Does the cap fit? An analysis of the impact of welfare reform in London:A research report commissioned by London Councils

Author: Hamnett, Chris

Corporate author: London Councils and Navigant Consulting (Europe) Ltd

Publisher: Navigant Consulting (Europe) Ltd

Publication date: November 2010

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The Government is planning fundamental reform of the welfare benefits system in order to simplify the existing system and improve work incentives. The cornerstone of these reforms is the introduction of the Universal Credit, from 2013. 

This study provides an analysis of the scale and degree of housing unaffordability that may result from the Universal Credit Cap. It also considers the options available to households as a result and the potential impact on selected local government services. It does not, however, seek to predict how households will respond or what level of household movement may result.  This research follows on from a previous study commissioned by London Councils into the impact in London of restrictions to the Local Housing Allowance. These LHA caps will limit housing benefit to the cheapest 30% of properties in a defined area, and impose fixed cash limits for different-sized properties.