The new cap of benefits which now the government has begun to roll out, are expected to cover the whole country. Many people are wondering if this will affect the redundancy policy in the UK in any way.
Today the London boroughs of Bromley, Croydon, Enfield and Haringey will limit the amount of money which parents can receive from various benefits- couples and single parents will get £500 a week and single people will receive £350 a week. What will happen to the parental leave then?
The cap will now include people receiving disability benefits but will include income from jobseeker’s allowance, income support, housing benefit and child benefit. May be we`ll need a job application form templates more than ever.
From July to September the scheme will be introduced in other areas in England, Scotland and Wales.
The aim of this move is that the Department for Work and Pensions saves £110m a year.
In the words of employment minister Mark Hoban they aimed to create an affordable benefits system.
“This is about fairness,” said Hoban. “There are people in this country making difficult choices about where they live and who don’t claim housing benefits. If they want to escape the benefits cap, the best way to do it is to move into work.”
However, critics claim this move would make couples break up so that they would escape many financial limitations.
Investigations show that the main part of the non-working families with four or more children will be forced below the poverty line.
Others say that housing benefits cap would pay directly to landlords so the better thing the government could try to do is to call for more affordable housing and lower rents.