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Benefits

House of Lords written question – answered on 7th July 2011.

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Photo of Baroness Lister of Burtersett Baroness Lister of Burtersett Labour

To ask Her Majesty's Government what is the median amount of child benefit received by working families with children with median earnings; and what would be the impact on the number of households affected by the proposed benefit cap if the median income at which benefit is capped included this amount of child benefit.

Photo of Lord Freud Lord Freud The Parliamentary Under-Secretary of State for Work and Pensions

On its introduction we estimate that household benefit payments will be capped at around £500 per week for couple and lone parent households and around £350 per week for single adult households. We estimate that 50,000 households will be affected by the benefit cap.

The median level of child benefit received by couples with children and lone parents with median earnings is estimated to be £33.70 per week. This is equivalent to the amount of child benefit received by a household with two children.

If household benefit payments were capped £33.70 per week higher than outlined in the spending review 2010, at £533.70 per week for couple and lone parent households, the number of households affected by the benefit cap would fall by 30 to 40 per cent.

Analysis of those affected by the benefit cap has been modelled using survey data -as such there is a degree of uncertainty around the results.

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