McCausland To Propose Benefit Changes In Line With UK

UNDER the Welfare Reform Bill, the Government is proposing to introduce a benefit cap of £500 per week.

Social Development Minister, Nelson McCausland says 99 per cent of claimants will be unafected by what equates to £26,000 cap on annual benefit.

The Welfare Reform Bill is currently progressing through Westminster. Minister McCausland is currently considering proposals for a similar benefit cap in Northern Ireland which may be included in a Northern Ireland Welfare Reform Bill, which the Minister will seek Executive approval to introduce into the Assembly later this year.

Minister McCausland said: "Early estimates indicate, only a small number of people in Northern Ireland will be affected by this proposed benefits cap of £26,000."

Approximately 340,000 households in Northern Ireland were in receipt of social security benefits last year. Of these, over 99 per cent of households received less than £26,000 a year.

Minister McCausland continued: "My Department is continuing to work with the information available to try to identify the types of households affected by the proposed benefit cap and the scale of that impact.

"While I believe it is fair that those who are out of work should not have an income which exceeds those who are in work; it is equally important that we fully understand, and attempt to minimise, any negative impacts that the welfare reform proposals have for the people of Northern Ireland within the constraints of the parity principle which we are bound by Treasury to adhere to."

The Coalition Government said there will be some exemptions to the cap, in particular, where anyone within the household is receiving Disability Living Allowance.

Minister McCausland added: "It is well-known that going out to work is good for a person's health and well-being, so it is important we make the welfare system fairer so there are clear incentives to work, because work is the best route out of poverty."