The Government has claimed success with the benefits cap, which limits families to a maximum of £20,000 per year, or £23,000 per year in London. The cap was introduced in 2013 and at the time impacted 150,000 households.
Since the introduction of the cap Government statistics show that 81,000 households no longer face the cap, with 34,000 households having moved into work.
David Gauke, the Secretary of State for Work and Pensions, said:
“It is right that people who are out of work are faced with the same choices as those who are in work and these figures show that the benefit cap has been a real success. But behind these figures are thousands of people who are now better off in work and enjoying the benefits of a regular wage.
With record levels of employment and over three quarters of a million vacancies at any one time, even more people have the opportunity to change their lives for the better”.
Debbie Abrahams, the Shadow Secretary of State for Work and Pensions, has said that Labour would examine scrapping the benefits cap.