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<p>It is estimated that around 1,700 households in the County of Lancashire and 100
households in the Borough of Pendle will be affected by the lower benefit cap in 2016/17.</p><p>
</p><p>The annual benefit reduction from the lower cap is estimated to be around £3,900,000
in the County of Lancashire and £200,000 in the Borough of Pendle in 2016/17 if the
cap was in place for the full financial year, however actual savings will be much
lower in view of the lower cap only applying to the latter part of the year.</p><p>
</p><p>Notes:</p><ol><li>Estimates assume no behavioural responses - any behavioural
responses to the lower cap, such as claimants moving into employment, would cause
the number of households affected to reduce.</li><li>The number of capped households
has been rounded to the nearest 100 households</li><li>Annual benefit reduction has
been rounded to the nearest £100,000 per year.</li><li>Modelling for this assessment
was conducted using administrative records held by the Department for Work and Pensions
containing amounts of benefit paid (including Child Benefit, as paid by HM Revenue
and Customs) and indicators of receipt of Working Tax Credit and exemption benefits
such as Disability Living Allowance. This enables the separation of households into
those excluded from the cap, and those which will be subject to it and by how much.
The administrative records relate to November 2015, but have been adjusted to reflect
the future benefit regime.</li></ol><p> </p><p> </p><p>The benefit cap will be lowered
from 7th November from £26,000 to £20,000, except in London where it will be lowered
to £23,000 (a lower cap applies to single adult households). To help ensure Local
Authorities are able to protect the most vulnerable Housing Benefit claimants and
to support households adjusting to our welfare reforms, the Government will provide
£870m funding for Discretionary Housing Payments over the next 5 years from 2016/17.</p>
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