Gordon Brown enacted this bit of stupidity. He felt that if he gave the tenants control of their money, it would teach them to manage it better.
It failed spectacularly. Tenants either couldn't handle it themselves, or aided by the housing benefit depatment decided they didn't need to - when I asked HB to pay the rent directly to me when the tenants were in arrears, I was told that they didn't actually have to pay it to me, it was the tenants choice if they did or didn't.
GB also made things worse by increasing the amount of housing benefit the tenants go, and so rents rose, because in the past, tenants on housing benefit often couldn't (or more often wouldn't) make up the shortfall between the rent, and what HB paid.
Main points
- Of the 20.7 million households (where at least one member is aged 16 to 64) in the UK, 11.9 million (57.6%) had all household members aged 16 and over in employment, up 160,000 or 0.7 percentage points over the past year.
- There were 5.7 million households (27.6%) with a mix of at least one working and one workless adult, down 70,000 or 0.3 percentage points over the year.
- There were 3.1 million households (14.9%) where no member of the household was in employment, down 80,000 or 0.4 percentage points over the last year.
So basically, 80,000 people came off benefits because of the benefits cap (I'll find the data tomorrow) but that still means that there are 3.1 million households where no one is employed, and I hate to think how many children and adults that equates to. I doubt if the average of 2.4 children per household applies, as most people on benefits tend to have 3-5 kids.
But otherwise yes, fortunately there are many more parents with young children are employed, except the benefits families expand faster.