A LOWER benefit cap came into effect on Monday, which means that the total amount workless households can receive in benefits is now limited to £20,000 across the UK or £23,000 within Greater London (to reflect higher rent costs).

For single people without children, the cap is £15,410 in Greater London and £13,400 elsewhere.

Before the benefit cap there was no limit on the amount households could claim in state support and, according to the Department of Work and Pensions, there was often no incentive for people to find work.

East Hampshire MP Damian Hinds, now Minister of Employment at the Department of Work and Pensions, said: “The benefit cap is based on the principle that being in work should always pay more than being out of work.

“Since its introduction in 2013, almost 23,500 households who have had their benefits capped have moved into the security of a job. The new cap is £20,000 and there are, rightly, several exemptions to it, including for people with disabilities.

“The cap only applies to out-of-work households, so it is avoidable by getting a job working enough hours to qualify for working tax credits. That would be 16 hours a week in the case of a lone parent. The Government is, meanwhile, rolling out more extensive childcare support than ever before and there are around 750,000 job vacancies at any one time.”

However, while the lower cap delivers on the Government’s commitment “to put work at the centre of the welfare system, ensuring it remains fair to both the taxpayers who pay for it and to those people who need it”, the Trussell Trust Foobank network believes it could be called upon to pick up the pieces.

According to new data released on October 27 by the University of Oxford, research shows a strong link between people having their benefit payments stopped or cut and an increase in referrals to foodbanks.

Researchers analysed four years of Trussell Trust Foodbank data and found an increase in 10 Jobseeker’s Allowance sanctions per 100,000 adults was associated with five more adults needing foodbanks.

In response, The Trussell Trust, which runs a network of more than 420 foodbanks, including the foodbank in Alton, is calling for a ‘yellow card’ warning system to stop people falling into crisis.

The latest usage figures, released last Tuesday, show a worrying trend with half a million three-day emergency parcels distributed by foodbanks between April and September, and benefit delays and changes being the biggest reasons for foodbank use.

The figures indicate that the foodbank network is on course to distribute the highest number of food parcels in its 12-year history during 2016-17, and the Trussell Trust is calling for a direct telephone line between foodbanks and local job centres to help get people back on their feet faster, reducing stress and impact on mental well-being of clients.

While Alton is actually bucking the trend, the concern remains the same. Tim Pinchen, chairman of trustees for Alton Foodbank, said: “Over the least two years there has been a slight year-on-year drop in the use of Alton Foodbank. This is welcome since it indicates that fewer people are facing hunger in this area.

“However, we have seen a slight change in the reasons why local people need to use the foodbank. There has been a slight proportional increase in those who face short term poverty because of lack of employment under contracts such as those that are called ‘zero hours’. This is a matter that I recently discussed with our local MP, Damian Hinds.”

According to the Department of Work and Pensions, anyone eligible for working tax credits is exempt from the benefit cap – “providing a clear incentive to move into work”.

Furthermore, people claiming carer’s allowance, guardian allowance, and most disability benefits are also exempt from the cap, “ensuring those who cannot work are supported”.

The new lower cap will be phased in across the country and will be fully implemented by local authorities by January. All claimants potentially affected by the new lower cap have been contacted by the Government and local authorities ahead of these announced changes to ensure they know the help and support that is on offer, such as budgeting support, opportunities to learn new skills, and help with childcare costs.

The Department of Work and Pensions is also working closely with local authorities and will have provided them with more than £1bn of discretionary housing payments by the end of this Parliament to support people transitioning to the reforms, as the new cap is introduced.