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An act of faith? IDS 'believes' benefit cap will force workshy to find jobs

An act of faith? IDS 'believes' benefit cap will force workshy to find jobs

By Alex Stevenson

Iain Duncan Smith placed his political credibility on the line this morning, as the coalition's benefit cap finally comes into force across the country.

The work and pensions secretary insisted the move, preventing those claiming benefits from receiving more than average earnings, would prompt claimants to look for work and save taxpayers £110 million a year.

Duncan Smith had been criticised by the Office for National Statistics (ONS) for suggesting in May that 8,000 people who would have been affected had already found jobs because of his reforms.

"This clearly demonstrates that the cap is having the desired impact," a Department for Work and Pensions (DWP) press release quoted him as saying. The ONS dismissed the claim as "unsupported".

Speaking on the Today programme, Duncan Smith repeatedly said he believed the introduction of the benefit cap would make a real difference.

"My claim is I believe we are right that what we say is people who were notified of the cap.... are going to seek work where they did not seek work before," he said.

From today couples in England, Scotland and Wales will receive no more than £500 a month, whether they have children or not. Single claimants will see their benefits capped at £350 a month.

The benefit cap is set to be popular with voters. Research by Ipsos Mori shows three-quarters support the cap, while 50% think the UK's welfare spending is too big.

The growth in spending on welfare over recent years - partly a result of the economy's disappointing performance - has made it harder for the coalition to achieve its deficit reduction aims.

Departmental spending cuts have been partly offset by a rising benefits bill which now means £1 in every £3 of taxpayers' money is spent on benefits.

A number of benefits are exempted from the cap, including the disability living allowance.

Today sees the national rollout of the cap, which had been piloted in the London boroughs of Haringey, Enfield, Croydon and Bromley since April.