government’s new Benefit Cap. http://www.oldham.gov.uk/press/article/1242/oldham_residents_to_be_affected_by_benefit_cap

From Monday (7 November) the maximum amount of out-of-work benefits working-age families can receive in Oldham will be £20,000 with single adults with no children not able to claim more than £13,400.

Total household welfare payments will be capped at £384.62 per week for couples or lone parent households and at £257.69 per week for single person households with no children.

The changes could impact on a total of 520 households in Oldham, 47 of which already have a cap on their benefits. 

Around 125 Universal Credit claimants are also affected.

The new cap will be implemented in stages with the 47 existing capped households affected from 14 November and newly capped households affected from 12 December.

Claimants affected by the benefit cap are allowed a 39-week “grace period” which provides protection for those with a consistent work history whose employment has ended or they have been forced to leave work due to a change in their circumstances.

If residents are affected their housing benefit will be reduced to make sure the total amount of benefit they receive isn’t more than the benefit cap level.

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That's not many really which means the cap is likely to be reduced more either directly or just letting benefit inflation do the work.

It will be interesting to see what unintended consequences come from this and what work these people can actually get.

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