Monday, May 7, 2012

More than 11,000 households on benefits are as well off as higher rate taxpayers

More than 11,000 households are raking in benefits that are at least the equivalent of a higher rate taxpayers’ £47,000 salary, it has been revealed.

The figure was disclosed by Work and Pensions Secretary Iain Duncan Smith before letters are sent to households this week explaining a new cap on benefits under which no one can claim more than the average annual working wage of £26,000.

The cap comes into force next April and aims to remove the disincentive to work that leaves many of the unemployed better off on benefits.

Mr Duncan Smith said: ‘For more than ten years Labour let the benefits bill soar, and these figures show the scale of the problem.

‘It is absurd that people are able to claim as much on benefits as a higher rate taxpayer earns.

‘The welfare state should work as a safety net and then support people to financial independence. Read More