The cap is neither forcing unemployed people to take a job nor saving taxpayers' money, according to the first in-depth study.
The benefit cap – according to opinion polls the government's most popular welfare policy – is neither forcing unemployed people to take a job nor saving taxpayers' money, according to the first in-depth study of the policy.
Research in the borough of Haringey in north London found just a handful of the 747 households affected by the cap have secured a job or increased their working hours since it was introduced six months ago, despite intensive and personalised support from councils and local jobcentres.
Although the policy was shaving £60,000 a week from the benefits bill locally, this amounted to just 1% of the council's total weekly benefit expenditure. Haringey has so far spent £55,000 a week on short-term discretionary grants to help claimants affected by the cap meet rent shortfalls, and thousands more on providing extra welfare and employment advice.
The few capped claimants who had so far moved into employment were already "close to the labour market" and were likely to have got a job anyway, or were already working part-time and had increased their hours, according to Haringey jobcentre officials and charity job advisers interviewed by the Chartered Institute of Housing.
Haringey was one of four areas that piloted the benefit cap from April. All other English, Scottish and Welsh local authorities have since introduced the cap.
