Benefit cap encouraging some work-seeking over time

An Ipsos survey of claimants identified as affected by the Benefit Cap suggests that many claimants believe the Benefit Cap has encouraged them to find paid work as a result of the policy.

A longitudinal survey of claimants identified as affected by the Benefit Cap at October 2013 was conducted by Ipsos on behalf of the Department for Work and Pensions. Wave 2 cohort results suggest that many claimants believe the Benefit Cap has encouraged them to find paid work as a result of the policy.

Overall, 44% of the wave 2 cohort, whether still affected or not, said they had felt more encouraged to find paid work as a result of being affected by the Benefit Cap, in line with the 40% who had said this in wave 1.

The wave 2 cohort also reported undertaking some employment-related activities more frequently as a result of being affected by the Benefit Cap. The proportion who said they were doing more in terms of attending job interviews and/or using employment-related services increased significantly between the two survey waves (from 14% and 27%, to 20% and 35% respectively).

One in five (22%) of the wave 2 cohort surveyed were no longer affected by the Benefit Cap, half of whom said this was because they had found work.

However, relatively few had moved home since wave 1, with housing costs the most significant barrier to finding alternative accommodation.

The survey also found that the wave 2 cohort were still reporting a number of financial difficulties since being interviewed in wave 1. Many (35%) said they were cutting back on household essentials in response to being affected by the Benefit Cap, and three quarters (76%) said they ran out of money very or fairly often at the end of the week or month. Most said they were borrowing from family and friends to cover the shortfall.

The proportion of the wave 2 cohort saying they are in arrears had changed little since wave 1, though those who are no longer affected are much less likely to be in rent arrears than those who are still affected.

Technical Note

Ipsos conducted a two-wave longitudinal telephone survey of Housing Benefit claimants known to be affected by the Benefit Cap identified from the October 2013 Single Housing Benefit Extract (SHBE). A random sample of claimants known to be affected at the time of the extract was selected, providing representative coverage of affected claimants across Great Britain and rented tenures. Wave 1: Results based on a sample size of 1,060 respondents self-identified to be currently affected by the changes at the time of interview, and 140 respondents who said they are no longer affected. Fieldwork conducted between 7 and 26 February 2014 inclusive. Wave 2: Results based on a sample size of 468 respondents from wave 1 who agreed to take part in a follow-up survey. Analysis focused on the 333 respondents still affected by the Benefit Cap at the time of interview, and 96 respondents who said they were no longer affected. Fieldwork conducted between 11 August and 15 September 2014 inclusive. Results for both waves were weighted to the profile of affected claimants as per the October SHBE extract.

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